Provide K-12 after-school tutoring services in academic subjects like mathematics, physics, chemistry, and English. Now — the numbers.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
This is an established company with proven profits.
An average decline of 9% a year over the last 4 years — the most striking risk in this picture. Red columns mark years that ended in a loss.
If every debt were paid off today, $2.9B would still be left in the vault — a solid cushion for hard times.
The market pays 13.5× for every dollar of annual profit — cheap, which is either an opportunity or a warning.
Against companies in its own sector, it looks cheaper than 94% of them.
Analysts' average target sits 15% above today's price.
The stock trades 23% below its peak. The market has trimmed its expectations for the company.
The net profit margin is 18% — still a thick cushion, though costs have been eating into it lately.
There is $3.2B in the vault; even if every debt were paid off, $2.9B would remain.
It met or beat analyst expectations in 7 of the last 8 quarters — consistency is a promise kept.
Over the last 4 years, sales fell about 9% a year on average. Profit is holding up, but a shrinking business is a risk worth watching.
Over the last 12 months, executives reported 20 sells against just 4 buys. Not an alarm bell by itself, but a number worth watching.
On our five-subject report card, TAL sits near the top of the class. A high grade doesn’t mean “guaranteed win” — it means “the evidence looks strong for now.”
The takeaway: TAL is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s what that quality should cost.