TAL EDUCATION GROUP- ADR (TAL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TAL - US8740801043 - ADR
10.96 USD
-0.14 (-1.26%)
10.96 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TAL. TAL was compared to 77 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 decent growth rate and is not valued too expensively.
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.
TAL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of TAL (3.14%) is comparable to the rest of the industry.
TAL has a Return On Equity of 4.98%. This is comparable to the rest of the industry: TAL outperforms 55.84% 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
TAL has a better Profit Margin (6.45%) than 62.34% of its industry peers.
TAL has a Operating Margin (2.90%) which is in line with its industry peers.
TAL has a better Gross Margin (54.42%) than 67.53% of its industry peers.
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.
The number of shares outstanding for TAL has been reduced compared to 1 year ago.
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 2.91. 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.
The Altman-Z score of TAL (2.91) is better than 72.73% of its industry peers.
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 | 2.91 |
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.
TAL has a better Current ratio (2.28) than 79.22% of its industry peers.
A Quick Ratio of 2.20 indicates that TAL has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.20, TAL is in the better half of the industry, outperforming 79.22% 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.
TAL shows a strong growth in Revenue. In the last year, 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.
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
A Price/Earnings ratio of 28.84 indicates a quite expensive valuation of TAL.
TAL's Price/Earnings ratio is in line with the industry average.
TAL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.60, the valuation of TAL can be described as rather expensive.
Based on the Price/Forward Earnings ratio, TAL is valued a bit cheaper than the industry average as 64.94% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, TAL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.84 | ||
| Fwd PE | 17.6 |
4.2 Price Multiples
TAL's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, TAL is valued cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.42 | ||
| EV/EBITDA | 13.33 |
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)0.31
PEG (5Y)N/A
EPS Next 2Y61.07%
EPS Next 3Y50.87%
5. Dividend
5.1 Amount
No dividends for TAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
10.96
-0.14 (-1.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners56.14%
Inst Owner Change-7.24%
Ins Owners0%
Ins Owner Change0%
Market Cap6.62B
Revenue(TTM)2.65B
Net Income(TTM)171.12M
Analysts82.31
Price TargetN/A
Short Float %1.98%
Short Ratio7.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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%
Revenue NQ rev (3m)1.17%
Revenue NY rev (1m)1.12%
Revenue NY rev (3m)2.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.84 | ||
| Fwd PE | 17.6 | ||
| P/S | 2.5 | ||
| P/FCF | 9.42 | ||
| P/OCF | 15 | ||
| P/B | 1.93 | ||
| P/tB | 1.98 | ||
| EV/EBITDA | 13.33 |
EPS(TTM)0.38
EY3.47%
EPS(NY)0.62
Fwd EY5.68%
FCF(TTM)1.16
FCFY10.62%
OCF(TTM)0.73
OCFY6.66%
SpS4.39
BVpS5.69
TBVpS5.53
PEG (NY)0.31
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 | 2.91 |
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 3 / 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 28.84 and the Price/Book (PB) ratio is 1.93.
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%.