Ambow Education Holding (AMBO) AI Stock Analysis

• Market Cap: $7.40M
• Dividend Yield: N/A
• Average Volume (3M): 16.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 35
• Sector: Consumer Defensive
• Sector Strength: 94
• Industry: Education & Training Services
• EPS (TTM): 0.45
• Shares Outstanding: 2,620,956
• 10 Day Avg. Volume: 8,714
• 30 Day Avg. Volume: 16,780
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.96
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Ambow Education Holding shows a mixed financial outlook with declining revenues and high leverage, which significantly affects its stock score. Technical analysis suggests a positive trend, as the stock is trading above key moving averages, yet the absence of comprehensive valuation metrics such as P/E ratio and dividend yield limits the assessment. The lack of recent earnings call data and corporate events further constrains the evaluation.

Ambow Education Holding Business Overview & Revenue Model

Company Description

Ambow Education Holding Ltd. provides a range of educational and career enhancement services and products to students, recent graduates, and corporate employees and management professionals in the People's Republic of China. The company operates through two segments, K-12 Schools and CP&CE Programs. The K-12 Schools segment provides educational services covering K-12 programs and tutoring services; and international education programs. The CP&CE Programs segment operates tutoring centers that provide classroom instruction, small class, and one-on-one tutoring services for students to perform better in school and prepare for important tests, primarily high school and university entrance exams; and educational curriculum through its web-based applications. This segment also offers educational software products include eBoPo, which offers full subjects, online practice tests, and instructions for K-12 level students; career enhancement services and products focusing on improving educational opportunities for primary and advanced degree school students, and employment opportunities for university graduates; and outbound and in-house management trainings for corporate clients. In addition, this segment provides students with training for professional skills, such as case studies, job environment simulation, and technical skills; soft skills, including time management, presentation, leadership, and interview techniques; and intellectualized operational services to corporate clients, colleges, and universities. As of December 31, 2021, the company had 18 centers and schools comprising 5 tutoring centers, 2 K-12 schools, 3 career enhancement centers, and 8 training offices. The company was founded in 2000 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Ambow Education Holding generates revenue primarily through the tuition fees charged for its educational and career enhancement programs. The Better Schools segment contributes by offering K-12 tutoring services, which helps students improve their academic performance. The Better Jobs segment focuses on providing vocational training and career development services to individuals seeking to enhance their job prospects. Additionally, Ambow collaborates with educational institutions and corporations, offering tailored training programs that align with market demands. Key factors contributing to its earnings include the growing demand for quality education and skills development in China, as well as the company's strategic partnerships with educational and corporate entities.

Ambow Education Holding Financial Statement Overview

Summary

Ambow Education Holding faces significant financial difficulties with declining revenues and sustained losses. Despite improvements in gross profit margin and reduced negative operating cash flow, the company struggles with profitability and efficiency challenges. The moderate leverage offers some stability, but negative returns on equity are concerning, indicating a need for strategic improvements to enhance financial health.

Income Statement

Ambow Education Holding shows a declining revenue trend with a significant decrease of 38.29% from the previous year. The company has a negative net profit margin of -34.66% and negative EBIT and EBITDA margins, indicating ongoing profitability challenges. The gross profit margin improved to 27.22%, but overall financial health is weakened by consistent net losses.

Balance Sheet

The balance sheet shows a debt-to-equity ratio of 1.68, indicating moderate leverage. The equity ratio is at 31.25%, suggesting a fair level of equity financing. However, the return on equity is negative at -49.40%, reflecting operational inefficiencies in generating profit from shareholders’ equity, which is a concern.

Cash Flow

Cash flow analysis reveals a negative free cash flow growth rate, indicating cash burn. The operating cash flow is negative but has improved compared to previous periods. The operating cash flow to net income ratio is not applicable due to net losses, highlighting the need for improved cash management.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
9.16M	14.84M	17.82M	18.39M
	Gross Profit
2.49M	284.00K	2.42M	2.24M
	EBIT
-4.30M	-9.49M	-8.63M	―
	EBITDA
-2.21M	-5.09M	-4.86M	―
	Net Income Common Stockholders
-3.17M	-14.07M	470.00K	―
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.83M	3.31M	4.20M	43.11M
	Total Assets
20.57M	25.52M	152.20M	160.67M
	Total Debt
10.77M	11.70M	24.67M	44.94M
	Net Debt
5.94M	8.39M	20.47M	26.75M
	Total Liabilities
14.14M	17.65M	129.19M	139.07M
	Stockholders Equity
6.43M	7.87M	22.94M	21.91M
Cash Flow		Free Cash Flow
-290.00K	-9.25M	-2.50M	697.81K
	Operating Cash Flow
-290.00K	-9.25M	-2.50M	736.53K
	Investing Cash Flow
0.00	-19.49M	16.82M	―
	Financing Cash Flow
2.80M	5.05M	916.00K	8.44M

Ambow Education Holding Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMBO, the sentiment is Neutral. The current price of 2.56 is below the 20-day moving average (MA) of 2.71, below the 50-day MA of 2.60, and above the 200-day MA of 1.87, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.59 is Neutral, neither overbought nor oversold. The STOCH value of 43.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AMBO.

Ambow Education Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$9.90B	14.43	3.80%	201.21%	4.14%	9.08%
AMBO	53 Neutral	$7.40M	―	-49.39%	―	―	―
WAFU	48 Neutral	$5.65M	―	-7.52%	―	-28.27%	-409.38%