TAL Education Group American Depositary Shares (TAL)

FairStock Score: 70/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable businesses that earn high returns on capital, carry little debt, generate cash, and sell below intrinsic value. TAL Education serves learners in China through small classes, personalized premium services, online courses, and learning content and devices. In the latest reported quarter, fiscal Q2 2026, revenue was $758.4 million and net income was $408.0 million, a 53.8% net margin. That is a remarkable margin, though one quarter can be unusual. At the 2026-10-13 close of $12.64, FairStock calculations show a P/E of 7.90, P/B of 1.71, FCF yield of 9.9%, and a Graham Number of $28.19, implying a 55.16% margin of safety. Debt/equity is only 0.10, and ROE is 23.71%, which suggests a profitable, lightly levered operation. But ROCE of 3.99% is low, and Altman Z-Score of 1.95 is a caution. Piotroski F-Score of 6/9 is decent but not exceptional. Free cash flow of $638.3 million supports the valuation. The supplied growth figures are explosive, but the Lynch category is unavailable because there are only 0 years of filed results; I need at least 3 to judge consistency. Education in China can be volatile, so I would want to see sustained ROCE and margins before calling this a moat. The price looks statistically cheap, but cheapness may reflect uncertainty.

In plain English: TAL Education sells tutoring, learning content and smart learning devices in China. The business looks very profitable, carries little debt and produces cash, but the data here does not yet show many years of results to judge consistency. At $12.64, the price looks cheap compared with its profits, though it does not earn much on all the capital it uses and its balance-sheet score is only middling.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer