TAL EDUCATION GROUP- ADR (TAL) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:TAL • US8740801043

12.25 USD
+0.13 (+1.07%)
At close: Feb 3, 2026
12.32 USD
+0.07 (+0.57%)
After Hours: 2/3/2026, 8:04:00 PM
Fundamental Rating

5

Overall TAL gets a fundamental rating of 5 out of 10. We evaluated TAL against 76 industry peers in the Diversified Consumer Services industry. While TAL has a great health rating, its profitability is only average at the moment. TAL has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • In the past year TAL was profitable.
  • TAL had a positive operating cash flow in the past year.
  • In the past 5 years TAL reported 4 times negative net income.
  • TAL had a positive operating cash flow in 4 of the past 5 years.
TAL Yearly Net Income VS EBIT VS OCF VS FCFTAL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M -1B

1.2 Ratios

  • TAL has a Return On Assets of 4.71%. This is in the better half of the industry: TAL outperforms 64.47% of its industry peers.
  • TAL's Return On Equity of 7.96% is fine compared to the rest of the industry. TAL outperforms 60.53% of its industry peers.
  • With a Return On Invested Capital value of 3.86%, TAL perfoms like the industry average, outperforming 56.58% of the companies in the same industry.
Industry RankSector Rank
ROA 4.71%
ROE 7.96%
ROIC 3.86%
ROA(3y)-0.47%
ROA(5y)-4.94%
ROE(3y)-0.46%
ROE(5y)-6.36%
ROIC(3y)N/A
ROIC(5y)N/A
TAL Yearly ROA, ROE, ROICTAL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 -20

1.3 Margins

  • TAL's Profit Margin of 9.89% is fine compared to the rest of the industry. TAL outperforms 69.74% of its industry peers.
  • TAL's Operating Margin of 6.66% is in line compared to the rest of the industry. TAL outperforms 59.21% of its industry peers.
  • The Gross Margin of TAL (55.24%) is better than 68.42% of its industry peers.
  • TAL's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 6.66%
PM (TTM) 9.89%
GM 55.24%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.3%
GM growth 5Y-0.66%
TAL Yearly Profit, Operating, Gross MarginsTAL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

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8

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TAL is destroying value.
  • TAL has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, TAL has more shares outstanding
  • TAL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
TAL Yearly Shares OutstandingTAL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
TAL Yearly Total Debt VS Total AssetsTAL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • TAL has an Altman-Z score of 2.81. This is not the best score and indicates that TAL is in the grey zone with still only limited risk for bankruptcy at the moment.
  • With a decent Altman-Z score value of 2.81, TAL is doing good in the industry, outperforming 69.74% of the companies in the same industry.
  • There is no outstanding debt for TAL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 2.81
ROIC/WACC0.51
WACC7.54%
TAL Yearly LT Debt VS Equity VS FCFTAL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B

2.3 Liquidity

  • A Current Ratio of 2.07 indicates that TAL has no problem at all paying its short term obligations.
  • TAL's Current ratio of 2.07 is fine compared to the rest of the industry. TAL outperforms 77.63% of its industry peers.
  • TAL has a Quick Ratio of 2.01. This indicates that TAL is financially healthy and has no problem in meeting its short term obligations.
  • TAL has a Quick ratio of 2.01. This is in the better half of the industry: TAL outperforms 77.63% of its industry peers.
Industry RankSector Rank
Current Ratio 2.07
Quick Ratio 2.01
TAL Yearly Current Assets VS Current LiabilitesTAL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 83.87% over the past year.
  • TAL shows a strong growth in Revenue. In the last year, the Revenue has grown by 36.10%.
  • TAL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.22% yearly.
EPS 1Y (TTM)83.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%316.67%
Revenue 1Y (TTM)36.1%
Revenue growth 3Y-19.98%
Revenue growth 5Y-7.22%
Sales Q2Q%27%

3.2 Future

  • The Earnings Per Share is expected to grow by 59.59% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 18.00% on average over the next years. This is quite good.
EPS Next Y93.48%
EPS Next 2Y60.2%
EPS Next 3Y50.44%
EPS Next 5Y59.59%
Revenue Next Year33.71%
Revenue Next 2Y28.94%
Revenue Next 3Y25.73%
Revenue Next 5Y18%

3.3 Evolution

  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
TAL Yearly Revenue VS EstimatesTAL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B 4B 5B
TAL Yearly EPS VS EstimatesTAL Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 1 -1 2

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6

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 21.49, the valuation of TAL can be described as rather expensive.
  • TAL's Price/Earnings is on the same level as the industry average.
  • TAL is valuated rather cheaply when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 19.89, the valuation of TAL can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of TAL indicates a somewhat cheap valuation: TAL is cheaper than 61.84% of the companies listed in the same industry.
  • TAL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.51, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 21.49
Fwd PE 19.89
TAL Price Earnings VS Forward Price EarningsTAL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, TAL is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, TAL is valued cheaper than 80.26% of the companies in the same industry.
Industry RankSector Rank
P/FCF 12.54
EV/EBITDA 9.49
TAL Per share dataTAL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4 5

4.3 Compensation for Growth

  • TAL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • TAL's earnings are expected to grow with 50.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.23
PEG (5Y)N/A
EPS Next 2Y60.2%
EPS Next 3Y50.44%

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0

5. Dividend

5.1 Amount

  • TAL does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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TAL EDUCATION GROUP- ADR

NYSE:TAL (2/3/2026, 8:04:00 PM)

After market: 12.32 +0.07 (+0.57%)

12.25

+0.13 (+1.07%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)01-29
Earnings (Next)04-22
Inst Owners56.19%
Inst Owner Change-3.5%
Ins Owners0%
Ins Owner Change0%
Market Cap7.40B
Revenue(TTM)2.82B
Net Income(TTM)278.65M
Analysts82.31
Price Target14.45 (17.96%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly Dividend0.61
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)145.3%
Min EPS beat(2)46.81%
Max EPS beat(2)243.78%
EPS beat(4)3
Avg EPS beat(4)68.99%
Min EPS beat(4)-89.33%
Max EPS beat(4)243.78%
EPS beat(8)7
Avg EPS beat(8)149.69%
EPS beat(12)8
Avg EPS beat(12)-58.89%
EPS beat(16)10
Avg EPS beat(16)-70.53%
Revenue beat(2)1
Avg Revenue beat(2)0.69%
Min Revenue beat(2)-1.43%
Max Revenue beat(2)2.81%
Revenue beat(4)1
Avg Revenue beat(4)-1.59%
Min Revenue beat(4)-5.18%
Max Revenue beat(4)2.81%
Revenue beat(8)5
Avg Revenue beat(8)2.37%
Revenue beat(12)9
Avg Revenue beat(12)3.71%
Revenue beat(16)11
Avg Revenue beat(16)2.76%
PT rev (1m)0%
PT rev (3m)9.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.29%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)15.05%
Revenue NQ rev (1m)-0.81%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)1.83%
Valuation
Industry RankSector Rank
PE 21.49
Fwd PE 19.89
P/S 2.63
P/FCF 12.54
P/OCF 12.54
P/B 2.12
P/tB 2.17
EV/EBITDA 9.49
EPS(TTM)0.57
EY4.65%
EPS(NY)0.62
Fwd EY5.03%
FCF(TTM)0.98
FCFY7.97%
OCF(TTM)0.98
OCFY7.97%
SpS4.66
BVpS5.79
TBVpS5.64
PEG (NY)0.23
PEG (5Y)N/A
Graham Number8.62
Profitability
Industry RankSector Rank
ROA 4.71%
ROE 7.96%
ROCE 4.89%
ROIC 3.86%
ROICexc 67.28%
ROICexgc 116.36%
OM 6.66%
PM (TTM) 9.89%
GM 55.24%
FCFM 20.95%
ROA(3y)-0.47%
ROA(5y)-4.94%
ROE(3y)-0.46%
ROE(5y)-6.36%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.3%
GM growth 5Y-0.66%
F-Score7
Asset Turnover0.48
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 250
Cash Conversion 250.43%
Profit Quality 211.77%
Current Ratio 2.07
Quick Ratio 2.01
Altman-Z 2.81
F-Score7
WACC7.54%
ROIC/WACC0.51
Cap/Depr(3y)339.72%
Cap/Depr(5y)260.95%
Cap/Sales(3y)7.98%
Cap/Sales(5y)7.01%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)83.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%316.67%
EPS Next Y93.48%
EPS Next 2Y60.2%
EPS Next 3Y50.44%
EPS Next 5Y59.59%
Revenue 1Y (TTM)36.1%
Revenue growth 3Y-19.98%
Revenue growth 5Y-7.22%
Sales Q2Q%27%
Revenue Next Year33.71%
Revenue Next 2Y28.94%
Revenue Next 3Y25.73%
Revenue Next 5Y18%
EBIT growth 1Y10325.3%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year380.93%
EBIT Next 3Y118.84%
EBIT Next 5Y62.39%
FCF growth 1Y54.4%
FCF growth 3YN/A
FCF growth 5Y-15.63%
OCF growth 1Y29.97%
OCF growth 3YN/A
OCF growth 5Y-14.2%

TAL EDUCATION GROUP- ADR / TAL FAQ

What is the ChartMill fundamental rating of TAL EDUCATION GROUP- ADR (TAL) stock?

ChartMill assigns a fundamental rating of 5 / 10 to TAL.


Can you provide the valuation status for TAL EDUCATION GROUP- ADR?

ChartMill assigns a valuation rating of 6 / 10 to TAL EDUCATION GROUP- ADR (TAL). This can be considered as Fairly Valued.


How profitable is TAL EDUCATION GROUP- ADR (TAL) stock?

TAL EDUCATION GROUP- ADR (TAL) has a profitability rating of 4 / 10.


What is the earnings growth outlook for TAL EDUCATION GROUP- ADR?

The Earnings per Share (EPS) of TAL EDUCATION GROUP- ADR (TAL) is expected to grow by 93.48% in the next year.


Can you provide the dividend sustainability for TAL stock?

The dividend rating of TAL EDUCATION GROUP- ADR (TAL) is 0 / 10 and the dividend payout ratio is 0%.