TAL EDUCATION GROUP- ADR (TAL) Stock Fundamental Analysis
USA - NYSE:TAL - US8740801043 - ADR
10.98 USD
+0.03 (+0.27%)
10.51 USD
-0.47 (-4.28%)
TAL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 75 industry peers in the Diversified Consumer Services industry. TAL has a great financial health rating, but its profitability evaluates not so good. TAL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
TAL had positive earnings in the past year.
TAL had a positive operating cash flow in the past year.
In the past 5 years TAL reported 4 times negative net income.
TAL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of TAL (1.83%) is comparable to the rest of the industry.
The Return On Equity of TAL (2.93%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 0.58%, TAL is in line with its industry, outperforming 53.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.83% | ||
| ROE | 2.93% | ||
| ROIC | 0.58% |
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
Looking at the Profit Margin, with a value of 4.33%, TAL is in the better half of the industry, outperforming 62.67% of the companies in the same industry.
The Operating Margin of TAL (1.18%) is comparable to the rest of the industry.
The Gross Margin of TAL (53.98%) is better than 64.00% of its industry peers.
TAL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.18% | ||
| PM (TTM) | 4.33% | ||
| GM | 53.98% |
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.
Compared to 1 year ago, TAL has less shares outstanding
Compared to 5 years ago, TAL has more shares outstanding
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.
2.2 Solvency
TAL has an Altman-Z score of 2.67. This is not the best score and indicates that TAL is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of TAL (2.67) is better than 68.00% 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 | 2.67 |
ROIC/WACC0.08
WACC7.54%
2.3 Liquidity
TAL has a Current Ratio of 2.25. This indicates that TAL is financially healthy and has no problem in meeting its short term obligations.
TAL has a Current ratio of 2.25. This is in the better half of the industry: TAL outperforms 78.67% of its industry peers.
TAL has a Quick Ratio of 2.17. This indicates that TAL is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.17, TAL is doing good in the industry, outperforming 77.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 2.17 |
3. Growth
3.1 Past
TAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.04%, which is quite good.
Looking at the last year, TAL shows a very strong growth in Revenue. The Revenue has grown by 47.99%.
The Revenue has been decreasing by -7.22% on average over the past years.
EPS 1Y (TTM)13.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%40%
Revenue 1Y (TTM)47.99%
Revenue growth 3Y-19.98%
Revenue growth 5Y-7.22%
Sales Q2Q%38.83%
3.2 Future
TAL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 59.59% yearly.
The Revenue is expected to grow by 18.00% on average over the next years. This is quite good.
EPS Next Y68.17%
EPS Next 2Y58.19%
EPS Next 3Y47.2%
EPS Next 5Y59.59%
Revenue Next Year31.3%
Revenue Next 2Y27.42%
Revenue Next 3Y24.79%
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
The Price/Earnings ratio is 42.23, which means the current valuation is very expensive for TAL.
TAL's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of TAL to the average of the S&P500 Index (27.29), we can say TAL is valued expensively.
TAL is valuated rather expensively with a Price/Forward Earnings ratio of 18.28.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TAL indicates a somewhat cheap valuation: TAL is cheaper than 68.00% of the companies listed in the same industry.
TAL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.23 | ||
| Fwd PE | 18.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TAL is valued a bit cheaper than the industry average as 62.67% of the companies are valued more expensively.
85.33% of the companies in the same industry are more expensive than TAL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.3 | ||
| EV/EBITDA | 12.49 |
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 47.20% in the coming years.
PEG (NY)0.62
PEG (5Y)N/A
EPS Next 2Y58.19%
EPS Next 3Y47.2%
5. Dividend
5.1 Amount
No dividends for TAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.98
+0.03 (+0.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners60.29%
Inst Owner Change0.01%
Ins Owners0%
Ins Owner Change0%
Market Cap6.64B
Analysts80
Price Target13.22 (20.4%)
Short Float %2.34%
Short Ratio6.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.61
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.31%
Min EPS beat(2)-89.33%
Max EPS beat(2)74.71%
EPS beat(4)3
Avg EPS beat(4)17.94%
Min EPS beat(4)-89.33%
Max EPS beat(4)74.71%
EPS beat(8)6
Avg EPS beat(8)102.07%
EPS beat(12)7
Avg EPS beat(12)-71.11%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.86%
Min Revenue beat(2)-5.18%
Max Revenue beat(2)-2.55%
Revenue beat(4)2
Avg Revenue beat(4)1.12%
Min Revenue beat(4)-5.18%
Max Revenue beat(4)10.74%
Revenue beat(8)6
Avg Revenue beat(8)4.11%
Revenue beat(12)9
Avg Revenue beat(12)4.93%
Revenue beat(16)11
Avg Revenue beat(16)7.21%
PT rev (1m)0%
PT rev (3m)0.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.26%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-8.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.02%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.23 | ||
| Fwd PE | 18.28 | ||
| P/S | 2.75 | ||
| P/FCF | 13.3 | ||
| P/OCF | 13.3 | ||
| P/B | 1.86 | ||
| P/tB | 1.91 | ||
| EV/EBITDA | 12.49 |
EPS(TTM)0.26
EY2.37%
EPS(NY)0.6
Fwd EY5.47%
FCF(TTM)0.83
FCFY7.52%
OCF(TTM)0.83
OCFY7.52%
SpS3.99
BVpS5.91
TBVpS5.75
PEG (NY)0.62
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.83% | ||
| ROE | 2.93% | ||
| ROCE | 0.73% | ||
| ROIC | 0.58% | ||
| ROICexc | 5.41% | ||
| ROICexgc | 7% | ||
| OM | 1.18% | ||
| PM (TTM) | 4.33% | ||
| GM | 53.98% | ||
| FCFM | 20.69% |
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
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 3Y2.3%
GM growth 5Y-0.66%
F-Score6
Asset Turnover0.42
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 | 651.26% | ||
| Profit Quality | 477.56% | ||
| Current Ratio | 2.25 | ||
| Quick Ratio | 2.17 | ||
| Altman-Z | 2.67 |
F-Score6
WACC7.54%
ROIC/WACC0.08
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)13.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%40%
EPS Next Y68.17%
EPS Next 2Y58.19%
EPS Next 3Y47.2%
EPS Next 5Y59.59%
Revenue 1Y (TTM)47.99%
Revenue growth 3Y-19.98%
Revenue growth 5Y-7.22%
Sales Q2Q%38.83%
Revenue Next Year31.3%
Revenue Next 2Y27.42%
Revenue Next 3Y24.79%
Revenue Next 5Y18%
EBIT growth 1Y199.11%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year350.14%
EBIT Next 3Y108.61%
EBIT Next 5Y63.56%
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%