TAL EDUCATION GROUP- ADR (TAL) Stock Fundamental Analysis
NYSE:TAL - US8740801043 - ADR
10.81 USD
+0.02 (+0.19%)
10.81 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TAL. TAL was compared to 71 industry peers in the Diversified Consumer Services industry. TAL has a great financial health rating, but its profitability evaluates not so good. TAL has a correct valuation and a medium 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.
Of the past 5 years TAL 4 years had a positive operating cash flow.
1.2 Ratios
TAL has a Return On Assets (1.83%) which is in line with its industry peers.
With a Return On Equity value of 2.93%, TAL perfoms like the industry average, outperforming 54.93% of the companies in the same industry.
TAL has a Return On Invested Capital (0.58%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.83% | ||
| ROE | 2.93% | ||
| ROIC | 0.58% |
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
TAL has a Profit Margin of 4.33%. This is in the better half of the industry: TAL outperforms 60.56% of its industry peers.
TAL's Operating Margin of 1.18% is in line compared to the rest of the industry. TAL outperforms 53.52% of its industry peers.
Looking at the Gross Margin, with a value of 53.98%, TAL is in the better half of 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.18% | ||
| PM (TTM) | 4.33% | ||
| GM | 53.98% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TAL is destroying value.
Compared to 1 year ago, TAL has less shares outstanding
The number of shares outstanding for TAL has been increased compared to 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 2.64. 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.
TAL has a Altman-Z score of 2.64. This is in the better half of the industry: TAL outperforms 64.79% of its industry peers.
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 | 2.64 |
ROIC/WACC0.08
WACC7.64%
2.3 Liquidity
TAL has a Current Ratio of 2.25. This indicates that TAL is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.25, TAL is in the better half of the industry, outperforming 74.65% of the companies in the same industry.
A Quick Ratio of 2.17 indicates that TAL has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.17, TAL is in the better half of the industry, outperforming 73.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 2.17 |
3. Growth
3.1 Past
TAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.04%, which is quite good.
Looking at the last year, TAL shows a very strong growth in Revenue. The Revenue has grown by 47.99%.
TAL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.22% yearly.
EPS 1Y (TTM)13.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%40%
Revenue 1Y (TTM)47.99%
Revenue growth 3Y-19.98%
Revenue growth 5Y-7.22%
Sales Q2Q%38.83%
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
The Revenue is expected to grow by 18.00% on average over the next years. This is quite good.
EPS Next Y68.68%
EPS Next 2Y58.79%
EPS Next 3Y50.31%
EPS Next 5Y59.59%
Revenue Next Year31%
Revenue Next 2Y27.16%
Revenue Next 3Y24.27%
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
With a Price/Earnings ratio of 41.58, TAL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of TAL is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.14. TAL is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 17.86 indicates a rather expensive valuation of TAL.
Based on the Price/Forward Earnings ratio, TAL is valued a bit cheaper than 70.42% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TAL to the average of the S&P500 Index (22.80), we can say TAL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.58 | ||
| Fwd PE | 17.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TAL is valued a bit cheaper than 66.20% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TAL indicates a rather cheap valuation: TAL is cheaper than 83.10% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.09 | ||
| EV/EBITDA | 10.99 |
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.
A more expensive valuation may be justified as TAL's earnings are expected to grow with 50.31% in the coming years.
PEG (NY)0.61
PEG (5Y)N/A
EPS Next 2Y58.79%
EPS Next 3Y50.31%
5. Dividend
5.1 Amount
TAL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.81
+0.02 (+0.19%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners68.67%
Inst Owner Change-11.85%
Ins Owners0%
Ins Owner Change0%
Market Cap6.53B
Analysts80
Price Target13.22 (22.29%)
Short Float %2.2%
Short Ratio5.8
Dividend
| Industry Rank | Sector 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)-7.31%
Min EPS beat(2)-89.33%
Max EPS beat(2)74.71%
EPS beat(4)3
Avg EPS beat(4)17.94%
Min EPS beat(4)-89.33%
Max EPS beat(4)74.71%
EPS beat(8)6
Avg EPS beat(8)102.07%
EPS beat(12)7
Avg EPS beat(12)-71.11%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.86%
Min Revenue beat(2)-5.18%
Max Revenue beat(2)-2.55%
Revenue beat(4)2
Avg Revenue beat(4)1.12%
Min Revenue beat(4)-5.18%
Max Revenue beat(4)10.74%
Revenue beat(8)6
Avg Revenue beat(8)4.11%
Revenue beat(12)9
Avg Revenue beat(12)4.93%
Revenue beat(16)11
Avg Revenue beat(16)7.21%
PT rev (1m)1.8%
PT rev (3m)-0.7%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)-24.16%
EPS NY rev (1m)-8.58%
EPS NY rev (3m)-9.98%
Revenue NQ rev (1m)-2.4%
Revenue NQ rev (3m)-7.13%
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)-0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.58 | ||
| Fwd PE | 17.86 | ||
| P/S | 2.71 | ||
| P/FCF | 13.09 | ||
| P/OCF | 13.09 | ||
| P/B | 1.83 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | 10.99 |
EPS(TTM)0.26
EY2.41%
EPS(NY)0.61
Fwd EY5.6%
FCF(TTM)0.83
FCFY7.64%
OCF(TTM)0.83
OCFY7.64%
SpS3.99
BVpS5.91
TBVpS5.75
PEG (NY)0.61
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.83% | ||
| ROE | 2.93% | ||
| ROCE | 0.73% | ||
| ROIC | 0.58% | ||
| ROICexc | 5.41% | ||
| ROICexgc | 7% | ||
| OM | 1.18% | ||
| PM (TTM) | 4.33% | ||
| GM | 53.98% | ||
| FCFM | 20.69% |
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-Score6
Asset Turnover0.42
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 | 651.26% | ||
| Profit Quality | 477.56% | ||
| Current Ratio | 2.25 | ||
| Quick Ratio | 2.17 | ||
| Altman-Z | 2.64 |
F-Score6
WACC7.64%
ROIC/WACC0.08
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)13.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%40%
EPS Next Y68.68%
EPS Next 2Y58.79%
EPS Next 3Y50.31%
EPS Next 5Y59.59%
Revenue 1Y (TTM)47.99%
Revenue growth 3Y-19.98%
Revenue growth 5Y-7.22%
Sales Q2Q%38.83%
Revenue Next Year31%
Revenue Next 2Y27.16%
Revenue Next 3Y24.27%
Revenue Next 5Y18%
EBIT growth 1Y199.11%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year331.11%
EBIT Next 3Y108.36%
EBIT Next 5Y63.56%
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%