The growth of the EPS is critical in understanding the current valuation of RYB Education One. The EPS growth rate, as it is typically called, is usually expressed as a percentage, which at this time is hard to estimate, but revenue growth has been 20.80 % over the last twelve months. EPS growth is a vital measure of execution of the strategy for RYB Education One since it indicates how well the business is allocating resources to benefit shareholders.



RYB Education One trades as part of the education industry and is part of the consumer defensive sector. The company CEO is Yanlai Shi. RYB Education Inc is a early childhood education service provider in China. It offers kindergarten services, play-and-learn center services as well as at-home education products and services.

Previous Intraday Performance:

The RYB shares had a previous change of -0.89% which opened at 18.07 and closed at 17.75. It moved to an intraday high of 18.07 and a low of 16.92.

SeekingAlpha:  RYB Education (RYB) Q2 2018 Results – Earnings Call Transcript

Historical Performance:

Over the last five trading days, RYB shares returned -5.99% and in the past 30 trading days it returned -12.56%. Over three months, it changed -17.63%. In one year it has changed -32.92% and within that year its 52-week high was 30.50 and its 52-week low was 15.50. RYB stock is 14.52% above its 52 Week Low.

Our calculations result in a 200 day moving average of 19.03 and a 50 day moving average of 19.42. Right now, RYB stock is trading -6.73% below its 200 day moving average and may not be a great opportunity to buy as it may continue to trend down.

SeekingAlpha:  More on RYB Education Q2 results

Liquidity:

The company has a market cap of $518.5m with 29.2m shares outstanding and a float of 29.2m shares. Trading volume was 212,800 shares and has experienced an average volume of 82,468 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is bad, highly speculative and an investor may want to avoid this stock.

Earnings:

The last annual reported EPS for RYB Education One was 0.27 which ended on 31st of December 2017, which according to the previous close, that is a PE of 65.74. Based on 1 analyst estimate, the estimated EPS for the next quarter is 0.01. The trailing twelve month EPS is 0.13, which comes to a trailing twelve month PE of 136.54.

Below was the last reported quarterly earnings per share:
06-30-2018:  0.15
03-31-2018:  -0.09
12-31-2017:  0.01
09-30-2017:  0.06



Base on our calculations, the intrinsic value per share is 23.84, which means it might be undervalued and has a margin of safety of 25.53%

Indicators Also to Watch:

Based on the latest filings, there is 8.00% of institutional ownership. Short-interest was 323,164, which was 1.11% of shares outstanding. The short-interest ratio or days-to-cover ratio was 4.16. This stock has some short interest, but it might be normal and no need to worry if long the position.

I calculated the beta to be 0.93

SeekingAlpha:  RYB Education beats by $0.11, beats on revenue

Fundamental Numbers:

Based on last reported financials, the company’s return on equity is 6.46%, return on assets is 2.09%, profit margin is 2.01%, price-to-sales is 4.54 and price-to-book is 5.75.

Company Score Card:

Results are out of six:
 5  : Growth Expectations Result
 6  : Financial Safety Result
 1  : Past Performance Result
 1  : Valuation Result
 0  : Dividend Safety Result
 3  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).

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