TAL Education (XRS)

OK I know some are and some are not interested in Chinese companies - this is a Chinese company listed on the NYSE.

TAL Education Group provide supplementary education (K-12 after school private tuition) in China (which along with healthcare is one of the most under served provider areas with a massive market potential).

As you will probably know the Chinese take investing in their children’s upbringing and education in particular (as opposed to Macdonalds or Disney toys) very seriously.

Ok here goes…

With the latest results (Q3) just announced (quarter ending 30th November) revenues are up 43% and non-Gaap income is up 28% and total enrollments up 56%.

The track record looks like this…

Revenue growth:-
Q3 16: $142.2m (TTM: 568.2)
Q2 16: $173.3m (TTM: 525.3)
Q1 16: $129.4m (TTM: 474.4)
Q4 15: $123.2m (TTM: 434.0)
Q3 15: $99.4m (TTM: 397.8)
Q2 15: $122.4
Q1 15: $89.0m
Q4 14: $87.0m

Basic non-Gaap EPS:-
Q3 16: 0.20c (TTM: 1.61)
Q2 16: 0.87c (TTM: 1.61)
Q1 16: 0.30c (TTM: 1.16)
Q4 15: 0.24c (TTM: 1.08)
Q3 15: 0.20c (TTM: 1.09)
Q2 15: 0.42c
Q1 15: 0.22c
Q4 14: 0.25c

Diluted non-Gaap EPS:-
Q3 16: 0.19c (TTM 1.48)
Q2 16: 0.78c (TTM 1.48)
Q1 16: 0.28c (TTM 1.09)
Q4 15: 0.23c (TTM 1.03)
Q3 15: 0.19c (TTM 1.04)
Q2 15: 0.39c
Q1 15: 0.22c
Q4 14: 0.24c

Looks pretty good to me. Along with CTRP, NOAH and BABA this is one of my favorite plays in China. At $43.5 it has a p/e of 27 and a growth rate of 61% so a 1YPEG of 0.44.

I can’t get into the xls from where I am now but I will try and get round to loading this into the thingumabob.


err sorry make that a p/e of 27, a growth rate of 47.7 and a 1YPEG of 0.566.