STI Education Systems sees huge profitability gains on enrollment uptick
STI Education Systems [STI 0.38 1.3%] [link] quarterly results showed net profit was up 57% y/y to P269 million, and that its earnings for this school year were up 299% over the previous school year.
STI said that these impressive gains were due to a 28% increase in revenue which is directly tied to an 17% increase in enrollment, from 35,556 students to 41,565 students.
STI also said that the enrollment “mix” was favorable to profitability, with a higher percentage of students enrolled in programs regulated by CHEd. STI is owned by the Tanco Family, and is one of the “biggest networks of private schools” in the country.
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I thought that the pandemic would have been an absolute money-printing machine for the PSE’s education providers, but I was wrong.
None were able to catch that particular moment-in-time opportunity, but that hasn’t stopped STI from continuing to build on what it does best: in-person education.
That enrollment increase is huge.
I don’t normally study the education sector, so I’d be interested to do a deeper dive to see whether there are any organic avenues for STI to improve (charge higher fees, fill vacant seats) or any potential inorganic avenues (acquisitions) to keep this growth rolling.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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