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CURRO HOLDINGS LIMITED

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Our opinion on the current state of CURRO(COH)Curro (COH) is a private education group focused on building and operating schools from early childhood development up to matric. The company is a spin-off from PSG, which holds 17.2% of Curro. The group capitalized on the declining quality of government education in South Africa since 1994, leading to rapid expansion as it built and acquired more schools. Curro's tertiary education division was unbundled on 3rd October 2017 and separately listed on the JSE as Stadio (SDO). At its peak on 30th December 2015, Curro achieved one of the highest price:earnings (P:E) ratios on the JSE at 245, driven by high expectations for its growth potential. However, the company has since faced challenges, including a decline in pupil numbers and increasing financial pressure on parents to pay school fees. The company responded by impairing the value of its schools by R202 million and increasing its bad debts provision. On 1st March 2022, PSG announced it would be unbundling its 63.6% holding in Curro into the hands of PSG shareholders, aiming to unlock value for its shareholders. Curro has also been involved in legal actions with the City of Johannesburg to prevent its schools from being classified as businesses for the purpose of municipal rates. The company won this legal battle on 2nd March 2023. In its results for the six months to 30th June 2024, Curro reported an 8.3% increase in revenue and a 16.2% rise in headline earnings per share (HEPS). The average number of learners increased slightly by 0.5% to 72,758. The company stated that total school fee revenue grew by 6.8%, driven by the modest increase in learner numbers and an average annual fee increase of 6.0% per learner. Ancillary revenue saw a strong 17.2% increase compared to the previous period. Technically, Curro's share is in a strong upward trend. Education is generally considered a sound investment because parents typically pay school fees in advance, which reduces the working capital requirements for education companies. However, the sector is capital-intensive, as each school requires substantial infrastructure investment, which adds to the financial risk.
JSE:COH
by PDSnetSA
Our opinion on the current state of CURRO(COH)Curro (COH) is a private education group focused on building and operating schools for children up to matriculation. The company's tertiary division was unbundled and separately listed on the JSE as Stadio (SDO) on 3rd October 2017. Curro has capitalized on the decline in government education since 1994, and it is a spin-off from PSG, which still holds a 17.2% stake. On 30th December 2015, Curro reached an exceptionally high price-to-earnings (P:E) ratio of 245 on the JSE, driven largely by its perceived growth potential. The company's business model seemed limitless as it continued to acquire or build more schools. Currently, Curro operates 178 schools across 76 campuses, with an average of just over 72,000 students. However, Curro has faced challenges, including falling pupil numbers and parents struggling to pay school fees. The company has also impaired the value of its schools by R202 million and increased its bad debts provision. On 1st March 2022, PSG announced that it would unbundle its 63.6% holding in Curro into the hands of PSG shareholders, aiming to release value for those shareholders. Curro has been involved in legal actions with the City of Johannesburg to prevent schools from being classified as businesses for rates purposes. The company won this case on 2nd March 2023. In its results for the year ended 31st December 2023, Curro reported a 32% increase in recurring headline earnings per share (HEPS) and a 15% increase in revenue. The company noted that Curro’s weighted average number of learners for 2023 increased by 2% to 72,031, and revenue grew by 15% to R4,764 million. Tuition fees increased by 12%, supported by growth in learner numbers, price-mix across grades, and annual fee increases. Additionally, ancillary revenue rose by 33%, contributing R120 million more than the previous year. In a trading statement for the six months ending 30th June 2024, Curro estimated that HEPS would increase by between 10.9% and 21.3%. Technically, Curro’s share price has been moving sideways since the COVID-19 impact in March 2020, but there may be signs of a new upward trend emerging. Education is generally considered a good investment because parents tend to prioritize paying for their children's education, which means education companies have lower working capital requirements. While these companies do not typically face union problems, they are capital-intensive, as each school requires significant infrastructure to operate, adding an element of risk.
JSE:COH
by PDSnetSA
$JSECOH - Curro: The Big PictureFirst time coverage. Curro took off like a rocket after its IPO peaking in 2015 @ 5802 cps. Fast growth always has sustainability questions and the market has not been kind since. The stock, like many others, found a bottom in March 2020 after the covid outbreak but the bulls have been timid, perhaps highlighting the fundamental picture. From an Elliot Wave perspective, the big bear from 5802 to 462 unfolded as a zig zag which in all likelihood is complete. This could be a value trap; the technicals might look good but one has to take a deeper dive into the fundamentals. I am neutral to bullish.
JSE:COHLong
by Loyiso_BlaqueSoros_Mpeta
Our opinion on the current state of COHCurro Holdings Limited (COH), a premier private education provider in South Africa, has been a key player in the education sector since its inception, focusing on delivering quality education from early childhood development up to matriculation level. The unbundling of its tertiary division, which resulted in the separate listing of Stadio (SDO) on the Johannesburg Stock Exchange (JSE) on 3 October 2017, marks a strategic move to streamline its focus on primary and secondary education. Curro's growth and expansion capitalize on the declining standards of government education since 1994, demonstrating the demand for private education in South Africa. With PSG, a significant investment holding company, holding a 17.2% stake after the unbundling of a majority of its shares to PSG shareholders in March 2022, Curro continues to leverage its association with PSG's broad investment portfolio. As of December 2015, Curro reached a remarkable price:earnings (P:E) ratio of 245 on the JSE, reflecting its perceived potential for unlimited expansion through acquiring and building more schools. Currently, Curro operates 178 schools across 76 campuses, serving an average of just over 72,000 students. Despite facing challenges such as declining pupil numbers and increased financial pressure on parents affecting school fee payments, leading to a R202 million impairment of its schools and an increased bad debt provision, Curro has shown resilience. The company's strategic litigation against the City of Johannesburg's classification of schools as businesses for rate purposes, which concluded in Curro's favor on 2 March 2023, underscores its commitment to maintaining operational sustainability and affordability of private education. For the fiscal year ending 31 December 2023, Curro reported a 32% increase in recurring headline earnings per share (HEPS) and a 15% rise in revenue. This growth is attributed to a 2% increase in the weighted average number of learners, reaching 72,031 (up from 70,724 in 2022), and a 12% increase in tuition fees driven by growth in learner numbers, price-mix across grades, and annual fee adjustments. Additionally, ancillary revenue saw a 33% increase from the previous year, contributing R120 million to the revenue growth. The share price of Curro has experienced sideways movement since the onset of COVID-19 in March 2020, but recent trends may indicate the beginning of an upward trajectory. The education sector remains an attractive investment avenue, given that parents typically prepay for their children's education, resulting in lower working capital requirements for companies like Curro. However, the capital-intensive nature of establishing and maintaining educational infrastructure presents inherent risks. Despite these challenges, Curro's strategic focus on expanding its educational offerings and improving operational efficiency positions it as a potentially robust investment, especially for those looking to capitalize on the growing demand for private education in South Africa and beyond.
JSE:COH
by PDSnetSA
Curro - Bearish CrossoverThe stock has been on a significant trend up since the consolidation breakout in June 2023. Since then, the 50-exponential moving average has acted as support and the stock reach a swing high of R12.80 There has been a recent sharp displacement below the moving average with a 20ema/50ema crossover, signaling short term bearishness. Price could pull back to the 200ema of next support around R10. Moving averages are technical indicators commonly used by investors in the stock market. An MA represents the average of closing prices of a security over a specific number of periods (days, weeks, etc.). It is depicted as a line chart superimposed over a stock’s price action. MAs help traders identify trends and potential entry or exit points.
JSE:COHShort
by Trader-Dan
Our opinion on the current state of COHCurro, a leading private education group in South Africa, focuses on establishing and managing schools for children up to matriculation. Following the unbundling of its tertiary division, which became Stadio and was listed separately on the Johannesburg Stock Exchange (JSE) on 3rd October 2017, Curro has capitalized on the declining quality of government education since 1994. Originating as a spin-off from PSG, which, after a rights issue in September 2020, now holds almost 60% of Curro, the company has seen significant growth. On 30th December 2015, Curro achieved one of the highest price-to-earnings (P:E) ratios ever recorded on the JSE at 245, largely due to its potential for unlimited expansion through acquiring or constructing more schools. Currently, Curro operates 178 schools across 76 campuses, serving an average of over 72,800 students. However, the company has faced challenges, including declining pupil numbers and financial pressures on parents affecting their ability to pay school fees. Consequently, Curro has had to impair the value of its schools by R202 million and increase its bad debts provision. Notably, on 12th May 2021, Curro expanded its portfolio by acquiring HerronBridge College in Fourways, which has 1,260 learners. Additionally, in June 2021, Curro launched its online school, Curro Online, now catering to 750 pupils. In a strategic move, PSG announced on 1st March 2022 that it would unbundle its 63.6% holding in Curro, distributing it among PSG shareholders to unlock value. Curro has also successfully challenged the City of Johannesburg in court to prevent schools from being classified as businesses for rate purposes, winning the case on 2nd March 2023. For the six months ending 30th June 2023, Curro reported a 16% increase in revenue and a 26% rise in headline earnings per share (HEPS), driven by growth in learner numbers, annual fee increases, and a significant boost in ancillary revenue. The company also managed to reduce the discounts granted on tuition fees. Looking forward, Curro anticipates a HEPS increase of between 14.1% and 23.8% for the year ending 31st December 2023, although it expects to recognize impairments of between R340 million and R380 million (net of tax) related to lower-yielding school assets. Despite the stagnant share performance since the onset of COVID-19 in March 2020, Curro is now exhibiting signs of an emerging upward trend. The education sector remains an attractive investment area, as it often benefits from advance payments for tuition, resulting in lower working capital requirements. However, the industry is capital intensive, with significant infrastructure needed for each school's operation.
JSE:COH
by PDSnetSA
Curro Holdings is showing upside to R11.86 with a C&HCup and Handle has formed on Curro. We need the price to break up above the Brim level to confirm a better level. 7>21>200 RSI>50 Buy divergence Target R11.86 About the company Curro Holdings is a South African company that operates private schools and offers education services. HOW IT GOT ITS NAME Curro Holdings' name is derived from the Latin word "curro," which means "I run" or "I move." The name reflects the company's aim to provide an educational environment that nurtures growth, development, and progress for students. Founding and Establishment: Curro Holdings was founded in 1998 by Dr. Chris van der Merwe. The company's primary objective was to provide quality private education in South Africa. Education Group: Curro Holdings is one of the largest independent school companies in Africa. It operates a network of private schools, providing education from nursery to high school levels. Schools: The company operates a wide range of schools, including Curro Schools (mainstream schools), Curro Castle (early learning centers), Meridian Schools (affordable private schools), Curro Academy Schools (more specialized academies), and more. Education Approach: Curro often emphasizes a learner-centric approach to education, focusing on individualized learning and smaller class sizes compared to many public schools. Expansion: Curro has experienced significant growth since its inception. It has expanded its school network across South Africa and even ventured into other African countries like Namibia, Botswana, and Zambia.
JSE:COHLong
by Timonrosso
Rising Flag on Curro just broke down target R8.13Rising Flag formed on Curro. Previous trend was down, we then had a slight recovery before further downside. Now that the price has broken below the support, we can expect a retracement. 200>21>7 -Bearish RSI=50 Target R8.13 ABOUT THE COMPANY Curro Holdings is a leading independent education provider in South Africa, founded in 1998 by Dr. Chris van der Merwe. The company operates more than 70 schools across the country, serving over 66,000 learners from pre-school to high school. Curro Holdings offers a range of educational options, including: Traditional classroom-based learning, Home-schooling, Online learning. The company is known for its innovative and progressive approach to education, with a focus on technology, entrepreneurship, and 21st-century skills. It has a market cap of over R30 billion. The company has expanded internationally, with schools in Namibia and Botswana, and plans to open more schools in other African countries in the future. Curro Holdings has a comprehensive teacher training and development program to ensure that its educators are equipped with the skills and knowledge they need to provide high-quality education.
JSE:COHShort
by Timonrosso