NYSE:TAL

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Exceptional growth potential with flawless 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: TAL's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-0.3%

TAL

-0.7%

US Consumer Services

1.8%

US Market


1 Year Return

68.0%

TAL

36.1%

US Consumer Services

20.4%

US Market

Return vs Industry: TAL exceeded the US Consumer Services industry which returned 36.3% over the past year.

Return vs Market: TAL exceeded the US Market which returned 19% over the past year.


Shareholder returns

TALIndustryMarket
7 Day-0.3%-0.7%1.8%
30 Day5.0%2.1%6.0%
90 Day-3.9%2.7%6.8%
1 Year68.0%68.0%36.5%36.1%23.2%20.4%
3 Year160.6%160.6%65.3%59.4%47.4%37.6%
5 Year920.1%916.1%246.4%221.2%91.9%70.8%

Long-Term 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?

7.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TAL ($73.8) is trading below our estimate of fair value ($79.57)

Significantly Below Fair Value: TAL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TAL is poor value based on its PE Ratio (1691.8x) compared to the US Consumer Services industry average (27.3x).

PE vs Market: TAL is poor value based on its PE Ratio (1691.8x) compared to the US market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: TAL is poor value based on its PEG Ratio (20.4x)


Price to Book Ratio

PB vs Industry: TAL is overvalued based on its PB Ratio (16.4x) compared to the US Consumer Services industry average (2.6x).


Next Steps

Future Growth

How is TAL Education Group forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

82.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TAL's forecast earnings growth (82.9% per year) is above the savings rate (2.2%).

Earnings vs Market: TAL's earnings (82.9% per year) are forecast to grow faster than the US market (21.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TAL's revenue (36.3% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: TAL's revenue (36.3% 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 (23.4%)


Next Steps

Past Performance

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

0.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TAL has high quality earnings.

Growing Profit Margin: TAL's current net profit margins (0.7%) are lower than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: TAL's earnings have grown by 0.1% per year over the past 5 years.

Accelerating Growth: TAL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TAL had negative earnings growth (-87%) over the past year, making it difficult to compare to the Consumer Services industry average (11.9%).


Return on Equity

High ROE: TAL's Return on Equity (0.4%) is considered low.


Next Steps

Financial Health

How is TAL Education Group's financial position?


Financial Position Analysis

Short Term Liabilities: TAL's short term assets ($3.1B) exceed its short term liabilities ($2.6B).

Long Term Liabilities: TAL's short term assets ($3.1B) exceed its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: TAL's debt to equity ratio (9.7%) is considered satisfactory.

Reducing Debt: TAL's debt to equity ratio has reduced from 55.8% to 9.7% over the past 5 years.

Debt Coverage: TAL's debt is well covered by operating cash flow (487.3%).

Interest Coverage: TAL earns more interest than it pays, so coverage of interest payments is not a concern.


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?

3.8yrs

Average management tenure


CEO

Tom Zhang (39 yo)

17.83yrs

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 & Chairman0.83yrno data1.01%
$ 445.5m
Bangxin Zhang
Co-Founder17.83yrsno data28.38%
$ 12.6b
Rong Luo
Chief Financial Officer6yrsno datano data
Yachao Liu
Chief Operating Officer3.42yrsno data4.43%
$ 2.0b
Mi Tian
Chief Technology Officer0.50yrno datano data
Echo Yan
Head of Investor Relations2.83yrsno datano data
Linda Huo
Vice President of Financeno datano datano data

3.8yrs

Average Tenure

38yo

Average Age

Experienced Management: TAL's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yunfeng Bai
President & Chairman0.83yrno data1.01%
$ 445.5m
Bangxin Zhang
Co-Founder17.83yrsno data28.38%
$ 12.6b
Jie Sun
Independent Director10.08yrsno datano data
Weiru Chen
Independent Director5.42yrsno datano data
Kaifu Zhang
Independent Director4.08yrsno datano data

5.4yrs

Average Tenure

39yo

Average Age

Experienced Board: TAL's board of directors are considered experienced (5.4 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$44.305b
  • 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 Analysis2020/11/24 23:46
End of Day Share Price2020/11/24 00:00
Earnings2020/08/31
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.