TAL Education Group(TAL)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL RECENCY
1-STAR RATING
Consider higher Upturn Star rating
BUY for 50 days
PROFIT SINCE LAST BUY
+15.32% ▲
LAST CLOSE
$11.89
09/28/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Advisory & Investor View for TAL

09/28/2026: TAL (1-star) has a low Upturn Star Rating. Not recommended to BUY.

TAL Education Group is a Chinese education company that has undergone a significant transformation following a major regulatory restructuring of its industry in 2021. Once a leader in K-12 tutoring, the company now focuses on non-academic enrichment services and technology-driven learning solutions. Its main strengths include a recognizable brand and a solid balance sheet that provides resources for ongoing innovation. The primary investment story rests on the successful execution of this new, leaner business model in a tightly regulated market. Risks remain high, particularly concerning future regulatory shifts, competitive intensity, and the company's ability to maintain long-term profitability within its new operational scope.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitThe company is in a transition phase, making future growth trajectory less predictable.
Momentum investorMixed fitMomentum is conditional on positive market sentiment toward Chinese education stocks.
Value investorMixed fitValuation depends on the long-term success of the new, smaller business model.
Dividend investorWeak fitTAL does not pay regular dividends.
Low-risk investorWeak fitRegulatory risks create high volatility, unsuitable for low-risk portfolios.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighPolicy-driven news creates significant and rapid price swings.
Valuation riskMedium / highDifficulty in forecasting future earnings makes valuation challenging.
Competition risk (Educational Services)HighIntense rivalry persists for remaining market segments.
Business qualityMediumThe core business is undergoing a fundamental transformation.
Dividend incomeLow / noneNo dividend payments are currently provided.
Execution riskHighSuccessfully pivoting the business model is critical for long-term viability.

Price Behavior

Flat / Range-Bound
PRICE PATH

Flat / Range-Bound

The stock price has been trading within a narrow range with minimal directional movement.

Moderately Choppy
PRICE STABILITY

Moderately Choppy

The stock has experienced noticeable price swings while retaining some directional structure.

Analysis of Past Performance

Type Stock
Historic Profit -46.09%
Avg. Invested days 23
Today’s Advisory Consider higher Upturn Star rating
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/28/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
TAL receives a 4-star rating, supported by solid company fundamentals, solid quantitative characteristics, and solid analyst coverage. The rating is constrained by weak price momentum.

Company Fundamentals

★★★★★
TAL has solid overall fundamentals (4 stars), with solid financial health, strong growth momentum, and solid ownership. In FY2026 versus FY2025, strong earnings growth (+529.8%) and strong cash generation (FCF margin 16.9%) are partially offset by very low insider ownership of 0.01%.

Financial Health Rating

★★★★★
TAL's financial health is supported by solid liquidity, including working-capital and asset support (WC/assets 35.0%). Operating efficiency is moderate (3 stars), which helps explain the 4-star overall score.

Growth Momentum Score

★★★★★
Earnings growth is TAL's strongest growth driver at +529.8% FY2026 versus FY2025 (strong, 5 stars). Revenue growth (+34.2%, solid) and free-cash-flow growth (+78.6%, strong) are also constructive, though not equally high across every growth measure.

Ownership

★★★★★
Institutional ownership is 65.7% and approximately 88.7% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership is only 0.01%, which materially reduces the ownership score.

Top 5 Institutional Investors

BlackRock Inc 4.84%
Krane Funds Advisors LLC 3.12%
Robeco Institutional Asset Management BV 2.66%
Morgan Stanley - Brokerage Accounts 2.33%
Vanguard Capital Management, LLC 2.32%

Unit Economics (Per $1K Revenue)

★★★★★
TAL generates approximately $554 of gross profit, $92 of operating income, and $169 of free cash flow for every $1,000 of revenue. Based on FY2026 results. Moderate margins and solid cash conversion support a 3-star rating, while capital efficiency is soft.

Economic Dimensions

★★★★★
Effective Tax Rate: 22.56%

Quantitative Style Profile

★★★★★
TAL has a high-quality, liquid, relatively low-volatility profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedQuality TiltLow VolatilitySmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 6.60B USD
Price to earnings Ratio 7.53
1Y Target Price 16.1
Price to earnings Ratio 7.53
1Y Target Price 16.1
Volume (30-day avg) 4.9M shares
Beta 0.14
52 Weeks Range 8.88 - 13.37
Updated Date 09/28/2026
52 Weeks Range 8.88 - 13.37
Updated Date 09/28/2026
Dividends yield (FY) -
Basic EPS (TTM) 1.58

How Company Makes Money

Business areaWhat it includesRetail investor read
Learning ServicesNon-academic and enrichment tutoring services.The company earns revenue from providing educational classes that fall outside the restricted academic curriculum.
Content and SolutionsDigital learning materials and educational technology products.Revenue is generated from selling educational content and technology-based learning tools.
Geography: ChinaAll major operations are concentrated in the Chinese market.TAL's business is almost entirely dependent on the regulatory and economic environment in China.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

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Valuation

Trailing PE 7.53
Forward PE 9.47
Enterprise Value 4.18B
Price to Sales(TTM) 2.07
Enterprise Value 4.18B
Price to Sales(TTM) 2.07
Enterprise Value to Revenue 1.31
Enterprise Value to EBITDA 10.47
Shares Outstanding 407.23M
Shares Floating 361.03M
Shares Outstanding 407.23M
Shares Floating 361.03M
Percent Insiders 0.01
Percent Institutions 65.73

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About TAL Education Group

Exchange NYSE
Headquarters -
IPO Launch date 2010-10-20
Co-Founder, Chairman & CEO Mr. Bangxin Zhang
Sector Consumer Defensive
Industry Education & Training Services
Full time employees 26100
Full time employees 26100

TAL Education Group provides smart learning solutions in the People's Republic of China. It offers learning services through Xueersi Peiyou small classes, personalized premium services, and online course offerings. The company also develops and provides learning content solutions for learners across print, digital and device-based formats, including print books, books integrated with digital learning experiences, learning devices, and mobile applications. In addition, it offers online education services, including live class and pre-recorded course content through www.xueersi.com. Further, the company engages in development and sale of software, network, and learning devices; investment management and consulting services. TAL Education Group was founded in 2003 and is headquartered in Beijing, the People's Republic of China.