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TAL Education

TAL
62
Education & Training Services · Consumer Defensive
Price
$11.32
-0.15 (-1.31%)
Market Cap
$6.89B
Exchange
New York Stock Exchange
Winston Score
62
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through May 31, 2026
How the score breaks down
Quality
Good
Growth
Strong
Cash Flow
Good
Stability
Good
Valuation
Good

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)

Winston Score History

The full picture

TAL Education Group is a Chinese education company that provides tutoring and learning services to students, mainly children and teenagers. Its core offerings include after-school academic tutoring, online learning platforms, and educational content covering subjects like math, science, and English. TAL is one of China's largest private education companies and operates primarily under brands like Xueersi.

TAL makes money by charging families fees for tutoring courses, both in-person and online. The company operates almost entirely in China, where demand for academic support has historically been very strong due to competitive college entrance exams. However, in 2021, the Chinese government banned for-profit tutoring in core school subjects for students under 18, which forced TAL to dramatically shrink and restructure its business. TAL has since shifted toward non-restricted areas like science, technology, and adult learning, but rebuilding revenue and proving this new model can scale remains the company's central challenge going forward.

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

Insider Activity

24.4%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$4.0B cash & investments

Quarterly Free Cash Flow

Company generates more cash than it spends — no dilution risk from fundraising

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

Profit per sale
Gross Margin
57.8%
Premium pricing power — 57.8% gross margin
Profit after running costs
Operating Margin
18.1%
Healthy — 18.1% operating margin
Return on the money invested
ROCE
9.8%
Below par — 9.8% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
+32.6%
Fast-growing sales (+32.6% YoY)
Profit growth
EPS YoY
+305.7%
Earnings growing fast (+305.7% YoY)

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

How steady the profit is
EPS Consistency
5/8 quarters
Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash
Cash Conversion
66%
Modest — 66% of profit becomes cash
Spare cash per sale
FCF Margin
12.1%
Converts sales into free cash efficiently (12.1%)

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

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Stability

What it owes vs what it owns
Debt / Equity
N/A
Data not available
Covers its interest
Interest Cover
100.00x
Comfortably covers interest (100.0x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
2.3x
Attractive valuation — P/E 2.3

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

Cheaper or dearer next year
P/E vs Forward
-7.6
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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