TAL EDUCATION GROUP- ADR (TAL) Stock Fundamental Analysis

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

12.7 USD
0 (0%)
At close: Jan 30, 2026
12.67 USD
-0.03 (-0.24%)
After Hours: 1/30/2026, 10:18:21 PM
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to TAL. TAL was compared to 76 industry peers in the Diversified Consumer Services industry. While TAL has a great health rating, there are worries on its profitability. TAL is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

  • TAL had positive earnings in the past year.
  • In the past year TAL had a positive cash flow from operations.
  • In the past 5 years TAL reported 4 times negative net income.
  • Of the past 5 years TAL 4 years had a positive operating cash flow.
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

  • The Return On Assets of TAL (3.14%) is comparable to the rest of the industry.
  • TAL has a Return On Equity (4.98%) which is in line with its industry peers.
  • With a Return On Invested Capital value of 1.62%, TAL perfoms like the industry average, outperforming 53.95% of the companies in the same industry.
Industry RankSector Rank
ROA 3.14%
ROE 4.98%
ROIC 1.62%
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 has a Profit Margin of 6.45%. This is in the better half of the industry: TAL outperforms 63.16% of its industry peers.
  • The Operating Margin of TAL (2.90%) is comparable to the rest of the industry.
  • TAL has a better Gross Margin (54.42%) than 68.42% of its industry peers.
  • TAL's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 2.9%
PM (TTM) 6.45%
GM 54.42%
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.
  • The number of shares outstanding for TAL has been increased compared to 5 years ago.
  • 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.
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

  • An Altman-Z score of 3.22 indicates that TAL is not in any danger for bankruptcy at the moment.
  • TAL's Altman-Z score of 3.22 is fine compared to the rest of the industry. TAL outperforms 75.00% of its industry peers.
  • 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 3.22
ROIC/WACC0.21
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 2.28 indicates that TAL has no problem at all paying its short term obligations.
  • TAL has a Current ratio of 2.28. This is in the better half of the industry: TAL outperforms 78.95% of its industry peers.
  • A Quick Ratio of 2.20 indicates that TAL has no problem at all paying its short term obligations.
  • With a decent Quick ratio value of 2.20, TAL is doing good in the industry, outperforming 78.95% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.28
Quick Ratio 2.2
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.
  • Looking at the last year, TAL shows a very strong growth in Revenue. The Revenue has grown by 50.98%.
  • Measured over the past years, TAL shows a decrease in Revenue. The Revenue has been decreasing by -7.22% on average per year.
EPS 1Y (TTM)83.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%316.67%
Revenue 1Y (TTM)50.98%
Revenue growth 3Y-19.98%
Revenue growth 5Y-7.22%
Sales Q2Q%27%

3.2 Future

  • Based on estimates for the next years, TAL will show a very strong growth in Earnings Per Share. The EPS will grow by 59.59% on average per year.
  • Based on estimates for the next years, TAL will show a quite strong growth in Revenue. The Revenue will grow by 18.00% on average per year.
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

  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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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5

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 22.28, TAL is valued on the expensive side.
  • TAL's Price/Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 28.30, TAL is valued a bit cheaper.
  • A Price/Forward Earnings ratio of 20.62 indicates a rather expensive valuation of TAL.
  • Based on the Price/Forward Earnings ratio, TAL is valued a bit cheaper than 61.84% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 25.57. TAL is around the same levels.
Industry RankSector Rank
PE 22.28
Fwd PE 20.62
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

  • TAL's Enterprise Value to EBITDA is on the same level as the industry average.
  • TAL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TAL is cheaper than 88.16% of the companies in the same industry.
Industry RankSector Rank
P/FCF 10.91
EV/EBITDA 21.74
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)0.24
PEG (5Y)N/A
EPS Next 2Y60.2%
EPS Next 3Y50.44%

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0

5. Dividend

5.1 Amount

  • No dividends for TAL!.
Industry RankSector Rank
Dividend Yield 0%

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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 5 / 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 3 / 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 -38.57%.