FEDU Intrinsic Value Calculator – Four Seasons Education Secures Loan Facility with China Merchants Bank
December 30, 2023
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Four Seasons Education ($NYSE:FEDU), a leading provider of kindergarten education services in China, has secured a credit loan facility with China Merchants Bank. This loan facility will provide the company with a long-term source of financing to meet its liquidity needs. It is expected to provide Four Seasons Education with greater flexibility in its future operations and strategic plans. Four Seasons Education is a publicly listed company on the Shenzhen Stock Exchange, focused on providing high-quality early childhood education services, including pre-school, kindergarten, and child care centers.
Its mission is to promote the development of children’s emotional, physical, intellectual, and social wellbeing through quality education. With a focus on delivering high-quality teaching services, Four Seasons Education has established a solid reputation in the industry.
Stock Price
On Friday, Four Seasons Education experienced a minor change in its stock value, opening and closing at $9.8. The day marked a significant moment in the company’s history, however, with the announcement of a loan facility agreement with China Merchants Bank. This loan facility, which is valued at an undisclosed amount, is intended to provide financial support for Four Seasons Education’s short-term liquidity needs. The agreement signals an optimistic start to the year for Four Seasons Education, which is among the leading international brand of education and training services in the Chinese market.
This loan facility will allow the company to unlock further potential for growth and expansion and better position itself to seize new opportunities. As Four Seasons Education continues to make strides in innovation and quality, it is expected that the company’s position in the industry will continue to strengthen. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for FEDU. More…
| Total Revenues | Net Income | Net Margin |
| 82.23 | -2.71 | -3.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for FEDU. More…
| Operations | Investing | Financing |
| -25.49 | -96.7 | -0.84 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for FEDU. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 633.96 | 102 | 216.02 |
Key Ratios Snapshot
Some of the financial key ratios for FEDU are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -36.2% | -27.1% | -11.2% |
| FCF Margin | ROE | ROA |
| -41.5% | -1.3% | -0.9% |
Analysis – FEDU Intrinsic Value Calculator
At GoodWhale, we recently conducted an analysis of FOUR SEASONS EDUCATION’s wellbeing. Our proprietary Valuation Line has calculated the fair value of a FOUR SEASONS EDUCATION share to be around $13.1. However, at the moment, the shares are being traded at $9.8, undervalued by 24.9%. This presents an opportunity to investors, as the true value of the stock is being greatly undervalued. More…
Peers
They face competition from companies such as US Corp, China Hi-Tech Group Co Ltd, and Vitru Ltd, all of which have their own unique strengths and offerings in the space. Through their dedication to cutting-edge technology and commitment to customer satisfaction, Four Seasons Education (Cayman) Inc have maintained a competitive edge in the market.
– With us Corp ($TSE:9696)
Us Corp is an industry leader in providing innovative products and services to the world. The company has a market cap of 15.09 billion as of 2023, making it one of the largest companies in the world. Its Return on Equity (ROE) of 13.4% is notably higher than the industry average, reflecting its superior performance and financial strength. Us Corp’s core business focuses on providing innovative products and services across a range of industries, helping to drive growth and improve customer satisfaction. The company’s impressive market cap and ROE demonstrate its commitment to delivering value to shareholders, and it is clear that Us Corp is well positioned for continued success in the years to come.
– China Hi-Tech Group Co Ltd ($SHSE:600730)
China Hi-Tech Group Co Ltd is a multi-sectoral company operating in the fields of software, aerospace, and technology. The company has a market cap of 3.8B as of 2023, indicating its large and successful presence in the market. It also has an ROE of -3.24%, indicating that the company has not been able to make a profit from its investments. This is likely due to the uncertain and volatile nature of tech industry investments. The company is continuously looking for new ways to increase efficiency and profitability.
– Vitru Ltd ($NASDAQ:VTRU)
Vitru Ltd, a company operating in the Technology and Internet industry, is one of the leading providers of digital enterprise solutions. The company has seen significant growth over the past two years and currently has a market cap of 452.2M as of 2023. This impressive market cap is indicative of the company’s success and highlights its strong brand presence. Furthermore, the company has an impressive Return on Equity (ROE) of 11.04%, which signals that the company is making efficient use of its assets to generate returns for its shareholders. Vitru Ltd is well-positioned to continue delivering strong returns for its investors.
Summary
Four Seasons Education, a leading education provider in China has secured a credit loan facility with China Merchants Bank. This move is seen as a positive development for the company as it will give it the necessary financial flexibility to pursue new opportunities and expand its education program offerings. With the new loan facility, Four Seasons is well-positioned to execute on its growth strategy, and investors should take note of its strong fundamentals and potential upside.
