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TAL EDUCATION GROUP- ADR (TAL) Stock Fundamental Analysis

NYSE:TAL - New York Stock Exchange, Inc. - US8740801043 - ADR - Currency: USD

10.3  +0.08 (+0.78%)

After market: 10.3 0 (0%)

Fundamental Rating

5

TAL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 71 industry peers in the Diversified Consumer Services industry. TAL has a great financial health rating, but its profitability evaluates not so good. TAL is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

TAL had positive earnings in the past year.
In the past 5 years TAL reported 4 times negative net income.
In multiple years TAL reported negative operating cash flow during the last 5 years.
TAL Yearly Net Income VS EBIT VS OCF VS FCFTAL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M -1B

1.2 Ratios

TAL has a Return On Assets of 1.54%. This is comparable to the rest of the industry: TAL outperforms 52.11% of its industry peers.
TAL has a Return On Equity of 2.25%. This is comparable to the rest of the industry: TAL outperforms 56.34% of its industry peers.
Industry RankSector Rank
ROA 1.54%
ROE 2.25%
ROIC N/A
ROA(3y)-0.47%
ROA(5y)-4.94%
ROE(3y)-0.46%
ROE(5y)-6.36%
ROIC(3y)N/A
ROIC(5y)N/A
TAL Yearly ROA, ROE, ROICTAL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 -20

1.3 Margins

TAL has a Profit Margin of 3.76%. This is comparable to the rest of the industry: TAL outperforms 59.15% of its industry peers.
With a decent Gross Margin value of 53.34%, TAL is doing good in the industry, outperforming 66.20% of the companies in the same industry.
TAL's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM N/A
PM (TTM) 3.76%
GM 53.34%
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%
TAL Yearly Profit, Operating, Gross MarginsTAL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

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9

2. Health

2.1 Basic Checks

TAL does not have a ROIC to compare to the WACC, probably because it is not profitable.
TAL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TAL has more shares outstanding
TAL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
TAL Yearly Shares OutstandingTAL Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
TAL Yearly Total Debt VS Total AssetsTAL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

An Altman-Z score of 3.01 indicates that TAL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.01, TAL is in the better half of the industry, outperforming 67.61% 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 RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 3.01
ROIC/WACCN/A
WACC7.54%
TAL Yearly LT Debt VS Equity VS FCFTAL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B

2.3 Liquidity

TAL has a Current Ratio of 2.86. This indicates that TAL is financially healthy and has no problem in meeting its short term obligations.
TAL has a better Current ratio (2.86) than 81.69% of its industry peers.
A Quick Ratio of 2.79 indicates that TAL has no problem at all paying its short term obligations.
TAL has a better Quick ratio (2.79) than 81.69% of its industry peers.
Industry RankSector Rank
Current Ratio 2.86
Quick Ratio 2.79
TAL Yearly Current Assets VS Current LiabilitesTAL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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5

3. Growth

3.1 Past

TAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 60.00%, which is quite impressive.
TAL shows a strong growth in Revenue. In the last year, the Revenue has grown by 50.98%.
The Revenue has been decreasing by -7.22% on average over the past years.
EPS 1Y (TTM)60%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-87.5%
Revenue 1Y (TTM)50.98%
Revenue growth 3Y-19.98%
Revenue growth 5Y-7.22%
Sales Q2Q%42.06%

3.2 Future

Based on estimates for the next years, TAL will show a very strong growth in Earnings Per Share. The EPS will grow by 59.59% on average per year.
TAL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.00% yearly.
EPS Next Y87.58%
EPS Next 2Y63.88%
EPS Next 3Y48.53%
EPS Next 5Y59.59%
Revenue Next Year31.57%
Revenue Next 2Y27.78%
Revenue Next 3Y24%
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.
TAL Yearly Revenue VS EstimatesTAL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B 4B 5B
TAL Yearly EPS VS EstimatesTAL Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 1 -1 2

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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 42.92, which means the current valuation is very expensive for TAL.
Compared to the rest of the industry, the Price/Earnings ratio of TAL is on the same level as its industry peers.
TAL is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 22.88, which indicates a rather expensive current valuation of TAL.
61.97% of the companies in the same industry are more expensive than TAL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TAL to the average of the S&P500 Index (21.70), we can say TAL is valued inline with the index average.
Industry RankSector Rank
PE 42.92
Fwd PE 22.88
TAL Price Earnings VS Forward Price EarningsTAL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
TAL Per share dataTAL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

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 48.53% in the coming years.
PEG (NY)0.49
PEG (5Y)N/A
EPS Next 2Y63.88%
EPS Next 3Y48.53%

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0

5. Dividend

5.1 Amount

TAL does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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TAL EDUCATION GROUP- ADR

NYSE:TAL (7/1/2025, 7:44:39 PM)

After market: 10.3 0 (0%)

10.3

+0.08 (+0.78%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)04-24 2025-04-24/bmo
Earnings (Next)07-30 2025-07-30/bmo
Inst Owners69.16%
Inst Owner Change8.4%
Ins Owners0%
Ins Owner Change0%
Market Cap6.22B
Analysts81.67
Price Target13.1 (27.18%)
Short Float %2.05%
Short Ratio3.62
Dividend
Industry RankSector 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)-20.41%
Min EPS beat(2)-89.33%
Max EPS beat(2)48.51%
EPS beat(4)3
Avg EPS beat(4)150.55%
Min EPS beat(4)-89.33%
Max EPS beat(4)605.15%
EPS beat(8)5
Avg EPS beat(8)-106.93%
EPS beat(12)7
Avg EPS beat(12)-74.27%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)2.78%
Min Revenue beat(2)-5.18%
Max Revenue beat(2)10.74%
Revenue beat(4)3
Avg Revenue beat(4)2.76%
Min Revenue beat(4)-5.18%
Max Revenue beat(4)10.74%
Revenue beat(8)7
Avg Revenue beat(8)4.79%
Revenue beat(12)10
Avg Revenue beat(12)5.35%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.57%
PT rev (3m)-12.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-47.8%
EPS NY rev (1m)0.1%
EPS NY rev (3m)-25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.05%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-1.83%
Valuation
Industry RankSector Rank
PE 42.92
Fwd PE 22.88
P/S 2.77
P/FCF N/A
P/OCF N/A
P/B 1.65
P/tB 1.65
EV/EBITDA N/A
EPS(TTM)0.24
EY2.33%
EPS(NY)0.45
Fwd EY4.37%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS3.72
BVpS6.23
TBVpS6.23
PEG (NY)0.49
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.54%
ROE 2.25%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 3.76%
GM 53.34%
FCFM N/A
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-ScoreN/A
Asset Turnover0.41
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.86
Quick Ratio 2.79
Altman-Z 3.01
F-ScoreN/A
WACC7.54%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)60%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-87.5%
EPS Next Y87.58%
EPS Next 2Y63.88%
EPS Next 3Y48.53%
EPS Next 5Y59.59%
Revenue 1Y (TTM)50.98%
Revenue growth 3Y-19.98%
Revenue growth 5Y-7.22%
Sales Q2Q%42.06%
Revenue Next Year31.57%
Revenue Next 2Y27.78%
Revenue Next 3Y24%
Revenue Next 5Y18%
EBIT growth 1Y95.44%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year301.38%
EBIT Next 3Y103.34%
EBIT Next 5Y63.56%
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A