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TARENA INTERNATIONAL INC-ADR (TEDU) Stock Fundamental Analysis

NASDAQ:TEDU - Nasdaq - US8761082002 - ADR - Currency: USD

1.13  +0.13 (+13%)

After market: 1.16 +0.03 (+2.65%)

Fundamental Rating

2

Taking everything into account, TEDU scores 2 out of 10 in our fundamental rating. TEDU was compared to 73 industry peers in the Diversified Consumer Services industry. Both the profitability and financial health of TEDU have multiple concerns. TEDU has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

TEDU had negative earnings in the past year.
In the past 5 years TEDU reported 4 times negative net income.
The reported operating cash flow has been mixed in the past 5 years: TEDU reported negative operating cash flow in multiple years.
TEDU Yearly Net Income VS EBIT VS OCF VS FCFTEDU Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 -500M -1B

1.2 Ratios

TEDU's Return On Assets of -2.73% is in line compared to the rest of the industry. TEDU outperforms 44.62% of its industry peers.
Industry RankSector Rank
ROA -2.73%
ROE N/A
ROIC N/A
ROA(3y)-20.6%
ROA(5y)-26.89%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
TEDU Yearly ROA, ROE, ROICTEDU Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 0 200 -200

1.3 Margins

TEDU's Gross Margin of 54.39% is in line compared to the rest of the industry. TEDU outperforms 60.00% of its industry peers.
In the last couple of years the Gross Margin of TEDU has declined.
TEDU does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 54.39%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.18%
GM growth 5Y-2.87%
TEDU Yearly Profit, Operating, Gross MarginsTEDU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 0 20 -20 40 -40 60

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0

2. Health

2.1 Basic Checks

TEDU does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, TEDU has less shares outstanding
TEDU has a worse debt/assets ratio than last year.
TEDU Yearly Shares OutstandingTEDU Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2M 4M 6M 8M 10M
TEDU Yearly Total Debt VS Total AssetsTEDU Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B 2.5B

2.2 Solvency

Based on the Altman-Z score of -3.15, we must say that TEDU is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -3.15, TEDU is not doing good in the industry: 86.15% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z -3.15
ROIC/WACCN/A
WACC7.49%
TEDU Yearly LT Debt VS Equity VS FCFTEDU Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 1B -1B

2.3 Liquidity

A Current Ratio of 0.24 indicates that TEDU may have some problems paying its short term obligations.
The Current ratio of TEDU (0.24) is worse than 93.85% of its industry peers.
TEDU has a Quick Ratio of 0.24. This is a bad value and indicates that TEDU is not financially healthy enough and could expect problems in meeting its short term obligations.
TEDU has a worse Quick ratio (0.24) than 93.85% of its industry peers.
Industry RankSector Rank
Current Ratio 0.24
Quick Ratio 0.24
TEDU Yearly Current Assets VS Current LiabilitesTEDU Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B 2.5B

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3

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 81.59% over the past year.
The Revenue for TEDU has decreased by -16.40% in the past year. This is quite bad
TEDU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.07% yearly.
EPS 1Y (TTM)81.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-84.71%
Revenue 1Y (TTM)-16.4%
Revenue growth 3Y6.36%
Revenue growth 5Y7.07%
Sales Q2Q%-16%

3.2 Future

The Earnings Per Share is expected to grow by 421.13% on average over the next years. This is a very strong growth
TEDU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.34% yearly.
EPS Next Y1040%
EPS Next 2Y421.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-5.47%
Revenue Next 2Y4.34%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
TEDU Yearly Revenue VS EstimatesTEDU Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B
TEDU Yearly EPS VS EstimatesTEDU Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2022 2023 2024 0 5 -5 10 15

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for TEDU. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 0.42, the valuation of TEDU can be described as very cheap.
Based on the Price/Forward Earnings ratio, TEDU is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
TEDU is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.94, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 0.42
TEDU Price Earnings VS Forward Price EarningsTEDU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 5 10 15 20 25

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA -4.39
TEDU Per share dataTEDU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 -20

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TEDU's earnings are expected to grow with 421.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y421.13%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

TEDU does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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TARENA INTERNATIONAL INC-ADR

NASDAQ:TEDU (1/9/2024, 8:00:01 PM)

After market: 1.16 +0.03 (+2.65%)

1.13

+0.13 (+13%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)11-27 2023-11-27/amc
Earnings (Next)03-25 2024-03-25/amc
Inst Owners0.4%
Inst Owner Change-69.86%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap12.16M
Analysts82.86
Price Target11.22 (892.92%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-8.62%
Min Revenue beat(2)-17.5%
Max Revenue beat(2)0.25%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 0.42
P/S 0.04
P/FCF N/A
P/OCF N/A
P/B N/A
P/tB N/A
EV/EBITDA -4.39
EPS(TTM)-0.47
EYN/A
EPS(NY)2.7
Fwd EY238.62%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS27.47
BVpS-19.95
TBVpS-20.72
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.73%
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 54.39%
FCFM N/A
ROA(3y)-20.6%
ROA(5y)-26.89%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.18%
GM growth 5Y-2.87%
F-ScoreN/A
Asset Turnover1.73
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Debt/EBITDA 0
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.24
Quick Ratio 0.24
Altman-Z -3.15
F-ScoreN/A
WACC7.49%
ROIC/WACCN/A
Cap/Depr(3y)46.68%
Cap/Depr(5y)79.37%
Cap/Sales(3y)2.86%
Cap/Sales(5y)5.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)81.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-84.71%
EPS Next Y1040%
EPS Next 2Y421.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-16.4%
Revenue growth 3Y6.36%
Revenue growth 5Y7.07%
Sales Q2Q%-16%
Revenue Next Year-5.47%
Revenue Next 2Y4.34%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y31.95%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-12.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-419.77%
OCF growth 3YN/A
OCF growth 5YN/A