TAL EDUCATION GROUP- ADR (TAL) Stock Fundamental Analysis
USA - NYSE:TAL - US8740801043 - ADR
11.74 USD
-0.28 (-2.33%)
11.95 USD
+0.21 (+1.79%)
TAL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 78 industry peers in the Diversified Consumer Services industry. While TAL has a great health rating, its profitability is only average at the moment. TAL is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
TAL had positive earnings in the past year.
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's Return On Assets of 3.14% is fine compared to the rest of the industry. TAL outperforms 62.82% of its industry peers.
TAL has a Return On Equity of 4.98%. This is in the better half of the industry: TAL outperforms 60.26% of its industry peers.
The Return On Invested Capital of TAL (1.62%) 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
Looking at the Profit Margin, with a value of 6.45%, TAL is in the better half of the industry, outperforming 64.10% 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 53.85% of its industry peers.
With a decent Gross Margin value of 54.42%, TAL is doing good in the industry, outperforming 66.67% of the companies in the same industry.
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 | 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.
TAL has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 3.05 indicates that TAL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.05, TAL is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
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 | 3.05 |
ROIC/WACC0.21
WACC7.54%
2.3 Liquidity
A Current Ratio of 2.28 indicates that TAL has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.28, TAL is in the better half of the industry, outperforming 79.49% of the companies in the same industry.
A Quick Ratio of 2.20 indicates that TAL has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.20, TAL is doing good in the industry, outperforming 79.49% 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%.
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
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 Y83.36%
EPS Next 2Y59.85%
EPS Next 3Y48.44%
EPS Next 5Y59.59%
Revenue Next Year32.62%
Revenue Next 2Y28.19%
Revenue Next 3Y25.35%
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
The Price/Earnings ratio is 30.89, which means the current valuation is very expensive for TAL.
TAL's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of TAL to the average of the S&P500 Index (26.06), we can say TAL is valued inline with the index average.
A Price/Forward Earnings ratio of 19.14 indicates a rather expensive valuation of TAL.
Based on the Price/Forward Earnings ratio, TAL is valued a bit cheaper than the industry average as 60.26% of the companies are valued more expensively.
TAL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 32.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.89 | ||
| Fwd PE | 19.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TAL is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, TAL is valued cheaper than 87.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.09 | ||
| EV/EBITDA | 17.1 |
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 48.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y59.85%
EPS Next 3Y48.44%
5. Dividend
5.1 Amount
No dividends for TAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.74
-0.28 (-2.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners60.29%
Inst Owner Change0.07%
Ins Owners0%
Ins Owner Change0%
Market Cap7.09B
Revenue(TTM)2.65B
Net Income(TTM)171.12M
Analysts81.54
Price Target13.26 (12.95%)
Short Float %1.97%
Short Ratio6.69
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)0.3%
PT rev (3m)-0.69%
EPS NQ rev (1m)-13.25%
EPS NQ rev (3m)-9.63%
EPS NY rev (1m)9.03%
EPS NY rev (3m)-0.63%
Revenue NQ rev (1m)1.79%
Revenue NQ rev (3m)3.21%
Revenue NY rev (1m)1%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.89 | ||
| Fwd PE | 19.14 | ||
| P/S | 2.67 | ||
| P/FCF | 10.09 | ||
| P/OCF | 16.07 | ||
| P/B | 2.06 | ||
| P/tB | 2.12 | ||
| EV/EBITDA | 17.1 |
EPS(TTM)0.38
EY3.24%
EPS(NY)0.61
Fwd EY5.22%
FCF(TTM)1.16
FCFY9.91%
OCF(TTM)0.73
OCFY6.22%
SpS4.39
BVpS5.69
TBVpS5.53
PEG (NY)0.37
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 | 3.05 |
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 Y83.36%
EPS Next 2Y59.85%
EPS Next 3Y48.44%
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 Year32.62%
Revenue Next 2Y28.19%
Revenue Next 3Y25.35%
Revenue Next 5Y18%
EBIT growth 1Y694.38%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year350.14%
EBIT Next 3Y110.01%
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 30.89 and the Price/Book (PB) ratio is 2.06.
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%.