Elite Education Group International (EEIQ) AI Stock Analysis

• Market Cap: $5.69M
• Dividend Yield: N/A
• Average Volume (3M): 320.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: 44.99%
• EPS Growth: 61.58%
• Country: US
• Employees: 43
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): -0.02
• Shares Outstanding: 23,396,667
• 10 Day Avg. Volume: 106,174
• 30 Day Avg. Volume: 320,991
• PEG Ratio: 0.07
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 1.04
• P/FCF Ratio: -0.89
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 0.96
• Enterprise Value/Ebitda: -1.24
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: $0.50 ▲(61.29% Upside)

The overall stock score reflects significant financial challenges, with declining profitability and cash flow issues being the most impactful factors. Technical analysis indicates a bearish trend, and the valuation is unattractive due to negative earnings and lack of dividends. Immediate strategic interventions are necessary to improve financial stability and operational performance.

Positive Factors

Revenue Growth

Strong revenue growth indicates increasing demand for EEIQ's educational services, suggesting effective market penetration and potential for future expansion.

Strategic Partnerships

The agreement with Davis University enhances EEIQ's academic offerings and strengthens its competitive position by expanding international student pathways.

Financial Flexibility

Increasing authorized shares provides EEIQ with greater financial flexibility to support growth initiatives and improve its market positioning.

Negative Factors

Declining Profitability

Persistent negative profit margins highlight operational inefficiencies, posing a risk to long-term financial health and sustainability.

Cash Flow Challenges

Inability to generate positive cash flow from operations limits EEIQ's capacity to invest in growth and manage financial obligations effectively.

Increased Leverage

Rising leverage increases financial risk, potentially affecting EEIQ's ability to secure favorable financing and impacting its long-term stability.

Elite Education Group International Business Overview & Revenue Model

Company Description

Elite 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 Money

EEIQ generates revenue through multiple streams, including tuition fees from students enrolled in its academic programs and pathway courses. The company partners with various universities and educational institutions, earning commissions for students placed in these programs. Additionally, EEIQ provides consultancy services to international students, charging fees for guidance on admissions, visa applications, and other support services. Significant partnerships with educational institutions not only enhance its offerings but also contribute to its financial stability by ensuring a steady flow of students and associated fees.

Elite Education Group International Financial Statement Overview

Summary

Elite Education Group International is experiencing significant financial difficulties. Despite some revenue growth, the company faces declining profitability and cash flow issues, with deeply negative net profit margins and operational inefficiencies. The balance sheet shows increased leverage and reduced equity, posing financial risks.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.36M	8.15M	5.71M	6.33M	5.34M	9.06M
Gross Profit	6.27M	5.31M	4.21M	4.31M	3.41M	6.72M
EBITDA	-4.84M	-7.00M	-6.66M	-6.91M	-1.34M	1.39M
Net Income	-3.01M	-5.99M	-6.76M	-5.96M	-1.08M	1.01M
Balance Sheet
Total Assets	20.04M	23.29M	19.21M	24.00M	24.01M	14.20M
Cash, Cash Equivalents and Short-Term Investments	334.34K	1.15M	4.97M	11.44M	16.54M	7.41M
Total Debt	2.94M	3.09M	1.13M	1.02M	721.29K	140.00K
Total Liabilities	8.90M	12.41M	8.28M	6.72M	9.07M	6.72M
Stockholders Equity	5.35M	5.17M	9.14M	15.10M	14.94M	7.48M
Cash Flow
Free Cash Flow	-1.74M	-9.52M	-5.27M	-4.67M	-296.34K	-432.60K
Operating Cash Flow	-1.71M	-9.48M	-5.25M	-4.61M	322.19K	-144.04K
Investing Cash Flow	-2.27M	716.77K	-877.63K	-651.48K	-514.53K	-288.56K
Financing Cash Flow	3.74M	4.95M	-1.25M	200.00K	9.32M	-432.04K

Elite Education Group International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.31 is above the 20-day moving average (MA) of 0.27, above the 50-day MA of 0.29, and below the 200-day MA of 0.48, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 43.59 is Neutral, neither overbought nor oversold. The STOCH value of 17.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EEIQ.

Elite Education Group International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
WAFU	45 Neutral	$7.28M	-15.73	-4.26%	―	-14.35%	-744.00%
AMBO	43 Neutral	$8.11M	―	―	―	―	―
EEIQ	38 Underperform	$5.69M	-1.10	-48.49%	―	44.99%	61.58%
JZ	38 Underperform	$5.78M	-0.18	-238.22%	―	-87.12%	74.35%
GV	37 Underperform	$5.59M	-0.37	―	―	―	―