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

0.5%

TAL

-0.4%

US Consumer Services

0.6%

US Market


1 Year Return

65.8%

TAL

25.8%

US Consumer Services

6.2%

US Market

Return vs Industry: TAL exceeded the US Consumer Services industry which returned 25.8% over the past year.

Return vs Market: TAL exceeded the US Market which returned 6.2% over the past year.


Share holder returns

TALIndustryMarket
7 Day0.5%-0.4%0.6%
30 Day7.4%-1.0%-1.8%
90 Day1.8%-1.3%-2.0%
1 Year65.8%65.8%26.4%25.8%8.6%6.2%
3 Year215.8%214.6%103.2%92.5%45.7%36.3%
5 Year561.8%559.2%146.7%121.6%68.5%50.0%

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?

29%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: TAL ($37.88) is trading below our estimate of fair value ($53.08)

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


Price Based on Earnings

PE vs Industry: TAL is poor value based on its PE Ratio (74.4x) compared to the Consumer Services industry average (26.2x).

PE vs Market: TAL is poor value based on its PE Ratio (74.4x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: TAL is poor value based on its PEG Ratio (1.5x)


Price Based on Value of Assets

PB vs Industry: TAL is overvalued based on its PB Ratio (8.8x) compared to the US Consumer Services industry average (2.2x).


Next Steps

Future Growth

How is TAL Education Group expected to perform in the next 1 to 3 years based on estimates from 23 analysts?

49.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: TAL's forecast earnings growth (49.8% per year) is above the savings rate (2.7%).

Earnings vs Market: TAL's earnings (49.8% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: TAL's revenue (31.6% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: TAL's revenue (31.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: TAL's Return on Equity is forecast to be high in 3 years time (20.1%)


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

Earnings Trend: TAL's earnings have grown significantly by 35.1% per year over the past 5 years.

Accelerating Growth: TAL's earnings growth over the past year (24%) is below its 5-year average (35.1% per year).

Earnings vs Industry: TAL earnings growth over the past year (24%) exceeded the Consumer Services industry 5.5%.


Return on Equity

High ROE: TAL's Return on Equity (11.2%) is considered low.


Return on Assets

ROA vs Industry: TAL has a higher Return on Assets than the Consumer Services industry average last year.


Return on Capital Employed

ROCE Improving: TAL's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is TAL Education Group's financial position?


Financial Position Analysis

Short Term Liabilities: TAL's short term assets ($2.1B) exceeds its short term liabilities ($1.7B)

Long Term Liabilities: TAL's short term assets ($2.1B) exceeds its long term liabilities ($834.0M)


Debt to Equity History and Analysis

Debt Level: TAL is debt free.

Reducing Debt: TAL has no debt compared to 5 years ago when its debt to equity ratio was 89.3%.

Debt Coverage: TAL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: TAL has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: TAL has a high level of physical assets or inventory.

Debt Coverage by Assets: TAL's debt is covered by short term assets (assets are 9438537666317602.291280x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage1.4%forecastin3Years0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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

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

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 .


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

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

3.0yrs

Average management tenure


CEO

Tom Zhang (38yo)

16.8yrs

Tenure

0

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

3.0yrs

Average Tenure

37yo

Average Age

Experienced Management: TAL's management team is considered experienced (3 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

38yo

Average Age

Experienced Board: TAL's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Tom Zhang (38yo)

    Co-Founder

    • Tenure: 16.8yrs
  • Yachao Liu (37yo)

    COO & Director

    • Tenure: 3yrs
  • Yunfeng Bai (37yo)

    President

    • Tenure: 3yrs
  • Julius Luo (37yo)

    Chief Financial Officer

    • Tenure: 4.9yrs
  • Yan Huang (35yo)

    Chief Technology Officer

    • Tenure: 3yrs
  • Echo Yan

    Head of Investor Relations

    • Tenure: 1.8yrs
  • Linda Huo

    Vice President of Finance

    • Tenure: 0yrs

Board Members

  • Jane Jie Sun (50yo)

    Independent Director

    • Tenure: 9yrs
  • Tom Zhang (38yo)

    Co-Founder

    • Tenure: 16.8yrs
  • Yachao Liu (37yo)

    COO & Director

    • Tenure: 3yrs
  • Weiru Chen (48yo)

    Independent Director

    • Tenure: 4.3yrs
  • Kaifu Zhang (34yo)

    Independent Director

    • Tenure: 3yrs

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$22.415b
  • Shares outstanding: 591.74m
  • 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)YesSPONSORED ADSUSUSDOct 2010
IZZDB (Deutsche Boerse AG)YesSPONSORED ADSDEEUROct 2010
0A2XLSE (London Stock Exchange)YesSPONSORED ADSGBUSDOct 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 Analysis2019/10/13 01:07
End of Day Share Price2019/10/11 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.

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