Hailiang Education Group, Inc.: Price momentum supported by strong fundamentals

Hailiang Education Group, Inc. relative valuation is OVERVALUED and it has a fundamental analysis score of 71.

Our analysis is based on comparing Hailiang Education Group, Inc. with the following peers – Colegios Peruanos SA (COLPERC1-PE).

Hailiang Education Group, Inc. has shown good performance overall, both over the last one year as well as over the last month. In fact, performance over the last year at 169.11% has been better than that over the last month at 12.76%.

Company Snapshot

  • Taking peer performance into consideration, relative performance over the last month and last year is around the peer median.
  • It currently trades at a Price/Book ratio of (4.01).
  • HLG-US’s operating performance is relatively good compared to its peers. The market currently does not expect high earnings growth relative to its peers but seems to expect the company to maintain its relatively high rates of return.
  • HLG-US has a successful operating model with relatively high net profit margins and asset turns.
  • Compared with its chosen peers, the company’s annual revenues and earnings change at a slower rate, implying a lack of strategic focus and/or lack of execution success.
  • HLG-US’s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
  • HLG-US’s revenue growth in recent years and current P/E ratio are both around their respective peer medians suggesting that historical performance and long-term growth expectations for the company are largely in sync.
  • The company’s level of capital investment suggests it might be under-investing in a business with above median returns.
  • HLG-US currently does not have any debt.
  • Our analysis rates Hailiang Education Group, Inc. as OVERVALUED relative to its peers.

Share Price Performance

Taking peer performance into consideration, relative performance over the last month and last year is around the peer median.

HLG-US’s change in share price of 169.11% for the last 12 months as well as its more recent 30-day share price performance of 12.76% are both in line with their respective peer medians. Thus, the company’s share performance over the last month and the last year has been firmly in the middle of the pack.

Share Price Performance

Quadrant label definitions. Hover to know more

Leading, Fading, Lagging, Rising

Relative Valuation

Relative Valuation
Fundamental Score

Hailiang Education Group, Inc.’s price of USD 22 is greater than CapitalCube’s implied price of USD 14.91. At this level, CapitalCube believes that Hailiang Education Group, Inc. is overvalued. Over the last 52 week period, the stock has fluctuated between USD 7 and USD 22.78.

Valuation & Peer Metrics

A complete list of valuation metrics is available on the company page.

Company Profile

Hailiang Education Group, Inc. engages in the provision of private K-12 educational services. It offers basic educational and international programs for kindergarten, primary, middle, and high school levels. The company was founded on April 7, 2011 and is headquartered in Hangzhou, China.

Disclaimer

The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.