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

Hailiang Education Group, Inc. relative valuation is UNDERVALUED and it has a fundamental analysis score of 86.

Our analysis is based on comparing Hailiang Education Group, Inc. with the following peers – China Ivy School, Inc. (CIVS-US).

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 47.65% has been better than that over the last month at 46.01%.

Company Snapshot

  • Compared to peers, relative outperformance over the last year has faded more recently.
  • It trades at a lower Price/Book multiple (2.40) than its peer median (3.20).
  • 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.
  • Changes in annual revenues (relative to peers) are better than the change in its earnings (relative to peers), implying the company is focused more on revenues.
  • HLG-US‘s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
  • While HLG-US‘s revenues in recent years have grown faster than the peer median, the market gives the stock a P/E ratio that is around peer median suggesting that the market has some questions about the company’s long-term strategy.
  • The company’s level of capital investment seems appropriate to support the company’s growth.
  • HLG-US currently does not have any debt.
  • Our analysis rates Hailiang Education Group, Inc. as UNDERVALUED relative to its peers.

Share Price Performance

Compared to peers, relative outperformance over the last year has faded more recently.

HLG-US‘s change in share price of 47.65% for the last 12 months is better than its peer median. However, the 30-day trend in its share price performance of 46.01% is now around the peer median suggesting that the company’s recent performance has faded relative to peers.

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 13.14 is lower than CapitalCube’s implied price of USD 14.83. CapitalCube believes that at these levels, Hailiang Education Group, Inc. is undervalued and has upside potential. Over the last 52 week period, the stock has fluctuated between USD 6.82 and USD 16.

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

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