17 Education & Technology Group Inc. (NASDAQ: YQ)

Sector: Consumer Defensive Industry: Education & Training Services CIK: 0001821468
Market Cap 29.29 Mn
P/B 0.62
P/E -1.26
P/S 2.01
ROIC (Qtr) -364.49
Div Yield % 0.00
Rev 1y % (Qtr) -66.44
Total Debt (Qtr) 1.28 Mn
Debt/Equity (Qtr) 0.03
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About

Investment thesis

Bull case

  • Healthy cash reserves of 34.22M provide 47.80x coverage of short-term debt 715870.79, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 67.77M provides 53.10x coverage of total debt 1.28M, indicating robust asset backing and low credit risk.
  • Tangible assets of 67.77M provide exceptional 13.23x coverage of deferred revenue 5.12M, showing strong service capability backing.
  • Cash reserves of 34.22M provide robust 1.69x coverage of current liabilities 20.28M, indicating strong short-term solvency.
  • Short-term investments of 13.80M provide 19.28x coverage of short-term debt 715870.79, showing strong liquidity management.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 7.98M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 0 provides insufficient coverage of deferred revenue obligations of 5.12M, which is 0x, raising concerns about future service delivery capabilities.
  • Retained earnings of (1.53B) provide limited buffer against comprehensive income items of 11.31M, which is -134.94x, indicating elevated exposure to market risks.
  • Operating cash flow of 0 provides minimal 0x coverage of tax expenses of 842.70, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Tangible assets of 67.77M provide limited backing for working capital of 42.56M, which is 1.59x, suggesting increased operational risk in market downturns.

Peer comparison

Companies in the Education & Training Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 EDU New Oriental Education & Technology Group Inc. 9.35 Bn 24.58 1.82 0.78 Bn
2 TAL TAL Education Group 6.18 Bn 22.22 2.20 0.38 Bn
3 GHC Graham Holdings Co 5.47 Bn 12.27 1.91 1.17 Bn
4 LAUR Laureate Education, Inc. 5.20 Bn 25.55 3.29 0.44 Bn
5 LOPE Grand Canyon Education, Inc. 4.62 Bn 21.85 4.23 0.11 Bn
6 LRN Stride, Inc. 3.61 Bn 11.32 1.43 0.56 Bn
7 ATGE Covista Inc. 3.46 Bn 13.66 1.83 0.73 Bn
8 PRDO PERDOCEO EDUCATION Corp 2.84 Bn 42.39 1.73 0.06 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.13 0.71
EV to Cash from Ops. EV/CFO 0.47 6.80
EV to Debt EV to Debt -7.01 11.15
EV to EBIT EV/EBIT 0.39 112.78
EV to EBITDA EV/EBITDA 0.34 6.48
EV to Free Cash Flow [EV/FCF] EV/FCF 0.44 5.57
EV to Market Cap EV to Market Cap -0.31 582,173.64
EV to Revenue EV/Rev -0.61 1.74
Price to Book Value [P/B] P/B 0.62 -3.80
Price to Earnings [P/E] P/E -1.26 -1.70
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 11.73
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.21
Dividend per Basic Share Div per Share (Qtr) 0.00 0.25
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.69
Interest Coverage Int. cover (Qtr) 0.00 53.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -82.12
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -13.05 25.11
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.54
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 27.44 -39.04
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 -34.79
EBIT Growth (1y) % EBIT 1y % (Qtr) 27.44 -40.70
EBT Growth (1y) % EBT 1y % (Qtr) 27.44 -52.53
EPS Growth (1y) % EPS 1y % (Qtr) 29.63 -29.51
FCF Growth (1y) % FCF 1y % (Qtr) 0.00 -36.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -41.96 -3.42
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.03 0.63
Cash Payout Ratio Cash Payout Ratio 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 1.69 0.73
Current Ratio Curr Ratio (Qtr) 3.10 1.63
Debt to Equity Ratio Debt/Equity (Qtr) 0.03 3.83
Interest Cover Ratio Int Coverage (Qtr) 0.00 53.05
Times Interest Earned Times Interest Earned (Qtr) 0.00 53.05
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 -30.62
EBIT Margin % EBIT Margin % (Qtr) -1,134.14 -82.13
EBT Margin % EBT Margin % (Qtr) -159.29 -47.07
Gross Margin % Gross Margin % (Qtr) 43.40 50.48
Net Profit Margin % Net Margin % (Qtr) -159.30 -48.61