Quality Investor

TAL Education Group

Rank #244Hypergrowth

TAL · NYSE · Consumer Defensive

TAL Education Group (TAL) — Rank #244 by gross profitability (GP/assets 0.28) · ROE 14.1% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0001499620 · all metrics point-in-time as of the filing date.

About

TAL Education Group provides smart learning solutions in the People's Republic of China.

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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.

Industry
Education & Training Services
Sector
Consumer Defensive
State
E9
Filer Category
Large accelerated filer
Website
100tal.com

Price History

TAL+130.7% · +18.2% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$6.44B

P/E (annual)

4.2

P/S (annual)

2.1

P/B

1.7

P/OCF (annual)

10.7

Shareholder Yield

6.0%

Employees

26,100

Industry

Education & Training Services

Exchange

NYSE

Signal Flags

1 green
Deferred revenue growingRevenue and deferred revenue both growing — retention signal

Quality Profile

Profitability

1/1 pass
GP / assets
0.28
Return on equity
14.1%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.57
Current ratio
2.17×
Net cash
$4.07B

Cash Flow

2/3 pass
Positive FCF
PASS
Cash-backed earnings
WARN
Accruals healthy
PASS
SBC / revenue
1.4%

Growth

2/2 pass
Revenue growth
33.7%
Piotroski F-Score
N/A
Share dilution
-6.0%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

-14.1%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -6.0% — per-share value needs a total required return of -20.1% once share-count change is priced in.

vs. own 6-year median revenue growth: 35.5%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-17.1%

r = 10% (base)

-14.1%

r = 12%

-11.6%

Net debt / market cap: -181.7%

Base FCF: $508.3M3Y mean FCF: $329.3M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

3.4xCheap
3.4xmed 25.8x54.4x

P / S

Price / revenue per share

0.6xCheap
0.2xmed 2.0x6.5x

P / B

Price / book value per share

0.5xCheap
0.2xmed 1.4x10.5x

P / GP

Price / gross profit per share

1.1xCheap
0.4xmed 3.8x13.0x

P / FCF

Price / free cash flow per share

3.5xCheap
3.5xmed 14.3x128.5x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.28

Primary signal (Novy-Marx).

7th of 8 SIC 8200 peers

Return on equity

14.1%

Gross margin

55.4%

4th of 8 SIC 8200 peers

Revenue growth (YoY)

33.7%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2023202420252026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

43.4%

Revenue CAGR (5Y)

-7.7%

Earnings CAGR (3Y)

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.57

2nd of 8 SIC 8200 peers (best = lowest)

Current ratio

2.17×

3rd of 8 SIC 8200 peers

Quick ratio

1.87×

Net cash

$4.07B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$508.28M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

-0.04

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.4%

Stock-based comp intensity.

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20212026
Hypergrowth
Startup
Decline