Company Overview
EpicQuest Education Group International Limited operates within the Consumer Defensive sector, specifically serving the Education & Training Services industry by providing educational solutions for students pursuing university and college degree programs across the United States, Canada, and the United Kingdom. The company offers specialized services such as International English Proficiency Test (ITEP) counseling to support its core mission of facilitating international student mobility. As a publicly traded entity with the ticker symbol EEIQ, the company maintains a relatively modest market capitalization of $10.33 million, reflecting its position as a small-cap stock within its niche. The organization supports its operations with a workforce of 30 employees, a lean structure that is typical for specialized education service providers. The combination of a $10.33 million market cap and $8.94 million in annual revenue indicates that the company operates on a limited scale, generating revenue sufficient to cover basic operational costs but lacking the massive scale associated with large-cap market leaders.
Financial Health
The company reported a trailing twelve-month revenue of $8.94 million, yet it posted a net income loss of $-2,429,121 and an EBITDA of $-3,770,040. The significant divergence between the $8.94 million revenue and the negative $2.43 million net income reveals a high cost structure where operating expenses and losses from operations substantially erode the top line before reaching the bottom line. Free cash flow stands at $-10,502,036, which indicates that the company is currently burning cash rather than generating liquidity, suggesting limited financial flexibility for internal expansion or unexpected market shifts without external financing. The gross margin is reported at 66.2%, indicating that the company retains a substantial portion of revenue after direct costs, though the operating margin of -62.1% and profit margin of -27.2% demonstrate that overhead costs and other expenses are exceeding gross profits. On the balance sheet, the company holds $4.75 million in cash against $2.74 million in debt, resulting in a debt-to-equity ratio of 19.03, which suggests a leveraged position where debt obligations are significant relative to shareholder equity despite the positive cash on hand. The current ratio is 1.83, indicating that the company possesses 1.83 times the current assets required to cover its short-term liabilities, which points to adequate short-term liquidity to meet immediate obligations. Return on Equity is -20.0% and Return on Assets is -10.6%, metrics that reveal that management is currently unable to generate positive returns on the capital invested or the assets employed, signaling ineffective capital allocation in the current reporting period.
Valuation Assessment
The trailing twelve-month P/E ratio is N/A due to the lack of positive earnings, while the forward P/E is listed as -58.17, implying that the market is pricing in future earnings expectations that may differ significantly from current performance or that the stock is valued based on non-earnings fundamentals. The price-to-book ratio is 1.16, which indicates that the market values the company at a slight premium over its net book value, suggesting investors assign some intangible value to its educational brand and service contracts. The price-to-sales ratio is 1.16, and the EV/EBITDA is -3.66, providing alternative valuation perspectives where the EV/EBITDA metric highlights the company's negative earnings power relative to its enterprise value. The stock has traded between a 52-week low of $1.90 and a 52-week high of $27.84, and without the current share price explicitly provided in the source data, the valuation context is strictly defined by this wide historical range which suggests high volatility. The beta of 1.04 indicates that the stock price tends to move with a volatility slightly higher than the broader market, reflecting the risks associated with small-cap education sector stocks.
Growth & Income
Revenue growth year-over-year is -10.5%, and earnings growth year-over-year is N/A, indicating that the company is currently contracting rather than expanding its revenue base. Because the company is reporting a net loss, it does not have positive earnings to distribute, meaning there is no sustainable dividend payout ratio to evaluate for current investors. As the company does not pay dividends, evidenced by a 0.0% payout ratio and N/A dividend yield, it operates under a strategy where it must rely on retained capital or external financing to fund operations rather than returning cash to shareholders. The overall growth and income profile is characterized by negative revenue momentum and a lack of dividend income, requiring the company to focus entirely on operational turnaround or cost reduction to achieve future profitability.