Ambow Education Holding Ltd. Fundamental Analysis
Ambow Education Holding Ltd. Fundamental Analysis
Ambow Education Holding Ltd. (AMBO) shows strong financial fundamentals with a PE ratio of 2.05, profit margin of 30.59%, and ROE of 39.42%. The company generates $0.0B in annual revenue with moderate year-over-year growth of 5.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze AMBO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentAMBO demonstrates superior asset utilization.
Valuation Score
ExcellentAMBO trades at attractive valuation levels.
Growth Score
ModerateAMBO shows steady but slowing expansion.
Financial Health Score
ExcellentAMBO maintains a strong and stable balance sheet.
Profitability Score
ModerateAMBO maintains healthy but balanced margins.
Key Financial Metrics
Is AMBO Expensive or Cheap?
P/E Ratio
AMBO trades at 2.05 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AMBO's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Ambow Education Holding Ltd. at 0.75 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.22 times EBITDA. This is generally considered low.
How Well Does AMBO Make Money?
Net Profit Margin
For every $100 in sales, Ambow Education Holding Ltd. keeps $30.59 as profit after all expenses.
Operating Margin
Core operations generate 8.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $39.42 in profit for every $100 of shareholder equity.
ROA
Ambow Education Holding Ltd. generates $15.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ambow Education Holding Ltd. generates limited operating cash flow of $20.81K, signaling weaker underlying cash strength.
Free Cash Flow
Ambow Education Holding Ltd. generates weak or negative free cash flow of $-9.18K, restricting financial flexibility.
FCF Per Share
Each share generates $-0.06 in free cash annually.
FCF Yield
AMBO converts -56.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
2.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.001
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.03
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.74
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.53
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.39
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How AMBO Stacks Against Its Sector Peers
| Metric | AMBO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 2.05 | 21.43 | Better (Cheaper) |
| ROE | 39.42% | 1134.00% | Weak |
| Net Margin | 30.59% | -2810.00% (disorted) | Strong |
| Debt/Equity | 0.74 | 0.81 | Neutral |
| Current Ratio | 2.53 | 2.39 | Strong Liquidity |
| ROA | 15.86% | -540348.00% (disorted) | Strong |
AMBO outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ambow Education Holding Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-91.08%
Industry Style: Defensive, Dividend, Low Volatility
DecliningEPS CAGR
101.71%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
0.00%
Industry Style: Defensive, Dividend, Low Volatility
Declining