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Ambow Education Holding Ltd. is not an operating company but a Cayman Islands holding company with operations primarily conducted by its subsidiaries in the U.S. Investors in our securities should be aware that they may never directly hold equity interests in our operating entities but rather are purchasing equity solely in Ambow Education Holding Ltd., our Cayman Islands holding company, which…
Operating margin is thin at 1.18%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue growth slowed to 0.8%, essentially flat. This is a business that needs a catalyst.
Free cash flow declined 206% versus the prior year, cash generation momentum has weakened. Negative free cash flow of -$463K. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$9M
▲ +0.8% YoY
Net Income (TTM)
$1M
▲ +339.8% YoY
Op. Margin
1.18%
▲ +8.9pp YoY
ROIC
0.64%
▲ +4.1pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$463K
▼ -206.4% YoY
Op. Cash Flow (TTM)
$137K
▼ -91.6% YoY
Net Debt
$8M
Cash & Equiv.
$831K
5Y CAGR: -35.0%
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