One-glance verdict
Undervalued
$46.39 our estimate vs market $2.12
95% below our estimate, below the bear case
Fundamentals snapshot
Ambow Education Holding Ltd. Am
AMBO · ASE · Consumer Defensive · Education & Training Services
Current price
$2.12
52-week range
$1.47 - $6.75
Market cap
$6.06M
Balance sheet
Stretched
1.78x Concerning
Net debt $4.29M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Revenue grew 30.4% last year.
- Reward Free cash flow was positive in 3/10 years.
- Risk Insider ownership is only 0.0% (peer median: 6.6%).
- Risk Net debt grew 6.0% over 3 years.
What this company does
Ambow Education Holding Ltd. Am
Ambow Education is a technology company that builds AI-powered software for schools and businesses to manage events for both remote and in-person audiences. The company makes money by selling licenses for its HybriU platform and by offering its own career-focused educational programs. This matters because Ambow is focused on the growing need for technology that can make learning and corporate events work well in a hybrid world.
How the company got here
Founded in Silicon Valley in 2000, Ambow started by providing educational technology and services in China. [7, 10] After establishing a U.S. presence in 2017, the company shifted its focus entirely away from China, selling its Chinese businesses in 2022. [1] This pivot allowed Ambow to concentrate on becoming a U.S.-based technology company centered on artificial intelligence (AI). [1] To sharpen this new focus, it also streamlined its operations by closing some educational institutions it owned. [1]
What it actually does
Ambow is a technology company that uses artificial intelligence (AI) to blend physical and digital experiences, a concept they call "phygital." [9] Its main offering is a technology platform named HybriU, designed to make learning, corporate meetings, and live events more interactive and intelligent for both in-person and remote participants. [6, 9] In addition to its technology, the company also operates a university that offers career-focused degrees. [6] Ambow aims to break down the barriers between online and offline environments to improve how people learn and collaborate. [15]
Educational programs and services
This part of the company provides traditional, career-focused college education to students after they finish high school. [6] It operates the New School of Architecture & Design in San Diego, where students can earn undergraduate degrees. [1, 2] This segment generates revenue (the money a company makes from sales) from student tuition and fees. It currently makes up the larger portion of the company's sales and provides a real-world setting to showcase its technology products. [1, 18]
HybriU licensing and sales
This is the company's technology-focused business, centered on its HybriU platform. [6] HybriU is a combination of hardware and AI-powered software that helps organizations create immersive hybrid experiences for education, corporate training, and live events. [1, 2] Customers, like universities or companies, pay Ambow licensing fees (a charge for permission to use the technology) to use the HybriU platform and its various features, such as real-time language translation and tools that analyze student engagement. [1, 2] This is a newer and growing part of Ambow's business. [1]
What management is betting on now
The company's main strategy is to grow by getting more customers to adopt its HybriU technology platform. [1] Management is positioning HybriU as a complete "Digital Intelligent Infrastructure," a foundational system that connects classrooms, meeting rooms, and event spaces with AI. [3, 14] They are expanding its use for different markets, such as corporate conferencing and large-scale events, through new products like HybriU Conference and HybriU Events. [1] A key part of the plan is forming strategic partnerships (alliances with other companies) to sell and license HybriU around the world. [1, 2]
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$435.00K
FY2025 Q4
$-1.44M
Revenue
$2.39M
Net income
$-146.00K
Diluted EPS
-0.00
Operating cash flow
$1.07M
Free cash flow
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Sources
Revenue
$2.80M
Net income
$424.00K
Diluted EPS
0.01
Operating cash flow
$-1.19M
Free cash flow
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Sources
Revenue
$4.39M
Net income
$1.25M
Diluted EPS
0.02
Operating cash flow
$-841.00K
Free cash flow
$-1.44M
Fetching…
Sources
Revenue
$2.77M
Net income
$1.77M
Diluted EPS
0.03
Operating cash flow
$1.90M
Free cash flow
—
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Sources
Revenue
$2.31M
Net income
$109.00K
Diluted EPS
0.00
Operating cash flow
$-923.00K
Free cash flow
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Sources
Revenue
$9.39M
Net income
$309.00K
Diluted EPS
0.01
Operating cash flow
$1.64M
Free cash flow
$435.00K
Fetching…
Sources
Is it cheap or expensive?
Fair value $46.39 vs current price $2.12
Our most-likely fair value is $46.39 a share — about 2,088.4% above today's price of $2.12, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $4.3M. Interest coverage 1.8x.
Net debt
$4.29M
Interest coverage
1.78x
Ambow Education Holding Ltd. Am's profit covers its interest bill about 1.8 times over. which is stronger than every peer shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
AMBO
BASELINE
Ambow Education Holding Ltd. Am
Total debt $8.76M Interest coverage 1.78x This is the baseline the peer rows are being compared against.
Total debt $50.72M Interest coverage -194.67x -100% vs AMBO This peer has almost no interest-payment cushion compared with AMBO.
Total debt $6.85M Interest coverage -48.43x -100% vs AMBO This peer has almost no interest-payment cushion compared with AMBO.
Total debt $2.39M Interest coverage -258.18x -100% vs AMBO This peer has almost no interest-payment cushion compared with AMBO.
Total debt $167.48M Interest coverage -12.60x -100% vs AMBO This peer has almost no interest-payment cushion compared with AMBO.
What you should know
The case for and against AMBO
2 Rewards
3 Risks
Rewards
-
Revenue grew 30.4% last year.
-
Free cash flow was positive in 3/10 years.
Risks
-
Insider ownership is only 0.0% (peer median: 6.6%).
-
Net debt grew 6.0% over 3 years.
-
Return on equity was -2.9% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
—
P/B
0.70x
P/S
0.63x
EV/EBITDA
45.51x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
55.2%
Operating margin
1.4%
Net margin
-2.6%
ROE
-2.9%
ROA
0.4%
Health
Liquidity and balance-sheet strength
Debt / equity
1.02x
Current ratio
2.44x
Quick ratio
1.58x
Total debt
$8.76M
Total cash
$4.47M
Growth
How the business has been compounding
Revenue TTM
$12.35M
Revenue 5Y CAGR
-14.6%
EPS TTM
-0.09
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$938.00K
Free CF TTM
$-463.00K
FCF margin
-3.7%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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