TAL Education Group (TAL) AI Stock Analysis

• Market Cap: $6.73B
• Dividend Yield: N/A
• Average Volume (3M): 4.02M
• Price to Earnings (P/E): 37.9
• Beta (1Y): 0.69
• Revenue Growth: 44.57%
• EPS Growth: 147.78%
• Country: US
• Employees: 15,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.24
• Shares Outstanding: 462,499,880
• 10 Day Avg. Volume: 3,635,543
• 30 Day Avg. Volume: 4,017,919
• PEG Ratio: -0.04
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 3.50
• P/FCF Ratio: 27.57
• Enterprise Value/Market Cap: 0.45
• Enterprise Value/Revenue: 1.15
• Enterprise Value/Gross Profit: 2.11
• Enterprise Value/Ebitda: 17.66
• 1Y Price Target: $16.00
• Price Target Upside: 44.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.37
• Revenue Forecast (FY): $3.03B

• Rating: 67 Neutral
• Price Target: $12.00 ▲(8.50% Upside)

TAL Education Group's strong financial performance and positive earnings call sentiment are key strengths, driving the overall score. However, technical analysis indicates a lack of momentum, and valuation metrics suggest limited upside potential. Continued focus on operational efficiency and cash flow management will be crucial for future growth.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for TAL's educational services, supporting long-term business expansion and market presence.

Learning Devices Expansion

Expansion in learning devices diversifies revenue streams and enhances TAL's competitive edge in the education technology sector.

Stable Financial Position

A strong balance sheet with low leverage provides financial stability and flexibility for strategic investments and growth initiatives.

Negative Factors

Increased Expenses

Rising expenses can pressure margins and reduce profitability, necessitating efficient cost management to sustain long-term growth.

Net Cash Usage

Negative cash flow from operations indicates potential liquidity challenges, impacting TAL's ability to fund future growth initiatives.

Margin Compression

Margin compression could limit profitability, requiring TAL to optimize operations and scale efficiently to maintain competitive advantage.

TAL Education Group Business Overview & Revenue Model

Company Description

TAL Education Group provides K-12 after-school tutoring services in the People's Republic of China. The company offers tutoring services to K-12 students covering various academic subjects, including mathematics, physics, chemistry, biology, history, geography, political science, English, and Chinese. It provides tutoring services primarily through small-class services under the Xueersi, Xueersi Online School, First Leap, Tipaipai, Xiaohou AI, Xiaohoucode, Aiqidao, Mamabang, Kaoyanbang, and Shunshunliuxue brand names; and personalized premium services under Izhikang name. The company also operates jzb.com, an online education platform; provides investment management and consulting services; develops and sells software and networks, as well as related consulting services; and sells educational materials and products. TAL Education Group was founded in 2003 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

TAL Education Group generates revenue primarily through its tutoring services, which include both in-person and online classes. The company charges tuition fees for these courses, which vary based on factors such as the subject matter, class size, and duration. A significant portion of TAL's income comes from its online education platforms, which have gained popularity due to their flexibility and accessibility. Additionally, TAL develops and sells educational content and learning materials, further contributing to its revenue. The company has established partnerships with various educational institutions and technology providers, enhancing its service offerings and expanding its reach in the competitive education market. Factors such as the growing demand for quality education in China and a focus on technological innovation have also played a critical role in driving TAL's earnings.

TAL Education Group Financial Statement Overview

Summary

TAL Education Group shows strong revenue growth and improved profitability. The balance sheet is stable with low leverage, but cash flow management needs attention due to declining free cash flow growth.

Income Statement

TAL Education Group has shown a strong recovery in its income statement metrics. The TTM data indicates a significant revenue growth rate of 10.03%, with a healthy gross profit margin of 54.42%. The net profit margin has improved to 6.45%, indicating enhanced profitability. However, the EBIT and EBITDA margins are relatively modest at 5.01% and 6.51%, respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.11, indicating conservative leverage. The return on equity (ROE) has improved to 4.71%, showing better utilization of equity. The equity ratio stands at 63.03%, highlighting a strong equity base. However, the company should continue to focus on improving its ROE to enhance shareholder value.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 11.53% in the TTM period, which is a concern. However, the operating cash flow to net income ratio is 0.26, and the free cash flow to net income ratio is 1.0, indicating that the company is generating sufficient cash relative to its net income. Continued focus on cash flow management will be crucial for sustaining operations and growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.65B	2.25B	1.49B	1.02B	4.39B	4.50B
Gross Profit	1.44B	1.20B	806.12M	583.41M	2.19B	2.45B
EBITDA	172.72M	184.41M	-39.36M	-73.27M	-580.40M	-46.69M
Net Income	171.21M	84.59M	-3.57M	-135.61M	-1.14B	-115.99M
Balance Sheet
Total Assets	5.45B	5.50B	4.93B	4.72B	5.08B	12.11B
Cash, Cash Equivalents and Short-Term Investments	3.25B	3.62B	3.30B	3.17B	2.71B	5.94B
Total Debt	373.33M	333.35M	239.22M	157.72M	242.09M	4.15B
Total Liabilities	2.02B	1.74B	1.29B	903.44M	1.08B	6.91B
Stockholders Equity	3.44B	3.77B	3.66B	3.84B	4.03B	5.20B
Cash Flow
Free Cash Flow	441.40M	285.66M	184.88M	-102.97M	-1.19B	708.99M
Operating Cash Flow	441.40M	397.92M	306.17M	7.36M	-939.18M	954.73M
Investing Cash Flow	-492.70M	-847.03M	95.07M	-301.63M	1.37B	-2.64B
Financing Cash Flow	-542.36M	-13.17M	-233.09M	-66.18M	-2.77B	4.79B

TAL Education Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TAL, the sentiment is Negative. The current price of 11.06 is below the 20-day moving average (MA) of 11.51, below the 50-day MA of 11.42, and below the 200-day MA of 11.25, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 44.41 is Neutral, neither overbought nor oversold. The STOCH value of 49.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TAL.

TAL Education Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATGE	73 Outperform	$3.36B	13.88	17.38%	―	12.24%	52.97%
LAUR	73 Outperform	$4.37B	21.71	20.15%	―	2.01%	-13.82%
LRN	71 Outperform	$2.80B	9.85	23.04%	―	17.25%	30.15%
EDU	70 Outperform	$8.29B	22.26	9.28%	1.14%	7.22%	-2.84%
LOPE	68 Neutral	$4.38B	21.11	27.77%	―	7.05%	-2.63%
TAL	67 Neutral	$6.73B	37.90	4.77%	―	44.57%	147.78%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

TAL Education Group Corporate Events

TAL Education Group Reports Strong Q2 2026 Financial Results

On October 30, 2025, TAL Education Group announced its unaudited financial results for the second quarter of fiscal year 2026, which ended on August 31, 2025. The company reported a significant increase in net revenues, reaching $861.4 million, a 39.1% rise compared to the same period last year. Income from operations also saw a substantial growth, with a 101.8% increase to $96.1 million. The results reflect the company’s strategic focus on enhancing user experience and educational model innovations, contributing to revenue growth across its core businesses. TAL’s ongoing investments in technology and educational content are expected to sustain this momentum, positioning the company for continued success in the smart learning industry.