What is June outlook for Tarena (NASDAQ:TEDU)?

The stock is currently undergoing an active upward rally. As many millenniums are trying to avoid consumer defensive space, it makes sense to review Tarena Intl ADR a little further and try to understand its current market patterns. Here we also measure the ability of Tarena Intl to meet its long-term debt obligations, such as interest payments on debt, the final principal payment on the debt, and any other fixed obligations like lease payments.
Published over a year ago
View all stories for Tarena Intl | View All Stories
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Michael Smolkin

The company currently holds 616.04 M in liabilities with Debt to Equity (D/E) ratio of 0.01, which may suggest Tarena Intl is not taking enough advantage from borrowing. Tarena Intl ADR has a current ratio of 0.2, indicating that it has a negative working capital and may not be able to pay financial obligations when due. About 13.0% of the company outstanding shares are owned by corporate insiders. Tarena Intl ADR has price-to-book ratio of 1.05. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. The entity recorded a loss per share of 2.17. The firm next dividend is scheduled to be issued on the 4th of April 2018.
Tarena Intl financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Tarena Intl, including all of Tarena Intl's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Tarena Intl assets, the company is considered highly leveraged. Understanding the composition and structure of overall Tarena Intl debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Watch out for price decline

Please consider monitoring Tarena Intl on a daily basis if you are holding a position in it. Tarena Intl is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Tarena Intl stock to be traded above the $1 level to remain listed. If Tarena Intl stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is Tarena Intl's Liquidity

Tarena Intl financial leverage refers to using borrowed capital as a funding source to finance Tarena Intl Adr ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Tarena Intl 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 Tarena Intl'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 Tarena Intl'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 Tarena Intl's total debt and its cash.

Is Tarena Intl valued wisely by the market?

The entity reported the previous year's revenue of 1.9 B. Net Loss for the year was (766.64 M) with profit before overhead, payroll, taxes, and interest of 831.04 M.

Over 3 percent gain for Tarena Intl. What does it mean for private investors?

Newest Sortino Ratio is up to 0.06. Price may drop again. Tarena Intl ADR currently demonstrates below-average downside deviation. It has Information Ratio of 0.05 and Jensen Alpha of 0.2. However, we advise investors to further question Tarena Intl ADR expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Tarena Intl'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 Tarena Intl'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.

Our Final Take On Tarena Intl

Whereas some other companies within the education & training services industry are still a little expensive, even after the recent corrections, Tarena Intl may offer a potential longer-term growth to private investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither acquire nor exit any shares of Tarena Intl at this time. The Tarena Intl ADR risk-reward trade off is not appealing enough to do any trading. 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 Tarena Intl.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

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 Tarena Intl Adr. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com