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Quantasing Group Ltd. ADR (QSG)
NASDAQ:QSG
RESEARCH TOOLSreports
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Quantasing Group Ltd. ADR
(NASDAQ:QSG)
81Outperform
Quantasing Group Ltd. ADR (QSG) vs. S&P 500 (SPY)
Market Cap
$198.70M
Dividend YieldN/A
Average Volume (3M)1.57M
Price to Earnings (P/E)3.7
Beta (1Y)0.43
Revenue Growth-1.58%
EPS Growth124.14%
CountryUS
Employees827
SectorIndustrials
Sector Strength66
IndustryEducation & Training Services
Share Statistics
EPS (TTM)1.05
Shares Outstanding34,493,320
10 Day Avg. Volume666,448
30 Day Avg. Volume1,569,301
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)N/A
Price to Sales (P/S)0.27
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.10Price Target Upside-50.93% Downside
Rating ConsensusHold
Number of Analyst Covering0
Quantasing Group Ltd. ADR Business Overview & Revenue Model
Company DescriptionQuantaSing Group Limited provides online learning services in the People's Republic of China. The company offers online courses, including financial literacy, short-video production, personal well-being, electronic keyboard, Chinese painting, Erhu, and data analytics courses to adult learners under various brands, including QiNiu, JiangZhen, and QianChi. It also provides marketing and enterprise talent management services to enterprise customers. QuantaSing Group Limited was founded in 2019 and is based in Beijing, the People's Republic of China.
How the Company Makes Moneynull
Quantasing Group Ltd. ADR Financial Statement Overview
Summary
Quantasing Group Ltd. ADR has demonstrated strong financial performance with a significant improvement in profitability, high gross profit margin, and robust revenue growth. The low debt-to-equity ratio and solid return on equity highlight financial stability, though attention to liabilities is recommended.Income Statement
Quantasing Group Ltd. ADR has shown a strong financial performance in the latest year with notable improvements in profitability. The gross profit margin is high at 85.5%, indicating efficient cost management. The net profit margin improved significantly to 10.2% from a negative position the previous year, showing a turnaround in profitability. Revenue growth rate is robust at 23.2%, indicating strong demand for the company's offerings. The EBIT and EBITDA margins also improved to 9.9% and 10.4%, respectively, from negative margins, highlighting operational efficiency.85
Very Positive
Balance Sheet
The balance sheet of Quantasing Group Ltd. ADR highlights a solid financial position with a debt-to-equity ratio of 0.13, suggesting low leverage and reduced financial risk. Return on Equity (ROE) is strong at 74.7%, reflecting effective use of equity to generate profits. The equity ratio stands at 36.2%, indicating a stable capital structure with a good proportion of assets funded by equity. However, attention should be given to the significant liabilities relative to total assets.78
Positive
Cash Flow
Cash flow analysis shows a healthy position for Quantasing Group Ltd. ADR with a substantial increase in free cash flow, which grew by 21.4%. The operating cash flow to net income ratio stands at 0.73, indicating strong cash generation relative to earnings. The free cash flow to net income ratio is high at 0.72, reflecting effective conversion of profits into cash. This reflects the company's ability to fund operations and investments without relying heavily on external financing.82
Very Positive
| Breakdown | ||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.96B | 3.80B | 3.08B | 2.87B | 1.76B |
| Gross Profit | ||||
| 2.52B | 3.25B | 2.69B | 2.46B | 1.58B |
| EBIT | ||||
| -184.20M | 377.37M | -113.61M | -235.31M | -330.53M |
| EBITDA | ||||
| -340.88M | 395.93M | -109.48M | -224.71M | -322.50M |
| Net Income Common Stockholders | ||||
| -171.43M | 385.53M | -108.54M | -233.43M | -316.04M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 13.68M | 1.03B | 930.58M | 399.06M | 54.73M |
| Total Assets | ||||
| 82.56M | 1.43B | 1.22B | 603.47M | 330.23M |
| Total Debt | ||||
| 2.27M | 66.09M | 93.93M | 22.90M | 9.07M |
| Net Debt | ||||
| -4.01M | -713.84M | -670.35M | -243.53M | -16.03M |
| Total Liabilities | ||||
| 152.43M | 909.53M | 997.60M | 1.39B | 609.73M |
| Stockholders Equity | ||||
| -69.88M | 516.48M | 223.70M | -789.35M | -279.51M |
| Cash Flow | Free Cash Flow | |||
| 229.46M | 279.08M | 229.87M | 268.08M | 43.80M |
| Operating Cash Flow | ||||
| 232.94M | 282.72M | 235.62M | 272.64M | 79.42M |
| Investing Cash Flow | ||||
| 64.70M | -132.78M | 201.00K | -108.58M | -62.35M |
| Financing Cash Flow | ||||
| -38.40M | -130.19M | 247.70M | 71.63M | -21.09M |
Quantasing Group Ltd. ADR Technical Analysis
Neutral
4.28
Price Trends
3.19
Positive
2.77
Positive
2.49
Positive
Market Momentum
0.29
Positive
50.46
Neutral
35.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QSG, the sentiment is Neutral. The current price of 4.28 is above the 20-day moving average (MA) of 4.14, above the 50-day MA of 3.19, and above the 200-day MA of 2.49, indicating a neutral trend. The MACD of 0.29 indicates Positive momentum. The RSI at 50.46 is Neutral, neither overbought nor oversold. The STOCH value of 35.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for QSG.
Quantasing Group Ltd. ADR Risk Analysis
Quantasing Group Ltd. ADR disclosed 103 risk factors in its most recent earnings report. Quantasing Group Ltd. ADR 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
Quantasing Group Ltd. ADR Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $390.44M | 4.78 | 9.43% | ― | 4.01% | ― | |
81 Outperform | $198.70M | 3.69 | 81.91% | ― | -1.58% | 124.14% | |
72 Outperform | $45.51M | 7.76 | 10.27% | ― | -10.54% | -43.28% | |
62 Neutral | $4.17B | 11.26 | 5.46% | 215.76% | 4.12% | -8.54% | |
62 Neutral | $67.59M | 1.44 | 78.29% | ― | -8.76% | -35.01% | |
55 Neutral | $59.32M | ― | 180.24% | ― | 70.56% | 9.71% | |
54 Neutral | $141.57M | ― | -81.43% | ― | -4.02% | 65.55% |
* Industrials Sector Average
Performance Comparison
QSG
Quantasing Group Ltd. ADR
3.88
0.78
25.16%
COE
China Online Education Group
15.38
8.76
132.33%
STG
Sunlands Online Education Group
5.00
-3.01
-37.58%
SKIL
Skillsoft
20.96
15.39
276.30%
VSTA
Vasta Platform
4.98
1.18
31.05%
IH
iHuman
1.81
0.17
10.37%
Quantasing Group Ltd. ADR Earnings Call Summary
Earnings Call Date: Mar 11, 2025 | % Change Since: 60.90% | Next Earnings Date: May 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with notable achievements in net income growth, expansion into the silver economy, and strong cash position. However, these positives were offset by significant revenue declines and challenges in the individual online learning services and enterprise services segments.Highlights
Strong Net Income Growth
Net income increased to RMB126.8 million, highlighting the company's ability to optimize operations while selectively investing in promising opportunities.
Expansion and Success in Silver Economy
Consumer business revenues reached RMB64.5 million, a 39% increase compared to the same period last year, driven by expansion into wellness products targeting the silver economy.
High Conversion Rate in Calligraphy Program
The calligraphy program for senior learners saw conversion rates for advanced courses increase from over 40% to over 60%.
Strong Cash Position
The company reported RMB1,213.2 million in cash and equivalents, providing financial flexibility for strategic investments.
Decreased Operating Expenses
Total operating expenses decreased by 36.5% year-over-year, reflecting disciplined cost management and improved operational efficiency.
Lowlights
Revenue Decline
Total revenues were RMB726.6 million, representing a 25.9% decrease year-over-year, due to the transition from traffic-driven growth to high-quality growth.
Decline in Individual Online Learning Services
Gross billing from Individual Online Learning Services was RMB546.2 million, showing a decline of 42.2% year-over-year.
Decreased Gross Margin
Gross margin fell to 83.1% from 85.2% compared to the same period last year, due to a strategic shift towards more product-focused offerings.
Challenges in Enterprise Services
Revenues from enterprise services were RMB55.7 million, showing a minimal change of 3.4% from a year ago, reflecting changes in existing customer demand.
Company Guidance
During QuantaSing's earnings call for the second quarter of fiscal year 2025, several key metrics were highlighted. The company reported revenues of RMB726.6 million, reflecting a strategic shift towards high-quality growth, resulting in a 25.9% year-over-year decrease. Despite this, net income rose to RMB126.8 million, with a net margin of 17.4%. The registered user base reached 139.6 million. The Consumer business experienced significant growth, with revenues increasing by 39% to RMB64.5 million. The company maintained a strong cash position of RMB1,213.2 million, providing flexibility for strategic investments. Additionally, the conversion rate for advanced courses improved to over 60%, up from over 40% in the previous quarter.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.