TAL Education GroupMEX:TAL N 64 Gross Margin % is 53.24% as of Feb. 2026, which is 2% below its 10-year median of 54.26. GuruFocus rates MEX:TAL N with a GF Score™ of 64/100 and a GF Value™ of MXN335.10 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 243 Education companies, TAL Education Group ranks better than 65.43% on this metric.
The historical rank and industry rank for TAL Education Group's Gross Margin % or its related term are showing as below:
MEX:TAL N'
s Gross Margin % Range Over the Past 10 Years
Min: 48.55 Med: 54.26 Max: 57.21
Current: 55.35
During the past 13 years, the highestGross Margin % of TAL Education Group was 57.21%. The lowest was 48.55%. And the median was 54.26%.
MEX:TAL N's Gross Margin % is ranked better than 65.43% of 243
companies
in the Education industry
Industry Median: 47.93
vs MEX:TAL N: 55.35
TAL Education Group had a gross margin of 53.24% for the quarter that ended in Feb. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for TAL Education Group was 0.70% per year.
TAL Education Group (MEX:TAL N) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
TAL Education Group had a gross margin of 53.24% for the quarter that ended in Feb. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
TAL Education Group Gross Margin % Related Terms
TAL Education Group Gross Margin % Historical Data
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The historical data trend for TAL Education Group's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:TAL N vs LAUR, GHC, CVSA: Gross Margin % Comparison
For the Education & Training Services subindustry, TAL Education Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
TAL Education Group Gross Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, TAL Education Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where TAL Education Group's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
TAL Education Group (MEX:TAL N) has a Gross Margin % of 53.24% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on TAL Education Group and its competitors. This is near median its historical median of 54.26. Over the past decade, TAL Education Group's Gross Margin % has ranged from 48.55 to 57.21. According to the industry distribution chart, TAL Education Group ranks #84 out of 243 companies in the Education industry, placing it in the top 34.6%.
Is TAL Education Group's Gross Margin % too high?
TAL Education Group's current Gross Margin % of 53.24% is near median its 10-year median of 54.26. Over the past 10 years, this metric has ranged from a low of 48.55 to a high of 57.21. The Education industry median Gross Margin % is 47.93. TAL Education Group's value of 53.24% is 11.1% above this industry median. Based on the distribution chart, TAL Education Group ranks #84 out of 243 companies in the Education industry, which is above the industry midpoint. Overall, TAL Education Group has a GF Score™ of 64/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does TAL Education Group's Gross Margin % compare to LAUR and GHC?
According to the Education industry distribution chart, TAL Education Group ranks #84 out of 243 companies for Gross Margin %. This puts TAL Education Group in the upper half of its industry. The industry median Gross Margin % is 47.93. TAL Education Group's value of 53.24% is 11.1% above this benchmark. Historically, TAL Education Group's own Gross Margin % has ranged from 48.55 to 57.21 over the past decade. While the company's 10-year median is 54.26 vs. the industry median of 47.93, TAL Education Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Education company?
The median Gross Margin % among Education companies is 47.93, based on 243 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TAL Education Group's current Gross Margin % of 53.24% is 11.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on TAL Education Group and its competitors. For the Education industry, the median Gross Margin % is 47.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TAL Education Group's current Gross Margin % is 53.24%, which is near median its own 10-year median of 54.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TAL Education Group stock overvalued right now?
Based on GuruFocus' analysis, TAL Education Group (MEX:TAL N) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN335.10, compared to a current price of MXN155.00 — trading 53.7% below its estimated fair value. The current Gross Margin % is 53.24%, which is near median its 10-year median of 54.26 and 11.1% above the Education industry median of 47.93. TAL Education Group's overall GF Score™ is 64/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For TAL Education Group (MEX:TAL N), the current Gross Margin % is 53.24% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is TAL Education Group (MEX:TAL N) Overvalued in 2026?
Based on GuruFocus' analysis, TAL Education Group stock appears to be undervalued.
The current stock price of MXN155.00 is trading 53.7% below its estimated GF Value™ of MXN335.10.
GuruFocus considers TAL Education Group to be Significantly Undervalued.
Key valuation signals for MEX:TAL N:
Gross Margin %: 53.24% (near median its 10-year median of 54.26)
GF Value™: MXN335.10 vs. price of MXN155.00 (53.7% below fair value)
Industry Position: 11.1% above the Education median (#84 of 243)
No single metric tells the full story. See the MEX:TAL N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TAL Education Group is a leading learning solutions provider in China. It operates a few business lines including enrichment learning, high school academic tutoring, learning technology, and content solutions. Among those business lines, TAL focuses on enrichment learning and content solutions.
64GF Score
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