Four Seasons Education currently holds 9.65
M in liabilities with Debt to Equity (D/E) ratio of 0.02, which may suggest the company is not taking enough advantage from borrowing. The entity has a current ratio of 5.51, suggesting that it is liquid enough and is able to pay its financial obligations when due. Debt can assist Four Seasons until it has trouble settling it off, either with new capital or with free cash flow. So, Four Seasons' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Four Seasons Education sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Four Seasons to invest in growth at high rates of return. When we think about Four Seasons' use of debt, we should always consider it together with cash and equity.
Our trade advice tool can cross-verify current
analyst consensus on Four Seasons Education and to analyze the company potential to grow in the current economic cycle.
We determine the current worth of Four Seasons Education using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Four Seasons Education based exclusively on its
fundamental and basic
technical indicators. By analyzing Four Seasons's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Four Seasons's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Four Seasons. We calculate exposure to Four Seasons's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Four Seasons's related companies.
Four Seasons Education Investment Alerts
Four investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Four Seasons Education performance across your portfolios.Please check all
investment alerts for Four
Four Seasons Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Four value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Four Seasons competition to find
correlations between indicators driving the intrinsic value of Four.
Four Seasons Gross Profit
Four Seasons Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Four Seasons 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 Four Seasons Gross Profit growth over the last 10 years. Please check Four Seasons'
gross profit and other
fundamental indicators for more details.
Is Four Seasons valued wisely by the market?
The newest price gain of Four Seasons Education could raise concerns from private investors as the firm is trading at a share price of
15.50 on slow start in volume. The company executives may have good odds in positioning the firm resources to exploit
market volatility in
October. The stock standard deviation of daily returns for 90 days investing horizon is currently 7.72. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Four Seasons partners.
| 2019 | 2020 | 2021 | 2022 (projected) |
Revenues USD | 55.58 M | 43.12 M | 39.72 M | 28.44 M | Revenues | 389.05 M | 280.28 M | 250.22 M | 181.07 M |
Margins Breakdown
Four Seasons profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Four Seasons itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Four Seasons profit margins.
| EBITDA Margin | (0.23) |
| Gross Margin | 0.43 |
| Profit Margin | (0.41) |
Four Seasons Earnings Before Interest Taxes and Depreciation Amortization EBITDA is decreasing over the last 7 years. Also, Four Seasons Earnings Before Interest Taxes and Depreciation Amortization USD is decreasing over the last 7 years.
Will Four Seasons newest gain continue?
Newest downside deviation is at 4.94. Four Seasons Education is displaying above-average volatility over the selected time horizon. Investors should scrutinize Four Seasons Education independently to ensure intended market timing strategies are aligned with expectations about Four Seasons volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Four Seasons' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Four Seasons' 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.
Our Conclusion on Four Seasons
Whereas some other companies under the education & training services industry are still a bit expensive, Four Seasons may offer a potential longer-term growth to private investors. With a less-than optimistic outlook for your 90 days horizon, it may be a good time to short some or all of your Four Seasons holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Four Seasons.
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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 Four Seasons Education. Please refer to our
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