TAL EDUCATION GROUP- ADR (TAL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TAL - US8740801043 - ADR
11.99 USD
-0.27 (-2.2%)
Overall TAL gets a fundamental rating of 5 out of 10. We evaluated TAL against 76 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 has a correct valuation and a medium growth rate.
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 reported 4 times negative net income.
Of the past 5 years TAL 4 years had a positive operating cash flow.
1.2 Ratios
TAL's Return On Assets of 3.14% is in line compared to the rest of the industry. TAL outperforms 59.21% of its industry peers.
The Return On Equity of TAL (4.98%) is comparable to the rest of the industry.
TAL has a Return On Invested Capital (1.62%) which is comparable to the rest of the industry.
| 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
With a decent Profit Margin value of 6.45%, TAL is doing good in the industry, outperforming 63.16% of the companies in the same industry.
TAL has a Operating Margin of 2.90%. This is comparable to the rest of the industry: TAL outperforms 52.63% of its industry peers.
The Gross Margin of TAL (54.42%) is better than 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.
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 3.14 indicates that TAL is not in any danger for bankruptcy at the moment.
The Altman-Z score of TAL (3.14) is better than 75.00% 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 | 3.14 |
ROIC/WACC0.21
WACC7.54%
2.3 Liquidity
TAL has a Current Ratio of 2.28. This indicates that TAL is financially healthy and has no problem in meeting 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%.
The Revenue has been decreasing by -7.22% on average over the past years.
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
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 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
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 31.55, the valuation of TAL can be described as expensive.
TAL's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.25, TAL is valued at the same level.
Based on the Price/Forward Earnings ratio of 19.26, the valuation of TAL can be described as rather expensive.
Based on the Price/Forward Earnings ratio, TAL is valued a bit cheaper than 61.84% of the companies in the same industry.
TAL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.55 | ||
| Fwd PE | 19.26 |
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 cheaper than 89.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.3 | ||
| EV/EBITDA | 19.61 |
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.
TAL's earnings are expected to grow with 50.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
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% |
NYSE:TAL (1/13/2026, 12:01:07 PM)
11.99
-0.27 (-2.2%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners56.19%
Inst Owner Change0.02%
Ins Owners0%
Ins Owner Change0%
Market Cap7.25B
Revenue(TTM)2.65B
Net Income(TTM)171.12M
Analysts82.31
Price Target14.45 (20.52%)
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 | 31.55 | ||
| Fwd PE | 19.26 | ||
| P/S | 2.73 | ||
| P/FCF | 10.3 | ||
| P/OCF | 16.41 | ||
| P/B | 2.11 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | 19.61 |
EPS(TTM)0.38
EY3.17%
EPS(NY)0.62
Fwd EY5.19%
FCF(TTM)1.16
FCFY9.71%
OCF(TTM)0.73
OCFY6.09%
SpS4.39
BVpS5.69
TBVpS5.53
PEG (NY)0.34
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 | 3.14 |
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%.