Tarena International Profitability Analysis

TCTM Stock   0.45  0.01  2.52%   
Taking into consideration Tarena International's profitability measurements, Tarena International is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in March. Profitability indicators assess Tarena International's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2010-12-31
Previous Quarter
10.3 M
Current Value
10.8 M
Quarterly Volatility
352.5 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of the 20th of February 2025, Price To Sales Ratio is likely to drop to 0.06. In addition to that, Days Sales Outstanding is likely to drop to 0.01. At this time, Tarena International's Net Income Per E B T is very stable compared to the past year.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.660.52
Significantly Up
Slightly volatile
For Tarena International profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Tarena International to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Tarena International utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Tarena International's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Tarena International over time as well as its relative position and ranking within its peers.
  
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To learn how to invest in Tarena Stock, please use our How to Invest in Tarena International guide.
Is Diversified Consumer Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Tarena International. If investors know Tarena will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Tarena International listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(3.29)
Revenue Per Share
132.635
Quarterly Revenue Growth
(0.45)
Return On Assets
(0.01)
The market value of Tarena International is measured differently than its book value, which is the value of Tarena that is recorded on the company's balance sheet. Investors also form their own opinion of Tarena International's value that differs from its market value or its book value, called intrinsic value, which is Tarena International's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Tarena International's market value can be influenced by many factors that don't directly affect Tarena International's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Tarena International's value and its price as these two are different measures arrived at by different means. Investors typically determine if Tarena International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Tarena International's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Tarena International Profit Margin vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Tarena International's current stock value. Our valuation model uses many indicators to compare Tarena International value to that of its competitors to determine the firm's financial worth.
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Tarena International is currently regarded as top stock in return on asset category among its peers. It also is currently regarded as top stock in profit margin category among its peers . At this time, Tarena International's Net Profit Margin is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Tarena International by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Tarena Profit Margin vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Tarena International

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.0132
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Tarena International

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
(0.05) %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Tarena Profit Margin Comparison

100%
Tarena International is currently under evaluation in profit margin category among its peers.

Tarena International Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Tarena International, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Tarena International will eventually generate negative long term returns. The profitability progress is the general direction of Tarena International's change in net profit over the period of time. It can combine multiple indicators of Tarena International, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income43.4 M39.1 M
Interest Income980.1 K931.1 K
Net Interest Income1.3 M1.6 M
Operating Income15.5 M16.2 M
Net Income From Continuing Ops25.7 M27 M
Income Before Tax16.5 M17.3 M
Total Other Income Expense NetM995.3 K
Net Income25.7 M27 M
Income Tax Expense-7.2 M-6.8 M
Net Income Per Share 0.93  0.97 
Income Quality(15.32)(14.56)
Net Income Per E B T 0.56  0.71 

Tarena Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Tarena International. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Tarena International position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Tarena International's important profitability drivers and their relationship over time.

Tarena International Profitability Trends

Tarena International profitability trend refers to the progression of profit or loss within a business. An upward trend means that Tarena International's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Tarena International's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
JavaScript chart by amCharts 3.21.152012201420162018202020222024250M500M1B1.5B2B2.5B
JavaScript chart by amCharts 3.21.15Selling General Administrativetotal: 9.2BSelling And Marketing Expensestotal: 12.2BTotal Revenuetotal: 30BGross Profittotal: 13.7B

Tarena International Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Tarena International different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Tarena International in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Tarena International's future profitability.

Use Tarena International in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Tarena International position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Tarena International will appreciate offsetting losses from the drop in the long position's value.

Tarena International Pair Trading

Tarena International Pair Trading Analysis

The ability to find closely correlated positions to Tarena International could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Tarena International when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Tarena International - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Tarena International to buy it.
The correlation of Tarena International is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Tarena International moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Tarena International moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Tarena International can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Tarena International position

In addition to having Tarena International in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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When determining whether Tarena International is a strong investment it is important to analyze Tarena International's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Tarena International's future performance. For an informed investment choice regarding Tarena Stock, refer to the following important reports:
Check out World Market Map.
To learn how to invest in Tarena Stock, please use our How to Invest in Tarena International guide.
You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
To fully project Tarena International's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Tarena International at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Tarena International's income statement, its balance sheet, and the statement of cash flows.
Potential Tarena International investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Tarena International investors may work on each financial statement separately, they are all related. The changes in Tarena International's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Tarena International's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.