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 41 days
PROFIT SINCE LAST BUY
+13.97%
LAST CLOSE
$11.75
09/15/2026
(24-hour delay)

Advisory History & Simulated Performance *

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

09/15/2026: TAL (1-star) has a low Upturn Star Rating. Not recommended to BUY.

TAL Education Group is a provider of extracurricular enrichment and learning hardware based in China, currently operating through a significant business transformation. Following stringent regulatory changes in 2021 that disrupted its core tutoring model, the company has successfully pivoted toward quality-oriented educational services and consumer learning technology. Its primary growth opportunity lies in leveraging its established brand to sell smart educational hardware and AI-integrated learning tools to families. However, the company faces substantial risks, including a highly sensitive regulatory landscape, demographic challenges, and intense competition from tech firms. TAL may appeal to growth investors monitoring its turnaround, though it is not a suitable choice for low-risk or dividend-focused portfolios.

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 turnaround phase rather than a hyper-growth phase, making growth prospects uncertain.
Momentum investorMixed fitMomentum depends on periodic positive signals or breakthroughs in the new hardware/enrichment segments.
Value investorMixed fitThe stock trades based on long-term turnaround potential rather than classic value metrics.
Dividend investorWeak fitThe company does not pay dividends and focuses entirely on reinvestment.
Low-risk investorWeak fitRegulatory and operational risks make this stock unsuitable for low-risk portfolios.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighThe stock is highly sensitive to regulatory announcements and shifts in market sentiment.
Valuation riskMediumValuations are highly speculative due to the uncertainty surrounding long-term earnings growth.
Competition risk (AI/Hardware competition)Medium / highRapid entry of tech giants into educational hardware poses a persistent threat to margins.
Business qualityMediumThe business model is undergoing structural transformation which impacts historical quality metrics.
Dividend incomeLow / noneThere is no dividend income for investors.
Execution riskMedium / highSuccessfully scaling new business models requires precise execution in a difficult regulatory environment.

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 -46.72%
Avg. Invested days 22
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 09/15/2026

Upturn Scorecard

Upturn Star Rating

TAL receives a 4-star rating, supported by solid company fundamentals, 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 65.4% 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. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

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 6.52B USD
Price to earnings Ratio 7.34
1Y Target Price 16.12
Price to earnings Ratio 7.34
1Y Target Price 16.12
Volume (30-day avg) 5.3M shares
Beta 0.14
52 Weeks Range 8.88 - 13.37
Updated Date 09/16/2026
52 Weeks Range 8.88 - 13.37
Updated Date 09/16/2026
Dividends yield (FY) -
Basic EPS (TTM) 1.6

How Company Makes Money

Business areaWhat it includesRetail investor read
Learning ServicesExtracurricular enrichment, science, and humanities courses for students.This is the core service revenue stream for the company.
Learning HardwareSmart tablets, learning devices, and related digital peripherals.A key growth pillar aimed at recurring hardware and software revenue.
Geography: ChinaAll major revenue generating activities are currently concentrated in China.The company has very high exposure to Chinese regulatory and demographic trends.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

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Valuation

Trailing PE 7.34
Forward PE 9.21
Enterprise Value 3.99B
Price to Sales(TTM) 2.04
Enterprise Value 3.99B
Price to Sales(TTM) 2.04
Enterprise Value to Revenue 1.25
Enterprise Value to EBITDA 10.01
Shares Outstanding 407.23M
Shares Floating 361.03M
Shares Outstanding 407.23M
Shares Floating 361.03M
Percent Insiders 0.01
Percent Institutions 65.4

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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.