TAL Education GroupMEX:TAL N 64 Operating Margin % is 9.03% as of Feb. 2026, which is 266% above its 10-year median of 2.47. GuruFocus rates MEX:TAL N with a GF Score™ of 64/100 and a GF Value™ of MXN338.41 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 258 Education companies, TAL Education Group ranks worse than 50.78% on this metric.
TAL Education Group (MEX:TAL N) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
TAL Education Group Operating Margin % Related Terms
TAL Education Group Operating Margin % Historical Data
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The historical data trend for TAL Education Group's Operating 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 GHC, LAUR, EDU: Operating Margin % Comparison
For the Education & Training Services subindustry, TAL Education Group's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, TAL Education Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where TAL Education Group's Operating Margin % falls into.
TAL Education Group Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
TAL Education Group's Operating Margin % for the fiscal year that ended in Feb. 2026 is calculated as
* 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.
TAL Education Group (MEX:TAL N) has a Operating Margin % of 9.03% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on TAL Education Group and its competitors. This is 266% above median its historical median of 2.47. According to the industry distribution chart, TAL Education Group ranks #131 out of 258 companies in the Education industry, placing it in the top 50.8%.
Is TAL Education Group's Operating Margin % too high?
TAL Education Group's current Operating Margin % of 9.03% is 266% above median its 10-year median of 2.47. The Education industry median Operating Margin % is 9.35. TAL Education Group's value of 9.03% is 3.4% below this industry median. Based on the distribution chart, TAL Education Group ranks #131 out of 258 companies in the Education industry, which is below 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 Operating Margin % compare to GHC and LAUR?
According to the Education industry distribution chart, TAL Education Group ranks #131 out of 258 companies for Operating Margin %. This places TAL Education Group in the lower half of its industry. The industry median Operating Margin % is 9.35. TAL Education Group's value of 9.03% is 3.4% below this benchmark. While the company's 10-year median is 2.47 vs. the industry median of 9.35, TAL Education Group has consistently been below 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 Operating Margin % for an Education company?
The median Operating Margin % among Education companies is 9.35, based on 258 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TAL Education Group's current Operating Margin % of 9.03% is 3.4% below 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on TAL Education Group and its competitors. For the Education industry, the median Operating Margin % is 9.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TAL Education Group's current Operating Margin % is 9.03%, which is 266% above median its own 10-year median of 2.47. 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 MXN338.41, compared to a current price of MXN155.00 — trading 54.2% below its estimated fair value. The current Operating Margin % is 9.03%, which is 266% above median its 10-year median of 2.47 and 3.4% below the Education industry median of 9.35. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For TAL Education Group (MEX:TAL N), the current Operating Margin % is 9.03% 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 54.2% below its estimated GF Value™ of MXN338.41.
GuruFocus considers TAL Education Group to be Significantly Undervalued.
Key valuation signals for MEX:TAL N:
Operating Margin %: 9.03% (266% above median its 10-year median of 2.47)
GF Value™: MXN338.41 vs. price of MXN155.00 (54.2% below fair value)
Industry Position: 3.4% below the Education median (#131 of 258)
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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