China Online Education has roughly 199.93
M in cash with (14.34
M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 9.27.
The firm shows a Beta (market volatility) of 0.2124, which signifies not very significant fluctuations relative to the market. Let's try to break down what China's beta means in this case. As returns on the market increase, China Online returns are expected to increase less than the market. However, during the bear market, the loss on holding China Online will be expected to be smaller as well. Even though it is essential to pay attention to
China Online Education historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards foreseeing any stock's
future performance is to check both, its past performance charts as well as the business as a whole, including all available
technical indicators. China Online Education exposes twenty-one different technical indicators, which can help you to evaluate its performance.
China Online Education has an expected return of -0.0901%. Please be advised to confirm China Online Education
standard deviation,
value at risk,
kurtosis, as well as the
relationship between the
jensen alpha and
semi variance to decide if
China Online Education stock performance from the past will be repeated at some point in the near future.
Investing in 51Talk Online, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding 51Talk Online along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of 51Talk Online's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as 51Talk Online. Your research has to be compared to or analyzed against 51Talk Online's peers to derive any actionable benefits. When done correctly, 51Talk Online's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in 51Talk Online Education.
How important is 51Talk Online's Liquidity
51Talk Online
financial leverage refers to using borrowed capital as a funding source to finance 51Talk Online Education ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. 51Talk Online financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to 51Talk Online's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of 51Talk Online's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between 51Talk Online's total debt and its cash.
51Talk Online Gross Profit
51Talk Online Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing 51Talk Online previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show 51Talk Online Gross Profit growth over the last 10 years. Please check 51Talk Online's
gross profit and other
fundamental indicators for more details.
51Talk Online Correlation with Peers
Investors in 51Talk can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in 51Talk Online Education. Diversification will allow for the same portfolio return with reduced risk. The correlation table of 51Talk Online and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities 51Talk is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of 51Talk for more details
A Deeper look at 51Talk
China Online Education secures Sharpe Ratio (or Efficiency) of -0.0234, which signifies that the company had -0.0234% of return per unit of risk over the last month. Macroaxis standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and
technical indicators. China Online Education exposes twenty-one different
technical indicators, which can help you to evaluate volatility that cannot be
diversified away. Please be advised to confirm China Online Education
risk adjusted performance of
(0.035316), and Mean Deviation of 2.8 to double-check the risk estimate we provide.
Over 3 percent surge for China Online. What does it mean for shareholders?
Latest market risk adjusted performance is at -1.01. China Online Education exhibits very low volatility with skewness of 1.45 and kurtosis of 4.64. However, we advise investors to further study China Online Education technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure China Online's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact China Online's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
The Current Takeaway on China Online Investment
Although some firms in the education & training services industry are either recovering or due for a correction, China Online may not be performing as strong as the other in terms of long-term growth potentials. The bottom line, as of the 10th of April 2021, we believe that China Online is currently
undervalued with
very small chance of financial distress in the next two years. Our latest 30 days recommendation on the firm is
Cautious Hold.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of 51Talk Online Education. Please refer to our
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