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Bright Scholar Education Holdings (BEDU)
:BEDU
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Bright Scholar Education Holdings
(NYSE:BEDU)
Rating:44Neutral
Price Target:
$1.50
▼( -3.85% Downside)
Bright Scholar Education Holdings (BEDU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.21M
Dividend YieldN/A
Average Volume (3M)11.47K
Price to Earnings (P/E)―
Beta (1Y)-0.08
Revenue Growth-23.75%
EPS Growth-201.80%
CountryUS
Employees2,193
SectorConsumer Cyclical
Sector Strength75
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.14
Shares Outstanding7,828,704
10 Day Avg. Volume7,189
30 Day Avg. Volume11,473
Financial Highlights & Ratios
PEG Ratio-0.69
Price to Book (P/B)1.41
Price to Sales (P/S)0.00
P/FCF Ratio0.15
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 Limited (BEDU) is a leading global education services provider primarily operating in China. The company focuses on delivering high-quality K-12 education and offers a comprehensive suite of educational services, including kindergarten, primary, middle, and high school education. Bright Scholar is known for its international curriculum, bilingual education, and emphasis on holistic development. The company also operates overseas schools, training programs, and education technology initiatives, striving to cultivate well-rounded individuals prepared for global challenges.
How the Company Makes MoneyBright Scholar Education Holdings generates revenue primarily through tuition and related fees collected from students enrolled in its network of K-12 schools. The company also earns income from its overseas schools, which cater to expatriate and local students seeking international curricula. Additionally, Bright Scholar offers after-school tutoring and supplemental education programs, adding another revenue stream. The company's education technology initiatives, including online learning platforms and digital resources, contribute to its earnings. Strategic partnerships with educational content providers and technology firms further enhance its service offerings, supporting revenue growth.
Bright Scholar Education Holdings Financial Statement Overview
Summary
Bright Scholar Education Holdings is navigating through a challenging financial phase, characterized by declining revenues, high leverage, and negative profitability margins. While operating cash flow provides some relief, the overall financial health is strained. Strategic interventions are necessary to stabilize performance and improve financial metrics.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 | EBIT |
| -865.83M | -820.44M | -186.58M | -56.44M | -289.39M | 166.62M | EBITDA |
| -853.62M | -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 | ||||
| 45.81M | 52.97M | 554.47M | 664.77M | 844.68M | 3.39B | Total Assets |
| 311.38M | 3.05B | 4.62B | 5.47B | 8.63B | 10.82B | Total Debt |
| 159.94M | 1.51B | 1.65B | 1.69B | 4.47B | 5.05B | Net Debt |
| 114.13M | 1.02B | 1.11B | 1.03B | 3.62B | 1.67B | 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
Negative
1.56
Price Trends
1.65
Negative
1.66
Negative
1.79
Negative
Market Momentum
>-0.01
Positive
45.93
Neutral
14.96
Positive
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 1.56 is below the 20-day moving average (MA) of 1.61, below the 50-day MA of 1.65, and below the 200-day MA of 1.79, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.93 is Neutral, neither overbought nor oversold. The STOCH value of 14.96 is Positive, 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 1 New Risks
1.
We face uncertainties with respect to the development of regulatory requirements on operating licenses and permits for our online education services in mainland China. Failure to obtain or renew requested licenses or permits in a timely manner or obtain newly required ones due to adverse changes in regulations or policies could have a material adverse impact on our business, financial condition and results of operations. Q3, 2024
Bright Scholar Education Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Performance Comparison
BEDU
Bright Scholar Education Holdings
1.56
-0.59
-27.44%
FEDU
Four Seasons Education (Cayman)
9.83
1.51
18.15%
EEIQ
Elite Education Group International
0.63
-0.30
-32.26%
Bright Scholar Education Holdings Earnings Call Summary
Earnings Call Date:Apr 28, 2025
(Q2-2025)
| % Change Since: -0.64%|
Next Earnings Date:Jul 17, 2025
Earnings Call Sentiment Positive
Bright Scholar's earnings call highlighted strong academic and extracurricular achievements, significant improvements in profitability and operational efficiency, and growth in specific segments. However, these positives were tempered by an overall decline in revenue and a decrease in cash reserves.Q2-2025 Updates
Positive Updates
Strong Revenue Per Enrollment Growth
Bright Scholar reported a 14.2% year-over-year improvement in revenue per enrollment at their U.S. schools for the fiscal quarter.
Academic and Extracurricular Excellence
CATS Academy Boston students secured over 100 acceptances from top-tier universities in the U.S., Canada, and the UK, and student athlete Jaylen Harrell was named Gatorade Massachusetts Boys Basketball Player of the Year for the second consecutive year.
Outstanding University Placements in the UK
Students from UK boarding schools received offers from 8 of the top 10 UK universities, with specific schools achieving perfect records, such as 100% Cambridge acceptance rate and 100% Russell Group University offers for A-level students.
Significant Improvement in Profitability
Net income from continuing operations increased by over 200% year-over-year, and adjusted net income grew by 179.5% compared to the same quarter last fiscal year.
Cost Optimization Success
SG&A expenses from continuing operations decreased by 13.7% year-over-year, improving operational efficiency.
Negative Updates
Decline in Revenue from Continuing Operations
Revenue from continuing operations was GBP43.8 million compared to GBP48.5 million for the same quarter last fiscal year, indicating a decrease in overall revenue.
Decrease in Cash and Cash Equivalents
Cash and cash equivalents and restricted cash decreased to GBP46.3 million from GBP54.3 million as of the end of the last fiscal year.
Company Guidance
During the second quarter of fiscal year 2025, Bright Scholar reported stable student enrollment with 2,699 students and a 14.2% year-over-year increase in revenue per enrollment at their U.S. schools. The Schools business contributed to 61% of total revenue, despite macroeconomic challenges like VAT policies in the UK. The company achieved a 13.7% reduction in SG&A expenses, improving the SG&A to revenue ratio by 1.2 percentage points, and saw a remarkable increase in net income from continuing operations, which grew over 200% year-over-year. Total revenue from continuing operations was GBP43.8 million, with a gross margin of 30%. The Overseas Study Counselling segment revenue increased by 6.2% to GBP11.9 million. Notably, adjusted net income saw an increase of 179.5% year-over-year to GBP3.5 million. As of February 28, 2025, the company had GBP46.3 million in cash and cash equivalents. Bright Scholar's strategic initiatives and cost optimization efforts have positioned it well for sustainable long-term growth, focusing on expanding its global footprint and enhancing operational efficiency.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.