TAL EDUCATION GROUP- ADR (TAL)
US8740801043 - ADR
We assign a fundamental rating of 5 out of 10 to TAL. TAL was compared to 66 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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 always reported negative net income.
Of the past 5 years TAL 4 years had a positive operating cash flow.
1.2 Ratios
TAL has a Return On Assets (1.36%) which is comparable to the rest of the industry.
With a Return On Equity value of 1.93%, TAL perfoms like the industry average, outperforming 54.69% of the companies in the same 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's Profit Margin of 3.94% is fine compared to the rest of the industry. TAL outperforms 60.94% of its industry peers.
TAL has a Gross Margin of 53.93%. This is in the better half of the industry: TAL outperforms 62.50% 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.
Compared to 1 year ago, TAL has less shares outstanding
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
TAL has an Altman-Z score of 3.34. This indicates that TAL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TAL (3.34) is better than 78.13% of its industry peers.
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's Debt to FCF ratio of 0.01 is amongst the best of the industry. TAL outperforms 87.50% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that TAL is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.00, TAL is in the better half of the industry, outperforming 76.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 3.34 |
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.
TAL has a better Current ratio (3.06) than 78.13% of its industry peers.
A Quick Ratio of 2.99 indicates that TAL has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.99, TAL is in the better half of the industry, outperforming 79.69% of the companies in the same industry.
| 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
The Revenue has grown by 54.47% in the past year. This is a very strong growth!
Measured over the past years, TAL shows a very negative growth in Revenue. The Revenue has been decreasing by -10.28% on average per year.
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
TAL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 65.32% yearly.
TAL is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.05% yearly.
EPS Next Y83.4%
EPS Next 2Y76.69%
EPS Next 3Y65.32%
EPS Next 5YN/A
Revenue Next Year49.86%
Revenue Next 2Y38.29%
Revenue Next 3Y33.04%
Revenue Next 5Y20.05%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 46.00, the valuation of TAL can be described as expensive.
TAL's Price/Earnings ratio is in line with the industry average.
TAL is valuated expensively when we compare the Price/Earnings ratio to 30.20, which is the current average of the S&P500 Index.
TAL is valuated rather expensively with a Price/Forward Earnings ratio of 24.56.
TAL's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.28. TAL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46 | ||
| Fwd PE | 24.56 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TAL.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TAL indicates a somewhat cheap valuation: TAL is cheaper than 79.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.8 | ||
| EV/EBITDA | 151.08 |
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 65.32% in the coming years.
PEG (NY)0.55
PEG (5Y)N/A
EPS Next 2Y76.69%
EPS Next 3Y65.32%
5. Dividend
5.1 Amount
No dividends for TAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TAL EDUCATION GROUP- ADR
NYSE:TAL (11/4/2024, 8:04:00 PM)
After market: 11.5 0 (0%)11.5
+0.48 (+4.36%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.95B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46 | ||
| Fwd PE | 24.56 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.55
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.36% | ||
| ROE | 1.93% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 3.94% | ||
| GM | 53.93% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.06 | ||
| Quick Ratio | 2.99 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)2400%
EPS 3Y-7.58%
EPS 5Y
EPS Q2Q%
EPS Next Y83.4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)54.47%
Revenue growth 3Y-30.79%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y