TCTM Kids IT Education Inc. (TEDU) is a Education & Training Services company in the Consumer Defensive sector, currently trading at $1.13. It has a SharesGrow Score of 58/100, indicating a above average investment profile with 2 out of 7 criteria passed.
Financials: revenue is $2.5B, +7.2%/yr average growth. Net income is $84M, growing at +60.6%/yr. Net profit margin is 3.4% (thin). Gross margin is 57.2% (+14.4 pp trend).
Balance sheet: total debt is $419M with negative equity of -$1.5B — this means total liabilities exceed total assets. This is a warning sign that may indicate accumulated losses, aggressive share buybacks, heavy debt financing, or aggressive dividend payouts. Companies like McDonald's and Starbucks also carry negative equity due to buybacks and dividends, but investors should assess whether the business generates sufficient cash flow to service its debt and sustain payouts. Current ratio is 0.25 (tight liquidity). Debt-to-assets is 31.3%. Total assets: $1.3B.
Analyst outlook: 4 / 6 analysts rate TEDU as buy (67%) — moderate consensus.
SharesGrow 7-Criteria breakdown: Value 100/100 (Pass), Growth 83/100 (Pass), Past 25/100 (Fail), Health 50/100 (Partial), Moat 62/100 (Partial), Future 55/100 (Partial), Income 30/100 (Fail).
