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By Vlad Skutelnik

July 6, 2019

Today article will analyze 8 Education equities to potentially sell in August 2019. I will specifically cover the following equities: Gsx Techedu Inc ADR, Zee Learn Limited, G8 Education Limited, Higher One Holdings, Raffles Education Corporation Limited, Capstone Technologies Group, RedHill Education Limited, and Four Seasons Education
8 Education stocks to get rid of in August 2019

This list of potential positions covers Tutoring, learning, and education services. Companies involved in apprenticeship, education, tutoring, schooling, online universities, and other learning services in USA. Please note, we provide buy hold or sell recommendation only in the context of selected investment horizon assuming investor has average attitude towards taking risk. Please also consider using Portfolio Positions Ratings and Equity Ratings tools to further calibrate your research.


Gsx Techedu Inc ADR (GSX)

The company has Net Profit Margin of 9.22 % which may imply that it executes well on its competitive polices and has a good control over its expenditures and variable costs. This is very large. The firm currently falls under 'Mid-Cap' category with total capitalization of 3.16B. Gsx Techedu ADR retains regular Real Value of $12.695 per share. The prevalent price of the corporation is $13.94. At this time the corporation appears to be overvalued. This module calculates value of Gsx Techedu ADR from evaluating the corporation fundamentals such as Profit Margin of 9.22%, Return On Asset of (1.46)% and Shares Owned by Insiders of 1.84% as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage to acquire undervalued assets and to sell overvalued assets since at some point stocks prices and their ongoing real values will come together.

ZEE LEARN LTD (ZEELEARN.NS)

The company has return on total asset (ROA) of 6.72 % which means that it generated profit of $6.72 on every $100 spent on asset. This is normal as compared to the sector avarege. Similarly, it shows return on equity (ROE) of 17.27 % meaning that it generated $17.27 on every $100 dollars invested by stockholders. The firm currently falls under 'Mid-Cap' category with current market capitalization of 6.65B. ZEE LEARN competes with APTECH LTD, ZEN TECHNOLOGIES, MT EDUCARE, EDUCOMP SOLUTIONS, and USHA MARTIN. Zee Learn Limited, together with its subsidiaries, operates in the education industry in India. Zee Learn Limited was incorporated in 2010 and is based in Mumbai, India. ZEE LEARN operates under Education Training Services classification in India and is traded on National Stock Exchange of India.

G8 Education Ltd (GEM.AX)

The company has return on total asset (ROA) of 6.06 % which means that it generated profit of $6.06 on every $100 spent on asset. This is normal as compared to the sector avarege. Similarly, it shows return on equity (ROE) of 8.17 % meaning that it generated $8.17 on every $100 dollars invested by stockholders. The firm currently falls under 'Mid-Cap' category with current market capitalization of 1.27B. G8 Education owns latest Real Value of A$2.8125 per share. The recent price of the entity is A$2.78. Based on Macroaxis valuation methodology, the entity appears to be fairly valued. This module calculates value of G8 Education from inspecting the entity fundamentals such as Operating Margin of 15.19%, Price to Earning of 17.48X and Return On Asset of 6.06% as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we encourage to invest in undervalued equities and to sell overvalued equities since sooner or later instruments prices and their ongoing real values will blend.

OneSmart International Educatio (ONE)

The company has Return on Asset of 3.27 % which means that on every $100 spent on asset it made $3.27 of profit. This is considered to be average in the sector. In the same way, it shows return on shareholders equity (ROE) of 17.54 % implying that it generated $17.54 on every 100 dollars invested. The firm currently falls under 'Mid-Cap' category with total capitalization of 1.25B.
Total Debt
OneSmart International competes with China Distance, Franklin Covey, Four Seasons, China Online, New Oriental, Graham Holdings, GP Strategies, Hailiang Education, and K12. OneSmart International Education Group Limited provides tutoring services for kindergarten and primary, middle, and high schools in the Peoples Republic of China. OneSmart International Education Group Limited was incorporated in 2017 and is headquartered in Shanghai, the Peoples Republic of China. OneSmart International operates under Education Training Services classification in USA and is traded on BATS Exchange. It employs 11700 people.

Raffles Education Corp Ltd (RFLFF)

The company has return on total asset (ROA) of (0.4) % which means that it has lost $0.4 on every $100 spent on asset. This is way below average. Similarly, it shows return on equity (ROE) of 2.55 % meaning that it generated $2.55 on every $100 dollars invested by stockholders. The firm currently falls under 'Micro-Cap' category with current market capitalization of 83.25M. Raffles Education seems to be overvalued based on Macroaxis valuation methodology. This module determines value of Raffles Education Corp from analyzing the company fundamentals such as Number of Shares Shorted of 43K, Current Valuation of 89.61M and Return On Equity of 2.55% as well as examining its technical indicators and Probability Of Bankruptcy. In general, we support investing in undervalued entities and to dispose of overvalued entities since at some point stocks prices and their ongoing real values will merge together. Raffles Education Corporation Limited, an investment holding company, provides education and related services in ASEAN, North Asia, South Asia, Australasia, and Europe. Raffles Education Corporation Limited was founded in 1990 and is based in Singapore. Raffles Education operates under Education Training Services classification in USA and is traded on OTC Market.

Capstone Technologies Group (CATG)

The company has return on total asset (ROA) of 7.0 % which means that it generated profit of $7.0 on every $100 spent on asset. This is normal as compared to the sector avarege. Similarly, it shows return on stockholders equity (ROE) of 22.06 % meaning that it created $22.06 on every $100 dollars invested by stockholders. The entity currently falls under 'Micro-Cap' category with current market capitalization of 15.94M. Capstone Technologies seems to be overvalued based on Macroaxis valuation methodology. This module approximates value of Capstone Technologies from analyzing the firm fundamentals such as Current Valuation of 11.41M, Profit Margin of 25.17% and Return On Equity of 22.06% as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor to go long with undervalued instruments and to trade away overvalued instruments since at some point assets prices and their ongoing real values will blend.

Redhill Education Ltd (RDH.AX)

The company has Profit Margin (PM) of 5.65 % which can be a sign that it executes well on its competitive strategies and has a good control over its expenditures. This is normal as compared to the sector avarege. Similarly, it shows Operating Margin (OM) of 9.39 % which suggests for every 100 dollars of sales it generated a net operating income of 0.09. The entity currently falls under 'Micro-Cap' category with current market capitalization of 59.99M. Redhill Education holds recent Real Value of A$1.659 per share. The prevailing price of the company is A$1.9. Based on Macroaxis valuation methodology, the company appears to be overvalued. This module determines value of Redhill Education from analyzing the company fundamentals such as Shares Outstanding of 30.77M, Operating Margin of 9.39% and Return On Equity of 19.65% as well as examining its technical indicators and Probability Of Bankruptcy. In general, we support investing in undervalued entities and to dispose of overvalued entities since at some point stocks prices and their ongoing real values will merge together. Redhill Education holds recent Real Value of A$1.659 per share. The prevailing price of the company is A$1.9. Based on Macroaxis valuation methodology, the company appears to be overvalued. This module determines value of Redhill Education from analyzing the company fundamentals such as Operating Margin of 9.39%, Return On Equity of 19.65% and Shares Outstanding of 30.77M as well as examining its technical indicators and Probability Of Bankruptcy. In general, we support investing in undervalued entities and to dispose of overvalued entities since at some point stocks prices and their ongoing real values will merge together.

Four Seasons Education (FEDU)

The company has return on total asset (ROA) of (0.79) % which means that it has lost $0.79 on every $100 spent on asset. This is way below average. Similarly, it shows return on stockholders equity (ROE) of (0.71) % meaning that it created substantial loss on money invested by shareholders. The firm currently falls under 'Small-Cap' category with current market capitalization of 101.36M.

Current 8 Education Recommendations

Competition Technical Indicators

Mean
Deviation
Jensen
Alpha
Sortino
Ratio
Treynor
Ratio
Semi
Deviation
Information
Ratio
Expected
Shortfall
Potential
Upside
Value
At Risk
Maximum
Drawdown
 1.67 (0.25)  0.00 (0.46)  0.00 (0.10)  0.00  3.46 (5.44)  9.55 
 1.40  0.54  0.28  0.59  1.44  0.30 (1.57)  2.95 (2.49)  9.34 
 2.01  0.17  0.05 (0.81)  2.76  0.06 (4.61)  5.52 (3.37)  18.44 
 2.38 (0.71)  0.00 (0.80)  0.00 (0.23)  0.00  4.45 (6.92)  13.09 
 1.64  0.38  0.17  0.26  1.88  0.16 (1.88)  3.16 (3.78)  13.20 
 0.86  0.07  0.06  0.03  1.19  0.07 (0.90)  1.66 (1.85)  5.01 
 1.86 (0.04)  0.00 (0.08)  0.00 (0.0294)  0.00  3.37 (4.99)  12.40 
 0.99  0.11  0.04  0.13  2.96  0.08 (0.72)  2.30 (2.49)  9.67 
 1.80  0.05  0.04  0.12  2.18  0.0401 (1.93)  3.50 (3.24)  7.99 
 0.48  0.06  0.08  0.28  0.47  0.08 (2.70)  0.75 (1.32)  8.00 

About Contributor

Vlad Skutelnik
   Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile
This story should be regarded as informational only and should not be considered as 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 Vlad Skutelnik do not own shares of Macroaxis. Please refer to our Terms of Use for any information regarding our disclosure principles.

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