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TAL Education Group (TAL Education Group) Piotroski F-Score

: 5 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

TAL Education Group has an F-score of 5 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for TAL Education Group's Piotroski F-Score or its related term are showing as below:

TAL' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 5   Max: 7
Current: 5

During the past 13 years, the highest Piotroski F-Score of TAL Education Group was 7. The lowest was 2. And the median was 5.


TAL Education Group Piotroski F-Score Historical Data

The historical data trend for TAL Education Group's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

TAL Education Group Annual Data
Trend Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 5.00 4.00 3.00 6.00

TAL Education Group Quarterly Data
Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 6.00 N/A 5.00 5.00

Competitive Comparison

For the Education & Training Services subindustry, TAL Education Group's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


TAL Education Group Piotroski F-Score Distribution

For the Education industry and Consumer Defensive sector, TAL Education Group's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where TAL Education Group's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Nov23) TTM:Last Year (Nov22) TTM:
Net Income was -39.417 + -45.037 + 37.902 + -23.946 = $-70 Mil.
Cash Flow from Operations was -40.961 + 125.516 + -42.721 + 247.123 = $289 Mil.
Revenue was 268.986 + 275.44 + 411.931 + 373.506 = $1,330 Mil.
Gross Profit was 141.273 + 135.927 + 242.549 + 200.326 = $720 Mil.
Average Total Assets from the begining of this year (Nov22)
to the end of this year (Nov23) was
(4756.828 + 4724.354 + 4714.247 + 4582.413 + 4913.323) / 5 = $4738.233 Mil.
Total Assets at the begining of this year (Nov22) was $4,757 Mil.
Long-Term Debt & Capital Lease Obligation was $156 Mil.
Total Current Assets was $3,644 Mil.
Total Current Liabilities was $1,131 Mil.
Net Income was -108.123 + -43.829 + -0.787 + -51.579 = $-204 Mil.

Revenue was 541.152 + 224.045 + 294.06 + 232.681 = $1,292 Mil.
Gross Profit was 343.068 + 135.487 + 176.928 + 129.726 = $785 Mil.
Average Total Assets from the begining of last year (Nov21)
to the end of last year (Nov22) was
(6669.982 + 5082.528 + 4835.141 + 4718.79 + 4756.828) / 5 = $5212.6538 Mil.
Total Assets at the begining of last year (Nov21) was $6,670 Mil.
Long-Term Debt & Capital Lease Obligation was $118 Mil.
Total Current Assets was $3,503 Mil.
Total Current Liabilities was $855 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

TAL Education Group's current Net Income (TTM) was -70. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

TAL Education Group's current Cash Flow from Operations (TTM) was 289. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Nov22)
=-70.498/4756.828
=-0.01482038

ROA (Last Year)=Net Income/Total Assets (Nov21)
=-204.318/6669.982
=-0.03063247

TAL Education Group's return on assets of this year was -0.01482038. TAL Education Group's return on assets of last year was -0.03063247. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

TAL Education Group's current Net Income (TTM) was -70. TAL Education Group's current Cash Flow from Operations (TTM) was 289. ==> 289 > -70 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Nov23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Nov22 to Nov23
=156.282/4738.233
=0.03298318

Gearing (Last Year: Nov22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Nov21 to Nov22
=118.063/5212.6538
=0.02264931

TAL Education Group's gearing of this year was 0.03298318. TAL Education Group's gearing of last year was 0.02264931. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Nov23)=Total Current Assets/Total Current Liabilities
=3643.839/1131.218
=3.22116427

Current Ratio (Last Year: Nov22)=Total Current Assets/Total Current Liabilities
=3503.281/855.469
=4.09515833

TAL Education Group's current ratio of this year was 3.22116427. TAL Education Group's current ratio of last year was 4.09515833. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

TAL Education Group's number of shares in issue this year was 600.465. TAL Education Group's number of shares in issue last year was 634.915. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=720.075/1329.863
=0.54146555

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=785.209/1291.938
=0.60777607

TAL Education Group's gross margin of this year was 0.54146555. TAL Education Group's gross margin of last year was 0.60777607. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Nov22)
=1329.863/4756.828
=0.27956928

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Nov21)
=1291.938/6669.982
=0.19369438

TAL Education Group's asset turnover of this year was 0.27956928. TAL Education Group's asset turnover of last year was 0.19369438. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+1+1+1+0+0+1+0+1
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

TAL Education Group has an F-score of 5 indicating the company's financial situation is typical for a stable company.

TAL Education Group  (NYSE:TAL) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


TAL Education Group Piotroski F-Score Related Terms

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TAL Education Group (TAL Education Group) Business Description

Address
Xiaoying West Street, 5th Floor, Tower B, Heying Center, Haidian District, Beijing, CHN, 100085
TAL Education Group is a smart learning solutions provider in China. K-9 academic afterschool tutoring used to account for the majority of TAL's revenue before the regulatory changes in 2021 that imposed a nonprofit requirement on the business. After spinning off its K-9 academic afterschool tutoring business, TAL realigned its focus toward enrichment learning, content solutions, and learning technology solutions.

TAL Education Group (TAL Education Group) Headlines

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