RISE Education Cayman Ltd
RISE Education Cayman Ltd Fundamental Analysis
RISE Education Cayman Ltd (REDU) shows moderate financial fundamentals with a PE ratio of 8.68, profit margin of 0.00%, and ROE of 15.08%. The company generates N/A in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -18.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze REDU's fundamental strength across five key dimensions:
Efficiency Score
ExcellentREDU demonstrates superior asset utilization.
Valuation Score
ExcellentREDU trades at attractive valuation levels.
Growth Score
WeakREDU faces weak or negative growth trends.
Financial Health Score
ExcellentREDU maintains a strong and stable balance sheet.
Profitability Score
WeakREDU struggles to sustain strong margins.
Key Financial Metrics
Is REDU Expensive or Cheap?
P/E Ratio
REDU trades at 8.68 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, REDU's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values RISE Education Cayman Ltd at -2.98 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -19.93 times EBITDA. This is generally considered low.
How Well Does REDU Make Money?
Net Profit Margin
For every $100 in sales, RISE Education Cayman Ltd keeps $0.00 as profit after all expenses.
Operating Margin
Core operations generate 0.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.08 in profit for every $100 of shareholder equity.
ROA
RISE Education Cayman Ltd generates $99.87 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
FCF Per Share
Each share generates $-47.85 in free cash annually.
FCF Yield
REDU converts -10.70% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
-2.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-1.22
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
1.00
vs 25 benchmark
ROCE
Return on capital employed
-1.36
vs 25 benchmark
How REDU Stacks Against Its Sector Peers
| Metric | REDU Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.68 | 23.25 | Better (Cheaper) |
| ROE | 15.08% | 1240.00% | Weak |
| Net Margin | 0.00% | -9728.00% (disorted) | Weak |
| Debt/Equity | -1.22 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 3.55 | 2.54 | Strong Liquidity |
| ROA | 99.87% | -203388.00% (disorted) | Strong |
REDU outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews RISE Education Cayman Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility