China Stock Story

COE -  USA Stock  

USD 2.70  0.17  5.92%

As many millenniums are excited about consumer defensive space, it is only fair to digest China Online Education. We will analyze why it could be a much better year for China Online shareholders. Is China Online valuation sustainable? Here I will cover a perspective on valuation of China to give you a better outlook on taking a position in this stock.
Published over three months ago
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Do not exit China Online quite yet!
China Online has 14.69 M in debt.
Our investment recommendation module complements current analysts and expert consensus on China Online. It analyzes the firm potential to grow using all fundamental, technical, and market related data available at the time.
We determine the current worth of China Online Education using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of China Online Education based exclusively on its fundamental and basic technical indicators. By analyzing China Online's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of China Online's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of China Online. We calculate exposure to China Online's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to China Online's related companies.

China Online Education Investment Alerts

China investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring China Online Education performance across your portfolios.Please check all investment alerts for China

China Online Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare China value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across China Online competition to find correlations between indicators driving the intrinsic value of China.

How China utilizes its cash?

To perform a cash flow analysis of China Online, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash China Online is receiving and how much cash it distributes out in a given period. The China Online cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
China Online Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 719.24 Million

A Deeper look at China

This firm reported the last year's revenue of 312.61 M. Total Income to common stockholders was 22.37 M with profit before taxes, overhead, and interest of 1.47 B.
 2018 2019 2020 2021 (projected)
Interest Expense9.94 M9.45 M10.87 M9 M
Gross Profit734.61 M1.04 B1.19 B1.29 B

Margins Breakdown

China profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or China Online itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of China Online profit margins.
EBITDA Margin(0.0533)
Gross Margin0.79
Profit Margin(0.0881)

China Online Earnings before Tax is rather stable at the moment. Also, China Online Earnings Before Interest Taxes and Depreciation Amortization USD is decreasing over the last 8 years.

Can China Online build up on the latest surge?

The potential upside is down to 3.94 as of today. China Online Education exhibits very low volatility with skewness of 0.94 and kurtosis of 3.62. However, we advise investors to further study China Online Education technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure China Online's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact China Online's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Conclusion on China Online

Although many other companies in the education & training services industry are either recovering or due for a correction, China may not be as strong as the others in terms of longer-term growth potentials. In closing, as of the 9th of April 2021, our analysis shows that China Online slowly supersedes the market. The firm is undervalued and projects very small probability of bankruptcy for the next 2 years. Our final 30 days buy-sell recommendation on the firm is Cautious Hold.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of China Online Education. Please refer to our Terms of Use for any information regarding our disclosure principles.

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