Raffles Education (NR7) AI Stock Analysis

• Market Cap: $67.81M
• Dividend Yield: N/A
• Average Volume (3M): 1.48M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: -1.34%
• EPS Growth: -43.48%
• Country: SG
• Employees: 2,500
• Sector: Consumer Defensive
• Sector Strength: 61
• Industry: Education & Training Services
• EPS (TTM): <0.01
• Shares Outstanding: 1,463,646,700
• 10 Day Avg. Volume: 2,876,390
• 30 Day Avg. Volume: 1,480,033
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 4.90
• Enterprise Value/Revenue: 2.96
• Enterprise Value/Gross Profit: 4.91
• Enterprise Value/Ebitda: 10.99
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 50 Neutral
• Price Target: S$0.00 ▼(-100.00% Downside)

Raffles Education's overall stock score is primarily influenced by its challenging financial performance, characterized by negative profitability and cash flow issues. While technical analysis shows some positive momentum, it's not strong enough to offset the financial concerns. The valuation is also a downside due to ongoing losses and lack of dividends.

Raffles Education Business Overview & Revenue Model

Company Description

Raffles Education Corporation Limited, an investment holding company, provides education and related services in ASEAN, North Asia, South Asia, Australasia, and Europe. It operates through four segments: Education, Education Facilities Rental Service, Real Estate Investment & Development, and Corporate & Others. The company offers degree, diploma, and full-time certificate programs in design and business-oriented disciplines; pre-tertiary education; and K12 curriculum. In addition, it operates Raffles University Iskandar; Tianjin University of Commerce Boustead College; Raffles American School that offers American K-12 education; and Oriental University City campus. Further, it engages in education facilities leasing and commercial leasing activities for supporting facilities; and real estate investment and development activities. Additionally, the company offers education supporting, and business and management consultancy services. It operates through a network of 18 colleges and universities across 10 countries. Raffles Education Corporation Limited was founded in 1990 and is based in Singapore.

How the Company Makes Money

Raffles Education generates revenue primarily through tuition fees from its students enrolled in various diploma, undergraduate, and postgraduate programs across its network of educational institutions. The company also earns income from ancillary services such as student accommodation, administrative fees, and other educational services. Partnering with both local and international educational institutions and organizations, Raffles Education enhances its program offerings and expands its market reach, contributing to its revenue. Additionally, the company may engage in strategic collaborations and partnerships to enhance its educational services and explore new revenue opportunities.

Raffles Education Financial Statement Overview

Summary

Raffles Education exhibits inconsistent revenue growth and faces challenges with profitability, shown by negative net income and EBIT. The balance sheet indicates moderate leverage but declining equity strength, and cash flow management appears strained. Overall, financial position requires strategic improvements.

Income Statement

Raffles Education has exhibited inconsistent revenue growth with a TTM revenue of $112.3M, a slight increase from previous periods. However, the company faces challenges with profitability, shown by negative net income and EBIT. The gross profit margin improved to 60.3% in the TTM period, but the net profit margin remains negative due to high operational costs.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.38, indicating a manageable level of debt. However, the declining equity ratio, now at 54.6%, suggests weakening financial stability. The return on equity is negative due to persistent losses, which is a concern for future financial health.

Cash Flow

Cash flow analysis reveals negative free cash flow growth, with TTM free cash flow at -$1.8M. The operating cash flow to net income ratio is positive but low, reflecting challenges in converting earnings into cash. Overall, cash management appears strained, impacting the company's financial flexibility.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	112.28M	112.47M	110.89M	105.37M	97.73M	100.48M
Gross Profit	67.67M	70.14M	10.02M	-4.40M	4.85M	58.47M
EBITDA	30.23M	15.75M	38.12M	62.02M	66.00M	25.27M
Net Income	-13.64M	-19.26M	-5.30M	9.61M	16.39M	-16.43M
Balance Sheet
Total Assets	1.08B	1.10B	1.15B	1.28B	1.38B	1.17B
Cash, Cash Equivalents and Short-Term Investments	35.44M	33.07M	24.21M	37.42M	29.53M	8.38M
Total Debt	223.45M	237.99M	288.69M	303.54M	396.01M	340.02M
Total Liabilities	400.03M	418.23M	454.21M	495.64M	598.81M	492.21M
Stockholders Equity	590.66M	589.98M	599.96M	675.17M	671.38M	617.81M
Cash Flow
Free Cash Flow	-1.81M	5.70M	-12.12M	-15.83M	-13.06M	-9.87M
Operating Cash Flow	5.69M	19.40M	4.26M	16.77M	14.20M	9.70M
Investing Cash Flow	23.20M	11.02M	2.41M	59.88M	-29.15M	47.30M
Financing Cash Flow	-31.17M	-25.26M	-19.89M	-68.76M	36.27M	-56.55M

Raffles Education Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:NR7, the sentiment is Positive. The current price of 0.05 is above the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.04, and above the 200-day MA of 0.04, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.79 is Neutral, neither overbought nor oversold. The STOCH value of 22.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:NR7.

Raffles Education Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	67 Neutral	S$3.20B	10.78	14.90%	4.58%	7.79%	-10.29%
NR7	50 Neutral	$67.81M	―	-2.26%	―	-1.34%	-43.48%
CNE	―	S$31.82M	24.72	1.80%	―	―	―
RQ1	―	S$78.50M	35.66	1.62%	―	―	―

Raffles Education Corporate Events

Raffles Education’s Subsidiary Halts Building Sale Due to Unmet Terms

Raffles Education Limited announced that its subsidiary, Oriental University City Holdings (H.K.) Limited, will not proceed with the sale of a Lifestyle Commercial Building due to the failure to reach agreed terms with the Purchaser by the stipulated deadline. This decision may impact the company’s strategic operations and stakeholders are advised to exercise caution when dealing in the company’s shares.

Raffles Education Subsidiary to Dispose of Commercial Building in China

Raffles Education Limited announced that its subsidiary, Oriental University City Holdings (H.K.) Limited, plans to dispose of a lifestyle commercial building in Langfang Development Zone, Hebei, China for RMB18 million, pending shareholder approval. This strategic move may impact the company’s financial position and market strategy, highlighting a potential shift in asset management and resource allocation.

Raffles Education Director Granted Discharge Amid Ongoing Investigations

Raffles Education Limited announced that the court has granted a discharge not amounting to an acquittal for Mr. Ng Kwan Meng, an Independent Non-Executive Director, due to his health condition. Despite the ongoing investigations by the Monetary Authority of Singapore and the Commercial Affairs Department, Mr. Ng will continue to serve as a director, with the Independent and Nominating Committees supporting his continued appointment. The Board will keep monitoring the situation and advise shareholders to exercise caution when dealing with the company’s shares.

Raffles Education Initiates S$10 Million Bond Issuance

Raffles Education Limited has announced the issuance of unlisted, non-convertible bonds amounting to S$10,000,000, with the first tranche of S$1,000,000 being subscribed by Triplestar Holdings Pte. Ltd. This move is part of a strategic financial initiative to bolster the company’s capital structure, with the subscriber confirming the investment is solely for personal benefit without intentions to influence the company’s management or control.

Raffles Education Completes First Tranche of Bond Issuance

Raffles Education Limited has announced the completion of the issuance of S$1,000,000 in bonds to Triplestar Holdings Pte. Ltd. as part of its proposed bond issue plan. This development marks the first tranche of a larger S$10,000,000 bond issuance, which is expected to support the company’s financial strategy and operational needs. Shareholders are advised to remain cautious and seek professional advice regarding their investments.

Raffles Education Proposes S$10 Million Bond Issue

Raffles Education Limited has announced a proposal to issue unlisted, non-convertible bonds worth up to S$10 million. These bonds, which will bear an interest rate of 10.5% per annum, are intended to raise funds for the company and will be issued under the ‘safe harbour’ exemptions of the Securities and Futures Act 2001 of Singapore. This move is expected to enhance the company’s financial flexibility and support its operational needs.