One-glance verdict
Undervalued
$68.87 our estimate vs market $1.30
98% below our estimate, below the bear case
Fundamentals snapshot
Lixiang Education Holding Co., Ltd.
LXEH · NGM · Consumer Defensive · Education & Training Services
Current price
$1.30
52-week range
$0.83 - $4.60
Market cap
$2.49M
Balance sheet
Distressed
-10.53x Concerning
Net debt $12.83M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 3/10 years.
- Risk Return on equity was -57.7% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from -64.8% to -67.6% over 3 years.
What this company does
Lixiang Education Holding Co., Ltd.
Lixiang Education Holding Co., Ltd. offers private high school and vocational education in China. Their main income comes from tuition fees for these educational programs, which is important because it shows how well they are attracting students to their schools.
How the company got here
Lixiang Education Holding Co., Ltd. started in 2001, originally known as Lianwai Education Group Limited, before changing its name in May 2020. The company has grown to become a provider of private education services in China. Its journey reflects the increasing demand for educational opportunities beyond traditional public schooling in the country. The company's focus has been on offering both high school and vocational training to prepare students for further education or the workforce.
What it actually does
Lixiang Education Holding Co., Ltd. offers a range of educational and related services. This includes providing education at the high school level and also vocational training designed to equip students with practical skills. Beyond direct education, the company also engages in human resources services, such as helping businesses find employees through dispatch and recruitment, and offering flexible employment options for individuals. Additionally, they provide healthcare support services, focusing on basic and special care for individuals.
High School
This segment of Lixiang Education focuses on providing education at the high school level. Through institutions like Qingtian International School and Lishui International School, the company aims to offer a curriculum that prepares students for higher education or future careers. This part of the business caters to students seeking private secondary education, which is a growing market in China.
Vocational Education
The Vocational Education segment is dedicated to offering training that imparts specific job skills to students. This includes programs at schools like Langfang School and Hainan Jiangcai, designed to make graduates ready for employment in various industries. This business line addresses the need for a skilled workforce by providing practical, career-oriented education.
Human Resources and Other Services
This segment encompasses a variety of services that support both individuals and businesses. It includes labor dispatch, where the company provides workers to other companies, and recruitment services to help businesses find suitable candidates. They also offer outsourcing for recruitment processes and flexible employment solutions, such as internships and temporary work, alongside healthcare support services like basic living and special care.
What management is betting on now
Lixiang Education's management is focused on expanding its reach within the private education sector in China. They are likely prioritizing the growth of their high school and vocational training programs to meet the increasing demand for quality education and skilled workers. The company also appears to be leveraging its human resources and healthcare support services to create a more diversified revenue stream. This strategy aims to solidify its position in the education market while exploring adjacent service opportunities.
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
$-2.55M
FY2025 Q4
$-44.96M
Revenue
$4.41M
Net income
$-17.43M
Diluted EPS
—
Operating cash flow
$-44.94M
Free cash flow
$-44.96M
Fetching…
Sources
Revenue
$4.49M
Net income
$-3.37M
Diluted EPS
—
Operating cash flow
$-2.51M
Free cash flow
$-2.55M
Fetching…
Sources
Is it cheap or expensive?
Fair value $68.87 vs current price $1.30
Our most-likely fair value is $68.87 a share — about 5,197.7% above today's price of $1.30, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $12.8M. Interest coverage -10.5x.
Net debt
$12.83M
Interest coverage
-10.53x
Lixiang Education Holding Co., Ltd.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
LXEH
BASELINE
Lixiang Education Holding Co., Ltd.
Total debt $14.25M Interest coverage -10.53x This is the baseline the peer rows are being compared against.
Total debt $555.01K Interest coverage -10.93x Neither company has much profit cushion over interest right now.
Total debt $6.89M Interest coverage -48.43x Neither company has much profit cushion over interest right now.
Total debt $4.83M Interest coverage -6.17x Neither company has much profit cushion over interest right now.
Total debt $8.76M Interest coverage 1.78x This peer still has a real interest-payment cushion, while LXEH does not.
Total debt $16.07M Interest coverage 1.15x This peer still has a real interest-payment cushion, while LXEH does not.
What you should know
The case for and against LXEH
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 3/10 years.
Risks
-
Return on equity was -57.7% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from -64.8% to -67.6% over 3 years.
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)
—
Forward P/E
—
P/B
0.12x
P/S
0.08x
EV/EBITDA
-3.38x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
-13.7%
Operating margin
-67.6%
Net margin
0.0%
ROE
-57.7%
ROA
-5.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.67x
Current ratio
0.25x
Quick ratio
0.15x
Total debt
$14.25M
Total cash
$1.42M
Growth
How the business has been compounding
Revenue TTM
$23.19M
Revenue 5Y CAGR
-5.0%
EPS TTM
-8.57
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-49.85M
Free CF TTM
$-44.96M
FCF margin
-193.9%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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