TAL EDUCATION GROUP- ADR (TAL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TAL - US8740801043 - ADR
11.11 USD
-0.16 (-1.42%)
11.11 USD
0 (0%)
TAL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 76 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
TAL had positive earnings in the past year.
In the past year TAL had a positive cash flow from operations.
TAL had negative earnings in 4 of the past 5 years.
TAL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
TAL has a Return On Assets (3.14%) which is comparable to the rest of the industry.
TAL has a Return On Equity of 4.98%. This is comparable to the rest of the industry: TAL outperforms 56.58% of its industry peers.
TAL has a Return On Invested Capital of 1.62%. This is comparable to the rest of the industry: TAL outperforms 53.95% of 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
Looking at the Profit Margin, with a value of 6.45%, TAL is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
Looking at the Operating Margin, with a value of 2.90%, TAL is in line with its industry, outperforming 52.63% of the companies in the same industry.
TAL's Gross Margin of 54.42% is fine compared to the rest of the industry. TAL outperforms 68.42% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TAL is destroying value.
TAL has less shares outstanding than it did 1 year ago.
TAL has more shares outstanding than it did 5 years ago.
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
An Altman-Z score of 2.96 indicates that TAL is not a great score, but indicates only limited risk for bankruptcy at the moment.
TAL's Altman-Z score of 2.96 is fine compared to the rest of the industry. TAL outperforms 72.37% 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 | 2.96 |
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.
TAL has a Current ratio of 2.28. This is in the better half of the industry: TAL outperforms 78.95% 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.
With a decent Quick ratio value of 2.20, TAL is doing good in the industry, outperforming 78.95% of the companies in the same industry.
| 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.
TAL shows a strong growth in Revenue. In the last year, the Revenue has grown by 44.45%.
TAL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.22% yearly.
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
The Revenue is expected to grow by 18.00% on average over the next years. This is quite good.
EPS Next Y93.83%
EPS Next 2Y61.07%
EPS Next 3Y50.87%
EPS Next 5Y59.59%
Revenue Next Year33.98%
Revenue Next 2Y28.88%
Revenue Next 3Y25.51%
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
Based on the Price/Earnings ratio of 29.24, the valuation of TAL can be described as expensive.
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 27.19.
With a Price/Forward Earnings ratio of 17.84, TAL is valued on the expensive side.
TAL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TAL is cheaper than 65.79% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.88. TAL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.24 | ||
| Fwd PE | 17.84 |
4.2 Price Multiples
TAL's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, TAL is valued cheaply inside the industry as 93.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.54 | ||
| EV/EBITDA | 14.83 |
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 50.87% in the coming years.
PEG (NY)0.31
PEG (5Y)N/A
EPS Next 2Y61.07%
EPS Next 3Y50.87%
5. Dividend
5.1 Amount
No dividends for TAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
11.11
-0.16 (-1.42%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners56.19%
Inst Owner Change0%
Ins Owners0%
Ins Owner Change0%
Market Cap6.71B
Revenue(TTM)2.65B
Net Income(TTM)171.12M
Analysts82.31
Price Target14.45 (30.06%)
Short Float %1.85%
Short Ratio7.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0%
PT rev (3m)9.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.25%
EPS NY rev (1m)0%
EPS NY rev (3m)15.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.17%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)2.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.24 | ||
| Fwd PE | 17.84 | ||
| P/S | 2.53 | ||
| P/FCF | 9.54 | ||
| P/OCF | 15.21 | ||
| P/B | 1.95 | ||
| P/tB | 2.01 | ||
| EV/EBITDA | 14.83 |
EPS(TTM)0.38
EY3.42%
EPS(NY)0.62
Fwd EY5.6%
FCF(TTM)1.16
FCFY10.48%
OCF(TTM)0.73
OCFY6.57%
SpS4.39
BVpS5.69
TBVpS5.53
PEG (NY)0.31
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 | 2.96 |
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 Y93.83%
EPS Next 2Y61.07%
EPS Next 3Y50.87%
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 Year33.98%
Revenue Next 2Y28.88%
Revenue Next 3Y25.51%
Revenue Next 5Y18%
EBIT growth 1Y694.38%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year381.44%
EBIT Next 3Y119.34%
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.
Can you provide the valuation status for TAL EDUCATION GROUP- ADR?
ChartMill assigns a valuation rating of 5 / 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 3 / 10.
What is the earnings growth outlook for TAL EDUCATION GROUP- ADR?
The Earnings per Share (EPS) of TAL EDUCATION GROUP- ADR (TAL) is expected to grow by 93.83% in the next year.
Can you provide the dividend sustainability for TAL stock?
The dividend rating of TAL EDUCATION GROUP- ADR (TAL) is 0 / 10 and the dividend payout ratio is -38.57%.