Financial Analysis: Four Seasons Edu (Cayman) (FEDU) versus Its Rivals

Four Seasons Edu (Cayman) (NYSE: FEDU) is one of 42 publicly-traded companies in the “Educational services” industry, but how does it weigh in compared to its competitors? We will compare Four Seasons Edu (Cayman) to similar businesses based on the strength of its institutional ownership, analyst recommendations, profitability, risk, dividends, valuation and earnings.

Profitability

This table compares Four Seasons Edu (Cayman) and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Four Seasons Edu (Cayman) N/A N/A N/A
Four Seasons Edu (Cayman) Competitors -13.55% -29.99% -7.55%



Dividends

Four Seasons Edu (Cayman) pays an annual dividend of $0.40 per share and has a dividend yield of 6.7%. Four Seasons Edu (Cayman) pays out 210.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Educational services” companies pay a dividend yield of 1.5% and pay out 46.4% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Four Seasons Edu (Cayman) and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Four Seasons Edu (Cayman) $47.49 million $7.01 million 31.53
Four Seasons Edu (Cayman) Competitors $535.20 million $32.77 million 13.80

Four Seasons Edu (Cayman)’s competitors have higher revenue and earnings than Four Seasons Edu (Cayman). Four Seasons Edu (Cayman) is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

63.2% of Four Seasons Edu (Cayman) shares are held by institutional investors. Comparatively, 59.0% of shares of all “Educational services” companies are held by institutional investors. 22.5% of shares of all “Educational services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Four Seasons Edu (Cayman) and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Four Seasons Edu (Cayman) 0 0 0 0 N/A
Four Seasons Edu (Cayman) Competitors 148 650 742 18 2.40

As a group, “Educational services” companies have a potential upside of 5.49%. Given Four Seasons Edu (Cayman)’s competitors higher possible upside, analysts plainly believe Four Seasons Edu (Cayman) has less favorable growth aspects than its competitors.

Summary

Four Seasons Edu (Cayman) beats its competitors on 6 of the 11 factors compared.

About Four Seasons Edu (Cayman)

Four Seasons Education (Cayman) Inc., together with its subsidiaries, provides after-school education services for kindergarten, elementary, and middle school students in the People's Republic of China. The company also offers education and management consulting services. It operates 27 learning centers in Shanghai and 6 learning centers in other cities. The company was founded in 2007 and is headquartered in Shanghai, China.

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