NYSE:TAL

Stock Analysis Report

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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: TAL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.5%

TAL

8.2%

US Consumer Services

2.6%

US Market


1 Year Return

158.5%

TAL

49.5%

US Consumer Services

15.4%

US Market

Return vs Industry: TAL exceeded the US Consumer Services industry which returned 47.9% over the past year.

Return vs Market: TAL exceeded the US Market which returned 16.2% over the past year.


Shareholder returns

TALIndustryMarket
7 Day4.5%8.2%2.6%
30 Day10.6%16.4%6.1%
90 Day54.2%40.6%16.6%
1 Year158.5%158.5%50.0%49.5%17.8%15.4%
3 Year183.5%183.5%90.5%82.8%43.9%34.7%
5 Year1,386.8%1,381.0%252.6%226.2%76.2%57.3%

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

Valuation

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

19x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: TAL ($82.02) is trading above our estimate of fair value ($54.24)

Significantly Below Fair Value: TAL is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TAL is overvalued based on its PB Ratio (19x) compared to the US 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 24 analysts?

66.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TAL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

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

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

Revenue vs Market: TAL's revenue (27.2% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: TAL's revenue (27.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TAL's Return on Equity is forecast to be high in 3 years time (25.4%)


Next Steps

Past Performance

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

6.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TAL is currently unprofitable.

Growing Profit Margin: TAL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TAL is unprofitable, but has reduced losses over the past 5 years at a rate of 6.7% per year.

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

Earnings vs Industry: TAL is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (26.2%).


Return on Equity

High ROE: TAL has a negative Return on Equity (-1.11%), as it is currently unprofitable.


Next Steps

Financial Health

How is TAL Education Group's financial position?


Financial Position Analysis

Short Term Liabilities: TAL's short term assets ($3.2B) exceed its short term liabilities ($2.6B).

Long Term Liabilities: TAL's short term assets ($3.2B) exceed its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: TAL's debt to equity ratio (10.1%) is considered satisfactory.

Reducing Debt: TAL's debt to equity ratio has reduced from 65.9% to 10.1% over the past 5 years.

Debt Coverage: TAL's debt is well covered by operating cash flow (407.1%).

Interest Coverage: TAL 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?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate TAL'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 TAL's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: TAL is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Tom Zhang (39 yo)

17.58yrs

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 & Chairman0.58yrno data1.01%
$ 488.8m
Bangxin Zhang
Co-Founder17.58yrsno data28.38%
$ 13.8b
Rong Luo
Chief Financial Officer5.75yrsno datano data
Yachao Liu
Chief Operating Officer3.17yrsno data4.43%
$ 2.2b
Mi Tian
Chief Technology Officer0.25yrno datano data
Echo Yan
Head of Investor Relations2.58yrsno datano data
Linda Huo
Vice President of Financeno datano datano data

3.5yrs

Average Tenure

38yo

Average Age

Experienced Management: TAL's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yunfeng Bai
President & Chairman0.58yrno data1.01%
$ 488.8m
Bangxin Zhang
Co-Founder17.58yrsno data28.38%
$ 13.8b
Jie Sun
Independent Director9.83yrsno datano data
Weiru Chen
Independent Director5.17yrsno datano data
Kaifu Zhang
Independent Director3.83yrsno datano data

5.2yrs

Average Tenure

39yo

Average Age

Experienced Board: TAL's board of directors are considered experienced (5.2 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: TAL
  • Exchange: NYSE
  • Founded: 2003
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$48.609b
  • Shares outstanding: 600.33m
  • Website: https://www.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 mathe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/05 23:41
End of Day Share Price2020/08/05 00:00
Earnings2020/05/31
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.