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TAL Education Group

TAL Education Group

TAL
$10.24USD↑+0.20%+0.02 today

MARKET CAP

5.7B

P/E (TTM)

10.1x

FWD P/E

11.3x

DAY RANGE

$10 – $10

52W RANGE

$9
$13

AI Summary

Stalk
Buy NowMedium

TAL is in a Stage 2 advance, forming clear higher highs and higher lows while holding above rising EMAs. After extending toward recent highs and showing overbought RSI, price has pulled back into the 9/20 EMA support zone and is holding just above those EMAs. Growth at Reasonable Price favors participating on pullbacks into this support region now, aligning with the underlying HH/HL trend and volume structure.

  • ↑Q4 FY26 revenues of $802.4M (+31.5% YoY) reflect robust demand.
  • ↑AI‐enhanced products central to long‐term strategy and engagement.
  • ↓Q4 net loss of $7.3M despite revenue growth; S&M up 73%.
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The case for & against

Bull & Bear analysis

Bullish

TAL Education Group (NYSE:TAL) is a leading education technology company in China, primarily focusing on K-12 educational services through offline and online enrichment programs. With substantial investments in technology and a strategic pivot towards integrating AI into their learning devices, TAL aims to enhance educational outcomes and user engagement amid a volatile competitive landscape. The company positions itself as a key player in the growing EdTech space, benefiting from favorable trends in educational spending and a shift toward quality-driven learning solutions.

Bull says

  • ↑Q4 FY26 revenues of $802.4M (+31.5% YoY) reflect robust demand.
  • ↑AI‐enhanced products central to long‐term strategy and engagement.
  • ↑$600M repurchase authorized; $3.3M executed by April 2026.
  • ↑80% retention in PAYU small‐class programs signals strong loyalty.
  • ↑Analysts target $16 (63% upside); net margin 17.6%, ROE 14.9%.
  • ↑High dividend yield, positive growth factors, low leverage, modest momentum.

Bear says

  • ↓Q4 net loss of $7.3M despite revenue growth; S&M up 73%.
  • ↓Adjusted operating income dropped to $1.7M, highlighting inefficiencies.
  • ↓Management expects FY27 revenue growth to gradually taper.
  • ↓High operating expenses drive negative profitability and fund risk.
  • ↓Ongoing AI and R&D investments may dampen near‐term margins.
  • ↓Weak earnings yield, poor profitability factors, small size, low institutionals.

Investment themes with TAL

China↓ -0.11%

High-growth market driven by manufacturing and consumption

0700.HK · 9988.HK · 0939.HK

Earnings Call · Q4 2026 · Mgmt. Guidance

Updated 04-23-2026bullish

Transcript signals

Bull points

  • Specifically, what happened in this quarter is that a couple of our investments in our portfolio experienced an increase in valuation.
  • Our net revenues were 802.4 million US dollars or 5,590,000,000 RMB, an increase of 31.5% and 25.8% year over year in US dollar and RMB terms respectively.
  • Gross profit increased by 34.5% to $427.2 million from $317.6 million in the fourth quarter of fiscal year 2025.

Bear points

  • Therefore, we don't recommend using this quarter's Other Income as a baseline for future performance projections.
  • We expect the revenue growth for this business to gradually taper in FY 2027 relative to its rate of growth in FY 2026.
Read full transcript analysis ›