Today I will review Tarena International. I will break down why Tarena International private investors should not consider a stake in the firm. Is the firm valuation justified? I am going to cover Tarena International perspective on valuation to give you a better outlook on taking a position in this stock. Tarena International almost neglects market trends. What is Tarena International Target Price Odds to finish over Current Price? Attributed to a normal probability distribution, the odds of Tarena International to move above the current price in 30 days from now is about 68.97%. The Tarena International probability density function shows the probability of Tarena International Stock to fall within a particular range of prices over 30 days. Given the investment horizon of 30 days, Tarena International has a beta of 0.1093 . This usually implies as returns on the market go up, Tarena International average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Tarena International will be expected to be much smaller as well. Additionally, the company has a negative alpha, implying that the risk taken by holding this equity is not justified. Tarena International is significantly underperforming DOW.
This firm has a current ratio of 0.33, indicating that it has a negative working capital and may not be able to pay financial obligations when due. The entity's average rating is Strong Buy from 1 analysts. We provide advice to complement the current
expert consensus on Tarena International. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time. The company has Profit Margin (PM) of
(50.51) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average.
Tarena International retains current asset of 204.34 m. Tarena International has a negative utilization of assets of -31.27 %, losing $0.3127 for each dollar of assets held by the company. Inadequate asset utilization indicates the company is being less effective with each dollar of assets it has. In other words asset utilization of Tarena International shows how discouraging it operates for each dollar spent on its assets. The company has a beta of 0.1093. Let's try to break down what Tarena's beta means in this case. As returns on the market increase, Tarena International returns are expected to increase less than the market. However, during the bear market, the loss on holding Tarena International will be expected to be smaller as well. The beta indicator helps investors understand whether Tarena International moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Tarena deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The recent Tarena International price drops has created some momentum for investors as it was traded today as low as
1.66 and as high as
2.47 per share. The company executives were unable to exploit market volatilities in
June. However, diversifying your overall positions with Tarena International can protect your principal portfolio during market swings. The stock standard deviation of daily returns for 30 days investing horizon is currently 9.57. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Tarena International partners.
Will Tarena International growth be viable after the advance?
Newest Information Ratio is up to -0.06. Price may reset again. Tarena International is displaying above-average volatility of 9.54 over the selected time horizon. Investors should scrutinize Tarena International independently to ensure intended market timing strategies are aligned with expectations about Tarena International volatility.
Our Bottom Line On Tarena International
Whereas other entities in education & training services industry are either recovering or due for a correction, Tarena may not be as strong as the others in terms of longer-term growth potentials. The bottom line, as of 12th of July 2020, we believe that at this point, Tarena International is
undervalued with
close to average probability of distress within the next 2 years. However, our up-to-date buy vs. sell advice on the firm is
Strong Sell. The inconsistency in the assessment between current Tarena valuation and our trade advice on Tarena International is due to the recent market swings and your selection of investing horizon. 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 International.
Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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 Rifka Kats do not own shares of Tarena Intl Adr. Please refer to our
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