Which education stock has fallen 70%?
Three education stocks have reported serious losses since the start of the year, with one falling 70%, as the sector grapples with school closures and the possibility of fewer international students going forward.
Travel restrictions have severely limited the prospects of international students coming to Australia while the lockdown has meant school and childcare centres had been temporarily closed.
This could be worsened if China, Australia’s largest source of international students, carried out threats to exert influence over the sector.
Looking at ASX-listed education companies, there were seven main firms: 3P Learning, Evolve Education, G8 Education, IDP Education, Janison Education, Kip McGrath Education and Red Hill Education.
Since the start of the year to 27 May, six of these seven stocks had reported double-digit losses with the worst losing more than 70%, according to FE Analytics data.
Red Hill Education lost 70.1% over the period compared to losses of 12% by the ASX 200 over the same period.
Red Hill, which described itself as operating “specialist businesses in the private tertiary education sector”, said it had been forced to stand down 235 of its staff until at least the end of June. Some 85% of the firm’s activities came from international students and they were unable to enter Australia until the travel ban was lifted.
G8 Education and Evolve Education, which both offered childcare centres for early years children, both lost more than 40%.
This was followed by losses of 34.7% for Janison, 24% for Kip McGrath and 13% for 3P Learning. IDP Education, which organised Australian placements for international students, lost 1.4%.
Over one year to 27 May, 2020, IDP and Kip McGrath were the only two firms to report positive gains of 2.5% and 0.9% respectively while all others reported losses.
Red Hill remained the worst performer with 74.6% losses followed by G8 Education at 62%, 3P at 28%, Janison at 14% and Evolve at 12.5%.
AUTHOR
Laura Dew
Recommended for you
GQG Partners has completed the acquisition of the minority interests held by Pacific Current Group in three affiliates which will form its new Private Capital Solutions division.
The wealth management firm has unveiled a new fund in partnership with investment specialist Partners Group, describing the investment solution as an “alternative” to traditional alternatives.
Fidante affiliate NovaPort Capital has announced the closure of its small cap and microcap funds, citing expected declining flows.
T. Rowe Price believes Australian growth is successfully managing to shrug off consumer weakness, but the firm’s multi-asset team is not yet positive enough to increase its underweight position.
