I've been keeping an eye on TAL Education Group (NYSE:TAL) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe TAL has a lot to offer. Basically, it is a company with strong financial health as well as a buoyant future outlook. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on TAL Education Group here.
Exceptional growth potential with flawless balance sheet
One reason why investors are attracted to TAL is its notable earnings growth potential in the near future of 49%. The optimistic bottom-line growth is supported by an outstanding revenue growth of 87% over the same time period, which indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. TAL is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that TAL manages its cash and cost levels well, which is a crucial insight into the health of the company. Investors should not worry about TAL’s debt levels because the company has none! This means it is running its business only on equity capital funding, which is rather impressive for a US$21b market cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
For TAL Education Group, there are three important factors you should further research:
- Historical Performance: What has TAL's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Valuation: What is TAL worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether TAL is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TAL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.