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TAL Education Group (TAL)



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Upturn Advisory Summary
08/14/2025: TAL (1-star) has a low Upturn Star Rating. Not recommended to BUY.
1 Year Target Price $12.99
1 Year Target Price $12.99
12 | Strong Buy |
7 | Buy |
3 | Hold |
1 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -21.15% | Avg. Invested days 26 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 6.96B USD | Price to earnings Ratio 67.29 | 1Y Target Price 12.99 |
Price to earnings Ratio 67.29 | 1Y Target Price 12.99 | ||
Volume (30-day avg) 23 | Beta 0.07 | 52 Weeks Range 7.34 - 15.30 | Updated Date 08/15/2025 |
52 Weeks Range 7.34 - 15.30 | Updated Date 08/15/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.17 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-07-30 | When Before Market | Estimate 0.02 | Actual 0.07 |
Profitability
Profit Margin 4.33% | Operating Margin (TTM) 2.5% |
Management Effectiveness
Return on Assets (TTM) 0.32% | Return on Equity (TTM) 2.88% |
Valuation
Trailing PE 67.29 | Forward PE 29.07 | Enterprise Value 3862499707 | Price to Sales(TTM) 2.89 |
Enterprise Value 3862499707 | Price to Sales(TTM) 2.89 | ||
Enterprise Value to Revenue 1.6 | Enterprise Value to EBITDA 135.43 | Shares Outstanding 461046016 | Shares Floating 137477673 |
Shares Outstanding 461046016 | Shares Floating 137477673 | ||
Percent Insiders 0.01 | Percent Institutions 61.57 |
Upturn AI SWOT
TAL Education Group
Company Overview
History and Background
TAL Education Group, formerly known as Xueersi Education Group, was founded in 2003. It started as a tutoring center in Beijing and has grown into a leading education technology company in China. Significant milestones include its IPO on the NYSE in 2010 and rapid expansion into online education.
Core Business Areas
- K-12 Academic Tutoring: Provides after-school tutoring services for students from kindergarten to 12th grade, covering subjects like math, physics, chemistry, biology, and English.
- Online Education: Offers online courses and educational resources through its various online platforms, catering to a wider audience and providing flexibility in learning.
- Content Development: Develops educational content, including textbooks, workbooks, and digital learning materials, used both internally and externally.
Leadership and Structure
The company is led by a board of directors and a management team. Key leaders include the CEO and CFO, who oversee the company's operations and financial performance. The organizational structure includes functional departments such as teaching, research, technology, and marketing.
Top Products and Market Share
Key Offerings
- Xueersi Online Courses: Online courses for K-12 students, covering core subjects and exam preparation. Competitors include New Oriental Online and Yuanfudao. Market share data unavailable post regulations, but previously significant player.
- Peiyou Small Class: Small-group tutoring classes focusing on personalized learning. Competitors include various local tutoring centers. Market share data unavailable.
Market Dynamics
Industry Overview
The after-school tutoring industry in China was highly competitive but faced significant regulatory changes in 2021 which severely restricted profitability and operations. The industry is shifting towards vocational training and non-profit educational services.
Positioning
Prior to 2021, TAL Education Group was a leader in the K-12 after-school tutoring market. Post-regulation, TAL is adapting its business model to align with the new regulatory environment, focusing on non-profit educational services and vocational training.
Total Addressable Market (TAM)
The pre-regulation TAM was estimated in the billions of dollars. Post-regulation, the TAM is significantly reduced and shifting towards vocational training, adult education and non-profit services. TAL's positioning is in adapting to this new landscape.
Upturn SWOT Analysis
Strengths
- Brand recognition (pre-regulation)
- Extensive online platform
- High-quality teaching resources (pre-regulation)
Weaknesses
- Impacted significantly by regulatory changes
- Limited profitability under new regulations
- Uncertainty in future business model
Opportunities
- Expansion into vocational training
- Partnerships with schools and educational institutions
- Development of non-profit educational services
Threats
- Further regulatory changes
- Increased competition in new market segments
- Difficulty in transitioning business model
Competitors and Market Share
Key Competitors
Competitive Landscape
The competitive landscape has changed significantly due to regulatory changes. Traditional competitors in the K-12 after-school tutoring market are no longer directly comparable.
Growth Trajectory and Initiatives
Historical Growth: Prior to 2021, TAL Education Group experienced rapid growth in revenue and student enrollment.
Future Projections: Future projections are highly uncertain due to the evolving regulatory environment and company's strategic transition.
Recent Initiatives: Recent initiatives include restructuring business operations, focusing on non-profit educational services, and exploring opportunities in vocational training.
Summary
TAL Education Group has been fundamentally impacted by regulatory changes in China's education sector. Its previous business model is no longer viable, and the company is in the process of transitioning to a new strategy focused on non-profit and vocational education. The company faces significant uncertainty and challenges in adapting to the new environment. The stock's performance reflects these challenges. Further regulatory risks persist and the outlook remains uncertain.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings
- Industry reports
- News articles
Disclaimers:
The information provided is based on available data and current market conditions. Investment decisions should be made based on thorough research and professional advice. The regulatory environment is subject to change, which can significantly impact TAL Education Group's future performance.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About TAL Education Group
Exchange NYSE | Headquaters - | ||
IPO Launch date 2010-10-20 | Co-Founder, Chairman & CEO Mr. Bangxin Zhang | ||
Sector Consumer Defensive | Industry Education & Training Services | Full time employees 23000 | Website https://www.100tal.com |
Full time employees 23000 | Website https://www.100tal.com |
TAL Education Group provides K-12 after-school tutoring services in the People's Republic of China. It provides learning services primarily through small classes services; personalized premium services and online course offerings; and learning content solutions, such as print books, smart books, mobile apps, and AI-driven learning devices. The company also operates www.xueersi.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. It offers its services under the Haoweilai and Think Academy brands. The company was founded in 2003 and is headquartered in Beijing, the People's Republic of China.

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