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Elite Education Group International Ltd. (EEIQ)
:EEIQ
US Market

Elite Education Group International (EEIQ) AI Stock Analysis

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Elite Education Group International

(NASDAQ:EEIQ)

Rating:37Underperform
Price Target:
Elite Education Group International faces significant financial challenges, including declining profitability and cash flow issues, which heavily impact its overall stock score. The technical analysis further indicates a bearish trend, with the stock trading below key moving averages and momentum indicators signaling potential further declines. The valuation is unappealing due to negative earnings, resulting in a low overall score. Strategic interventions are needed to improve financial health and investor confidence.

Elite Education Group International (EEIQ) vs. SPDR S&P 500 ETF (SPY)

Elite Education Group International Business Overview & Revenue Model

Company DescriptionElite Education Group International Limited, together with its subsidiaries, offers study abroad and post-study services to Chinese students in the United States. The company provides international English proficiency test counseling, registration, and test placement services for students with no or poor language skills; admission application services; visa counseling and guidance services; logistical and organizational support for the student applicants prior to their departure to the educational institutions; accommodation arrangements; welcome services; and dormitory services. In addition, it offers catering, academic guidance, internship, and shuttle bus services. The company was founded in 2012 and is based in Middletown, Ohio.
How the Company Makes MoneyElite Education Group International makes money through partnering with universities and colleges to recruit international students. The company earns revenue by charging fees for its recruitment services, which include student placement, admissions assistance, and specialized support services. Additionally, EEIQ may receive commissions from partner institutions based on the number of students successfully enrolled through its efforts. Key revenue streams involve student service fees, institutional commissions, and potentially other educational consultancy services offered to enhance the international student experience. Significant partnerships with educational institutions are crucial to its earnings, as they enable the company to maintain a steady flow of students and expand its service offerings.

Elite Education Group International Financial Statement Overview

Summary
Elite Education Group International is experiencing financial difficulties across all key areas. Despite some revenue growth, profitability and cash flow generation are major concerns, primarily due to rising operational costs and declining net margins. The company's balance sheet reflects increased leverage and reduced equity, which may pose risks if not addressed. Immediate strategic interventions are necessary to improve financial stability and operational performance.
Income Statement
30
Negative
The company shows a declining revenue trend with a steep fall in profitability. Gross profit margin is approximately 65.2% for the latest year, indicating some control over costs relative to revenue, but the net profit margin is deeply negative at -73.5%. Revenue growth shows a positive trend this year at 42.8%, but historical performance has been inconsistent. The negative EBIT and EBITDA margins indicate operational struggles.
Balance Sheet
40
Negative
The balance sheet reveals a weakening equity position with a declining stockholders' equity. The debt-to-equity ratio has increased to 0.55, highlighting rising leverage. The equity ratio is 22.2%, suggesting a lower proportion of assets financed by equity. Return on equity is negative, reflecting ongoing losses.
Cash Flow
35
Negative
The company faces challenges in cash flow with negative free cash flow growth, which has worsened compared to the previous year. Operating cash flow is significantly negative relative to net income, indicating inefficiencies in converting profits to cash. The free cash flow to net income ratio is also unfavorable, showing difficulties in generating cash from operations.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue8.15M5.71M6.33M5.34M9.06M
Gross Profit5.31M4.21M4.31M3.41M6.72M
EBITDA-7.00M-6.66M-6.91M-1.34M1.50M
Net Income-5.99M-6.76M-6.24M-1.08M1.01M
Balance Sheet
Total Assets23.29M19.21M24.00M24.01M14.20M
Cash, Cash Equivalents and Short-Term Investments1.15M4.97M11.44M16.54M7.41M
Total Debt2.82M1.13M1.02M721.29K140.00K
Total Liabilities12.41M8.28M6.72M9.07M6.72M
Stockholders Equity5.17M9.14M15.10M14.94M7.48M
Cash Flow
Free Cash Flow-9.52M-5.27M-4.67M-296.34K-432.60K
Operating Cash Flow-9.48M-5.25M-4.61M322.19K-144.04K
Investing Cash Flow716.77K-877.63K-651.48K-514.53K-288.56K
Financing Cash Flow4.95M0.00200.00K9.32M-432.04K

Elite Education Group International Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.49
Price Trends
50DMA
0.59
Negative
100DMA
0.69
Negative
200DMA
0.80
Negative
Market Momentum
MACD
-0.03
Positive
RSI
38.68
Neutral
STOCH
20.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EEIQ, the sentiment is Negative. The current price of 0.49 is below the 20-day moving average (MA) of 0.53, below the 50-day MA of 0.59, and below the 200-day MA of 0.80, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 38.68 is Neutral, neither overbought nor oversold. The STOCH value of 20.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EEIQ.

Elite Education Group International Risk Analysis

Elite Education Group International disclosed 50 risk factors in its most recent earnings report. Elite Education Group International 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

Elite Education Group International Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
56
Neutral
$3.37B4.05-1.30%6.64%0.16%-63.79%
52
Neutral
$184.51M-186.28%8.52%98.75%
FAFAT
45
Neutral
$44.49M38.50%419.35%10.63%-93.67%
44
Neutral
$446.07K
37
Underperform
$6.43M-83.71%42.73%18.30%
$34.44M-98.11%
$4.85M-144.05%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EEIQ
Elite Education Group International
0.49
-0.39
-44.32%
FAT
Fat Brands
2.48
-0.04
-1.59%
LTRY
Lottery.com
1.29
0.42
48.28%
CLEUF
China Liberal Education Holdings
0.13
-684.83
-99.98%
FFAI
Faraday Future Intelligent Electric
1.89
-14.71
-88.61%
GSUN
Golden Sun Education Group Limited Class A
2.45
-5.14
-67.72%
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.Date of analysis: Apr 22, 2025