TAL EDUCATION GROUP- ADR (TAL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TAL - US8740801043 - ADR
11.36 USD
+0.26 (+2.34%)
11.36 USD
0 (0%)
Taking everything into account, TAL scores 5 out of 10 in our fundamental rating. TAL was compared to 77 industry peers in the Diversified Consumer Services industry. TAL is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. TAL is not valued too expensively and it also shows a decent 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.
TAL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
TAL has a Return On Assets of 3.14%. This is in the better half of the industry: TAL outperforms 62.34% of its industry peers.
With a Return On Equity value of 4.98%, TAL perfoms like the industry average, outperforming 58.44% of the companies in the same industry.
TAL has a Return On Invested Capital of 1.62%. This is comparable to the rest of the industry: TAL outperforms 53.25% of 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
The Profit Margin of TAL (6.45%) is better than 64.94% of its industry peers.
Looking at the Operating Margin, with a value of 2.90%, TAL is in line with its industry, outperforming 51.95% of the companies in the same industry.
TAL has a better Gross Margin (54.42%) than 66.23% 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
TAL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TAL has less shares outstanding
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
TAL has an Altman-Z score of 2.98. This is not the best score and indicates that TAL is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.98, TAL is in the better half of the industry, outperforming 71.43% 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 | 2.98 |
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's Current ratio of 2.28 is amongst the best of the industry. TAL outperforms 80.52% 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 an excellent Quick ratio value of 2.20, TAL belongs to the best of the industry, outperforming 80.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 2.2 |
3. Growth
3.1 Past
TAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.00%, which is quite impressive.
Looking at the last year, TAL shows a very strong growth in Revenue. The Revenue has grown by 44.45%.
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
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.
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 Y93.83%
EPS Next 2Y61.07%
EPS Next 3Y50.87%
EPS Next 5Y59.59%
Revenue Next Year34.11%
Revenue Next 2Y28.87%
Revenue Next 3Y25.51%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.89, the valuation of TAL can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TAL is on the same level as its industry peers.
When comparing the Price/Earnings ratio of TAL to the average of the S&P500 Index (26.46), we can say TAL is valued inline with the index average.
With a Price/Forward Earnings ratio of 18.24, TAL is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TAL indicates a somewhat cheap valuation: TAL is cheaper than 63.64% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.10, TAL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.89 | ||
| Fwd PE | 18.24 |
4.2 Price Multiples
TAL's Enterprise Value to EBITDA ratio is in line with the industry average.
87.01% 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 | 9.76 | ||
| EV/EBITDA | 15.26 |
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 50.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y61.07%
EPS Next 3Y50.87%
5. Dividend
5.1 Amount
TAL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.36
+0.26 (+2.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners56.14%
Inst Owner Change-7.25%
Ins Owners0%
Ins Owner Change0%
Market Cap6.86B
Revenue(TTM)2.65B
Net Income(TTM)171.12M
Analysts82.31
Price Target14.45 (27.2%)
Short Float %1.95%
Short Ratio6.68
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)9.03%
PT rev (3m)9.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.25%
EPS NY rev (1m)5.71%
EPS NY rev (3m)14.91%
Revenue NQ rev (1m)-0.6%
Revenue NQ rev (3m)1.17%
Revenue NY rev (1m)1.12%
Revenue NY rev (3m)2.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.89 | ||
| Fwd PE | 18.24 | ||
| P/S | 2.59 | ||
| P/FCF | 9.76 | ||
| P/OCF | 15.55 | ||
| P/B | 2 | ||
| P/tB | 2.05 | ||
| EV/EBITDA | 15.26 |
EPS(TTM)0.38
EY3.35%
EPS(NY)0.62
Fwd EY5.48%
FCF(TTM)1.16
FCFY10.25%
OCF(TTM)0.73
OCFY6.43%
SpS4.39
BVpS5.69
TBVpS5.53
PEG (NY)0.32
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 | 2.98 |
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 Year34.11%
Revenue Next 2Y28.87%
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.
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 29.89 and the Price/Book (PB) ratio is 2.
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%.