TAL Education Group (TAL): one to watch?

Genuine post-regulatory turnaround with real profit growth, but China-education legal/regulatory overhang and unprofitable device business keep it a watch, not a slam-dunk buy.

👀 WATCH Fundamentals68/100

Down 88% from its all-time high of $90.15 — now $10.56

Why TAL dropped

The 2021 collapse was caused by China's "double reduction" policy that banned for-profit core-subject tutoring, permanently destroying TAL's old business model — that crash is old news, not today's story. Since then TAL pivoted to non-core learning services, content, and AI learning devices, and is now reporting real reacceleration: revenue up 27-39% year over year and a swing back to strong profitability in recent quarters.

Fwd P/E 10.2Op margin 9.0%Rev growth 31.5%Debt/equity 10.3%Analyst upside 47.6%

How this scored 68/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 17.6%

✅ Generates cash Free cash flow $408M

✅ Not drowning in debt Debt/equity 10.3% (limit 200%)

✅ Can pay its bills Current ratio 2.2 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 14/25

Operating margin 9.0% 3/9

Net profit margin 17.6% 7/8

Return on equity 14.1% 4/8

Growth Is it getting bigger, or dying? 16/25

Revenue growth 31.5% 9/9

Earnings growth unknown 2/8

Expected profit change 12.9% 5/8

Value Is it cheap right now? 15/25

Forward P/E 10.2 9/10

PEG ratio 10.8 0/8

Analyst target upside 47.6% 6/7

Balance sheet Will it survive? 23/25

Debt / equity 10.3% 10/10

Current ratio 2.2 6/8

Free cash flow $408M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-28. Research only — not financial advice.