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Bright Scholar Education Holdings Ltd (BEDU)
NYSE:BEDU
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Bright Scholar Education Holdings
(NYSE:BEDU)
Rating:38Underperform
Price Target:
$1.50
▼(-13.79% Downside)
Bright Scholar Education Holdings (BEDU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$51.72M
Dividend YieldN/A
Average Volume (3M)990.00
Price to Earnings (P/E)―
Beta (1Y)-0.02
Revenue Growth-23.75%
EPS Growth-201.80%
CountryUS
Employees2,193
SectorConsumer Defensive
Sector Strength58
IndustryEducation & Training Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding7,828,704
10 Day Avg. Volume214
30 Day Avg. Volume990
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap3.99
Enterprise Value/Revenue0.18
Enterprise Value/Gross Profit0.76
Enterprise Value/Ebitda-0.24
Forecast
1Y Price Target
$1.50Price Target Upside-13.79% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering0
Bright Scholar Education Holdings Business Overview & Revenue Model
Company DescriptionBright Scholar Education Holdings Limited, an education service provider, operates and provides K-12 schools and complementary education services in China, Canada, the United states, and the United Kingdom. Its schools comprise international and bilingual schools, and kindergartens. The company also offers a range of complementary education services, including camps and after-school programs, as well as international education consulting services. It operated 95 schools across 12 provinces in China, as well as 14 schools internationally with a total student capacity of approximately 56,000 students. The company was founded in 1994 and is based in Foshan, China.
How the Company Makes MoneyBright Scholar generates revenue primarily through its diverse range of educational offerings. Key revenue streams include tuition fees from its network of private schools, which cater to both domestic and international students, as well as fees from after-school programs and tutoring services. The company also earns income from online education services, leveraging technology to provide accessible learning options. Significant partnerships with other educational institutions and organizations enhance its service offerings and market reach, contributing to its overall earnings. Additionally, BEDU benefits from the increasing demand for quality education in China and abroad, positioning itself as a key player in the education sector.
Bright Scholar Education Holdings Earnings Call Summary
Earnings Call Date:Jul 17, 2025
(Q2-2025)
| % Change Since: -0.57%|
Next Earnings Date:Dec 01, 2025
Earnings Call Sentiment Neutral
Bright Scholar's earnings call highlighted strong improvements in revenue per enrollment, significant reductions in SG&A expenses, and robust academic and extracurricular achievements. However, these positives were offset by a noticeable decline in overall revenue and gross profit, as well as a reduction in cash reserves. The sentiment reflects a balanced view with both progress and challenges.Q2-2025 Updates
Positive Updates
Increase in Revenue Per Enrollment
Bright Scholar reported a 14.2% year-over-year improvement in revenue per enrollment at its U.S. schools in the second quarter of fiscal 2025.
Reduction in SG&A Expenses
The company achieved a year-over-year reduction in SG&A expenses by 13.7%, improving operational efficiency.
Strong Academic and Extracurricular Achievements
CATS Academy Boston students secured over 100 acceptances from top-tier universities, and student-athlete Jaylen Harrell was named Gatorade Massachusetts Boys Basketball Player of the Year for the second consecutive year.
Net Income Growth
Net income from continuing operations increased by over 200% year-over-year, with adjusted net income growing by 179.5% to GBP3.5 million.
University Placement Success
UK schools achieved exceptional university placement results, with students receiving offers from 8 of the top 10 UK universities according to QS 2025 ranking.
Negative Updates
Decline in Overall Revenue
Revenue from continuing operations decreased to GBP43.8 million compared with GBP48.5 million for the same quarter last fiscal year.
Decrease in Gross Profit
Gross profit from continuing operations was GBP13.2 million compared to GBP15 million for the same quarter last fiscal year, indicating a decrease.
Reduction in Cash and Cash Equivalents
Cash and cash equivalents and restricted cash decreased to GBP46.3 million compared with GBP54.3 million as of the end of the last fiscal year.
Company Guidance
During the earnings call for Bright Scholar's second quarter of fiscal year 2025, the company reported stable year-over-year student enrollment at 2,699 students and a notable 14.2% increase in revenue per enrollment at U.S. schools. The Schools segment remained the primary revenue source, contributing approximately 61% of total revenue. Despite external challenges, such as VAT policy impacts in the UK, they achieved a 13.7% reduction in SG&A expenses, improving the SG&A to revenue ratio by 1.2 percentage points. Net income from continuing operations saw a substantial increase, rising by over 200% year-over-year to GBP3.2 million. The Overseas Study Counselling segment revenue grew by 6.2% to GBP11.9 million. Adjusted net income increased by 179.5% to GBP3.5 million. As of February 28, 2025, Bright Scholar held GBP46.3 million in cash and cash equivalents, showing a decrease from GBP54.3 million at the end of the previous fiscal year. Overall, the company's performance aligned with expectations, underscoring its commitment to sustainable growth and educational excellence.Bright Scholar Education Holdings Financial Statement Overview
Summary
Bright Scholar Education Holdings is facing severe financial challenges, with negative profitability margins, declining revenues, and high leverage. Negative net income and shrinking equity highlight financial instability despite positive operating cash flow.Income Statement
Bright Scholar Education Holdings has faced significant challenges with negative profit margins over the recent periods. The TTM figures show a decline with a gross profit margin of approximately 24.3% and a net loss margin of -91.0%. The revenue trend shows volatility, with a notable decline in revenue growth from the previous periods. This indicates pressures on both revenue generation and cost management.35
Negative
Balance Sheet
The company's balance sheet reveals high leverage with a concerning debt-to-equity ratio, exacerbated by declining equity levels. The equity ratio has decreased, indicating reduced financial stability. The return on equity is negative due to consistent net losses, signaling underperformance in generating returns from equity.30
Negative
Cash Flow
Operating cash flow remains positive, providing some cushioning against financial instability. However, free cash flow growth has been inconsistent and the ratio of free cash flow to net income is negative, reflecting challenges in converting earnings into cash flow. The company's cash flow position requires careful monitoring given the negative net income trajectory.40
Negative
| Breakdown | TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.12B | 1.76B | 2.12B | 1.71B | 1.40B | 3.37B |
| Gross Profit | 272.03M | 503.59M | 597.33M | 478.11M | 221.52M | 1.22B |
| EBITDA | -853.62M | -763.88M | -109.28M | -361.10M | -82.42M | 59.77M |
| Net Income | -1.02B | -996.28M | -395.13M | -119.70M | -534.13M | 161.00M |
Balance Sheet | ||||||
| Total Assets | 311.38M | 3.05B | 4.62B | 5.47B | 8.63B | 10.82B |
| Cash, Cash Equivalents and Short-Term Investments | 45.81M | 52.97M | 554.47M | 664.77M | 844.68M | 3.39B |
| Total Debt | 159.94M | 1.51B | 1.65B | 1.69B | 4.47B | 5.05B |
| Total Liabilities | 238.96M | 2.44B | 3.05B | 3.06B | 5.83B | 7.70B |
| Stockholders Equity | 61.36M | 516.81M | 1.42B | 2.19B | 2.55B | 2.74B |
Cash Flow | ||||||
| Free Cash Flow | 147.64M | 80.93M | -57.11M | -44.15M | 540.13M | 341.46M |
| Operating Cash Flow | 193.10M | 126.39M | 22.26M | 45.50M | 698.81M | 491.23M |
| Investing Cash Flow | -114.08M | -98.00M | -52.95M | -836.77M | -3.08B | 72.57M |
| Financing Cash Flow | -76.97M | -85.46M | -298.79M | 101.38M | -446.53M | 675.70M |
Bright Scholar Education Holdings Technical Analysis
Neutral
1.74
Price Trends
1.77
Negative
1.72
Positive
1.73
Positive
Market Momentum
-0.01
Positive
48.12
Neutral
35.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BEDU, the sentiment is Neutral. The current price of 1.74 is below the 20-day moving average (MA) of 1.76, below the 50-day MA of 1.77, and above the 200-day MA of 1.73, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 48.12 is Neutral, neither overbought nor oversold. The STOCH value of 35.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | HK$21.73B | 7.95 | 5.51% | 4.78% | 1.45% | -24.51% | |
55 Neutral | $34.58M | 304.17 | 0.17% | 15.43% | 98.22% | -82.71% | |
52 Neutral | $10.78M | ― | -49.39% | ― | ― | ― | |
38 Underperform | $51.72M | ― | -97.59% | ― | -23.75% | -201.80% | |
| ― | $17.20M | ― | -16.90% | ― | ― | ― | |
46 Neutral | $17.45M | ― | -40.68% | ― | -1.83% | 37.23% | |
| ― | $32.00M | ― | -19.03% | ― | ― | ― |
* Consumer Defensive Sector Average
Performance Comparison
BEDU
Bright Scholar Education Holdings
1.74
-0.10
-5.43%
FEDU
Four Seasons Education (Cayman)
15.65
0.97
6.61%
AMBO
Ambow Education Holding
3.94
2.52
177.46%
EDTK
Skillful Craftsman Education Technology
1.12
0.00
0.00%
YQ
17 Education & Technology Group
1.97
-0.03
-1.50%
KIDZ
Classover Holdings
1.20
-9.89
-89.18%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.