TAL Education Group Receives Mixed Ratings from Value Model

A recent report evaluates TAL Education Group with a 57% rating based on Benjamin Graham’s Value Investor model, highlighting a mixed fundamental performance with some strengths in sales and current ratio but notable weaknesses in EPS growth and valuation ratios.

Date: 07-10-2024

AI Rating: 5

The report on TAL Education Group (ADR) indicates that the stock is assigned a rating of 57% using the Value Investor model inspired by Benjamin Graham. This rating suggests that there is a notable level of interest based on TAL's underlying fundamentals but lacks the threshold typically regarded as strong interest, which is 80% or above.

Key findings from the analysis include:

Sector: PASS
Sales: PASS
Current Ratio: PASS
Long-Term Debt in Relation to Net Current Assets: PASS
Long-Term EPS Growth: FAIL
P/E Ratio: FAIL
Price/Book Ratio: FAIL

TAL scores positively in areas such as sector, sales, current ratio, and its long-term debt relative to net current assets, indicating a stable operating position. However, the failures in long-term EPS growth, P/E ratio, and price/book ratio raise significant concerns regarding the company's valuation and profitability prospects.

Each of these failures can lead to negative investor sentiment, as EPS growth is crucial for justifying higher stock prices, and unfavorable valuation ratios may deter potential investors.

These factors combined suggest that while TAL's business fundamentals show resilience, the challenges reflected in the analysis could lead to pressure on the stock price. Investors should closely monitor these areas before making investment decisions regarding TAL Education Group.

Stocks: TAL