DB:IZZ

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Executive Summary

TAL Education Group provides K-12 after-school tutoring services in the People’s Republic of China.


Snowflake Analysis

Exceptional growth potential with excellent balance sheet.


Similar Companies

Share Price & News

How has TAL Education Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IZZ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.6%

IZZ

1.2%

DE Consumer Services

0.2%

DE Market


1 Year Return

99.4%

IZZ

11.4%

DE Consumer Services

4.5%

DE Market

Return vs Industry: IZZ exceeded the German Consumer Services industry which returned 11.4% over the past year.

Return vs Market: IZZ exceeded the German Market which returned 4.5% over the past year.


Shareholder returns

IZZIndustryMarket
7 Day1.6%1.2%0.2%
30 Day17.1%4.4%6.4%
90 Day34.9%12.6%16.9%
1 Year99.4%99.4%13.3%11.4%6.8%4.5%
3 Year219.4%219.4%-0.09%-5.3%3.0%-5.0%
5 Year1170.0%1165.0%-40.7%-57.2%9.9%-4.8%

Price Volatility Vs. Market

How volatile is TAL Education Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is TAL Education Group undervalued compared to its fair value and its price relative to the market?

34.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IZZ (€65) is trading below our estimate of fair value (€98.79)

Significantly Below Fair Value: IZZ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IZZ is unprofitable, so we can't compare its PE Ratio to the XE Consumer Services industry average.

PE vs Market: IZZ is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate IZZ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IZZ is overvalued based on its PB Ratio (17.1x) compared to the XE Consumer Services industry average (2.5x).


Next Steps

Future Growth

How is TAL Education Group forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

69.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IZZ is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: IZZ is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: IZZ's is expected to become profitable in the next 3 years.

Revenue vs Market: IZZ's revenue (31.1% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: IZZ's revenue (31.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IZZ's Return on Equity is forecast to be high in 3 years time (27.7%)


Next Steps

Past Performance

How has TAL Education Group performed over the past 5 years?

15.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IZZ is currently unprofitable.

Growing Profit Margin: IZZ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IZZ is unprofitable, but has reduced losses over the past 5 years at a rate of 15% per year.

Accelerating Growth: Unable to compare IZZ's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: IZZ is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (57.7%).


Return on Equity

High ROE: IZZ has a negative Return on Equity (-5.02%), as it is currently unprofitable.


Next Steps

Financial Health

How is TAL Education Group's financial position?


Financial Position Analysis

Short Term Liabilities: IZZ's short term assets ($2.5B) exceed its short term liabilities ($1.8B).

Long Term Liabilities: IZZ's short term assets ($2.5B) exceed its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: IZZ's debt to equity ratio (10.3%) is considered satisfactory.

Reducing Debt: IZZ's debt to equity ratio has reduced from 72% to 10.3% over the past 5 years.

Debt Coverage: IZZ's debt is well covered by operating cash flow (326.7%).

Interest Coverage: IZZ is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is TAL Education Group current dividend yield, its reliability and sustainability?

0.03%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate IZZ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate IZZ's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IZZ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IZZ's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: IZZ is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IZZ's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Tom Zhang (39yo)

17.5yrs

Tenure

Mr. Bangxin Zhang, also known as Tom, co-founded TAL Education Group in 2003. He serves as Director at TAL Education Group since January 21, 2020. HE has been its Chief Executive Officer since 2003. Mr. Zh ...


Leadership Team

NamePositionTenureCompensationOwnership
Yunfeng Bai
President & Chairman0.50yrno data1.01% $387.6m
Bangxin Zhang
Co-Founder17.5yrsno data23.99% $9.2b
Rong Luo
Chief Financial Officer5.67yrsno datano data
Yachao Liu
Chief Operating Officer3.08yrsno data4.43% $1.7b
Mi Tian
Chief Technology Officer0.17yrno datano data
Echo Yan
Head of Investor Relations2.5yrsno datano data
Linda Huo
Vice President of Financeno datano datano data

3.4yrs

Average Tenure

38yo

Average Age

Experienced Management: IZZ's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yunfeng Bai
President & Chairman0.50yrno data1.01% $387.6m
Bangxin Zhang
Co-Founder17.5yrsno data23.99% $9.2b
Jie Sun
Independent Director9.75yrsno datano data
Weiru Chen
Independent Director5.08yrsno datano data
Kaifu Zhang
Independent Director3.75yrsno datano data

5.1yrs

Average Tenure

39yo

Average Age

Experienced Board: IZZ's board of directors are considered experienced (5.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

TAL Education Group's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TAL Education Group
  • Ticker: IZZ
  • Exchange: DB
  • Founded: 2003
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$43.932b
  • Listing Market Cap: US$38.546b
  • Shares outstanding: 600.33m
  • Website: https://en.100tal.com

Number of Employees


Location

  • TAL Education Group
  • Danling SOHO
  • 15th Floor
  • Beijing
  • 100080
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TALNYSE (New York Stock Exchange)YesADS EA REPR 2 CL A ORD SHSUSUSDOct 2010
IZZDB (Deutsche Boerse AG)YesADS EA REPR 2 CL A ORD SHSDEEUROct 2010
0A2XLSE (London Stock Exchange)YesADS EA REPR 2 CL A ORD SHSGBUSDOct 2010

Biography

TAL Education Group provides K-12 after-school tutoring services in the People’s Republic of China. The company offers tutoring services to K-12 students covering various academic subjects, including mathematics, physics, chemistry, biology, history, geography, political science, English, and Chinese. It also provides tutoring services primarily through small classes under the Xueersi, Mobby, and Firstleap brand names; personalized premium services under Izhikang name. In addition, the company operates jzb.com, an online education platform that serves as a gateway for online courses offered through xueersi.com; and other Websites for specific topics and offerings, such as college entrance examinations, high school entrance examinations, graduate school entrance examinations, preschool education, and raising infants and toddlers, as well as mathematics, English, and Chinese composition. Further, it operates mmbang.com and the Mama Bang app, an online platform focusing on children, baby, and maternity market; and provides consulting services for overseas studies under the Shunshun Liuxue name, as well as tutoring services for students aged two through twelve under the Mobby brand. Additionally, the company offers education and management consulting, investment management and consulting services; develops and sells software and networks, as well as related consulting services; and sells educational materials. As of February 29, 2020, its educational network included 871 learning centers and 767 service centers in 69 cities throughout China and one city in the United States. The company was founded in 2003 and is headquartered in Beijing, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 21:25
End of Day Share Price2020/07/14 00:00
Earnings2020/02/29
Annual Earnings2020/02/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.