TAL Education Group

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XRS : NYSE : Services
$64.00 up 0.23 | 0.37%
Today's Range: 63.13 - 64.03
Avg. Daily Volume: 714,300
08/23/16 - 3:59 PM ET

Financial Analysis


TAL EDUCATION GROUP's gross profit margin for the first quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. TAL EDUCATION GROUP has average liquidity. Currently, the Quick Ratio is 1.12 which shows that technically this company has the ability to cover short-term cash needs.

At the same time, stockholders' equity ("net worth") has greatly increased by 61.89% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)195.1129.39
EBITDA ($mil)0.00.0
EBIT ($mil)17.0619.59
Net Income ($mil)13.2418.95


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)736.72642.23
Total Assets ($mil)1451.29955.23
Total Debt ($mil)228.28226.49
Equity ($mil)553.47341.86


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin48.4952.88
EBITDA Margin0.00.0
Operating Margin8.7415.14
Sales Turnover0.470.5
Return on Assets6.697.61
Return on Equity17.5521.28
Debt Q1 FY16 Q1 FY15
Current Ratio1.21.78
Debt/Capital0.290.4
Interest Expense1.891.85
Interest Coverage9.0310.57


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)80.8879.91
Div / share0.00.0
EPS0.160.23
Book value / share6.844.28
Institutional Own % n/a n/a
Avg Daily Volume713313.0503198.0

Valuation


BUY. TAL EDUCATION GROUP's P/E ratio indicates a significant premium compared to an average of 38.64 for the Diversified Consumer Services industry and a significant premium compared to the S&P 500 average of 25.30. To use another comparison, its price-to-book ratio of 9.30 indicates a significant premium versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 27.97. 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 56.35 Peers 38.64   XRS NA Peers 18.43

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

XRS is trading at a significant premium to 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 29.07 Peers 25.56   XRS 2.71 Peers 1.37

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

XRS is trading at a significant premium to its peers.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
XRS 9.30 Peers 27.97   XRS 29.88 Peers -11.51

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 significant 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 7.51 Peers 2.48   XRS 44.55 Peers 9.42

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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