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Ambow Education Holding (AMBO)
:AMBO
US Market

Ambow Education Holding (AMBO) AI Stock Analysis

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Ambow Education Holding

(NYSE MKT:AMBO)

Rating:52Neutral
Price Target:
Ambow Education Holding's overall stock score is affected by financial challenges, including declining revenue and high leverage. However, technical indicators suggest a stable trend, and recent improvements in profitability offer some hope. Valuation remains uncertain due to missing key metrics.

Ambow Education Holding (AMBO) vs. SPDR S&P 500 ETF (SPY)

Ambow Education Holding Business Overview & Revenue Model

Company DescriptionAmbow Education Holding (AMBO) is a leading provider of educational and career enhancement services in China. The company operates through three main segments: Better Schools, Better Jobs, and Others. It offers a wide range of educational programs, including K-12 tutoring, international education programs, and career enhancement services. Ambow's core products and services are designed to prepare students for academic success and equip them with the necessary skills to excel in their professional careers.
How the Company Makes MoneyAmbow 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 financial challenges with declining revenues and high leverage. Despite improvements in profitability and cash flow, the company needs to address its debt levels and stabilize revenue for sustained growth.
Income Statement
45
Neutral
Ambow Education Holding's revenue shows a declining trend over the past five years, with a notable decrease from 18.4M in 2020 to 9.4M in 2024. Despite improved gross profit margins to 53.1% in 2024, the net profit margin remains weak at 3.3% due to persistent EBIT losses, although showing some recovery from previous years.
Balance Sheet
40
Negative
The balance sheet reveals a high debt-to-equity ratio of 1.31 in 2024, reflecting significant leverage. Stockholders' equity has decreased over the years, and the equity ratio is moderate at 38.8%. Return on equity improved to 4.6% in 2024, indicating some recovery in profitability.
Cash Flow
50
Neutral
The cash flow statement shows positive free cash flow growth in 2024, with operating cash flow to net income ratio improving significantly. However, free cash flow remains relatively low compared to net income.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
5.79M9.39M9.16M14.84M17.82M18.39M
Gross Profit
1.70M4.99M2.49M284.00K2.42M2.24M
EBIT
-3.20M-722.00K-4.30M-9.49M-8.63M
EBITDA
-3.14M1.47M-2.21M-5.09M-4.86M
Net Income Common Stockholders
-1.98M309.00K-3.17M-14.07M470.00K
Balance SheetCash, Cash Equivalents and Short-Term Investments
243.55M1.12M4.83M3.31M4.20M43.11M
Total Assets
1.01B17.37M20.57M25.52M152.20M160.67M
Total Debt
266.80M8.84M10.77M11.70M24.67M44.94M
Net Debt
110.83M7.72M5.94M8.39M20.47M26.75M
Total Liabilities
848.38M10.63M14.14M17.65M129.19M139.07M
Stockholders Equity
162.58M6.74M6.43M7.87M22.94M21.91M
Cash FlowFree Cash Flow
1.18M435.00K-290.00K-9.25M-2.50M697.81K
Operating Cash Flow
1.18M1.64M-290.00K-9.25M-2.50M736.53K
Investing Cash Flow
0.00-2.01M0.00-19.49M16.82M
Financing Cash Flow
-1.07M-1.24M2.80M5.05M916.00K8.44M

Ambow Education Holding Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.67
Price Trends
50DMA
2.84
Negative
100DMA
2.66
Negative
200DMA
2.17
Positive
Market Momentum
MACD
-0.03
Positive
RSI
36.85
Neutral
STOCH
48.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMBO, the sentiment is Negative. The current price of 2.67 is below the 20-day moving average (MA) of 2.96, below the 50-day MA of 2.84, and above the 200-day MA of 2.17, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 36.85 is Neutral, neither overbought nor oversold. The STOCH value of 48.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMBO.

Ambow Education Holding Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$8.88B15.054.75%203.76%3.54%-2.50%
52
Neutral
$7.48M-49.39%
43
Neutral
$6.31M-7.52%-28.27%-409.38%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AMBO
Ambow Education Holding
2.67
1.37
105.38%
WAFU
Wah Fu Education Group
1.44
-0.46
-24.21%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.