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 ▲(5.00% 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 / strong balance-sheet flexibility

A debt-to-equity of 0.05 signals very low financial leverage, giving the company durable flexibility to absorb continued losses or invest in restructuring. Low debt reduces default risk and preserves options to fund operations or strategic shifts without immediate refinancing pressure.

Healthy gross margin at the unit level

A 35% gross margin indicates the core education services or products generate positive unit economics before overhead. This structural margin provides a foundation to restore profitability if SG&A and operating costs are scaled or optimized, supporting a multi-month recovery pathway.

Improving free cash flow trend

A materially positive FCF growth rate implies improving cash conversion even if absolute cash flow remains negative. Sustained improvement over several quarters would signal operational fixes or mix shifts taking hold, reducing cash burn and creating a pathway to stable cash generation.

Negative Factors

Declining revenue

Top-line decline of about 8% signals weakening demand or market share loss in core education offerings. Declining revenue undermines scale, makes fixed cost absorption harder, and reduces the runway to achieve operating leverage; sustained declines would impair long-term recovery prospects.

Deep operating and net losses

Very large operating and net losses show the cost base far exceeds gross profits, indicating structural unprofitability. Without durable cuts to operating expenses or meaningful revenue recovery, losses will persist and erode equity, making sustainable profitability unlikely in the near term.

Negative operating and free cash flow

Persistent negative operating and free cash flow constrains the company's ability to fund operations organically. Even with low debt, ongoing cash burn forces reliance on external financing or equity dilution, limiting strategic flexibility and increasing execution risk 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

null

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$231.86M	-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%