A Business at a Glance
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TAL Education Group
TAL
$2.1B
Mkt Cap
$10.30
-0.39%
TAL Education Group (TAL) has a current P/E ratio of 25.1, compared to its historical median P/E of 26.6. The stock is currently considered Fair based on its historical valuation range.
TAL Education Group (TAL) has a 5-year average return on invested capital (ROIC) of -7.8%. This is below average and may indicate limited pricing power.
TAL Education Group (TAL) has a market capitalization of $2.1B. It is classified as a mid-cap stock.
TAL Education Group (TAL) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 0.62%.
Based on historical P/E analysis, TAL Education Group (TAL) appears fair. The current P/E of 25.1 is 6% below its historical median of 26.6. The estimated fair value CAGR (P/E method) is -28.6%.
TAL Education Group (TAL) operates in the Services-Educational Services industry, within the Consumer Cyclical sector.
TAL Education Group (TAL) reported annual revenue of $2.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
Item 1. Identity of Directors, Senior Management and Advisers Not applicable. Item 2. Offer Statistics and Expected Timetable Not applicable. Item 3. Key Information Our Holding Company Structure and VIE Contractual Arrangements TAL Education Group is not a PRC operating company but a Cayman Islands holding company. We primarily conduct our operations in China through (i) our PRC subsidiaries, and (ii) the VIEs with which we have maintained contractual arrangements, and VIE Subsidiaries. The PRC laws and regulations impose foreign investment restrictions and license requirements on certain learning business and value-added telecommunication services.
| Segment | 2021 | 2022 | 2023 | 2024 | 2025 | % of Total |
|---|---|---|---|---|---|---|
Learning services and others | — | — | $854M | $1.05B | $1.53B | 68% |
Learning content solutions | — | — | $166M | $439M | $715M | 32% |
Learning Services and Others | $4.43B | $4.28B | $854M | $1.05B | — | — |
Learning Content Solutions | $62M | $116M | $166M | $439M | — | — |
Small class learning services, personalized premium services and others | $3.22B | $3.05B | — | — | — | — |
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 2.3B | 2.3B | 1.5B | 1.0B | 4.4B | 4.5B |
| Net Income | 85M | 85M | -3.6M | -136M | -1.1B | -116M |
| EPS | $0.41 | $0.41 | $-0.02 | $-0.64 | $-5.29 | $-0.57 |
| Free Cash Flow | 286M | 286M | 193M | -103M | -1.2B | 710M |
| ROIC | 0.0% | - | -0.1% | -3.4% | -24.6% | -2.9% |
| Gross Margin | 53.3% | 53.3% | 54.1% | 57.2% | 49.8% | 54.4% |
| Debt/Equity | 0.11 | 0.11 | 0.09 | 0.06 | 0.27 | 0.05 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 0 | - | -69M | -91M | -615M | -438M |
| Operating Margin | 0.0% | - | -4.6% | -8.9% | -14.0% | -9.7% |
| ROE | 2.2% | 2.3% | -0.1% | -3.4% | -24.6% | -3.0% |
| Shares Outstanding | 206M | 206M | 179M | 212M | 215M | 203M |
| Metric | TTM | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 314M | 434M | 620M | 1.0B | 1.7B | 2.6B | 3.3B | 4.5B | 4.4B | 1.0B | 1.5B | 2.3B | 2.3B |
| Gross Margin | 51.7% | 53.2% | 51.0% | 49.9% | 48.6% | 54.6% | 55.1% | 54.4% | 49.8% | 57.2% | 54.1% | 53.3% | 53.3% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 70M | 110M | 161M | 263M | 386M | 580M | 795M | 1.1B | 1.2B | 414M | 430M | 459M | 459M |
| EBIT | 57M | 67M | 85M | 135M | 209M | 342M | 137M | -438M | -615M | -91M | -69M | N/A | 0 |
| Op. Margin | 18.3% | 15.5% | 13.7% | 12.9% | 12.2% | 13.3% | 4.2% | -9.7% | -14.0% | -8.9% | -4.6% | N/A | 0.0% |
| Net Income | 61M | 67M | 103M | 117M | 198M | 367M | -110M | -116M | -1.1B | -136M | -3.6M | 85M | 85M |
| Net Margin | 19.3% | 15.5% | 16.6% | 11.2% | 11.6% | 14.3% | -3.4% | -2.6% | -25.9% | -13.3% | -0.2% | 3.8% | 3.8% |
| Non-Recurring | 0 | 0 | 51M | 1.5M | 4.6M | 760K | 28M | 106M | 430M | 8.1M | 1.6M | 395K | 395K |
| Returns on Capital | |||||||||||||
| ROIC | 12.1% | 199.3% | 6.0% | 121.7% | 45.2% | 24.6% | 8.2% | -2.9% | -24.6% | -3.4% | -0.1% | N/A | 0.0% |
| ROE | 26.8% | 23.4% | 27.4% | 21.6% | 17.5% | 17.9% | -4.4% | -3.0% | -24.6% | -3.4% | -0.1% | 2.3% | 2.2% |
| ROA | 16.3% | 11.2% | 11.2% | 8.1% | 8.1% | 10.8% | -2.4% | -1.3% | -13.2% | -2.8% | -0.1% | 1.6% | 1.5% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 102M | 148M | 197M | 379M | 685M | 194M | 856M | 955M | -939M | 7.4M | 306M | 398M | 398M |
| Free Cash Flow | 91M | 117M | 162M | 308M | 559M | 56M | 678M | 710M | -1.2B | -103M | 193M | 286M | 286M |
| Owner Earnings | 73M | 101M | 125M | 273M | 516M | -58M | 502M | 396M | -1.3B | -138M | 192M | 285M | 285M |
| CapEx | 11M | 31M | 35M | 71M | 126M | 138M | 178M | 245M | 246M | 110M | 113M | 112M | 112M |
| Maint. CapEx | 20M | 29M | 46M | 70M | 122M | 175M | 236M | 354M | 216M | 36M | 25M | 48M | 48M |
| Growth CapEx | 0 | 2.1M | 0 | 1.6M | 4.0M | 0 | 0 | 0 | 31M | 74M | 88M | 64M | 64M |
| D&A | 20M | 29M | 46M | 70M | 122M | 175M | 236M | 354M | 216M | 36M | 25M | 48M | 48M |
| CapEx/OCF | 10.7% | 20.8% | 18.7% | 18.8% | 18.4% | 71.2% | 20.8% | 25.7% | N/A | 1499.4% | 36.8% | 28.1% | 28.1% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | 0.6% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 9.9M | 196M | 66M | 234M | 13M | 13M |
| Buyback Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 1.3% | 12.2% | 2.7% | 13.4% | 0.6% | 0.6% |
| Stock-Based Comp | 8.3M | 18M | 26M | 36M | 47M | 77M | 118M | 205M | 175M | 109M | 89M | 65M | 65M |
| Debt Repayment | 0 | 0 | 0 | 25M | 0 | 205M | 209M | 3.5M | 270M | 0 | 0 | 55M | 55M |
| Balance Sheet | |||||||||||||
| Net Debt | -269M | -245M | -462M | -475M | -1.3B | -1.3B | -630M | -5.7B | N/A | -3.0B | -3.0B | -3.2B | -1.4B |
| Cash & Equiv. | 270M | 470M | 434M | 470M | 712M | 1.2B | 1.9B | 3.2B | 1.6B | 2.0B | 2.2B | 1.8B | 1.8B |
| Long-Term Debt | 814K | 0 | 0 | 225M | 225M | 0 | 262M | N/A | N/A | N/A | N/A | N/A | 417M |
| Debt/Equity | 0.00 | 0.72 | 0.00 | 0.35 | 0.15 | 0.08 | 0.63 | 0.05 | 0.27 | 0.06 | 0.09 | 0.11 | 0.11 |
| Interest Coverage | N/A | 11.6 | 11.3 | 10.2 | 12.5 | 19.4 | 11.6 | -25.9 | -78.1 | N/A | N/A | N/A | N/A |
| Equity | 260M | 313M | 437M | 644M | 1.6B | 2.5B | 2.5B | 5.2B | 4.0B | 3.8B | 3.7B | 3.8B | 3.8B |
| Total Assets | 428M | 772M | 1.1B | 1.8B | 3.1B | 3.7B | 5.6B | 12.1B | 5.1B | 4.7B | 4.9B | 5.5B | 5.5B |
| Total Liabilities | 168M | 459M | 621M | 1.1B | 1.4B | 1.2B | 3.0B | 6.9B | 1.1B | 903M | 1.3B | 1.7B | 1.7B |
| Intangibles | 2.5M | 3.7M | 15M | 38M | 44M | 75M | 59M | 66M | 1.7M | 485K | 2.0M | N/A | N/A |
| Retained Earnings | 144M | 208M | 306M | 418M | 565M | 920M | 786M | 625M | -544M | -686M | -694M | -624M | -624M |
| Working Capital | 134M | 307M | 133M | 204M | 529M | 562M | 689M | 4.8B | 2.7B | 2.7B | 2.6B | 2.7B | 2.7B |
| Current Assets | 300M | 539M | 516M | 871M | 1.7B | 1.7B | 2.5B | 8.2B | 3.6B | 3.5B | 3.7B | 4.1B | 4.1B |
| Current Liabilities | 167M | 233M | 383M | 667M | 1.1B | 1.2B | 1.8B | 3.4B | 903M | 784M | 1.1B | 1.4B | 1.4B |
| Per Share Data | |||||||||||||
| EPS | 0.38 | 0.41 | 0.60 | 0.66 | 1.03 | 1.83 | -0.56 | -0.57 | -5.29 | -0.64 | -0.02 | 0.41 | 0.41 |
| Owner EPS | 0.46 | 0.61 | 0.73 | 1.54 | 2.68 | -0.29 | 2.55 | 1.94 | -6.19 | -0.65 | 1.08 | 1.38 | 1.38 |
| Book Value | 1.63 | 1.91 | 2.55 | 3.64 | 8.41 | 12.38 | 12.78 | 25.56 | 18.77 | 18.14 | 20.50 | 18.26 | 18.26 |
| Cash Flow/Share | 0.64 | 0.90 | 1.15 | 2.14 | 3.56 | 0.97 | 4.35 | 4.69 | -4.37 | 0.03 | 1.71 | 1.93 | 0.64 |
| Dividends/Share | N/A | N/A | 0.00 | 0.25 | 0.21 | 0.00 | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 159.5M | 163.8M | 171.5M | 177.1M | 192.7M | 200.7M | 196.8M | 203.5M | 214.8M | 211.9M | 178.7M | 206.3M | 206.3M |
| Valuation | |||||||||||||
| P/E Ratio | 74.3 | 114.3 | 116.9 | 44.1 | 26.0 | 26.4 | N/A | N/A | N/A | N/A | N/A | 26.8 | 25.1 |
| P/FCF | 8.3 | 10.9 | 12.4 | 16.8 | 9.2 | 173.5 | 19.7 | 1.1 | N/A | N/A | 9.0 | 7.9 | 7.4 |
| EV/EBIT | N/A | 110.5 | 136.0 | 34.8 | 18.6 | 24.6 | 83.1 | N/A | N/A | N/A | N/A | N/A | N/A |
| Price/Book | 17.3 | 24.5 | 27.5 | 8.0 | 3.2 | 3.9 | 5.3 | 0.1 | 0.4 | 0.7 | 0.5 | 0.6 | 0.6 |
| Price/Sales | 14.0 | 13.1 | 16.5 | 3.9 | 3.7 | 2.9 | 3.9 | 1.5 | 0.2 | 1.6 | 1.3 | 1.0 | 0.9 |
| FCF Yield | 2.0% | 1.5% | 1.3% | 6.0% | 10.8% | 0.6% | 5.1% | 91.5% | -73.5% | -4.1% | 11.1% | 12.6% | 13.5% |
| Market Cap | 4.5B | 7.7B | 12.0B | 5.2B | 5.2B | 9.7B | 13.4B | 775M | 1.6B | 2.5B | 1.7B | 2.3B | 2.1B |
| Avg. Price | 4.60 | 5.79 | 9.92 | 23.03 | 33.13 | 36.47 | 64.55 | 33.22 | 4.33 | 7.62 | 10.99 | 11.21 | 10.30 |
| Year-End Price | 4.70 | 7.81 | 11.69 | 29.13 | 26.78 | 48.38 | 68.00 | 3.81 | 7.51 | 11.80 | 9.77 | 11.00 | 10.30 |
TAL Education Group passes 1 of 9 quality checks, indicating weak fundamentals.
TAL Education Group trades at 25.1x trailing earnings, compared to its 15-year median P/E of 26.6x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 7.4x vs a median of 9.2x. The company's 5-year average gross margin is 53.8%. Total shareholder yield (buybacks) is 0.6%. At current prices, the estimated annualized return to fair value is -16.0%.
TAL Education Group (TAL) has a net profit margin of 3.8%. This is a modest margin.
TAL Education Group (TAL) generated $286 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
TAL Education Group (TAL) has a debt-to-equity ratio of 0.11. This indicates a conservatively financed balance sheet.
TAL Education Group (TAL) reported earnings per share (EPS) of $0.41 in its most recent fiscal year.
TAL Education Group (TAL) has a return on equity (ROE) of 2.3%. This indicates moderate shareholder returns.
TAL Education Group (TAL) has a 5-year average gross margin of 53.8%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 15 years of financial data for TAL Education Group (TAL), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
TAL Education Group (TAL) has a book value per share of $18.26, based on its most recent annual SEC filing.
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