TAL EDUCATION GROUP- ADR (TAL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TAL - US8740801043 - ADR
11 USD
-0.06 (-0.54%)
10.97 USD
-0.03 (-0.27%)
We assign a fundamental rating of 5 out of 10 to TAL. TAL was compared to 77 industry peers in the Diversified Consumer Services industry. TAL has an excellent financial health rating, but there are some minor concerns on its profitability. TAL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TAL was profitable.
In the past year TAL had a positive cash flow from operations.
In the past 5 years TAL reported 4 times negative net income.
Of the past 5 years TAL 4 years had a positive operating cash flow.
1.2 Ratios
TAL's Return On Assets of 3.14% is fine compared to the rest of the industry. TAL outperforms 61.04% of its industry peers.
TAL has a Return On Equity of 4.98%. This is comparable to the rest of the industry: TAL outperforms 58.44% of its industry peers.
TAL has a Return On Invested Capital (1.62%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.14% | ||
| ROE | 4.98% | ||
| ROIC | 1.62% |
ROA(3y)-0.47%
ROA(5y)-4.94%
ROE(3y)-0.46%
ROE(5y)-6.36%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of TAL (6.45%) is better than 63.64% of its industry peers.
TAL has a Operating Margin (2.90%) which is in line with its industry peers.
TAL's Gross Margin of 54.42% is fine compared to the rest of the industry. TAL outperforms 66.23% of its industry peers.
TAL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.9% | ||
| PM (TTM) | 6.45% | ||
| GM | 54.42% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.3%
GM growth 5Y-0.66%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TAL is destroying value.
The number of shares outstanding for TAL has been reduced compared to 1 year ago.
TAL has more shares outstanding than it did 5 years ago.
TAL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 2.91 indicates that TAL is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TAL (2.91) is better than 72.73% of its industry peers.
There is no outstanding debt for TAL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.91 |
ROIC/WACC0.21
WACC7.54%
2.3 Liquidity
A Current Ratio of 2.28 indicates that TAL has no problem at all paying its short term obligations.
The Current ratio of TAL (2.28) is better than 80.52% of its industry peers.
TAL has a Quick Ratio of 2.20. This indicates that TAL is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of TAL (2.20) is better than 80.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 2.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 52.00% over the past year.
The Revenue has grown by 44.45% in the past year. This is a very strong growth!
The Revenue has been decreasing by -7.22% on average over the past years.
EPS 1Y (TTM)52%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)44.45%
Revenue growth 3Y-19.98%
Revenue growth 5Y-7.22%
Sales Q2Q%39.07%
3.2 Future
The Earnings Per Share is expected to grow by 59.59% on average over the next years. This is a very strong growth
TAL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.00% yearly.
EPS Next Y83.36%
EPS Next 2Y59.85%
EPS Next 3Y48.44%
EPS Next 5Y59.59%
Revenue Next Year32.62%
Revenue Next 2Y28.19%
Revenue Next 3Y25.35%
Revenue Next 5Y18%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
TAL is valuated quite expensively with a Price/Earnings ratio of 28.95.
TAL's Price/Earnings ratio is in line with the industry average.
TAL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.31.
With a Price/Forward Earnings ratio of 17.94, TAL is valued on the expensive side.
Based on the Price/Forward Earnings ratio, TAL is valued a bit cheaper than the industry average as 62.34% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TAL to the average of the S&P500 Index (36.56), we can say TAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.95 | ||
| Fwd PE | 17.94 |
4.2 Price Multiples
TAL's Enterprise Value to EBITDA ratio is in line with the industry average.
TAL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TAL is cheaper than 87.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.45 | ||
| EV/EBITDA | 13.52 |
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.
A more expensive valuation may be justified as TAL's earnings are expected to grow with 48.44% in the coming years.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y59.85%
EPS Next 3Y48.44%
5. Dividend
5.1 Amount
No dividends for TAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11
-0.06 (-0.54%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners60.29%
Inst Owner Change-7.25%
Ins Owners0%
Ins Owner Change0%
Market Cap6.65B
Revenue(TTM)2.65B
Net Income(TTM)171.12M
Analysts81.54
Price Target14.45 (31.36%)
Short Float %1.99%
Short Ratio6.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.61
Dividend Growth(5Y)N/A
DP-38.57%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)60.76%
Min EPS beat(2)46.81%
Max EPS beat(2)74.71%
EPS beat(4)3
Avg EPS beat(4)20.18%
Min EPS beat(4)-89.33%
Max EPS beat(4)74.71%
EPS beat(8)6
Avg EPS beat(8)106.72%
EPS beat(12)7
Avg EPS beat(12)-102.88%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.13%
Min Revenue beat(2)-2.55%
Max Revenue beat(2)2.81%
Revenue beat(4)2
Avg Revenue beat(4)1.46%
Min Revenue beat(4)-5.18%
Max Revenue beat(4)10.74%
Revenue beat(8)6
Avg Revenue beat(8)4.01%
Revenue beat(12)9
Avg Revenue beat(12)3.5%
Revenue beat(16)11
Avg Revenue beat(16)2.79%
PT rev (1m)9.03%
PT rev (3m)9.36%
EPS NQ rev (1m)-15.29%
EPS NQ rev (3m)-9.55%
EPS NY rev (1m)9.03%
EPS NY rev (3m)8.7%
Revenue NQ rev (1m)1.18%
Revenue NQ rev (3m)1.17%
Revenue NY rev (1m)1%
Revenue NY rev (3m)1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.95 | ||
| Fwd PE | 17.94 | ||
| P/S | 2.51 | ||
| P/FCF | 9.45 | ||
| P/OCF | 15.06 | ||
| P/B | 1.93 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | 13.52 |
EPS(TTM)0.38
EY3.45%
EPS(NY)0.61
Fwd EY5.58%
FCF(TTM)1.16
FCFY10.58%
OCF(TTM)0.73
OCFY6.64%
SpS4.39
BVpS5.69
TBVpS5.53
PEG (NY)0.35
PEG (5Y)N/A
Graham Number6.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.14% | ||
| ROE | 4.98% | ||
| ROCE | 2.05% | ||
| ROIC | 1.62% | ||
| ROICexc | 11.81% | ||
| ROICexgc | 14.45% | ||
| OM | 2.9% | ||
| PM (TTM) | 6.45% | ||
| GM | 54.42% | ||
| FCFM | 26.51% |
ROA(3y)-0.47%
ROA(5y)-4.94%
ROE(3y)-0.46%
ROE(5y)-6.36%
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
ROICexgc growth 3YN/A
ROICexgc 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 3Y2.3%
GM growth 5Y-0.66%
F-Score7
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 352.88% | ||
| Profit Quality | 411.05% | ||
| Current Ratio | 2.28 | ||
| Quick Ratio | 2.2 | ||
| Altman-Z | 2.91 |
F-Score7
WACC7.54%
ROIC/WACC0.21
Cap/Depr(3y)339.72%
Cap/Depr(5y)260.95%
Cap/Sales(3y)7.98%
Cap/Sales(5y)7.01%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)52%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
EPS Next Y83.36%
EPS Next 2Y59.85%
EPS Next 3Y48.44%
EPS Next 5Y59.59%
Revenue 1Y (TTM)44.45%
Revenue growth 3Y-19.98%
Revenue growth 5Y-7.22%
Sales Q2Q%39.07%
Revenue Next Year32.62%
Revenue Next 2Y28.19%
Revenue Next 3Y25.35%
Revenue Next 5Y18%
EBIT growth 1Y694.38%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year350.14%
EBIT Next 3Y110.01%
EBIT Next 5Y62.39%
FCF growth 1Y54.4%
FCF growth 3YN/A
FCF growth 5Y-15.63%
OCF growth 1Y29.97%
OCF growth 3YN/A
OCF growth 5Y-14.2%
TAL EDUCATION GROUP- ADR / TAL FAQ
What is the ChartMill fundamental rating of TAL EDUCATION GROUP- ADR (TAL) stock?
ChartMill assigns a fundamental rating of 5 / 10 to TAL.
What is the valuation status for TAL stock?
ChartMill assigns a valuation rating of 6 / 10 to TAL EDUCATION GROUP- ADR (TAL). This can be considered as Fairly Valued.
How profitable is TAL EDUCATION GROUP- ADR (TAL) stock?
TAL EDUCATION GROUP- ADR (TAL) has a profitability rating of 4 / 10.
What are the PE and PB ratios of TAL EDUCATION GROUP- ADR (TAL) stock?
The Price/Earnings (PE) ratio for TAL EDUCATION GROUP- ADR (TAL) is 28.95 and the Price/Book (PB) ratio is 1.93.
How sustainable is the dividend of TAL EDUCATION GROUP- ADR (TAL) stock?
The dividend rating of TAL EDUCATION GROUP- ADR (TAL) is 0 / 10 and the dividend payout ratio is -38.57%.