NYSE:TAL

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

2.1%

NYSE:TAL

0.6%

US Consumer Services

-1.0%

US Market


1 Year Return

5.7%

NYSE:TAL

9.5%

US Consumer Services

-0.4%

US Market

TAL matched the Consumer Services industry (5.5%) over the past year.

TAL outperformed the Market in United States of America which returned -1.7% over the past year.


Share holder returns

TALIndustryMarket
7 Day2.1%0.6%-1.0%
30 Day-9.7%0.7%-3.3%
90 Day-6.7%7.5%0.4%
1 Year5.7%5.7%13.4%9.5%1.8%-0.4%
3 Year209.7%208.4%113.4%101.3%39.4%30.4%
5 Year480.0%477.7%137.1%113.0%54.2%37.1%

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 based on future cash flows and its price relative to the stock market?

39%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

TAL Education Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

TAL Education Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

TAL Education Group is overvalued based on earnings compared to the US Consumer Services industry average.

TAL Education Group is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

TAL Education Group is poor value based on expected growth next year.


Price Based on Value of Assets

TAL Education Group is overvalued based on assets compared to the US Consumer Services industry average.


Next Steps

Future Growth

How is TAL Education Group expected to perform in the next 1 to 3 years based on estimates from 24 analysts?

48.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

TAL Education Group's revenue is expected to grow significantly at over 20% yearly.

TAL Education Group's earnings are expected to grow significantly at over 20% yearly.

TAL Education Group's revenue growth is expected to exceed the United States of America market average.

TAL Education Group's earnings growth is expected to exceed the United States of America market average.

TAL Education Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

TAL Education Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

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

35.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

TAL Education Group has delivered over 20% year on year earnings growth in the past 5 years.

TAL Education Group's 1-year earnings growth is less than its 5-year average (24% vs 35.1%)

TAL Education Group's earnings growth has exceeded the US Consumer Services industry average in the past year (24% vs 6.8%).


Return on Equity

TAL Education Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

TAL Education Group used its assets less efficiently than the US Consumer Services industry average last year based on Return on Assets.


Return on Capital Employed

TAL Education Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is TAL Education Group's financial position?


Financial Position Analysis

TAL Education Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

TAL Education Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

TAL Education Group's level of debt (0%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (89.3% vs 0% today).

Debt is well covered by operating cash flow (8.5480871794469E+16%, greater than 20% of total debt).

TAL Education Group earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 9.4385376663176E+15x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate TAL Education Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate TAL Education Group's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as TAL Education Group has not reported any payouts.

Unable to verify if TAL Education Group's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as TAL Education Group has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of TAL Education Group's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of TAL Education Group's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Tom Zhang (38yo)

16.6yrs

Tenure

Mr. Bangxin Zhang, also known as Tom, co-founded TAL Education Group in 2003 and has been its Chairman and Chief Executive Officer since 2003. Mr. Zhang is instrumental to the development and success of TA ...


Management Age and Tenure

2.8yrs

Average Tenure

37yo

Average Age

The tenure for the TAL Education Group management team is about average.


Board Age and Tenure

4.2yrs

Average Tenure

38yo

Average Age

The tenure for the TAL Education Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Tom Zhang (38yo)

    Co-Founder

    • Tenure: 16.6yrs
  • Yachao Liu (37yo)

    COO & Director

    • Tenure: 2.2yrs
  • Yunfeng Bai (37yo)

    President

    • Tenure: 2.8yrs
  • Julius Luo (37yo)

    Chief Financial Officer

    • Tenure: 4.8yrs
  • Yan Huang (35yo)

    Chief Technology Officer

    • Tenure: 2.8yrs
  • Echo Yan

    Head of Investor Relations

    • Tenure: 1.6yrs
  • Linda Huo

    Vice President of Finance


Board Members

  • Jane Jie Sun (50yo)

    Independent Director

    • Tenure: 8.8yrs
  • Tom Zhang (38yo)

    Co-Founder

    • Tenure: 16.6yrs
  • Yachao Liu (37yo)

    COO & Director

    • Tenure: 2.8yrs
  • Weiru Chen (48yo)

    Independent Director

    • Tenure: 4.2yrs
  • Kaifu Zhang (34yo)

    Independent Director

    • Tenure: 2.8yrs

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$19.457b
  • Shares outstanding: 591.74m
  • Website: Click here

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TALNYSE (New York Stock Exchange)YesSPONSORED ADSUSUSDOct 2010
IZZDB (Deutsche Boerse AG)YesSPONSORED ADSDEEUROct 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 Analysis2019/08/17 00:17
End of Day Share Price2019/08/16 00:00
Earnings2019/05/31
Annual Earnings2019/02/28


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.