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China Liberal Education Holdings (CLEU)
NASDAQ:CLEU
US Market

China Liberal Education Holdings (CLEU) AI Stock Analysis

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China Liberal Education Holdings

(NASDAQ:CLEU)

44Neutral
China Liberal Education Holdings is facing significant financial and operational challenges, with declining revenues and negative cash flows. Despite a low debt level, the shrinking asset base and weak cash generation raise concerns about liquidity and sustainability. Technical indicators suggest bearish momentum, though the stock is currently oversold, which could hint at a potential short-term rebound. Valuation is difficult to assess due to the absence of key metrics, making the stock less attractive in the current environment.

China Liberal Education Holdings (CLEU) vs. S&P 500 (SPY)

China Liberal Education Holdings Business Overview & Revenue Model

Company DescriptionChina Liberal Education Holdings (CLEU) is a China-based company primarily engaged in providing educational services and products. The company operates in the education sector, focusing on offering services such as Sino-foreign jointly managed academic programs, overseas study consulting services, technological consulting services, and smart campus solutions. Through its comprehensive suite of services, CLEU aims to enhance educational opportunities and outcomes for students in China.
How the Company Makes MoneyChina Liberal Education Holdings makes money primarily through its comprehensive educational service offerings. The company's revenue streams include fees from Sino-foreign jointly managed academic programs, where it collaborates with Chinese and foreign universities to offer joint programs. Additionally, CLEU earns revenue from overseas study consulting services that assist students in their pursuit of international education opportunities. The company also provides technological consulting services and smart campus solutions, which include the implementation of advanced educational technologies and infrastructure in educational institutions. These diverse offerings enable CLEU to generate a steady stream of income from both institutional partnerships and direct consumer services.

China Liberal Education Holdings Financial Statement Overview

Summary
China Liberal Education Holdings faces significant financial challenges, including shrinking revenues and persistent losses. The income statement highlights declining revenues from $11.6M to $2.9M and negative margins, reflecting operational difficulties. While the balance sheet shows low debt, the decreasing asset base and negative cash flows raise concerns about liquidity and sustainability.
Income Statement
45
Neutral
The income statement reveals a concerning trend with declining revenues and persistent losses. Revenue plummeted significantly from $11.6M in 2022 to $2.9M in 2023, indicating a severe contraction in business activity. The gross profit margin fell from 51.7% to 57.2%, but this increase was offset by negative EBIT and net income margins, reflecting significant operational challenges. The company also faces negative EBITDA over the years, further highlighting ongoing financial stress.
Balance Sheet
55
Neutral
The balance sheet shows a relatively strong equity position with a debt-to-equity ratio of 0.03, suggesting low financial leverage. However, the company's total assets have decreased substantially from 2022 to 2023, signaling a reduction in resource base. The equity ratio remains high at approximately 91.4%, indicating a stable financial structure but with shrinking asset size, which could limit future growth opportunities.
Cash Flow
40
Negative
Cash flow analysis presents a challenging picture with negative operating cash flow and free cash flow, highlighting cash burn issues. The free cash flow has deteriorated significantly, and the operating cash flow to net income ratio is negative, indicating that the company is not generating sufficient cash from operations to cover its losses. This raises concerns about liquidity and sustainability of operations without external funding.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
885.80K2.89M11.60M3.91M5.02M5.26M
Gross Profit
750.80K1.65M6.01M2.76M2.87M1.90M
EBIT
-4.56M-934.52K-1.38M-1.17M1.44M518.66K
EBITDA
-4.53M-3.46M-1.60M-931.19K1.45M518.66K
Net Income Common Stockholders
-4.72M-4.96M-1.69M-1.25M1.21M437.90K
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.08M20.34M13.65M32.68M5.01M1.70M
Total Assets
5.97M72.80M103.99M43.63M12.77M6.85M
Total Debt
0.001.72M1.01M47.62K113.36K15.68K
Net Debt
-2.08M-18.62M-12.64M-32.63M-4.89M-1.69M
Total Liabilities
716.03K6.26M41.50M1.68M1.13M1.67M
Stockholders Equity
4.73M66.54M62.48M41.96M11.64M5.18M
Cash FlowFree Cash Flow
-1.28M-3.78M-189.36K-1.42M1.24M-356.17K
Operating Cash Flow
-1.28M-3.78M423.60K-1.41M1.26M-338.43K
Investing Cash Flow
40.00M-2.24M-32.55M-7.54K-1.40M-471.41K
Financing Cash Flow
25.07M12.72M12.90M29.06M3.34M439.19K

China Liberal Education Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.93
Price Trends
50DMA
73.31
Negative
100DMA
171.42
Negative
200DMA
463.59
Negative
Market Momentum
MACD
-15.22
Negative
RSI
29.77
Positive
STOCH
26.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLEU, the sentiment is Negative. The current price of 1.93 is below the 20-day moving average (MA) of 2.09, below the 50-day MA of 73.31, and below the 200-day MA of 463.59, indicating a bearish trend. The MACD of -15.22 indicates Negative momentum. The RSI at 29.77 is Positive, neither overbought nor oversold. The STOCH value of 26.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLEU.

China Liberal Education Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
59
Neutral
$12.18B11.09-1.08%3.77%1.26%-19.82%
52
Neutral
$21.18M77.120.38%22.78%135.33%
48
Neutral
$49.64M-96.68%-15.92%-164.65%
44
Neutral
$7.17M-7.45%
37
Underperform
$10.10M-83.71%42.73%18.30%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CLEU
China Liberal Education Holdings
1.93
-1,174.07
-99.84%
BEDU
Bright Scholar Education Holdings
1.67
-0.25
-13.02%
FEDU
Four Seasons Education (Cayman)
10.03
0.87
9.50%
LXEH
Lixiang Education Holding Co
23.21
19.63
548.32%
EEIQ
Elite Education Group International
0.77
-0.18
-18.95%
GSUN
Golden Sun Education Group Limited Class A
2.87
-1.93
-40.21%
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.