EDU Holdings Limited
EDU Holdings Limited Fundamental Analysis
EDU Holdings Limited (EDU.AX) shows strong financial fundamentals with a PE ratio of 7.52, profit margin of 17.96%, and ROE of 71.63%. The company generates $0.1B in annual revenue with strong year-over-year growth of 98.84%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.0/100 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 EDU.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentEDU.AX demonstrates superior asset utilization.
Valuation Score
ExcellentEDU.AX trades at attractive valuation levels.
Growth Score
ModerateEDU.AX shows steady but slowing expansion.
Financial Health Score
ModerateEDU.AX shows balanced financial health with some risks.
Profitability Score
ExcellentEDU.AX achieves industry-leading margins.
Key Financial Metrics
Is EDU.AX Expensive or Cheap?
P/E Ratio
EDU.AX trades at 7.52 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, EDU.AX's PEG of 0.10 indicates potential undervaluation.
Price to Book
The market values EDU Holdings Limited at 4.95 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.02 times EBITDA. This is generally considered low.
How Well Does EDU.AX Make Money?
Net Profit Margin
For every $100 in sales, EDU Holdings Limited keeps $17.96 as profit after all expenses.
Operating Margin
Core operations generate 25.63 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $71.63 in profit for every $100 of shareholder equity.
ROA
EDU Holdings Limited generates $26.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
EDU Holdings Limited generates strong operating cash flow of $24.19M, reflecting robust business health.
Free Cash Flow
EDU Holdings Limited generates strong free cash flow of $23.29M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.16 in free cash annually.
FCF Yield
EDU.AX converts 20.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.36
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.72
vs 25 benchmark
ROA
Return on assets percentage
0.27
vs 25 benchmark
ROCE
Return on capital employed
0.59
vs 25 benchmark
How EDU.AX Stacks Against Its Sector Peers
| Metric | EDU.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.52 | 22.36 | Better (Cheaper) |
| ROE | 71.63% | 1238.00% | Weak |
| Net Margin | 17.96% | -5096.00% (disorted) | Strong |
| Debt/Equity | 1.11 | 1.23 | Neutral |
| Current Ratio | 1.09 | 2.47 | Neutral |
| ROA | 26.86% | -191998.00% (disorted) | Strong |
EDU.AX outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews EDU Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
17.82%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
140.04%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
2.14%
Industry Style: Defensive, Dividend, Low Volatility
Growing