51Talk Online Education Group Fundamental Analysis
51Talk Online Education Group (COE) shows strong financial fundamentals with a PE ratio of -0.10, profit margin of -15.28%, and ROE of 61.87%. The company generates $6.4B in annual revenue with strong year-over-year growth of 89.09%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze COE's fundamental strength across five key dimensions:
Efficiency Score
WeakCOE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCOE trades at attractive valuation levels.
Growth Score
ModerateCOE shows steady but slowing expansion.
Financial Health Score
ModerateCOE shows balanced financial health with some risks.
Profitability Score
ModerateCOE maintains healthy but balanced margins.
Key Financial Metrics
Is COE Expensive or Cheap?
P/E Ratio
COE trades at -0.10 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, COE's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values 51Talk Online Education Group at -0.05 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -9.05 times EBITDA. This is generally considered low.
How Well Does COE Make Money?
Net Profit Margin
For every $100 in sales, 51Talk Online Education Group keeps $-15.28 as profit after all expenses.
Operating Margin
Core operations generate -12.42 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $61.87 in profit for every $100 of shareholder equity.
ROA
51Talk Online Education Group generates $-25.43 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
51Talk Online Education Group produces operating cash flow of $697.32M, showing steady but balanced cash generation.
Free Cash Flow
51Talk Online Education Group produces free cash flow of $561.92M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $95.20 in free cash annually.
FCF Yield
COE converts 10.01% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-0.10
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.001
vs 25 benchmark
P/B Ratio
Price to book value ratio
-0.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.88
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-0.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.62
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.62
vs 25 benchmark
ROA
Return on assets percentage
-0.25
vs 25 benchmark
ROCE
Return on capital employed
0.43
vs 25 benchmark
How COE Stacks Against Its Sector Peers
| Metric | COE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -0.10 | 36.06 | Better (Cheaper) |
| ROE | 61.87% | 729.00% | Weak |
| Net Margin | -15.28% | -140961.00% (disorted) | Weak |
| Debt/Equity | -0.09 | 0.46 | Strong (Low Leverage) |
| Current Ratio | 0.62 | 3.39 | Weak Liquidity |
| ROA | -25.43% | 236.00% | Weak |
COE outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews 51Talk Online Education Group's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-72.56%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
-171.40%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-90.34%
Industry Style: Growth, Innovation, High Beta
Declining