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Bright Scholar Education Holdings Ltd (BEDU)
NYSE:BEDU
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Bright Scholar Education Holdings
(NYSE:BEDU)
42Neutral
Bright Scholar Education Holdings (BEDU) vs. S&P 500 (SPY)
Market Cap
$43.25M
Dividend YieldN/A
Average Volume (3M)4.23K
Price to Earnings (P/E)―
Beta (1Y)0.32
Revenue Growth-15.92%
EPS Growth-164.65%
CountryUS
Employees2,193
SectorConsumer Cyclical
Sector Strength50
IndustryEducation
Share Statistics
EPS (TTM)-4.74
Shares Outstanding7,828,704
10 Day Avg. Volume1,488
30 Day Avg. Volume4,228
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.17
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Bright Scholar Education Holdings Business Overview & Revenue Model
Company DescriptionBright Scholar Education Holdings Ltd. operates international and bilingual K-12 schools, which engages in the provision of international education to Chinese students. It operates through the following segments: International Schools, Bilingual Schools, Kindergartens, Overseas Schools, and Complementary Education Services. The company was founded by Mei Rong Yang on February 18, 1994 and is headquartered in Foshan, China.
How the Company Makes MoneyBright Scholar Education Holdings primarily generates revenue through tuition and other fees from its network of kindergartens and K-12 schools. The company charges fees for enrollment, tuition, and various ancillary services provided to students. Additionally, Bright Scholar earns income from its education-related services, such as overseas study consultation, which helps students gain admission to international schools and universities. The company may also derive revenue from educational technology services and extracurricular programs, which offer additional learning experiences outside of the standard curriculum. Partnerships with international educational institutions and technology providers can enhance service offerings and attract more students, contributing to the company's earnings.
Bright Scholar Education Holdings Financial Statement Overview
Summary
Bright Scholar Education Holdings is facing financial challenges characterized by declining revenues and negative profitability. While operating cash flows show some resilience, high leverage and inconsistent free cash flow growth pose significant risks.Income Statement
Bright Scholar Education Holdings has faced significant challenges in recent periods, as evidenced by negative EBIT and net income margins in the TTM (Trailing-Twelve-Months) and previous years. Revenue has shown a declining trend, with a significant drop from 2020 to 2023. This decline in revenue, coupled with negative profit margins, indicates ongoing difficulties in maintaining profitability.45
Neutral
Balance Sheet
The company maintains a high level of total debt relative to its equity, resulting in a high debt-to-equity ratio. Stockholders' equity has decreased over the years, contributing to a low equity ratio. These factors indicate a leveraged balance sheet, which presents risks, especially in a declining revenue environment.40
Negative
Cash Flow
Bright Scholar's cash flow situation shows mixed signals. While operating cash flow remains positive, the free cash flow has fluctuated significantly, indicating challenges in generating consistent cash flows. Positive operating cash flow to net income ratios in some years suggest operational efficiency, but overall cash flow growth has been inconsistent.50
Neutral
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.60B | 1.76B | 2.12B | 1.71B | 1.40B | 3.37B | Gross Profit |
| 420.54M | 503.59M | 597.33M | 478.11M | 221.52M | 1.22B | EBIT |
| -850.92M | -820.44M | -186.58M | -56.44M | -289.39M | 166.62M | EBITDA |
| -821.09M | -763.88M | -109.28M | -361.10M | -82.42M | 59.77M | Net Income Common Stockholders |
| -1.02B | -996.28M | -395.13M | -119.70M | -534.13M | 161.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 435.20M | 52.97M | 554.47M | 664.77M | 844.68M | 3.39B | Total Assets |
| 2.94B | 3.05B | 4.62B | 5.47B | 8.63B | 10.82B | Total Debt |
| 1.49B | 1.51B | 1.65B | 1.69B | 4.47B | 5.05B | Net Debt |
| 1.06B | 1.02B | 1.11B | 1.03B | 3.62B | 1.67B | Total Liabilities |
| 2.31B | 2.44B | 3.05B | 3.06B | 5.83B | 7.70B | Stockholders Equity |
| 529.12M | 516.81M | 1.42B | 2.19B | 2.55B | 2.74B |
| Cash Flow | Free Cash Flow | ||||
| 99.20M | 80.93M | -57.11M | -44.15M | 540.13M | 341.46M | Operating Cash Flow |
| 144.67M | 126.39M | 22.26M | 45.50M | 698.81M | 491.23M | Investing Cash Flow |
| -77.01M | -98.00M | -52.95M | -836.77M | -3.08B | 72.57M | Financing Cash Flow |
| -88.01M | -85.46M | -298.79M | 101.38M | -446.53M | 675.70M |
Bright Scholar Education Holdings Technical Analysis
Negative
1.50
Price Trends
1.67
Negative
1.78
Negative
1.90
Negative
Market Momentum
-0.06
Positive
41.79
Neutral
53.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BEDU, the sentiment is Negative. The current price of 1.5 is below the 20-day moving average (MA) of 1.56, below the 50-day MA of 1.67, and below the 200-day MA of 1.90, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 41.79 is Neutral, neither overbought nor oversold. The STOCH value of 53.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BEDU.
Bright Scholar Education Holdings Risk Analysis
Bright Scholar Education Holdings disclosed 88 risk factors in its most recent earnings report. Bright Scholar Education Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bright Scholar Education Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Performance Comparison
BEDU
Bright Scholar Education Holdings
1.50
-0.70
-31.82%
DAO
Youdao
8.26
3.77
83.96%
Bright Scholar Education Holdings Earnings Call Summary
Earnings Call Date: Jan 24, 2025 | % Change Since: -23.08% | Next Earnings Date: Apr 17, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant advancements in operational efficiency and international expansion, alongside notable academic achievements. However, these positives were countered by a decline in overall revenue and gross profit, alongside challenges posed by external factors such as the U.K. VAT policy.Highlights
Expansion of Global School Business
Bright Scholar expanded its product and service offering in international markets such as Vietnam, Canada, the United States, Pakistan, and Taiwan. The Schools business accounted for 57% of the total revenue.
Operational Efficiency Improvements
Significant decreases in SG&A expenses by 33% year-over-year, attributed to optimized operational efficiency and streamlined logistics processes.
Academic Achievements
97 CATS Global Schools students received offers from prestigious Russell Group universities, and 64 students received offers from top 100 universities as ranked by QS World University Rankings.
Revenue Increase in Overseas Study Consulting
The overseas study consulting business achieved a 5.8% year-over-year revenue increase to GBP 9.6 million.
Lowlights
Decline in Overall Revenue
Revenue from continuing operations was GBP 44.7 million compared to GBP 55.5 million for the same quarter last fiscal year, indicating a decrease in overall revenue.
Decrease in Gross Profit and Margin
Gross profit from continuing operations was GBP 13 million compared to GBP 17.9 million for the same quarter last fiscal year, with a gross margin of 29.2% compared to 33.5%.
Impact of U.K. VAT Policy
The new U.K. VAT policy impacted student enrollment, necessitating adjustments in strategic approach and enrollment initiatives.
Company Guidance
During Bright Scholar's first-quarter earnings call for fiscal year 2025, the company reported several key metrics and strategic initiatives. The Schools business accounted for approximately 57% of total revenue, with revenue from continuing operations reaching GBP 44.7 million, although this marked a decrease from the GBP 55.5 million reported in the same quarter the previous fiscal year. The company achieved a notable 33% year-over-year reduction in SG&A expenses due to optimized operational efficiency. Gross profit from continuing operations was GBP 13 million, with a gross margin of 29.2%, while adjusted EBITDA stood at GBP 6.4 million. Bright Scholar's international expansion efforts were highlighted, including successful entry into markets such as Vietnam, Canada, and the United States. The company also achieved an increase in the overseas study consulting business revenue by 5.8% to GBP 9.6 million. Despite a decline in overall revenue, the company maintained a net income of GBP 4 million from continuing operations. Furthermore, Bright Scholar announced a share repurchase plan of up to USD 1.2 million, signaling confidence in its growth strategies and commitment to shareholder value.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.