TAL EDUCATION GROUP- ADR (TAL) Stock Fundamental Analysis
USA - NYSE:TAL - US8740801043 - ADR
11.21 USD
-0.21 (-1.84%)
11.21 USD
0 (0%)
Taking everything into account, TAL scores 5 out of 10 in our fundamental rating. TAL was compared to 79 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.
TAL had negative earnings in 4 of the past 5 years.
Of the past 5 years TAL 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TAL (3.14%) is comparable to the rest of the industry.
With a Return On Equity value of 4.98%, TAL perfoms like the industry average, outperforming 58.23% of the companies in the same industry.
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
TAL's Profit Margin of 6.45% is fine compared to the rest of the industry. TAL outperforms 63.29% of its industry peers.
TAL has a Operating Margin (2.90%) which is in line with its industry peers.
TAL has a Gross Margin of 54.42%. This is in the better half of the industry: TAL outperforms 65.82% 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 2.95 indicates that TAL is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.95, TAL is doing good in the industry, outperforming 72.15% of the companies in the same industry.
TAL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.95 |
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's Current ratio of 2.28 is amongst the best of the industry. TAL outperforms 81.01% of its industry peers.
A Quick Ratio of 2.20 indicates that TAL has no problem at all paying its short term obligations.
TAL has a better Quick ratio (2.20) than 81.01% 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!
Measured over the past years, TAL shows a decrease in Revenue. The Revenue has been decreasing by -7.22% on average per year.
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
TAL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 59.59% yearly.
Based on estimates for the next years, TAL will show a quite strong growth in Revenue. The Revenue will grow by 18.00% on average per year.
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
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
With a Price/Earnings ratio of 29.50, TAL can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as TAL.
TAL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.28 indicates a rather expensive valuation of TAL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TAL indicates a somewhat cheap valuation: TAL is cheaper than 64.56% of the companies listed in the same industry.
TAL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.5 | ||
| Fwd PE | 18.28 |
4.2 Price Multiples
TAL's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, TAL is valued cheaply inside the industry as 88.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.63 | ||
| EV/EBITDA | 14.54 |
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.
TAL's earnings are expected to grow with 48.44% in the coming years. This may justify a more expensive valuation.
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 |
11.21
-0.21 (-1.84%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners60.29%
Inst Owner Change-7.33%
Ins Owners0%
Ins Owner Change0%
Market Cap6.77B
Revenue(TTM)2.65B
Net Income(TTM)171.12M
Analysts81.54
Price Target13.26 (18.29%)
Short Float %1.97%
Short Ratio6.69
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)0.3%
PT rev (3m)-0.69%
EPS NQ rev (1m)-15.29%
EPS NQ rev (3m)-9.55%
EPS NY rev (1m)9.03%
EPS NY rev (3m)-0.63%
Revenue NQ rev (1m)1.8%
Revenue NQ rev (3m)1.79%
Revenue NY rev (1m)1%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.5 | ||
| Fwd PE | 18.28 | ||
| P/S | 2.55 | ||
| P/FCF | 9.63 | ||
| P/OCF | 15.35 | ||
| P/B | 1.97 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 14.54 |
EPS(TTM)0.38
EY3.39%
EPS(NY)0.61
Fwd EY5.47%
FCF(TTM)1.16
FCFY10.38%
OCF(TTM)0.73
OCFY6.52%
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 | 2.95 |
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 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 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 29.5 and the Price/Book (PB) ratio is 1.97.
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%.