Bedrijfsoverzicht
EpicQuest Education Group International Limited operates within the Consumer Defensive sector, specifically focusing on the Education & Training Services industry by providing educational solutions to students pursuing university and college degree programs in the United States, Canada, and the United Kingdom. The company's operational scope includes offering International English Proficiency Test (ITEP) counseling and related services to facilitate international student mobility across these key markets. Currently, the enterprise holds a market capitalization of $6.11M and employs a workforce of 30 individuals to support its global educational initiatives. The annual revenue generated over the trailing twelve months stands at $8.94M, which, when combined with the relatively small market cap, indicates that the company trades at a price-to-sales ratio of 0.68, suggesting a valuation where the market price is significantly below the company's total sales revenue. This capitalization level relative to its revenue stream characterizes the firm as a micro-cap entity with a substantial gap between its asset value and its trading price, reflecting a market discount typical of smaller education service providers in this specific international niche.
Financiële gezondheid
The company reported a revenue of $8.94M for the trailing twelve months, yet this figure contrasts sharply with a net income of $-2,429,121 and an EBITDA of $-3,770,040. The significant divergence between the positive revenue figure and the substantial negative net income reveals a cost structure where operating expenses and losses far exceed the gross earnings generated from sales. Furthermore, the free cash flow stands at $-10,502,036, which indicates that the company is burning cash rapidly and possesses limited financial flexibility to fund operations without external capital injections or asset liquidation. Despite these operational losses, the balance sheet shows a cash balance of $4.75M against a total debt obligation of $2.74M, resulting in a debt-to-equity ratio of 19.03 that suggests a leveraged position where equity is minimal relative to liabilities. However, the current ratio of 1.83 indicates that the company maintains sufficient short-term liquid assets to cover its current liabilities, providing a buffer against immediate solvency risks. Return on Equity is reported at -20.0% and Return on Assets at -10.6%, metrics that reveal that management effectiveness is currently negative as the company destroys value for shareholders and fails to generate returns on its asset base. The operating margin of -62.1% and profit margin of -27.2% further illustrate the severity of the loss-making environment, where the gross margin of 66.2% is insufficient to cover the high fixed costs or administrative overheads required to sustain the business model.
Waarderingsbeoordeling
The trailing twelve months P/E ratio is listed as N/A due to the negative earnings, while the forward P/E is reported at -34.42, implying that the market currently prices in continued losses rather than an immediate earnings recovery trajectory. The price-to-book ratio is 0.69, which indicates that the market values the company at less than its net asset value, suggesting no market premium over book value and potentially a distressed valuation multiple. Alternative valuation metrics such as the price-to-sales ratio of 0.68 and the EV/EBITDA of -2.56 suggest that the company is priced based on revenue multiples rather than profitability, a common approach for loss-making firms in the education sector. The stock has a 52-week high of $27.84 and a 52-week low of $1.90, meaning the current trading price is significantly below the high and sits within the lower end of the historical trading range. With a beta of -0.45, the stock exhibits negative correlation to the broader market, meaning it tends to move inversely to market indices, which introduces unique volatility characteristics that differ from standard equities in the Consumer Defensive sector.
Growth & Income
The revenue growth year-over-year is -10.5%, while the earnings growth year-over-year is N/A, indicating that the company is currently contracting in terms of top-line sales and is not generating positive earnings to support growth calculations. Since the company is not a dividend payer, the dividend yield is N/A and the payout ratio is 0.0%, which means the company retains all of its cash flow and reinvests earnings—or attempts to cover losses—into operations rather than distributing income to shareholders. The overall growth and income profile is characterized by a contraction in revenue and a complete absence of dividend distributions, highlighting a strategy focused on survival and potential future expansion once profitability is restored. The absence of a payout ratio allows the firm to allocate its limited cash reserves toward covering the $10.5M in free cash flow outflows rather than rewarding investors with dividends.