TAL EDUCATION GROUP- ADR (TAL)
US8740801043 - ADR
Taking everything into account, TAL scores 5 out of 10 in our fundamental rating. TAL was compared to 67 industry peers in the Diversified Consumer Services industry. No worries on liquidiy or solvency for TAL as it has an excellent financial health rating, but there are worries on the profitability. TAL is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year TAL was profitable.
TAL had a positive operating cash flow in the past year.
In the past 5 years TAL always reported negative net income.
TAL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
TAL's Return On Assets of 1.36% is in line compared to the rest of the industry. TAL outperforms 52.31% of its industry peers.
TAL has a Return On Equity (1.93%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.36% | ||
| ROE | 1.93% | ||
| ROIC | N/A |
ROA(3y)-8.43%
ROA(5y)-5.65%
ROE(3y)-10.61%
ROE(5y)-7.69%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
TAL has a Profit Margin (3.94%) which is in line with its industry peers.
The Gross Margin of TAL (53.93%) is better than 63.08% of its industry peers.
In the last couple of years the Gross Margin of TAL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 3.94% | ||
| GM | 53.93% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.21%
GM growth 5Y-0.18%
2. Health
2.1 Basic Checks
TAL does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for TAL has been reduced compared to 1 year ago.
The number of shares outstanding for TAL has been increased compared to 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 3.05 indicates that TAL is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.05, TAL is doing good in the industry, outperforming 72.31% of the companies in the same industry.
TAL has a debt to FCF ratio of 0.01. This is a very positive value and a sign of high solvency as it would only need 0.01 years to pay back of all of its debts.
TAL has a better Debt to FCF ratio (0.01) than 86.15% of its industry peers.
TAL has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.00, TAL is in the better half of the industry, outperforming 73.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 3.05 |
ROIC/WACCN/A
WACC7.54%
2.3 Liquidity
A Current Ratio of 3.06 indicates that TAL has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.06, TAL belongs to the best of the industry, outperforming 81.54% of the companies in the same industry.
TAL has a Quick Ratio of 2.99. This indicates that TAL is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of TAL (2.99) is better than 83.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.06 | ||
| Quick Ratio | 2.99 |
3. Growth
3.1 Past
TAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 2400.00%, which is quite impressive.
The earnings per share for TAL have been decreasing by -24.71% on average. This is quite bad
TAL shows a strong growth in Revenue. In the last year, the Revenue has grown by 54.47%.
TAL shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -10.28% yearly.
EPS 1Y (TTM)2400%
EPS 3Y-7.58%
EPS 5Y-24.71%
EPS Q2Q%20%
Revenue 1Y (TTM)54.47%
Revenue growth 3Y-30.79%
Revenue growth 5Y-10.28%
Sales Q2Q%50.36%
3.2 Future
The Earnings Per Share is expected to grow by 63.03% on average over the next years. This is a very strong growth
Based on estimates for the next years, TAL will show a very strong growth in Revenue. The Revenue will grow by 23.84% on average per year.
EPS Next Y93.3%
EPS Next 2Y82.11%
EPS Next 3Y63.03%
EPS Next 5YN/A
Revenue Next Year51.88%
Revenue Next 2Y41.05%
Revenue Next 3Y36.08%
Revenue Next 5Y23.84%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TAL is valuated quite expensively with a Price/Earnings ratio of 39.12.
TAL's Price/Earnings is on the same level as the industry average.
TAL's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.73.
TAL is valuated rather expensively with a Price/Forward Earnings ratio of 19.66.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TAL indicates a somewhat cheap valuation: TAL is cheaper than 64.62% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, TAL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.12 | ||
| Fwd PE | 19.66 |
4.2 Price Multiples
TAL's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TAL indicates a rather cheap valuation: TAL is cheaper than 86.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.59 | ||
| EV/EBITDA | 87.95 |
4.3 Compensation for Growth
TAL's 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 63.03% in the coming years.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y82.11%
EPS Next 3Y63.03%
5. Dividend
5.1 Amount
TAL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TAL EDUCATION GROUP- ADR
NYSE:TAL (12/20/2024, 8:04:00 PM)
After market: 9.78 0 (0%)9.78
+0.03 (+0.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners60%
Inst Owner Change8.54%
Ins Owners0%
Ins Owner Change0%
Market Cap5.91B
Analysts85.6
Price Target14.37 (46.93%)
Short Float %8.75%
Short Ratio5.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)321.52%
Min EPS beat(2)37.88%
Max EPS beat(2)605.15%
EPS beat(4)3
Avg EPS beat(4)193.27%
Min EPS beat(4)-100%
Max EPS beat(4)605.15%
EPS beat(8)4
Avg EPS beat(8)-164.41%
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)2
Avg Revenue beat(2)2.75%
Min Revenue beat(2)1.46%
Max Revenue beat(2)4.03%
Revenue beat(4)4
Avg Revenue beat(4)6.57%
Min Revenue beat(4)1.46%
Max Revenue beat(4)11.67%
Revenue beat(8)7
Avg Revenue beat(8)4.52%
Revenue beat(12)9
Avg Revenue beat(12)3.23%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.75%
PT rev (3m)1.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-38.92%
EPS NY rev (1m)-1.94%
EPS NY rev (3m)15.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.9%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)3.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.12 | ||
| Fwd PE | 19.66 | ||
| P/S | 3.22 | ||
| P/FCF | 12.59 | ||
| P/OCF | 12.59 | ||
| P/B | 1.57 | ||
| P/tB | 1.57 | ||
| EV/EBITDA | 87.95 |
EPS(TTM)0.25
EY2.56%
EPS(NY)0.5
Fwd EY5.09%
FCF(TTM)0.78
FCFY7.95%
OCF(TTM)0.78
OCFY7.95%
SpS3.04
BVpS6.22
TBVpS6.22
PEG (NY)0.42
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.36% | ||
| ROE | 1.93% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 3.94% | ||
| GM | 53.93% | ||
| FCFM | 25.57% |
ROA(3y)-8.43%
ROA(5y)-5.65%
ROE(3y)-10.61%
ROE(5y)-7.69%
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 3Y-0.21%
GM growth 5Y-0.18%
F-Score6
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Debt/EBITDA | 0.52 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 3863.34% | ||
| Profit Quality | 648.65% | ||
| Current Ratio | 3.06 | ||
| Quick Ratio | 2.99 | ||
| Altman-Z | 3.05 |
F-Score6
WACC7.54%
ROIC/WACCN/A
Cap/Depr(3y)306.08%
Cap/Depr(5y)246.83%
Cap/Sales(3y)8.19%
Cap/Sales(5y)7.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2400%
EPS 3Y-7.58%
EPS 5Y-24.71%
EPS Q2Q%20%
EPS Next Y93.3%
EPS Next 2Y82.11%
EPS Next 3Y63.03%
EPS Next 5YN/A
Revenue 1Y (TTM)54.47%
Revenue growth 3Y-30.79%
Revenue growth 5Y-10.28%
Sales Q2Q%50.36%
Revenue Next Year51.88%
Revenue Next 2Y41.05%
Revenue Next 3Y36.08%
Revenue Next 5Y23.84%
EBIT growth 1Y87.46%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year511.74%
EBIT Next 3Y138.86%
EBIT Next 5Y81.94%
FCF growth 1Y279.67%
FCF growth 3Y-36.11%
FCF growth 5YN/A
OCF growth 1Y4037.46%
OCF growth 3Y-31.55%
OCF growth 5Y9.51%