TAL Education Group (TAL) AI Stock Analysis

• Market Cap: $7.27B
• Dividend Yield: N/A
• Average Volume (3M): 4.47M
• Price to Earnings (P/E): 41.2
• Beta (1Y): 0.66
• 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: 4,608,043
• 30 Day Avg. Volume: 4,468,987
• 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: 0.42
• Enterprise Value/Revenue: 1.26
• Enterprise Value/Gross Profit: 2.34
• Enterprise Value/Ebitda: 23.16
• 1Y Price Target: $16.00
• Price Target Upside: 33.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $12.50 ▲(3.99% Upside)

TAL Education Group's overall stock score is driven by strong financial recovery and positive earnings call insights, indicating a solid growth trajectory. However, the high P/E ratio and absence of a dividend yield suggest overvaluation, which tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, reinforcing TAL's competitive position in education.

Product Expansion

The expansion of the learning devices portfolio diversifies revenue streams and enhances TAL's technological edge in education.

Cash Flow Generation

Strong cash flow generation supports TAL's ability to invest in growth initiatives and maintain financial flexibility.

Negative Factors

Increased Marketing Expenses

Rising marketing costs could pressure margins and impact profitability if not matched by proportional revenue growth.

Learning Devices Profitability

Continued investment in learning devices without profitability may strain resources and delay returns on investment.

Operational Efficiency

Operational inefficiencies and debt management issues could hinder TAL's ability to sustain long-term growth and profitability.

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 through various streams, primarily from its tutoring services offered to K-12 students. The company charges students for after-school tutoring sessions, which can be conducted in-person or online. Key revenue streams include tuition fees from individual lessons, package deals for multiple sessions, and subscription fees for online learning platforms. Additionally, TAL has developed partnerships with educational institutions and technology providers, enhancing its service offerings and expanding its market reach. The company also invests in educational content creation, which adds value to its services and contributes to customer retention and acquisition. Factors such as the growing demand for quality education in China, increased parental spending on children's education, and the ongoing shift towards digital learning platforms play a significant role in TAL's revenue generation.

TAL Education Group Financial Statement Overview

Summary

TAL Education Group has shown significant financial recovery with improved revenue, a return to profitability, and strong cash flow generation. However, challenges remain in operational efficiency and debt management.

Income Statement

TAL Education Group has shown a significant improvement in revenue from $1.49 billion in 2024 to $2.25 billion in 2025, marking a strong recovery trajectory. Gross Profit Margin improved from 54.1% in 2024 to 53.3% in 2025. The Net Profit Margin turned positive to 3.76% in 2025 from a negative margin in 2024, indicating enhanced profitability. However, EBIT and EBITDA margins remain low, signaling ongoing operational challenges.

Balance Sheet

The company's balance sheet is stable with a strong equity position, as the Equity Ratio improved to 68.4% in 2025, reflecting financial stability. The Debt-to-Equity ratio decreased, indicating reduced leverage. ROE turned positive at 2.25% in 2025, showing improved returns to shareholders. Despite these strengths, high liabilities relative to total assets could pose future risks.

Cash Flow

The cash flow statement highlights a robust improvement, with Free Cash Flow growing by 54.5% from 2024 to 2025. Operating Cash Flow to Net Income ratio is healthy at 4.70, indicating efficient cash conversion. The Free Cash Flow to Net Income ratio is strong at 3.38, reflecting solid cash flow generation. These factors contribute to a positive liquidity outlook.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2019
Income Statement
Total Revenue	2.41B	2.25B	1.02B	4.39B	4.50B	2.56B
Gross Profit	1.30B	1.20B	583.41M	2.19B	2.45B	1.40B
EBITDA	131.72M	184.41M	-73.27M	-580.40M	-46.69M	430.42M
Net Income	104.55M	84.59M	-135.61M	-1.14B	-115.99M	367.24M
Balance Sheet
Total Assets	5.72B	5.50B	4.72B	5.08B	12.11B	3.74B
Cash, Cash Equivalents and Short-Term Investments	3.73B	3.62B	3.17B	2.71B	5.94B	1.52B
Total Debt	373.84M	333.35M	157.72M	242.09M	4.15B	215.30M
Total Liabilities	2.14B	1.74B	903.44M	1.08B	6.91B	1.20B
Stockholders Equity	3.57B	3.77B	3.84B	4.03B	5.20B	2.48B
Cash Flow
Free Cash Flow	498.92M	285.66M	-102.97M	-1.19B	708.99M	-160.65M
Operating Cash Flow	498.92M	397.92M	7.36M	-939.18M	954.73M	194.36M
Investing Cash Flow	-1.25B	-847.03M	-301.63M	1.37B	-2.64B	-166.58M
Financing Cash Flow	-267.28M	-13.17M	-66.18M	-2.77B	4.79B	475.02M

TAL Education Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 12.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 12.02 is above the 20-day moving average (MA) of 11.85, above the 50-day MA of 11.28, and above the 200-day MA of 11.34, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 50.07 is Neutral, neither overbought nor oversold. The STOCH value of 29.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TAL.

TAL Education Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EDU	77 Outperform	$9.34B	24.18	9.28%	―	7.22%	-2.84%
TAL	75 Outperform	$7.27B	41.19	4.77%	―	44.57%	147.78%
ATGE	73 Outperform	$3.54B	14.28	17.38%	―	12.24%	52.97%
LAUR	73 Outperform	$4.37B	21.71	20.15%	―	2.01%	-13.82%
LRN	70 Outperform	$3.12B	11.10	23.04%	―	17.25%	30.15%
LOPE	68 Neutral	$4.67B	22.41	27.77%	―	7.05%	-2.63%
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 Q1 2026 Financial Results and New Share Repurchase Plan

TAL Education Group announced its unaudited financial results for the first fiscal quarter ended May 31, 2025, showing significant growth. The company reported a 38.8% increase in net revenues to $575 million and a turnaround in operating income to $14.3 million from a loss of $17.3 million in the same period last year. This growth was driven by the successful launch of new learning device models and a focus on enhancing learning experiences. The board also authorized a new share repurchase plan, allowing the company to buy back up to $600 million of its shares, reflecting confidence in its financial health and future prospects.