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China Online Education Group (COE)
:COE
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China Online Education Group
(NYSE MKT:COE)
55Neutral
China Online Education Group (COE) vs. S&P 500 (SPY)
Market Cap
$88.06M
Dividend YieldN/A
Average Volume (3M)12.61K
Price to Earnings (P/E)―
Beta (1Y)-0.32
Revenue Growth70.56%
EPS Growth9.71%
CountryUS
Employees310
SectorTechnology
Sector Strength49
IndustryEducation & Training Services
Share Statistics
EPS (TTM)-1.21
Shares Outstanding4,027,222
10 Day Avg. Volume14,843
30 Day Avg. Volume12,609
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.39
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
China Online Education Group Business Overview & Revenue Model
Company DescriptionChina Online Education Group, through its subsidiaries, provides online English language education services to students in the People's Republic of China, the Philippines, and internationally. The company operates online and mobile education platforms that enable students to take live interactive English lessons with international teachers. Its flagship courses include Classic English Junior and Classic English for the development of English communication skills. It also offers Small Class lessons and programs; 51 Talk New Concept English course; and various specialty courses, such as Business English, IELTS Speaking, Free-talk, Interview English, Travel English, and Daily English for situation-based English education. China Online Education Group was founded in 2011 and is headquartered in Shenzhen, the People's Republic of China.
How the Company Makes MoneyChina Online Education Group primarily generates revenue through the sale of online English language courses to students. The company offers a variety of packages and subscription plans that allow students to engage in one-on-one English lessons with teachers. Revenue is primarily driven by the number of active students and the frequency of their lessons. Additionally, COE may engage in strategic partnerships with educational institutions and other businesses to expand its reach and enhance its service offerings. By focusing on personalized education and leveraging technology, the company aims to maintain a steady stream of income through its educational services.
China Online Education Group Financial Statement Overview
Summary
China Online Education Group exhibits strong revenue growth but faces challenges with profitability due to negative profit margins and net income. The balance sheet shows financial stress with negative equity, posing a risk. Despite improved cash flow, historical volatility suggests caution.Income Statement
The company experienced a robust revenue growth rate of approximately 80.2% from 2022 to 2023. However, the financials are challenged by negative profit margins: a gross profit margin of 76.7%, an EBIT margin of -50.4%, and a net profit margin of -55.4% in 2023. The persistent negative net income indicates a struggle to achieve profitability.45
Neutral
Balance Sheet
The balance sheet is concerning with a negative stockholders' equity of $-8.34M in 2023, indicating liabilities exceed assets. The debt-to-equity ratio is not meaningful due to negative equity, and the equity ratio is also negative, highlighting financial instability and risk.30
Negative
Cash Flow
Cash flow improved with a swing to positive free cash flow of $272K in 2023 from a significant negative in 2022. The operating cash flow to net income ratio suggests some ability to cover expenses, but the past volatility in cash flows remains a risk factor.50
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 24.69M | 27.11M | 15.05M | 339.90M | 314.40M | 212.01M | Gross Profit |
| 19.18M | 20.79M | 11.85M | 252.36M | 225.56M | 149.14M | EBIT |
| -11.33M | -13.66M | -12.36M | 11.19M | 15.98M | ― | EBITDA |
| -11.53M | -13.56M | -12.26M | -4.50M | 21.88M | ― | Net Income Common Stockholders |
| -11.00M | -15.03M | -12.84M | 18.74M | 21.24M | ― |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 103.84M | 23.39M | 23.06M | 131.96M | 201.08M | 134.34M | Total Assets |
| 157.03M | 31.16M | 27.63M | 187.26M | 338.20M | 200.31M | Total Debt |
| 14.87M | 631.00K | 734.00K | 6.08M | 14.78M | 10.24M | Net Debt |
| -21.93M | -20.67M | -17.45M | -27.61M | -35.22M | -38.77M | Total Liabilities |
| 310.11M | 39.35M | 21.06M | 303.05M | 470.89M | 349.20M | Stockholders Equity |
| ― | -8.34M | 6.58M | ― | ― | ― |
| Cash Flow | Free Cash Flow | ||||
| -167.41M | 272.00K | -45.71M | ― | 105.63M | 55.28M | Operating Cash Flow |
| -170.73M | 559.00K | -45.70M | ― | 110.09M | 56.87M | Investing Cash Flow |
| 166.64M | 2.45M | 2.51M | 99.45M | ― | ― | Financing Cash Flow |
| 32.03M | 0.00 | 20.48M | ― | 1.65M | ― |
China Online Education Group Technical Analysis
Negative
15.39
Price Trends
20.04
Negative
18.77
Negative
16.66
Negative
Market Momentum
-1.04
Positive
32.95
Neutral
14.11
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COE, the sentiment is Negative. The current price of 15.39 is below the 20-day moving average (MA) of 19.83, below the 50-day MA of 20.04, and below the 200-day MA of 16.66, indicating a bearish trend. The MACD of -1.04 indicates Positive momentum. The RSI at 32.95 is Neutral, neither overbought nor oversold. The STOCH value of 14.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for COE.
China Online Education Group Risk Analysis
China Online Education Group disclosed 68 risk factors in its most recent earnings report. China Online Education Group reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
China Online Education Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Performance Comparison
COE
China Online Education Group
15.39
8.64
128.00%
BTCM
BIT Mining
1.41
-0.62
-30.54%
STG
Sunlands Online Education Group
4.89
-3.85
-44.05%
China Online Education Group Earnings Call Summary
Earnings Call Date: Mar 21, 2025 | % Change Since: -32.26% | Next Earnings Date: Jun 3, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive trend with significant revenue and billing growth, improved cash flow, and reduced losses. However, increased operating expenses and negative earnings per ADS indicate some ongoing challenges. Overall, the positive aspects outweigh the negatives.Highlights
Strong Revenue Growth
Net revenues increased by 87% year-over-year for the fiscal year 2024, and fourth quarter net revenues were $15.2 million, a 117.3% increase from the same quarter last year.
Significant Increase in Gross Billings
Gross billings grew by 74.4% year-over-year for the fiscal year and by 93.4% in the fourth quarter compared to the same quarter last year, reaching $21.4 million.
Improved Cash Position and Positive Cash Flow
The company delivered a full-year positive operating cash flow of US$5.8 million and ended the fourth quarter with $29.2 million in cash, cash equivalents, and time deposits.
Reduction in Operating and Net Loss
Fourth quarter operating loss was $0.9 million, and net loss attributable to ordinary shareholders was $1.4 million, representing an 80.1% and 75.7% decrease from the same quarter last year, respectively.
Advances from Students
Advances from students were $45.1 million at the end of the fourth quarter, indicating strong customer commitment.
Lowlights
Increased Operating Expenses
Fourth quarter operating expenses increased by 35.6% compared to the same quarter last year, driven by a 40.9% increase in sales and marketing expenses and a 28% increase in general and administrative expenses.
Negative Earnings Per ADS
Q4 GAAP and non-GAAP earnings per ADS were negative $0.24 and $0.2, respectively, indicating the company is still experiencing losses.
Company Guidance
In the fourth quarter of fiscal year 2024, 51Talk Online Education Group reported impressive growth metrics, with gross billings increasing by 93.4% year-over-year to $21.4 million and net revenues rising by 117.3% to $15.2 million. The gross margin stood at 77.5%, reflecting a strong financial performance. Despite operating expenses climbing to $13.4 million, the company managed to significantly reduce its operating loss to $0.9 million, an 80.1% decrease from the previous year, and its net loss attributable to shareholders to $1.4 million, down by 75.7%. The company ended the quarter with $29.2 million in cash, cash equivalents, and time deposits, and advances from students amounted to $45.1 million. Looking ahead, 51Talk projects first-quarter 2025 gross billings between $21.5 million and $22 million, underscoring its optimistic outlook amidst evolving market conditions.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.