facebook(Stocks Discussion) SGX: Raffles Education Corp Ltd (SGX: NR7)? - Seedly

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Anonymous

11 Jun 2019

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Stocks

(Stocks Discussion) SGX: Raffles Education Corp Ltd (SGX: NR7)?

Discuss anything about share price, dividends, yield, ratios, fundamentals, technical analysis and if you would buy or sell this stock on the SGX Singapore markets. Do take note that the answers given by our members are just your opinions, so please do your own due diligence before making an investment!

Discussion (1)

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Summary: No Buy

Trailing share price shows resistance at about $0.23 and the price has been declining since. Total borrowings of $366 mil, relative to cash flows in particular is worrying. The group's result has been propped up by property re-evaluation gains. The company also did not meet the minimum trading price.

MarketWatch

I did a comparison of Raffles Education Ltd with several other competitors on MarketWatch. It does seem that the poor performance is industry specific. This could be due to emergence of more local universities (SMU, SIT, SUSS, SUTD). Private tutition however seems to be profitable and worth taking a look.

About (Tl;dr: Private uni)

RafflesEducation is a premier education Group that is committed to providing quality education and educated-related services through its network of institutions across Asia-Pacific and Europe.

Financials

Yahoo Finance

The past share prices doesn't look too promising. Let's look on further to see if there's a chance for rebound.

Compiled data from Annual Report

The operating cashflow has been declining since 2014, and revenue since 2011 and it is of question whether the company is able to meet it's current liabilities, especially with it increasing in the last few years.

Outlook

The challenging global education environment, currency volatility, increasing interest rates and increasing competition continue to impact the Group.

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