(TAL) TAL Education - Overview
Sector: Consumer Defensive | Industry: Education & Training Services | Exchange: NYSE (USA) | Market Cap: 5.951m USD | Total Return: -8.7% in 12m
Avg Turnover: 35.3M
Qual. Beats: 3
Rev. Trend: 99.6%
Qual. Beats: 1
Warnings
Fakeout Choppy Below Avwap Earnings
Tailwinds
Confidence
TAL Education Group is a Beijing-based provider of K-12 tutoring services in China, operating primarily under the Haoweilai and Think Academy brands. The company delivers educational content through small-group classes, personalized premium services, and online platforms, supplemented by AI-driven learning devices and digital applications.
The business model has shifted significantly toward non-academic tutoring and educational technology following Chinas 2021 regulatory changes, which banned for-profit tutoring in core school subjects. Consequently, TAL now emphasizes learning content solutions, including smart books and software development, to diversify its revenue streams within the restricted private education sector.
Investors can evaluate the company’s current financial health and valuation metrics on ValueRay.
Founded in 2003, the company also manages investment consulting services and operates xueersi.com, a central hub for its digital education offerings. Its integration of hardware and software aims to capture demand for supplemental learning in a highly competitive and regulated domestic market.
- Regulatory compliance shifts impact expansion of non-academic tutoring and enrichment programs
- Smart learning hardware sales growth diversifies revenue beyond traditional classroom services
- Chinese consumer discretionary spending levels dictate demand for premium personalized tutoring
- Operational margin recovery depends on scaling AI-driven online learning content platforms
- Government oversight of private education sector continues to influence long-term valuation multiples
| Net Income: 532.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA -0.81 > 1.0 |
| NWC/Revenue: 68.86% < 20% (prev 119.3%; Δ -50.48% < -1%) |
| CFO/TA 0.25 > 3% & CFO 1.50b > Net Income 532.5m |
| Net Debt (-3.08b) to EBITDA (328.8m): -9.36 < 3 |
| Current Ratio: 2.17 > 1.5 & < 3 |
| Outstanding Shares: last quarter (186.6m) vs 12m ago -69.30% < -2% |
| Gross Margin: 55.35% > 18% (prev 0.53%; Δ 5.48k% > 0.5%) |
| Asset Turnover: 52.71% > 50% (prev 40.89%; Δ 11.82% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBITDA TTM and Interest Expense TTM) |
| A: 0.35 (Total Current Assets 3.84b - Total Current Liabilities 1.77b) / Total Assets 5.94b |
| B: -0.02 (Retained Earnings -130.4m / Total Assets 5.94b) |
| C: 0.05 (EBIT TTM 276.5m / Avg Total Assets 5.72b) |
| D: 0.04 (Book Value of Equity 80.0m / Total Liabilities 2.16b) |
| Altman-Z'' = 2.59 = A |
| DSRI: 0.93 (Receivables 46.0k/37.0k, Revenue 3.01b/2.25b) |
| GMI: 0.96 (GM 55.35% / 53.34%) |
| AQI: 1.96 (AQ_t 0.20 / AQ_t-1 0.10) |
| SGI: 1.34 (Revenue 3.01b / 2.25b) |
| TATA: -0.16 (NI 532.5m - CFO 1.50b) / TA 5.94b) |
| Beneish M = -2.48 (Cap -4..+1) = BBB |
As of May 31, 2026, the stock is trading at USD 9.71 with a total of 3,032,875 shares traded.
Over the past week, the price has changed by -3.57%,
over one month by -10.51%,
over three months by -7.79% and
over the past year by -8.65%.
TAL Education has received a consensus analysts rating of 4.53. Therefore, it is recommended to buy TAL.
- StrongBuy: 12
- Buy: 5
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 15.7 | 61.3% |
P/E Trailing = 10.6304
P/E Forward = 16.3934
P/S = 1.9779
P/B = 1.58
P/EG = 11.0729
Revenue TTM = 3.01b USD
EBIT TTM = 276.5m USD
EBITDA TTM = 328.8m USD
Long Term Debt = 278.1m USD (estimated: total debt 387.5m - short term 109.4m)
Short Term Debt = 109.4m USD (from shortTermDebt, last quarter)
Debt = 387.5m USD (from shortLongTermDebtTotal, last quarter) (leases 377.4m already included)
Net Debt = -3.08b USD (calculated: Debt 387.5m - CCE 3.47b)
Enterprise Value = 2.87b USD (5.95b + Debt 387.5m - CCE 3.47b)
Interest Coverage Ratio = unknown (Ebit TTM 276.5m / Interest Expense TTM 0.0)
EV/FCF = 6.01x (Enterprise Value 2.87b / FCF TTM 477.8m)
FCF Yield = 16.64% (FCF TTM 477.8m / Enterprise Value 2.87b)
FCF Margin = 15.85% (FCF TTM 477.8m / Revenue TTM 3.01b)
Net Margin = 17.66% (Net Income TTM 532.5m / Revenue TTM 3.01b)
Gross Margin = 55.35% ((Revenue TTM 3.01b - Cost of Revenue TTM 1.35b) / Revenue TTM)
Gross Margin QoQ = 53.24% (prev 56.07%)
Tobins Q-Ratio = 0.48 (Enterprise Value 2.87b / Total Assets 5.94b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 387.5m)
Taxrate = 23.95% (77.5m / 323.6m)
NOPAT = 210.3m (EBIT 276.5m * (1 - 23.95%))
Current Ratio = 2.17 (Total Current Assets 3.84b / Total Current Liabilities 1.77b)
Debt / Equity = 0.10 (Debt 387.5m / totalStockholderEquity, last quarter 3.77b)
Debt / EBITDA = -9.36 (Net Debt -3.08b / EBITDA 328.8m)
Debt / FCF = -6.44 (Net Debt -3.08b / FCF TTM 477.8m)
Total Stockholder Equity = 3.57b (last 4 quarters mean from totalStockholderEquity)
RoA = 9.31% (Net Income 532.5m / Total Assets 5.94b)
RoE = 14.39% (Net Income TTM 532.5m / Total Stockholder Equity 3.70b)
RoCE = 6.95% (EBIT 276.5m / Capital Employed (Equity 3.70b + L.T.Debt 278.1m))
RoIC = 25.91% (NOPAT 210.3m / Invested Capital 811.6m)
WACC = 7.57% (E(5.95b)/V(6.34b) * Re(8.06%) + D(387.5m)/V(6.34b) * Rd(0.0%) * (1-Tc(0.24)))
Discount Rate = 8.06% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -46.67 | Cagr: -40.24%
[DCF] Terminal Value 75.16% ; FCFF base≈481.8m ; Y1≈475.6m ; Y5≈486.8m
[DCF] Fair Price = 23.16 (EV 7.60b - Net Debt -3.08b = Equity 10.7b / Shares 461.0m; r=8.35% [WACC [floored]]; 5y FCF grow -2.04% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 4.0 | # QB: 3
Revenue Correlation: 99.61 | Revenue CAGR: 46.86% | SUE: 1.11 | # QB: 1
EPS current Quarter (2026-05-31): EPS=0.12 | Chg30d=+5.34% | Revisions=N/A | Analysts=4
EPS next Quarter (2026-08-31): EPS=0.27 | Chg30d=+11.05% | Revisions=N/A | Analysts=3
EPS current Year (2027-02-28): EPS=0.85 | Chg30d=+8.39% | Revisions=+67% | GrowthEPS=-13.7% | GrowthRev=+22.7%
EPS next Year (2028-02-29): EPS=1.04 | Chg30d=+3.69% | Revisions=+64% | GrowthEPS=+21.7% | GrowthRev=+19.0%
[Analyst] Revisions Ratio: +67%