TAL EDUCATION GROUP- ADR (TAL) Stock Fundamental Analysis
NYSE:TAL - New York Stock Exchange, Inc. - US8740801043 - ADR
Overall TAL gets a fundamental rating of 5 out of 10. We evaluated TAL against 71 industry peers in the Diversified Consumer Services industry. While TAL has a great health rating, there are worries on its profitability. TAL is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year TAL was profitable.
TAL had a positive operating cash flow in the past year.
TAL had negative earnings in each of the past 5 years.
TAL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of TAL (1.36%) is comparable to the rest of the industry.
TAL has a Return On Equity of 1.93%. This is comparable to the rest of the industry: TAL outperforms 54.69% of its industry peers.
| 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 in line compared to the rest of the industry. TAL outperforms 59.38% of its industry peers.
TAL has a better Gross Margin (53.93%) than 67.19% of its industry peers.
TAL's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for TAL has been reduced compared to 1 year ago.
The number of shares outstanding for TAL has been increased compared to 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 3.07 indicates that TAL is not in any danger for bankruptcy at the moment.
TAL has a better Altman-Z score (3.07) than 73.44% of its industry peers.
The Debt to FCF ratio of TAL is 0.01, which is an excellent value as it means it would take TAL, only 0.01 years of fcf income to pay off all of its debts.
TAL has a Debt to FCF ratio of 0.01. This is amongst the best in the industry. TAL outperforms 84.38% of its industry peers.
TAL has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.00, TAL is doing good in the industry, outperforming 73.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 3.07 |
ROIC/WACCN/A
WACC9.78%
2.3 Liquidity
TAL has a Current Ratio of 3.06. This indicates that TAL is financially healthy and has no problem in meeting its short term obligations.
TAL has a Current ratio of 3.06. This is in the better half of the industry: TAL outperforms 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.
With a decent Quick ratio value of 2.99, TAL is doing good in the industry, outperforming 78.13% 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.
TAL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -24.71% yearly.
TAL shows a strong growth in Revenue. In the last year, the Revenue has grown by 54.47%.
The Revenue for TAL have been decreasing by -10.28% on average. This is quite bad
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
Based on estimates for the next years, TAL will show a very strong growth in Earnings Per Share. The EPS will grow by 68.23% on average per year.
TAL is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.84% yearly.
EPS Next Y89.45%
EPS Next 2Y80.26%
EPS Next 3Y68.23%
EPS Next 5YN/A
Revenue Next Year51.32%
Revenue Next 2Y40.61%
Revenue Next 3Y34.72%
Revenue Next 5Y23.84%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 37.04, TAL can be considered very expensive at the moment.
TAL's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.29. TAL is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 19.00, TAL is valued on the expensive side.
Based on the Price/Forward Earnings ratio, TAL is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, TAL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.04 | ||
| Fwd PE | 19 |
4.2 Price Multiples
TAL's Enterprise Value to EBITDA ratio is in line with the industry average.
87.50% 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 | 11.92 | ||
| EV/EBITDA | 93.91 |
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 68.23% in the coming years.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y80.26%
EPS Next 3Y68.23%
5. Dividend
5.1 Amount
No dividends for TAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TAL EDUCATION GROUP- ADR
NYSE:TAL (1/21/2025, 8:04:00 PM)
After market: 9.19 -0.07 (-0.76%)9.26
-0.61 (-6.18%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners60%
Inst Owner Change0.05%
Ins Owners0%
Ins Owner Change0%
Market Cap5.60B
Analysts85.6
Price Target14.37 (55.18%)
Short Float %3.28%
Short Ratio7.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)321.52%
Min EPS beat(2)37.88%
Max EPS beat(2)605.15%
EPS beat(4)3
Avg EPS beat(4)193.27%
Min EPS beat(4)-100%
Max EPS beat(4)605.15%
EPS beat(8)4
Avg EPS beat(8)-164.41%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)2.75%
Min Revenue beat(2)1.46%
Max Revenue beat(2)4.03%
Revenue beat(4)4
Avg Revenue beat(4)6.57%
Min Revenue beat(4)1.46%
Max Revenue beat(4)11.67%
Revenue beat(8)7
Avg Revenue beat(8)4.52%
Revenue beat(12)9
Avg Revenue beat(12)3.23%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)3.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-38.92%
EPS NY rev (1m)0%
EPS NY rev (3m)13.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.04 | ||
| Fwd PE | 19 | ||
| P/S | 3.05 | ||
| P/FCF | 11.92 | ||
| P/OCF | 11.92 | ||
| P/B | 1.49 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 93.91 |
EPS(TTM)0.25
EY2.7%
EPS(NY)0.49
Fwd EY5.26%
FCF(TTM)0.78
FCFY8.39%
OCF(TTM)0.78
OCFY8.39%
SpS3.04
BVpS6.22
TBVpS6.22
PEG (NY)0.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.36% | ||
| ROE | 1.93% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 3.94% | ||
| GM | 53.93% | ||
| FCFM | 25.57% |
ROA(3y)-8.43%
ROA(5y)-5.65%
ROE(3y)-10.61%
ROE(5y)-7.69%
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 3Y-0.21%
GM growth 5Y-0.18%
F-Score6
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Debt/EBITDA | 0.52 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 3863.34% | ||
| Profit Quality | 648.65% | ||
| Current Ratio | 3.06 | ||
| Quick Ratio | 2.99 | ||
| Altman-Z | 3.07 |
F-Score6
WACC9.78%
ROIC/WACCN/A
Cap/Depr(3y)306.08%
Cap/Depr(5y)246.83%
Cap/Sales(3y)8.19%
Cap/Sales(5y)7.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2400%
EPS 3Y-7.58%
EPS 5Y-24.71%
EPS Q2Q%20%
EPS Next Y89.45%
EPS Next 2Y80.26%
EPS Next 3Y68.23%
EPS Next 5YN/A
Revenue 1Y (TTM)54.47%
Revenue growth 3Y-30.79%
Revenue growth 5Y-10.28%
Sales Q2Q%50.36%
Revenue Next Year51.32%
Revenue Next 2Y40.61%
Revenue Next 3Y34.72%
Revenue Next 5Y23.84%
EBIT growth 1Y87.46%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year498.08%
EBIT Next 3Y144.57%
EBIT Next 5Y81.94%
FCF growth 1Y279.67%
FCF growth 3Y-36.11%
FCF growth 5YN/A
OCF growth 1Y4037.46%
OCF growth 3Y-31.55%
OCF growth 5Y9.51%