Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin23.7%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin-4.8%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
C
Years to Pay Off Debt-8.8 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt$1.3B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$1.6B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
B
Price-to-Book0.99x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
F
Free Cash Flow-$179M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
About TAL Education Group
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.
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.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Net Income From Continuing Operation Net Minority Interest
-47,438
130,595
Reconciled Cost Of Revenue
400,005
338,361
EBITDA
235,861
93,123
EBIT
235,861
93,123
Net Interest Income
8,156
14,330
Interest Income
8,156
14,330
Normalized Income
-47,438
130,595
Net Income From Continuing And Discontinued Operation
-47,438
130,595
Total Expenses
758,787
677,044
Total Operating Income As Reported
235,861
93,123
Diluted Average Shares
551,909
562,619
Basic Average Shares
551,909
555,227
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
-47,438
130,595
Net Income Common Stockholders
-47,438
130,595
Net Income
-47,438
130,595
Minority Interests
97
79
Net Income Including Noncontrolling Interests
-47,535
130,516
Net Income Continuous Operations
-47,535
130,516
Earnings From Equity Interest Net Of Tax
34,026
-221
Tax Provision
135,895
15,307
Pretax Income
54,334
146,044
Other Income Expense
-189,683
38,591
Other Non Operating Income Expenses
-189,683
38,591
Special Income Charges
0
0
Write Off
0
0
Net Non Operating Interest Income Expense
8,156
14,330
Interest Income Non Operating
8,156
14,330
Operating Income
235,861
93,123
Operating Expense
358,782
338,683
Other Operating Expenses
Selling General And Administration
358,782
338,683
Selling And Marketing Expense
226,407
220,063
General And Administrative Expense
132,375
118,620
Other Gand A
132,375
118,620
Gross Profit
594,643
431,806
Cost Of Revenue
400,005
338,361
Total Revenue
994,648
770,167
Operating Revenue
994,648
770,167
Balance Sheet
2026
2025
Treasury Shares Number
Ordinary Shares Number
184,478
Share Issued
184,478
Total Debt
416,882
377,354
Tangible Book Value
3,892,426
3,221,116
Invested Capital
4,203,026
3,499,002
Working Capital
1,611,023
2,229,659
Net Tangible Assets
3,892,426
3,221,116
Capital Lease Obligations
387,119
377,354
Common Stock Equity
4,173,263
3,499,002
Total Capitalization
4,173,263
3,499,002
Total Equity Gross Minority Interest
4,172,334
3,498,638
Minority Interest
-929
-364
Stockholders Equity
4,173,263
3,499,002
Gains Losses Not Affecting Retained Earnings
259,561
129,750
Other Equity Adjustments
259,561
129,750
Treasury Stock
6
20
Retained Earnings
234,262
-334,537
Additional Paid In Capital
3,679,256
3,703,604
Capital Stock
190
205
Common Stock
190
205
Total Liabilities Net Minority Interest
2,485,390
2,420,950
Total Non Current Liabilities Net Minority Interest
558,793
338,994
Non Current Deferred Liabilities
292,329
65,958
Non Current Deferred Revenue
47,167
52,051
Non Current Deferred Taxes Liabilities
245,162
13,907
Long Term Debt And Capital Lease Obligation
266,464
273,036
Long Term Capital Lease Obligation
266,464
273,036
Current Liabilities
1,926,597
2,081,956
Other Current Liabilities
Current Deferred Liabilities
883,234
1,110,709
Current Deferred Revenue
883,234
1,110,709
Current Debt And Capital Lease Obligation
150,418
104,318
Current Capital Lease Obligation
120,655
104,318
Current Debt
29,763
Other Current Borrowings
29,763
Payables And Accrued Expenses
892,945
866,929
Current Accrued Expenses
751,095
705,754
Payables
141,850
161,175
Other Payable
Dueto Related Parties Current
96
89
Total Tax Payable
Income Tax Payable
Accounts Payable
141,754
161,086
Total Assets
6,657,724
5,919,588
Total Non Current Assets
3,120,104
1,607,973
Other Non Current Assets
122,661
64,892
Non Current Prepaid Assets
30,404
25,668
Non Current Deferred Assets
3,513
1,469
Non Current Deferred Taxes Assets
3,513
1,469
Duefrom Related Parties Non Current
182
99
Non Current Accounts Receivable
182
99
Financial Assets
Investments And Advances
1,803,390
371,948
Investmentin Financial Assets
Held To Maturity Securities
Available For Sale Securities
Goodwill And Other Intangible Assets
280,837
277,886
Other Intangible Assets
235,292
232,181
Goodwill
45,545
45,705
Net PPE
879,117
866,011
Accumulated Depreciation
Gross PPE
879,117
866,011
Leases
Construction In Progress
Other Properties
879,117
866,011
Machinery Furniture Equipment
Buildings And Improvements
Current Assets
3,537,620
4,311,615
Other Current Assets
313,187
252,069
Restricted Cash
221,561
305,144
Prepaid Assets
Inventory
254,280
136,952
Receivables
25
25
Duefrom Related Parties Current
25
25
Taxes Receivable
Accrued Interest Receivable
Accounts Receivable
Cash Cash Equivalents And Short Term Investments
2,748,567
3,617,425
Other Short Term Investments
795,947
1,471,116
Cash And Cash Equivalents
1,952,620
2,146,309
Cash Flow
2026
2025
Free Cash Flow
-179,068
526,742
End Cash Position
2,206,399
2,485,601
Beginning Cash Position
1,947,655
1,781,409
Effect Of Exchange Rate Changes
-275
1,859
Changes In Cash
259,019
702,333
Financing Cash Flow
131,895
-88,586
Investing Cash Flow
306,192
264,177
Operating Cash Flow
-179,068
526,742
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $861M▲ $995M+15.5%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 57.0%▲ 59.8%+2.8pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 27.4%▲ 23.7%-3.7pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 14.4%▼ -4.8%-19.2pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$995M/qtr (≈$4.0B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
1.84x current ratio
vs ≥ 2.0x
❌ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
-$179M
vs Positive
Operating Cash Flow
-$179M
Latest quarter · Buffett's cash reality check
ROIC
3.9%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
1.0x
Net Assets: $4.2B
⚠️Net margin compressed 19.2pp vs same quarter last year. Common causes: one-time charges (restructuring, write-downs, legal settlements), tax rate changes, or rising interest expense. Check the income statement notes before drawing conclusions about operating health.
⚠️Operating income is positive but net income is negative. This typically reflects below-the-line items: interest expense, impairment charges, tax adjustments, or one-time write-offs. The core business may be healthy — operating margin is a better signal of ongoing profitability here.
⚠️Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.
Peers & Industry
No auto-detected peers for Education & Training Services. You can manually compare TAL against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.09%
Low — management has little skin in the game
Return on Equity (ROE)
-1.1%
Weak — poor returns on equity
Return on Assets (ROA)
-0.7%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$644M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+2.8% YoY
Debt is roughly stable
Leadership Team
Bangxin Zhang
Co-Founder, Chairman & CEO
Age 44
Zhuangzhuang Peng
President & CFO
Age 50
Yachao Liu
COO & Director
Age 43
Mi Tian
Senior Vice President
Age 41
Jackson Ding
Deputy Chief Financial Officer
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
5.68%
23,137,168
UBS AM, a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC
5.09%
20,707,024
Krane Funds Advisors LLC
4.25%
17,323,005
Robeco Institutional Asset Management B.V.
4.12%
16,781,509
Morgan Stanley
3.29%
13,396,879
Coreview Capital Management Ltd.
2.76%
11,221,069
Vanguard Capital Management LLC
2.45%
9,961,984
Tiger Pacific Capital LP
1.96%
7,977,772
Risk Analysis
Beta (Market Risk)
0.25
Low volatility — more stable than the market
Short Interest
9.9% of float
Moderate short interest
Debt-to-Equity
0.10x
Conservative balance sheet — low financial risk
Current Ratio
1.84x
Adequate liquidity
52-Week Price Range
Low: $8.88Current: $10.16High: $13.23
Currently at 29% of 52-week range
TAL Education Group (TAL) fundamental analysis — Overall grade D based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A (negative EPS). Gross profit margin: 59.8%. Operating margin: 23.7%. Net margin: -4.8%. Market cap: $5.6B. Sector: Consumer Defensive. Industry: Education & Training Services. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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