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TAL Education Group
XRS : NYSE : Services

$9.80 -0.20 | -2.00%
Today's Range: 9.67 - 9.99
Avg. Daily Volume: 105,100
05/21/13 - 4:01 PM ET

Financial Analysis


TAL EDUCATION GROUP's gross profit margin for the fourth quarter of its fiscal year 2012 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line.

During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year.



Income Statement Q4 FY12 Q4 FY11
Net Sales ($mil)59.6552.22
EBITDA ($mil)0.00.0
EBIT ($mil)6.266.32
Net Income ($mil)6.857.58


Balance Sheet Q4 FY12 Q4 FY11
Cash & Equiv. ($mil)211.86199.27
Total Assets ($mil)316.04294.65
Total Debt ($mil)0.00.0
Equity ($mil)191.45190.12


Profitability Q4 FY12 Q4 FY11
Gross Profit Margin47.3845.4
EBITDA Margin0.00.0
Operating Margin10.4912.11
Sales Turnover0.710.6
Return on Assets10.588.25
Return on Equity17.4612.78
Debt Q4 FY12 Q4 FY11
Current Ratio1.822.01
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY12 Q4 FY11
Shares outstanding (mil)78.0677.48
Div / share0.50.0
EPS0.090.1
Book value / share2.452.45
Institutional Own % n/a n/a
Avg Daily Volume101391.0206728.0

Valuation


HOLD. TAL EDUCATION GROUP's P/E ratio indicates a premium compared to an average of 21.89 for the Diversified Consumer Services industry and a premium compared to the S&P 500 average of 19.08. To use another comparison, its price-to-book ratio of 3.85 indicates a premium versus the S&P 500 average of 2.44 and a discount versus the industry average of 4.92. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, TAL EDUCATION GROUP seems to be trading at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
XRS 21.93 Peers 21.89   XRS NA Peers 16.45

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

XRS is trading at a valuation on par with its peers.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
XRS 12.92 Peers 34.65   XRS 0.63 Peers 0.94

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

XRS is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

XRS trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
XRS 3.85 Peers 4.92   XRS 34.37 Peers -38.28

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

XRS is trading at a discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

XRS is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
XRS 3.26 Peers 1.99   XRS 27.27 Peers 4.15

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

XRS is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

XRS has a sales growth rate that significantly exceeds its peers.

 

 

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