Dadi Education Holdings Ltd (8417) AI Stock Analysis

• Market Cap: HK$36.76M
• Dividend Yield: N/A
• Average Volume (3M): 292.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• Revenue Growth: -13.68%
• EPS Growth: -129.41%
• Country: HK
• Employees: 46
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): N/A
• Shares Outstanding: 1,750,400,000
• 10 Day Avg. Volume: 489,000
• 30 Day Avg. Volume: 292,000
• PEG Ratio: -0.08
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 1.32
• P/FCF Ratio: -3.49
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 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: 49 Neutral
• Price Target: HK$0.02 ▲(10.00% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is held back primarily by weak financial performance, driven by declining revenue, large losses, and negative cash flow. Technicals provide only moderate support with a higher price versus long-term averages but conflicting momentum indicators. Valuation remains unattractive due to a negative P/E and no dividend yield data.

Positive Factors

Low leverage / balance sheet strength

A debt-to-equity of 0.05 indicates very low financial leverage, reducing refinancing and interest burden risk. This durable strength gives the company flexibility to fund operations or restructurings, extend runway during losses, and prioritize operating improvements over urgent deleveraging.

Solid gross margin

A 35% gross margin suggests underlying unit economics that can support profitability if operating expenses are controlled or revenue stabilizes. This structural margin provides room for operating leverage, making medium-term recovery possible through cost discipline and modest revenue improvements.

Improving free cash flow metrics

A strong free cash flow growth rate and FCF aligning with reported losses indicate improving cash conversion. Over a multi-month horizon, better cash generation reduces reliance on external funding, supports necessary investments, and helps stabilize operations despite current profitability gaps.

Negative Factors

Declining revenue

Sequential or year-over-year revenue decline erodes scale benefits and makes fixed-cost absorption harder, impeding margin recovery. Sustained top-line contraction limits the company’s ability to leverage its gross margin and increases the structural difficulty of returning to sustainable profitability.

Deep negative profitability

Very large operating and net losses indicate structural unprofitability; these deficits consume equity and limit reinvestment capacity. Persistent negative margins undermine return on equity and necessitate either sustained operating improvements or external capital to avoid dilution or operational curtailment.

Negative operating cash flow

Negative operating cash flow signals ongoing cash burn that threatens runway absent corrective action. Even with low leverage, persistent cash deficits force financing choices, constrain growth investments, and raise the risk of operational scale-backs or dilutive capital raises over the coming months.

Dadi Education Holdings Ltd Business Overview & Revenue Model

Company Description

Dadi Education Holdings Limited, an investment holding company, provides overseas studies consultancy services in Hong Kong. It serves students seeking secondary and higher education studies in the United Kingdom, Australia, Canada, New Zealand, and the United States. The company was founded in 1990 and is headquartered in Mong Kok, Hong Kong. Dadi Education Holdings Limited is a subsidiary of Grand Courage Investments Limited.

How the Company Makes Money

Dadi Education Holdings Ltd Financial Statement Overview

Summary

Financial health is weak: revenue declined (-8.41%) and profitability is deeply negative (net margin -52.58%, EBIT margin -46.10%). Low leverage (debt-to-equity 0.05) helps, but negative operating/free cash flow and poor returns (ROE -17.58%) keep the score low.

Income Statement

Dadi Education Holdings Ltd has experienced declining revenue over the past year, with a negative revenue growth rate of -8.41%. The company is struggling with profitability, as indicated by a negative net profit margin of -52.58% and a negative EBIT margin of -46.10%. Despite a gross profit margin of 35.15%, the overall financial health of the income statement is weak due to consistent losses.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.05, indicating low leverage, which is a positive aspect. However, the return on equity is negative at -17.58%, reflecting poor profitability and efficiency in using shareholders' equity. The equity ratio is not explicitly calculated, but the company maintains a strong equity position relative to its assets.

Cash Flow

The cash flow statement reveals significant challenges, with negative operating cash flow and free cash flow. Although there is a positive free cash flow growth rate of 276.49%, the operating cash flow to net income ratio is negative, indicating cash flow issues. The free cash flow to net income ratio is slightly above 1, suggesting some alignment between cash flow and reported earnings despite the losses.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	18.41M	15.88M	16.87M	16.64M	16.76M	16.02M
Gross Profit	-7.09M	5.58M	-5.92M	4.11M	-5.84M	6.81M
EBITDA	-3.49M	-5.83M	-3.73M	-6.66M	-1.89M	9.63M
Net Income	-10.10M	-8.35M	-6.34M	-9.86M	-5.15M	6.04M
Balance Sheet
Total Assets	57.27M	54.59M	64.10M	71.45M	78.42M	84.59M
Cash, Cash Equivalents and Short-Term Investments	43.56M	40.63M	47.15M	54.37M	61.94M	65.74M
Total Debt	6.18M	2.35M	3.53M	5.13M	2.70M	3.82M
Total Liabilities	10.16M	6.63M	7.89M	8.69M	5.49M	6.71M
Stockholders Equity	46.87M	47.48M	55.73M	62.29M	72.61M	77.48M
Cash Flow
Free Cash Flow	-7.31M	-6.02M	-6.79M	-6.42M	-2.00M	7.39M
Operating Cash Flow	-7.29M	-6.00M	-6.70M	-6.37M	-1.95M	7.47M
Investing Cash Flow	11.73M	11.32M	825.00K	-12.98M	636.00K	727.00K
Financing Cash Flow	2.24M	-2.33M	-2.27M	-2.69M	-2.85M	-2.85M

Dadi Education Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8417, the sentiment is Positive. The current price of 0.02 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and above the 200-day MA of 0.02, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 100.00 is Negative, neither overbought nor oversold. The STOCH value of -33.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8417.

Dadi Education Holdings Ltd 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%
8417	49 Neutral	HK$36.76M	-22.25	-13.57%	―	-13.68%	-129.41%
1775	49 Neutral	HK$237.19M	-3.58	-60.77%	―	22.97%	1.03%
8160	49 Neutral	HK$117.90M	-1.59	-48.69%	―	11.36%	4.80%
1758	41 Neutral	HK$88.51M	-1.03	-98.63%	―	-11.92%	-227.64%