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TAL EDUCATION GROUP- ADR (TAL) Stock Fundamental Analysis

NYSE:TAL - New York Stock Exchange, Inc. - US8740801043 - ADR - Currency: USD

10.9  +0.06 (+0.55%)

After market: 10.84 -0.06 (-0.55%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to TAL. TAL was compared to 73 industry peers in the Diversified Consumer Services industry. TAL has a great financial health rating, but its profitability evaluates not so good. TAL is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year TAL was profitable.
In the past 5 years TAL reported 4 times negative net income.
In multiple years TAL reported negative operating cash flow during the last 5 years.
TAL Yearly Net Income VS EBIT VS OCF VS FCFTAL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M -1B

1.2 Ratios

TAL has a Return On Assets (1.54%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 2.25%, TAL is in line with its industry, outperforming 58.90% of the companies in the same industry.
Industry RankSector Rank
ROA 1.54%
ROE 2.25%
ROIC N/A
ROA(3y)-0.47%
ROA(5y)-4.94%
ROE(3y)-0.46%
ROE(5y)-6.36%
ROIC(3y)N/A
ROIC(5y)N/A
TAL Yearly ROA, ROE, ROICTAL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 -20

1.3 Margins

With a decent Profit Margin value of 3.76%, TAL is doing good in the industry, outperforming 64.38% of the companies in the same industry.
Looking at the Gross Margin, with a value of 53.34%, TAL is in the better half of the industry, outperforming 68.49% of the companies in the same industry.
TAL's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM N/A
PM (TTM) 3.76%
GM 53.34%
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%
TAL Yearly Profit, Operating, Gross MarginsTAL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

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9

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 less shares outstanding than it did 1 year ago.
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.
TAL Yearly Shares OutstandingTAL Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
TAL Yearly Total Debt VS Total AssetsTAL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

TAL has an Altman-Z score of 3.14. This indicates that TAL is financially healthy and has little risk of bankruptcy at the moment.
TAL's Altman-Z score of 3.14 is fine compared to the rest of the industry. TAL outperforms 75.34% 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 RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 3.14
ROIC/WACCN/A
WACC7.54%
TAL Yearly LT Debt VS Equity VS FCFTAL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B

2.3 Liquidity

TAL has a Current Ratio of 2.86. This indicates that TAL is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.86, TAL belongs to the best of the industry, outperforming 83.56% of the companies in the same industry.
A Quick Ratio of 2.79 indicates that TAL has no problem at all paying its short term obligations.
The Quick ratio of TAL (2.79) is better than 83.56% of its industry peers.
Industry RankSector Rank
Current Ratio 2.86
Quick Ratio 2.79
TAL Yearly Current Assets VS Current LiabilitesTAL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 60.00% over the past year.
TAL shows a strong growth in Revenue. In the last year, the Revenue has grown by 50.98%.
TAL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.22% yearly.
EPS 1Y (TTM)60%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-87.5%
Revenue 1Y (TTM)50.98%
Revenue growth 3Y-19.98%
Revenue growth 5Y-7.22%
Sales Q2Q%42.06%

3.2 Future

TAL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 44.87% yearly.
Based on estimates for the next years, TAL will show a very strong growth in Revenue. The Revenue will grow by 20.17% on average per year.
EPS Next Y87.39%
EPS Next 2Y65.14%
EPS Next 3Y44.87%
EPS Next 5YN/A
Revenue Next Year31.7%
Revenue Next 2Y26.8%
Revenue Next 3Y23.43%
Revenue Next 5Y20.17%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
TAL Yearly Revenue VS EstimatesTAL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1B 2B 3B 4B
TAL Yearly EPS VS EstimatesTAL Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 0.5 -0.5 -1

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3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 45.42, the valuation of TAL can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as TAL.
The average S&P500 Price/Earnings ratio is at 26.60. TAL is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 24.24, TAL is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TAL indicates a somewhat cheap valuation: TAL is cheaper than 63.01% of the companies listed in the same industry.
TAL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 45.42
Fwd PE 24.24
TAL Price Earnings VS Forward Price EarningsTAL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
TAL Per share dataTAL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

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 44.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.52
PEG (5Y)N/A
EPS Next 2Y65.14%
EPS Next 3Y44.87%

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0

5. Dividend

5.1 Amount

TAL does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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TAL EDUCATION GROUP- ADR

NYSE:TAL (5/20/2025, 8:04:00 PM)

After market: 10.84 -0.06 (-0.55%)

10.9

+0.06 (+0.55%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)04-24 2025-04-24/bmo
Earnings (Next)07-30 2025-07-30/bmo
Inst Owners64.46%
Inst Owner Change3.94%
Ins Owners0%
Ins Owner Change0%
Market Cap6.59B
Analysts82.61
Price Target13.31 (22.11%)
Short Float %2.52%
Short Ratio4.26
Dividend
Industry RankSector 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)-20.41%
Min EPS beat(2)-89.33%
Max EPS beat(2)48.51%
EPS beat(4)3
Avg EPS beat(4)150.55%
Min EPS beat(4)-89.33%
Max EPS beat(4)605.15%
EPS beat(8)5
Avg EPS beat(8)-106.93%
EPS beat(12)7
Avg EPS beat(12)-74.27%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)2.78%
Min Revenue beat(2)-5.18%
Max Revenue beat(2)10.74%
Revenue beat(4)3
Avg Revenue beat(4)2.76%
Min Revenue beat(4)-5.18%
Max Revenue beat(4)10.74%
Revenue beat(8)7
Avg Revenue beat(8)4.79%
Revenue beat(12)10
Avg Revenue beat(12)5.35%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-11.04%
PT rev (3m)-11.04%
EPS NQ rev (1m)-47.8%
EPS NQ rev (3m)-47.8%
EPS NY rev (1m)-24.89%
EPS NY rev (3m)-25.07%
Revenue NQ rev (1m)-6.05%
Revenue NQ rev (3m)-6.05%
Revenue NY rev (1m)-1.73%
Revenue NY rev (3m)-1.73%
Valuation
Industry RankSector Rank
PE 45.42
Fwd PE 24.24
P/S 2.93
P/FCF N/A
P/OCF N/A
P/B 1.75
P/tB 1.75
EV/EBITDA N/A
EPS(TTM)0.24
EY2.2%
EPS(NY)0.45
Fwd EY4.13%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS3.72
BVpS6.23
TBVpS6.23
PEG (NY)0.52
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.54%
ROE 2.25%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 3.76%
GM 53.34%
FCFM N/A
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-ScoreN/A
Asset Turnover0.41
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.86
Quick Ratio 2.79
Altman-Z 3.14
F-ScoreN/A
WACC7.54%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)60%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-87.5%
EPS Next Y87.39%
EPS Next 2Y65.14%
EPS Next 3Y44.87%
EPS Next 5YN/A
Revenue 1Y (TTM)50.98%
Revenue growth 3Y-19.98%
Revenue growth 5Y-7.22%
Sales Q2Q%42.06%
Revenue Next Year31.7%
Revenue Next 2Y26.8%
Revenue Next 3Y23.43%
Revenue Next 5Y20.17%
EBIT growth 1Y95.44%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year378.98%
EBIT Next 3Y121.58%
EBIT Next 5Y86.81%
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A