TAL
TAL Education Group
Next earnings Jul 29, 2026 · consensus $0.13 EPS, $735M rev
$9.81
▲ +3.48%$9.81▼ -4.01%
over 1Y
L $8.95H $12.91
Today+3.5%
1W+9.6%
1M-1.6%
3M-12.4%
YTD-14.6%
1Y-4.0%
Hold
Conviction
Horizon
Long (>12mo)
Street · 24 analysts
Buy
Chinese ed-tech roaring back — revenue +34% and net income up 5x — but a China VIE/ADR with unknowable regulatory risk caps the case.
Revenue (FY2026) $3.01B · FY2026
The read
Middling fundamentals offset by an attractive price (~965% below fair value) — worth a look on the value angle.
TAL Education is a Chinese education-services company that has staged a dramatic recovery from the 2021 regulatory crackdown that gutted its core tutoring business. The numbers show a powerful rebound: FY2026 revenue grew 33.7% to $3.01B (up from the $1.02B FY2023 trough), gross profit rose 38.8% to $1.67B (55.4% gross margin), and net income surged to $531M from $84.6M — a return on equity of 14.1% after years of heavy losses (-$1.14B in FY2022). The business is now solidly profitable and growing fast across its reconstituted offerings.
The balance sheet and cash generation reinforce the recovery. Operating cash flow jumped 51.2% to $601M, the company holds $1.52B of cash against modest leverage (liabilities/equity 0.57x), and management is returning capital aggressively — $644M of buybacks in FY2026, a massive step-up. On the headline figures the stock looks extraordinarily cheap at the 3.3x earnings multiple shown in the data.
Is TAL a buy? The one-page verdict, explained →
The options angle
model · matches our verdictCovered call~90d expiry
- Long 100 shares @ ~9.81
- Short call 10.5 @ ~0.43 est
debit $938max +$112max −$937BE 9.38
HOLD means own it, don't chase it — harvesting premium against the position matches the verdict.
Educational template, not a trade recommendation. Strikes and premiums are Black-Scholes model estimates from the last close and 30-day realized volatility — real chains, spreads and IV will differ. Options involve substantial risk.
Financials · annual, by fiscal year
| Line item | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | $4.39B | $1.02B | $1.49B | $2.25B | $3.01B |
| Gross profit | $2.19B | $583M | $806M | $1.20B | $1.67B |
| Operating income | -$615M | -$90.7M | -$69.2M | -$3.15M | $276M |
| Net income | -$1.14B | -$136M | -$3.57M | $84.6M | $531M |
| Diluted EPS | -$5.29 | -$0.64 | -$0.02 | $0.41 | $2.75 |
| Net margin | -25.9% | -13.3% | -0.2% | 3.8% | 17.6% |
10-year statements — income, cash flow, balance sheet & CSV export →
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value$4.45B
EV / EBITDA—
EV / Sales1.5
EV / FCF8.8
P / FCF10.7
PEG (trailing)0.01
Earnings yield9.8%
FCF yield9.3%
Quality & risk
ROIC (est.)5.1%
Free cash flow$508M
Total debt$532M
Net cash$992M
Altman Z-Score2.56 grey
Piotroski F-Score7/9
Capital returns
Buyback yield11.8%
Dividend yield (est.)0.0%
Shareholder yield11.8%
Shares Δ YoY-5.7%
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Recent filings
all on EDGAR ↗20-FPeriod ending 2026-02-282026-06-12open ↗SCHEDULE 13G/AFiling2026-05-06open ↗4Period ending 2026-04-262026-04-28open ↗4Period ending 2026-04-262026-04-28open ↗4Period ending 2026-04-262026-04-28open ↗144Filing2026-04-27open ↗144Filing2026-04-27open ↗144Filing2026-04-27open ↗144Filing2026-04-27open ↗6-KPeriod ending 2026-04-232026-04-23open ↗3Period ending 2026-03-182026-03-18open ↗3Period ending 2026-03-182026-03-18open ↗
Frequently asked
- Is TAL Education Group (TAL) a buy?
- TAL currently carries a Hold rating with 3/5 conviction, derived from its latest SEC filings. Chinese ed-tech roaring back — revenue +34% and net income up 5x — but a China VIE/ADR with unknowable regulatory risk caps the case.
- What is TAL's fair value?
- A Modified-Graham model based on TAL's SEC fundamentals estimates a fair value of about $104.50. It is an estimate from reported earnings, not a price target.
- Is TAL overvalued or undervalued?
- Against a Modified-Graham fair-value estimate, TAL currently appears undervalued relative to its SEC-grounded earnings power.
- What is TAL Education Group's quality score?
- TAL scores 77.53578826237054/100 (grade B+) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0001499620, latest 20-F filed 2026-06-12) · EODHD · Proprietary analysis · as of 6/21/2026, 8:58:28 PM.
About this recommendation — produced by TENK/calls (tenkcalls.com), Luxembourg · not investment advice
AI-generated analysis, produced by our proprietary engine from SEC filing data.
Investment recommendation produced by TENK/calls (tenkcalls.com), Luxembourg. Completed Jun 21, 2026, 4:58 PM ET. Ratings & methodology: definitions · All recommendations to date: track record · Conflicts: disclosures. Not investment advice.
Research and education only — not financial advice. TENKis not a registered investment adviser or broker-dealer and gives no personalized advice. Every call is impersonal — identical for all users, generated on a schedule from SEC filings plus a delayed/third-party price feed — may be wrong or out of date, and is not a recommendation to buy or sell any security. The operator and an affiliated trading operation may hold or trade the securities TENK rates; see Disclosures. Past performance does not guarantee future results. Do your own research.