The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
HAILIANG EDUCATION GROUP INC (ADR) (HLG) is a small-cap growth stock in the Schools industry. The rating according to our strategy based on Kenneth Fisher changed from 50% to 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Hailiang Education Group Inc is a China-based holding company principally engaged in the provision of education and management services. The Company, through its subsidiaries and consolidated affiliated entities, mainly offers private K-12 educational services in schools located in Zhuji, Zhejiang Province and Zhenjiang, Jiangsu Province, China, after-school enrichment services, management consulting services, logistic services, education and management services, educational training services and study trip services, overseas study consulting services and hotel management services.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
| PRICE/SALES RATIO: | PASS |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| PRICE/RESEARCH RATIO: | PASS |
| PRICE/SALES RATIO: | PASS |
| LONG-TERM EPS GROWTH RATE: | PASS |
| FREE CASH PER SHARE: | FAIL |
| THREE YEAR AVERAGE NET PROFIT MARGIN: | PASS |
Detailed Analysis of HAILIANG EDUCATION GROUP INC (ADR)
More details on Validea's Kenneth Fisher strategy
About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world's foremost experts on 19th century logging. Appropriately, Fisher's firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink.
About Validea: Validea is an investment research service that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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