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TAL Education

TAL
57
Education & Training Services · Consumer Defensive
Price
$10.56
+0.26 (+2.47%)
Market Cap
$6.43B
Exchange
New York Stock Exchange
Winston Score
57
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Jul 28, 2026 · filings through Feb 28, 2026

Share count rising — dilution

+172.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 70.9M (2022) → 192.9M (2026)

Established in 2003 and headquartered in Beijing, People's Republic of China, TAL Education Group specializes in providing extracurricular academic support for K-12 students. The company's comprehensive tutoring programs cater to students from kindergarten through twelfth grade, encompassing a wide array of subjects such as mathematics, physics, chemistry, biology, history, geography, political science, English, and Chinese. Instruction is predominantly delivered through small-group classes operating under various brand names, including Xueersi, Xueersi Online School, First Leap, Tipaipai, Xiaohou AI, Xiaohoucode, Aiqidao, Mamabang, Kaoyanbang, and Shunshunliuxue. For those desiring tailored learning experiences, premium personalized services are offered via the Izhikang brand. Beyond its core educational offerings, TAL Education Group also manages jzb.com, a dedicated online learning platform. Its diversified business activities further extend to investment management and consulting, the development and sale of software and networking solutions along with related consulting services, and the distribution of educational resources and products.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+32.4% YoY

YoY Growth Rate

Strong revenue growth

EPS Growth

>+1,000% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (2%)

Research and development spending

Cash Runway

~2 years

$4.0B cash & investments

Quarterly Free Cash Flow

$4.0B cash & investments at current burn rate

Strong grower

TAL Education is growing revenue at 32% year-over-year. The Winston Score penalises unprofitable companies, but revenue at this pace tells a different story — this is a company still in "build mode."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
53.2%
Healthy — 53.2% gross margin
Operating Margin
9.0%
Modest — 9.0% operating margin
ROCE
1.9%
Weak — 1.9% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+34.0%
Fast-growing sales (34.0% YoY)
EPS YoY
+135.0%
Earnings growing fast (135.0% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
113%
Turns 113% of profit into real cash
FCF Margin
12.8%
Converts sales into free cash efficiently (12.8%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
N/A
Data not available
Interest Cover
100.00x
Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
3.7x
Attractive valuation — P/E 3.7

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward
-6.2
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Not applicable for this business.
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