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Quantasing Group Ltd. ADR (QSG)
NASDAQ:QSG
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Quantasing Group Ltd. ADR
(NASDAQ:QSG)
79Outperform
Quantasing Group Ltd. ADR (QSG) vs. S&P 500 (SPY)
Market Cap
$132.64M
Dividend YieldN/A
Average Volume (3M)69.43K
Price to Earnings (P/E)2.6
Beta (1Y)1.30
Revenue Growth11.13%
EPS Growth1140.48%
CountryUS
Employees827
SectorIndustrials
Sector Strength72
IndustryEducation
Share Statistics
EPS (TTM)1.00
Shares Outstanding34,493,320
10 Day Avg. Volume77,036
30 Day Avg. Volume69,426
Financial Highlights & Ratios
PEG Ratio0.00227
Price to Book (P/B)N/A
Price to Sales (P/S)0.26
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 Target
$2.10Price Target Upside-18.92% Downside
Rating ConsensusHold
Number of Analyst Covering1
Quantasing Group Ltd. ADR Business Overview & Revenue Model
Company DescriptionQuantasing Group Ltd. ADR (QSG) is a company that operates in the technology and data analytics sectors. The company specializes in providing advanced data solutions and analytics services to businesses and organizations, helping them leverage data for strategic decision-making and operational improvements. Quantasing Group Ltd. is known for its innovative approaches to data management, analysis, and visualization, offering a range of products and services that cater to the needs of various industries.
How the Company Makes MoneyQuantasing Group Ltd. makes money primarily through the sale of its data analytics products and services. The company generates revenue by offering subscription-based access to its data solutions platform, where customers can utilize its tools for data collection, analysis, and reporting. Additionally, Quantasing Group Ltd. offers consulting services to help businesses implement and optimize data-driven strategies, which serves as another significant revenue stream. The company also partners with other technology firms to enhance its offerings and expand its market reach, thereby increasing its earnings potential.
Quantasing Group Ltd. ADR Financial Statement Overview
Summary
Quantasing Group Ltd. ADR demonstrates a solid financial footing with strong profitability and efficient cash flow management. The company's improved revenue and profit margins, coupled with a low debt burden and robust cash flows, position it favorably in the education sector. While there is a substantial liabilities-to-assets ratio, the company's strong equity position mitigates potential risks, indicating financial stability and growth potential.Income Statement
Quantasing Group Ltd. ADR has shown a strong financial performance in the latest year with notable improvements in profitability. The gross profit margin is high at 85.5%, indicating efficient cost management. The net profit margin improved significantly to 10.2% from a negative position the previous year, showing a turnaround in profitability. Revenue growth rate is robust at 23.2%, indicating strong demand for the company's offerings. The EBIT and EBITDA margins also improved to 9.9% and 10.4%, respectively, from negative margins, highlighting operational efficiency.85
Very Positive
Balance Sheet
The balance sheet of Quantasing Group Ltd. ADR highlights a solid financial position with a debt-to-equity ratio of 0.13, suggesting low leverage and reduced financial risk. Return on Equity (ROE) is strong at 74.7%, reflecting effective use of equity to generate profits. The equity ratio stands at 36.2%, indicating a stable capital structure with a good proportion of assets funded by equity. However, attention should be given to the significant liabilities relative to total assets.78
Positive
Cash Flow
Cash flow analysis shows a healthy position for Quantasing Group Ltd. ADR with a substantial increase in free cash flow, which grew by 21.4%. The operating cash flow to net income ratio stands at 0.73, indicating strong cash generation relative to earnings. The free cash flow to net income ratio is high at 0.72, reflecting effective conversion of profits into cash. This reflects the company's ability to fund operations and investments without relying heavily on external financing.82
Very Positive
| Breakdown | ||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.96B | 3.80B | 3.08B | 2.87B | 1.76B | Gross Profit |
| 2.52B | 3.25B | 2.69B | 2.46B | 1.58B | EBIT |
| -184.20M | 377.37M | -113.61M | -235.31M | -330.53M | EBITDA |
| -340.88M | 395.93M | -109.48M | -224.71M | -322.50M | Net Income Common Stockholders |
| -171.43M | 385.53M | -108.54M | -233.43M | -316.04M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 13.68M | 1.03B | 930.58M | 399.06M | 54.73M | Total Assets |
| 82.56M | 1.43B | 1.22B | 603.47M | 330.23M | Total Debt |
| 2.27M | 66.09M | 93.93M | 22.90M | 9.07M | Net Debt |
| -4.01M | -713.84M | -670.35M | -243.53M | -16.03M | Total Liabilities |
| 152.43M | 909.53M | 997.60M | 1.39B | 609.73M | Stockholders Equity |
| -69.88M | 516.48M | 223.70M | -789.35M | -279.51M |
| Cash Flow | Free Cash Flow | |||
| 229.46M | 279.08M | 229.87M | 268.08M | 43.80M | Operating Cash Flow |
| 232.94M | 282.72M | 235.62M | 272.64M | 79.42M | Investing Cash Flow |
| 64.70M | -132.78M | 201.00K | -108.58M | -62.35M | Financing Cash Flow |
| -38.40M | -130.19M | 247.70M | 71.63M | -21.09M |
Quantasing Group Ltd. ADR Technical Analysis
Positive
2.59
Price Trends
2.30
Positive
2.58
Positive
2.23
Positive
Market Momentum
0.03
Negative
58.34
Neutral
81.23
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QSG, the sentiment is Positive. The current price of 2.59 is above the 20-day moving average (MA) of 2.48, above the 50-day MA of 2.30, and above the 200-day MA of 2.23, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 58.34 is Neutral, neither overbought nor oversold. The STOCH value of 81.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QSG.
Quantasing Group Ltd. ADR Risk Analysis
Quantasing Group Ltd. ADR disclosed 103 risk factors in its most recent earnings report. Quantasing Group Ltd. ADR reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Quantasing Group Ltd. ADR Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $132.64M | 2.59 | 90.39% | ― | 11.13% | 1140.48% | |
74 Outperform | $8.01B | 20.79 | 10.40% | ― | 34.42% | 28.54% | |
72 Outperform | $7.82B | 66.51 | 3.23% | ― | 55.62% | ― | |
62 Neutral | $8.16B | 12.85 | 0.64% | 3.04% | 3.83% | -15.83% | |
53 Neutral | $994.40M | 85.60 | 25.15% | ― | 5.51% | ― | |
52 Neutral | $910.51M | ― | -41.45% | ― | 35.93% | -641.17% | |
42 Neutral | $43.25M | ― | -96.68% | ― | -15.92% | -164.65% |
* Industrials Sector Average
Performance Comparison
QSG
Quantasing Group Ltd. ADR
2.59
-0.06
-2.26%
EDU
New Oriental Education Tech
49.01
-44.91
-47.82%
TAL
TAL Education Group
13.09
0.36
2.83%
BEDU
Bright Scholar Education Holdings
1.46
-0.74
-33.64%
GOTU
Gaotu Techedu
3.58
-4.26
-54.34%
DAO
Youdao
8.32
3.83
85.30%
Quantasing Group Ltd. ADR Earnings Call Summary
Earnings Call Date: Mar 11, 2025 | % Change Since: -2.63% | Next Earnings Date: May 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with notable achievements in net income growth, expansion into the silver economy, and strong cash position. However, these positives were offset by significant revenue declines and challenges in the individual online learning services and enterprise services segments.Highlights
Strong Net Income Growth
Net income increased to RMB126.8 million, highlighting the company's ability to optimize operations while selectively investing in promising opportunities.
Expansion and Success in Silver Economy
Consumer business revenues reached RMB64.5 million, a 39% increase compared to the same period last year, driven by expansion into wellness products targeting the silver economy.
High Conversion Rate in Calligraphy Program
The calligraphy program for senior learners saw conversion rates for advanced courses increase from over 40% to over 60%.
Strong Cash Position
The company reported RMB1,213.2 million in cash and equivalents, providing financial flexibility for strategic investments.
Decreased Operating Expenses
Total operating expenses decreased by 36.5% year-over-year, reflecting disciplined cost management and improved operational efficiency.
Lowlights
Revenue Decline
Total revenues were RMB726.6 million, representing a 25.9% decrease year-over-year, due to the transition from traffic-driven growth to high-quality growth.
Decline in Individual Online Learning Services
Gross billing from Individual Online Learning Services was RMB546.2 million, showing a decline of 42.2% year-over-year.
Decreased Gross Margin
Gross margin fell to 83.1% from 85.2% compared to the same period last year, due to a strategic shift towards more product-focused offerings.
Challenges in Enterprise Services
Revenues from enterprise services were RMB55.7 million, showing a minimal change of 3.4% from a year ago, reflecting changes in existing customer demand.
Company Guidance
During QuantaSing's earnings call for the second quarter of fiscal year 2025, several key metrics were highlighted. The company reported revenues of RMB726.6 million, reflecting a strategic shift towards high-quality growth, resulting in a 25.9% year-over-year decrease. Despite this, net income rose to RMB126.8 million, with a net margin of 17.4%. The registered user base reached 139.6 million. The Consumer business experienced significant growth, with revenues increasing by 39% to RMB64.5 million. The company maintained a strong cash position of RMB1,213.2 million, providing flexibility for strategic investments. Additionally, the conversion rate for advanced courses improved to over 60%, up from over 40% in the previous quarter.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.