# TAL Education Group (TAL.US)

Canonical: https://gigainvestors.com/s/TAL

Analysis as of: 2026-10-16T07:32:14.710Z. Financial observations: FY2008–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $12.54 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 5

- Operating margin variation: 3.64×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.13×

- FY2018: 0.12×

- FY2019: 0.13×

- FY2020: 0.05×

- FY2021: -0.08×

- FY2022: -0.03×

- FY2023: -0.11×

- FY2024: -0.06×

- FY2025: -0.00×

- FY2026: 0.09×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 4.1%

- ROIC, second-lowest year: -9.4%

- Typical minus recent gross margin: 0.2 pp

- Typical gross margin (annual median): 54.3%

- Recent gross margin (lower of latest and 3-year median): 54.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.3%

- ROIC including acquisitions, ten-year median: 7.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 37.6%

- FY2018: >100%

- FY2019: 35.9%

- FY2020: 8.6%

- FY2021: -9.4%

- FY2022: -6.6%

- FY2023: -10.7%

- FY2024: -9.3%

- FY2025: -0.5%

- FY2026: 24.5%

### economics: fail

- owner earnings cash conversion below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$790M

- Net income, five-year total: -$660M

- Return on incremental invested capital: 16.8%

- Working capital / revenue, annual change: 0.6 pp

- Working capital / revenue, change between three-year averages: 4.1 pp

- Working capital / revenue, final three-year average: 2.3%

Chart: Owner earnings · five years; fiscal year observations.

- FY2022: -$1.2B

- FY2023: -$205M

- FY2024: -$3.6M

- FY2025: $85M

- FY2026: $533M

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 37.6% vs -0.5%

- Per-share earnings: 0.62 to 0.41 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.5%

- Ordinary dilution, 5-year annual growth: -1.1%

- Market cap gain: -$685M

- Cumulative retained earnings: -$546M

- Diluted shares, 10-year annual growth: 0.5%

- Diluted shares, 5-year annual growth: -1.1%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -5.0%

- Per-share value change: -$0.21

- Per-share value, starting three-year median: $0.62

- Per-share value, ending three-year median: $0.41

- Buybacks concentrated in cheaper years (correlation): -0.14

- Average buyback yield: 11.1%

- Buyback history: 7 years

- Debt-funded buybacks: Yes

- Acquisition spending: $224M

- Cumulative net income, 10 years: -$203M

- ROIC, first three-year median: 37.6%

- ROIC, last three-year median: -0.5%

Chart: Earnings per share; fiscal year observations.

- FY2017: $0.62

- FY2018: $1.03

- FY2019: $1.83

- FY2020: -$0.56

- FY2021: -$0.57

- FY2022: -$5.30

- FY2023: -$0.64

- FY2024: -$0.02

- FY2025: $0.41

- FY2026: $2.76

### accounting: pass

- Sloan accruals: -1.2%

- Receivables to sales index (DSRI): 0.58×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 7.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.13×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -13.3%

- FY2018: -15.9%

- FY2019: 4.6%

- FY2020: -17.3%

- FY2021: -8.8%

- FY2022: -3.9%

- FY2023: -3.0%

- FY2024: -6.3%

- FY2025: -5.7%

- FY2026: -1.2%

## Holders

- [Sarah Ketterer](https://gigainvestors.com/CAU): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Up 43% since Oct 2023 · sales +34.2%

Story as of 2026-10-16T09:59:39.678Z; price observation 2026-10-15.

- 2026-01-30: TAL Education (TAL) Soars 18% on Earnings Blowout ([finance.yahoo.com](https://finance.yahoo.com/news/tal-education-tal-soars-18-045227991.html))

### Sales · FY2025–2026

sales +34.2%; source https://www.sec.gov/Archives/edgar/data/1499620/000110465926073410/tal-20260228x20f.htm; observed 2026-06-12.

- FY2017: $1.0B 

- FY2018: $1.7B 

- FY2019: $2.6B 

- FY2020: $3.3B 

- FY2021: $4.5B 

- FY2022: $4.4B 

- FY2023: $1.0B 

- FY2024: $1.5B 

- FY2025: $2.3B 

- FY2026: $3.0B 

### Gross margin · FY2026

gross margin 55.4%; source https://www.sec.gov/Archives/edgar/data/1499620/000110465926073410/tal-20260228x20f.htm; observed 2026-06-12.

- FY2017: 49.9% 

- FY2018: 48.6% 

- FY2019: 54.6% 

- FY2020: 55.1% 

- FY2021: 54.4% 

- FY2022: 49.8% 

- FY2023: 57.2% 

- FY2024: 54.1% 

- FY2025: 53.3% 

- FY2026: 55.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in education & training services; annual sales are USD 3 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1499620/000110465926073410/tal-20260228x20f.htm (filed 2026-06-12); FY2026: revenue 3020133876; grossProfit 1671691699; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TAL.US: TAL Education Group provides smart learning solutions in the People's Republic of China. 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.

### Why customers stay

Margins ranged from 53.3% to 55.4% during 2024–26; it earns 4.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-12); FY2024: grossProfit / revenue = 54.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-12); FY2025: grossProfit / revenue = 53.3%.

- Source: https://www.sec.gov/Archives/edgar/data/1499620/000110465926073410/tal-20260228x20f.htm (filed 2026-06-12); FY2026: grossProfit / revenue = 55.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-12); 10-year return on capital observations [[2017,0.37608832810447257],[2018,1.622014176856953],[2019,0.35921891384668253],[2020,0.08643994046693611],[2021,-0.09387245284818765],[2022,-0.06594589775634466],[2023,-0.10746926450760112],[2024,-0.09308907244776768],[2025,-0.004505190490810395],[2026,0.2446512462872402]]; median 0.040967374988062855. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 21.1% of cash earnings; earns 16.8% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-12); FY2017: growth capex 37614349; upkeep 33497409; cash acquisitions 27200000; owner earnings 116655780. Growth capex plus acquisitions / owner earnings = 0.5556034085923561.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-12); FY2018: growth capex 68874062; upkeep 59548793; cash acquisitions 14009000; owner earnings 199561577. Growth capex plus acquisitions / owner earnings = 0.4153257518104299.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-12); FY2019: growth capex 134244603.84184867; upkeep 220764396.15815133; cash acquisitions 66921000; owner earnings 234584756.84184867. Growth capex plus acquisitions / owner earnings = 0.8575391110236102.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-12); FY2025: growth capex 59961000; upkeep 52298000; cash acquisitions 80000; owner earnings 84591000. Growth capex plus acquisitions / owner earnings = 0.7097800002364317.

- Source: https://www.sec.gov/Archives/edgar/data/1499620/000110465926073410/tal-20260228x20f.htm (filed 2026-06-12); FY2026: growth capex 16815681; upkeep 76723000; cash acquisitions 95518000; owner earnings 532731168. Growth capex plus acquisitions / owner earnings = 0.2108637296776298.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-12); Incremental return on capital 0.16811651690740392, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-12); Dividend observations: [[2017,41165834],[2018,41165834],[2019,0],[2020,0],[2021,0],[2022,1373000],[2023,0],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1499620/000110465926073410/tal-20260228x20f.htm (filed 2026-06-12); FY2026: cash repurchases 646488004 USD.

### Are managers owners

Insiders own 0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TAL.US SharesStats.PercentInsiders = 0.061 percentage points; cache date 2026-10-16.

### What the price says

The price is 0.8 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-12); Closing price 12.54 USD; reporting-to-trading FX 1; FY2026 annual sales per share 15.654421610752717; price multiple 0.8010516333217012. FY2026 cash earnings/share 2.761333984341804. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $13.57 per share

- 2016-11: $12.76 per share

- 2016-12: $11.69 per share

- 2017-01: $13.50 per share

- 2017-02: $14.41 per share

- 2017-03: $17.76 per share

- 2017-04: $19.85 per share

- 2017-05: $19.41 per share

- 2017-06: $20.39 per share

- 2017-07: $26.13 per share

- 2017-08: $30.43 per share

- 2017-09: $33.71 per share

- 2017-10: $27.50 per share

- 2017-11: $27.88 per share

- 2017-12: $29.71 per share

- 2018-01: $32.57 per share

- 2018-02: $37.76 per share

- 2018-03: $37.09 per share

- 2018-04: $36.42 per share

- 2018-05: $42.46 per share

- 2018-06: $36.80 per share

- 2018-07: $31.99 per share

- 2018-08: $29.60 per share

- 2018-09: $25.71 per share

- 2018-10: $28.98 per share

- 2018-11: $28.07 per share

- 2018-12: $26.68 per share

- 2019-01: $31.03 per share

- 2019-02: $35.60 per share

- 2019-03: $36.08 per share

- 2019-04: $38.47 per share

- 2019-05: $34.41 per share

- 2019-06: $38.10 per share

- 2019-07: $32.20 per share

- 2019-08: $35.63 per share

- 2019-09: $34.24 per share

- 2019-10: $42.81 per share

- 2019-11: $44.26 per share

- 2019-12: $48.20 per share

- 2020-01: $49.90 per share

- 2020-02: $54.39 per share

- 2020-03: $53.26 per share

- 2020-04: $54.19 per share

- 2020-05: $56.46 per share

- 2020-06: $68.38 per share

- 2020-07: $78.17 per share

- 2020-08: $73.81 per share

- 2020-09: $76.04 per share

- 2020-10: $66.46 per share

- 2020-11: $70.06 per share

- 2020-12: $71.51 per share

- 2021-01: $76.88 per share

- 2021-02: $77.54 per share

- 2021-03: $53.85 per share

- 2021-04: $56.95 per share

- 2021-05: $39.97 per share

- 2021-06: $25.23 per share

- 2021-07: $6.07 per share

- 2021-08: $5.32 per share

- 2021-09: $4.84 per share

- 2021-10: $4.09 per share

- 2021-11: $5.18 per share

- 2021-12: $3.93 per share

- 2022-01: $2.86 per share

- 2022-02: $2.84 per share

- 2022-03: $3.01 per share

- 2022-04: $3.39 per share

- 2022-05: $4.10 per share

- 2022-06: $4.87 per share

- 2022-07: $4.92 per share

- 2022-08: $5.78 per share

- 2022-09: $4.94 per share

- 2022-10: $4.71 per share

- 2022-11: $5.97 per share

- 2022-12: $7.05 per share

- 2023-01: $7.31 per share

- 2023-02: $7.03 per share

- 2023-03: $6.41 per share

- 2023-04: $5.86 per share

- 2023-05: $5.43 per share

- 2023-06: $5.96 per share

- 2023-07: $8.18 per share

- 2023-08: $7.05 per share

- 2023-09: $9.11 per share

- 2023-10: $8.77 per share

- 2023-11: $12.53 per share

- 2023-12: $12.63 per share

- 2024-01: $10.64 per share

- 2024-02: $14.73 per share

- 2024-03: $11.35 per share

- 2024-04: $12.04 per share

- 2024-05: $11.36 per share

- 2024-06: $10.67 per share

- 2024-07: $10.02 per share

- 2024-08: $8.04 per share

- 2024-09: $11.84 per share

- 2024-10: $11.12 per share

- 2024-11: $9.93 per share

- 2024-12: $10.02 per share

- 2025-01: $12.23 per share

- 2025-02: $12.92 per share

- 2025-03: $13.21 per share

- 2025-04: $8.75 per share

- 2025-05: $9.83 per share

- 2025-06: $10.22 per share

- 2025-07: $10.94 per share

- 2025-08: $10.62 per share

- 2025-09: $11.20 per share

- 2025-10: $12.26 per share

- 2025-11: $11.00 per share

- 2025-12: $10.91 per share

- 2026-01: $12.70 per share

- 2026-02: $10.53 per share

- 2026-03: $11.37 per share

- 2026-04: $11.12 per share

- 2026-05: $9.71 per share

- 2026-06: $9.57 per share

- 2026-07: $12.50 per share

- 2026-08: $11.74 per share

- 2026-09: $12.07 per share

- 2026-10: $12.54 per share

## Annual estimated value (USD per share)

- FY2017: low $9.34 per share, central $10.63 per share, high $12.34 per share

- FY2018: low $18.67 per share, central $26.67 per share, high $31.33 per share

- FY2019: low $20.10 per share, central $28.72 per share, high $33.74 per share

- FY2020: low $25.15 per share, central $35.93 per share, high $42.21 per share

- FY2021: low $22.19 per share, central $25.25 per share, high $29.33 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 20-F filing](https://www.sec.gov/Archives/edgar/data/1499620/000110465926073410/tal-20260228x20f.htm); period 2026-02-28, filed 2026-06-12.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.