TAL Education Beneish M Score

TAL
 Stock
  

USD 5.72  0.23  4.19%   

This module uses fundamental data of TAL Education to approximate the value of its Beneish M Score. TAL Education M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Additionally, take a look at TAL Education Piotroski F Score and TAL Education Altman Z Score analysis.
  
Issuance Repayment of Debt Securities is expected to hike to about 218.2 M this year, although the value of Total Debt will most likely fall to nearly 171.7 M. TAL Education Return on Investment is relatively stable at the moment as compared to the past year. The company's current value of Return on Investment is estimated at 9.29. Quick Ratio is expected to hike to 0.36 this year, although the value of Accounts Payable Turnover will most likely fall to 9.56.
At this time, it appears that TAL Education Group is an unlikely manipulator. The earnings manipulation may begin if TAL Education's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by TAL Education executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of TAL Education's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.53
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.17Focus
Asset Quality0.99Focus
Expense Coverage1.17Focus
Gross Margin Strengs1.04Focus
Accruals Factor1.17Focus
Depreciation Resistance0.77Focus
Net Sales Growth0.93Focus
Financial Leverage Condition0.99Focus

TAL Education Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if TAL Education's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense227.8 M211.1 M
Significantly Up
Increasing
Slightly volatile
Revenues558.6 M603.2 M
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables3.8 M3.5 M
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net81.5 M103.2 M
Significantly Down
Increasing
Slightly volatile
Operating Income236.4 M242.5 M
Fairly Down
Increasing
Stable
Net Cash Flow from Operations323.7 M360.4 M
Moderately Down
Increasing
Slightly volatile
Liabilities Non Current230.6 M213.7 M
Significantly Up
Increasing
Slightly volatile
Current Liabilities462 M497.3 M
Significantly Down
Increasing
Slightly volatile
Total Liabilities3.1 B3.4 B
Significantly Down
Increasing
Slightly volatile
Investments Non Current266.4 M246.9 M
Significantly Up
Increasing
Slightly volatile
Investments Current43.5 M40.3 M
Significantly Up
Increasing
Slightly volatile
Investments309.9 M287.2 M
Significantly Up
Increasing
Slightly volatile
Gross Margin10196.66
Sufficiently Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion18.6 M17.3 M
Significantly Up
Increasing
Slightly volatile
Debt Non Current171.7 M205 M
Fairly Down
Increasing
Slightly volatile
Total Debt171.7 M205 M
Fairly Down
Increasing
Slightly volatile
Assets Non Current529.7 M491 M
Significantly Up
Increasing
Slightly volatile
Current Assets164.5 M166.4 M
Fairly Down
Decreasing
Very volatile
Total Assets3.7 BB
Significantly Down
Increasing
Slightly volatile

TAL Education Group Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between TAL Education's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards TAL Education in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find TAL Education's degree of accounting gimmicks and manipulations.

About TAL Education Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

224.57 Million

TAL Education Operating Expenses is relatively stable at the moment as compared to the past year. The company's current value of Operating Expenses is estimated at 224.57 Million

About TAL Education Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze TAL Education Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of TAL Education using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of TAL Education Group based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
TAL Education Group provides K-12 after-school tutoring services in the Peoples Republic of China. TAL Education Group was founded in 2003 and is headquartered in Beijing, the Peoples Republic of China. TAL Education operates under Education Training Services classification in the United States and is traded on New York Stock Exchange. It employs 16200 people.

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Additionally, take a look at TAL Education Piotroski F Score and TAL Education Altman Z Score analysis. Note that the TAL Education Group information on this page should be used as a complementary analysis to other TAL Education's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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Is TAL Education's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of TAL Education. If investors know TAL Education will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about TAL Education listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of TAL Education Group is measured differently than its book value, which is the value of TAL Education that is recorded on the company's balance sheet. Investors also form their own opinion of TAL Education's value that differs from its market value or its book value, called intrinsic value, which is TAL Education's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because TAL Education's market value can be influenced by many factors that don't directly affect TAL Education's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between TAL Education's value and its price as these two are different measures arrived at by different means. Investors typically determine TAL Education value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, TAL Education's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.