TAL EDUCATION GROUP- ADR (TAL)
US8740801043 - ADR
TAL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 65 industry peers in the Diversified Consumer Services industry. While TAL has a great health rating, there are worries on its profitability. While showing a medium growth rate, TAL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year TAL was profitable.
TAL had negative earnings in each of the past 5 years.
In multiple years TAL reported negative operating cash flow during the last 5 years.
1.2 Ratios
TAL has a Return On Assets (-1.43%) which is in line with its industry peers.
With a Return On Equity value of -1.95%, TAL perfoms like the industry average, outperforming 54.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.43% | ||
| ROE | -1.95% | ||
| ROIC | N/A |
ROA(3y)-8.73%
ROA(5y)-3.67%
ROE(3y)-11.32%
ROE(5y)-4.71%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Gross Margin of TAL (54.15%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of TAL has grown nicely.
The Profit Margin and Operating Margin are not available for TAL so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 54.15% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.24%
GM growth 5Y3.33%
2. Health
2.1 Basic Checks
TAL does not have a ROIC to compare to the WACC, probably because it is not profitable.
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 4.62 indicates that TAL is not in any danger for bankruptcy at the moment.
TAL has a Altman-Z score of 4.62. This is amongst the best in the industry. TAL outperforms 90.63% 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 | N/A | ||
| Altman-Z | 4.62 |
ROIC/WACCN/A
WACC7.54%
2.3 Liquidity
A Current Ratio of 3.22 indicates that TAL has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.22, TAL belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
TAL has a Quick Ratio of 3.17. This indicates that TAL is financially healthy and has no problem in meeting its short term obligations.
TAL's Quick ratio of 3.17 is amongst the best of the industry. TAL outperforms 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.22 | ||
| Quick Ratio | 3.17 |
3. Growth
3.1 Past
TAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 125.00%, which is quite impressive.
TAL shows a small growth in Revenue. In the last year, the Revenue has grown by 2.93%.
TAL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -9.87% yearly.
EPS 1Y (TTM)125%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q100%
Revenue 1Y (TTM)2.93%
Revenue growth 3Y-32.21%
Revenue growth 5Y-9.87%
Revenue growth Q2Q60.51%
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 74.50% 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 19.65% on average per year.
EPS Next Y244.35%
EPS Next 2Y167.49%
EPS Next 3Y120.05%
EPS Next 5Y74.5%
Revenue Next Year42.57%
Revenue Next 2Y35.41%
Revenue Next 3Y31.56%
Revenue Next 5Y19.65%
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
With a Price/Earnings ratio of 268.20, 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.
When comparing the Price/Earnings ratio of TAL to the average of the S&P500 Index (24.92), we can say TAL is valued expensively.
A Price/Forward Earnings ratio of 52.03 indicates a quite expensive valuation of TAL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TAL is on the same level as its industry peers.
TAL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 268.2 | ||
| Fwd PE | 52.03 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
TAL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TAL's earnings are expected to grow with 120.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.1
PEG (5Y)N/A
EPS Next 2Y167.49%
EPS Next 3Y120.05%
5. Dividend
5.1 Amount
TAL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TAL EDUCATION GROUP- ADR
NYSE:TAL (4/26/2024, 7:18:36 PM)
After market: 13.33 -0.08 (-0.6%)13.41
+0.06 (+0.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.56B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 268.2 | ||
| Fwd PE | 52.03 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.43% | ||
| ROE | -1.95% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 54.15% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.22 | ||
| Quick Ratio | 3.17 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)125%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y244.35%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.93%
Revenue growth 3Y-32.21%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y