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

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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.


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