TAL Education Group

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XRS : NYSE : Services
$73.27 -1.47 | -1.97%
Today's Range: 71.91 - 75.45
Avg. Daily Volume: 527200.0
12/02/16 - 4:03 PM ET

Financial Analysis


TAL EDUCATION GROUP's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. TAL EDUCATION GROUP has weak liquidity. Currently, the Quick Ratio is 0.95 which shows a lack of ability to cover short-term cash needs.

At the same time, stockholders' equity ("net worth") has greatly increased by 46.26% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)271.12173.33
EBITDA ($mil)0.00.0
EBIT ($mil)49.2836.59
Net Income ($mil)55.7463.48


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)566.75538.2
Total Assets ($mil)1514.37958.58
Total Debt ($mil)253.74226.94
Equity ($mil)593.67405.88


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin51.3653.58
EBITDA Margin0.00.0
Operating Margin18.1821.11
Sales Turnover0.520.55
Return on Assets5.911.17
Return on Equity15.0626.39
Debt Q2 FY16 Q2 FY15
Current Ratio1.081.79
Debt/Capital0.30.36
Interest Expense2.671.88
Interest Coverage18.4819.47


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)80.8879.91
Div / share0.00.0
EPS0.610.72
Book value / share7.345.08
Institutional Own % n/a n/a
Avg Daily Volume535121.0713259.0

Valuation


BUY. TAL EDUCATION GROUP's P/E ratio indicates a significant premium compared to an average of 44.71 for the Diversified Consumer Services industry and a significant premium compared to the S&P 500 average of 25.16. For additional comparison, its price-to-book ratio of 10.01 indicates a significant premium versus the S&P 500 average of 2.79 and a significant premium versus the industry average of 5.11. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, TAL EDUCATION GROUP proves to trade 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 72.06 Peers 44.71   XRS NA Peers 21.89

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 31.85 Peers 31.90   XRS 2.79 Peers 1.57

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 10.01 Peers 5.11   XRS -18.40 Peers -4.46

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

XRS is trading at a significant premium to its peers.

 

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

However, XRS is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
XRS 7.59 Peers 2.72   XRS 49.14 Peers 9.10

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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