TAL Fundamental Analysis - TAL EDUCATION GROUP- ADR

Fundamental Rating

Overall TAL gets a fundamental rating of 5 out of 10. We evaluated TAL against 77 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 is not valued too expensively and it also shows a decent growth rate.

Quickly go to:

1. Profitability

1.1 Basic Checks

In the past year TAL was profitable.

TAL had a positive operating cash flow in the past year.

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

With a Return On Assets value of 1.83%, TAL perfoms like the industry average, outperforming 58.44% of the companies in the same industry.

TAL has a Return On Equity (2.93%) which is in line with its industry peers.

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 63.64% of its industry peers.

TAL's Operating Margin of 1.18% is in line compared to the rest of the industry. TAL outperforms 51.95% 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 64.94% 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	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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

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.

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 2.69 indicates that TAL is not a great score, but indicates only limited risk for bankruptcy at the moment.

TAL has a better Altman-Z score (2.69) than 71.43% 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	2.69

ROIC/WACC0.08

WACC7.54%

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.

TAL has a Current ratio of 2.25. This is in the better half of the industry: TAL outperforms 79.22% of its industry peers.

TAL has a Quick Ratio of 2.17. This indicates that TAL is financially healthy and has no problem in meeting 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 77.92% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.25
Quick Ratio	2.17

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

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.

The Revenue has grown by 47.99% in the past year. This is a very strong growth!

The Revenue has been decreasing by -7.22% on average over the past years.

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

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 Y68.17%

EPS Next 2Y58.19%

EPS Next 3Y47.2%

EPS Next 5Y59.59%

Revenue Next Year31.3%

Revenue Next 2Y27.42%

Revenue Next 3Y24.79%

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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 42.65 indicates a quite expensive valuation of TAL.

TAL's Price/Earnings is on the same level as the industry average.

Compared to an average S&P500 Price/Earnings ratio of 27.40, TAL is valued quite expensively.

TAL is valuated rather expensively with a Price/Forward Earnings ratio of 18.47.

Compared to the rest of the industry, the Price/Forward Earnings ratio of TAL indicates a somewhat cheap valuation: TAL is cheaper than 67.53% of the companies listed in the same industry.

The average S&P500 Price/Forward Earnings ratio is at 22.94. TAL is around the same levels.

		Industry Rank	Sector Rank
PE	42.65
Fwd PE	18.47

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TAL indicates a somewhat cheap valuation: TAL is cheaper than 62.34% of the companies listed in the same industry.

Based on the Price/Free Cash Flow ratio, TAL is valued cheaply inside the industry as 84.42% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	13.43
EV/EBITDA	13.35

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 47.20% in the coming years.

PEG (NY)0.63

PEG (5Y)N/A

EPS Next 2Y58.19%

EPS Next 3Y47.2%

More info and screens

Show best valued peers

5. Dividend

5.1 Amount

TAL does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

More info and screens

Find the best dividend stocks

Show peers with best dividend

TAL EDUCATION GROUP- ADR

NYSE:TAL (10/17/2025, 8:04:00 PM)

After market: 11 -0.09 (-0.81%)

11.09

+0.11 (+1%)

Chartmill FA Rating

GICS SectorConsumer Discretionary

GICS IndustryGroupConsumer Services

GICS IndustryDiversified Consumer Services

Earnings (Last)07-31 2025-07-31/bmo

Earnings (Next)10-22 2025-10-22/bmo

Inst Owners60.29%

Inst Owner Change0.03%

Ins Owners0%

Ins Owner Change0%

Market Cap6.70B

Analysts80

Price Target13.22 (19.21%)

Short Float %2.34%

Short Ratio6.61

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)0%

PT rev (3m)1.8%

EPS NQ rev (1m)-1.73%

EPS NQ rev (3m)-8.86%

EPS NY rev (1m)-0.3%

EPS NY rev (3m)-8.86%

Revenue NQ rev (1m)0.88%

Revenue NQ rev (3m)-2.16%

Revenue NY rev (1m)0.13%

Revenue NY rev (3m)-0.2%

Valuation

		Industry Rank	Sector Rank
PE	42.65
Fwd PE	18.47
P/S	2.78
P/FCF	13.43
P/OCF	13.43
P/B	1.88
P/tB	1.93
EV/EBITDA	13.35

EPS(TTM)0.26

EY2.34%

EPS(NY)0.6

Fwd EY5.42%

FCF(TTM)0.83

FCFY7.44%

OCF(TTM)0.83

OCFY7.44%

SpS3.99

BVpS5.91

TBVpS5.75

PEG (NY)0.63

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	2.69

F-Score6

WACC7.54%

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 Y68.17%

EPS Next 2Y58.19%

EPS Next 3Y47.2%

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 Year31.3%

Revenue Next 2Y27.42%

Revenue Next 3Y24.79%

Revenue Next 5Y18%

EBIT growth 1Y199.11%

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next Year350.14%

EBIT Next 3Y108.61%

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%

TAL EDUCATION GROUP- ADR (TAL) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

More info and screens