TAL Education GroupMEX:TAL N 64 Return-on-Tangible-Equity is 28.30% as of Feb. 2026, which is 2361% above its 10-year median of 1.15. GuruFocus rates MEX:TAL N with a GF Score™ of 64/100 and a GF Value™ of MXN379.88 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 246 Education companies, TAL Education Group ranks better than 58.54% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. TAL Education Group's annualized net income for the quarter that ended in Feb. 2026 was MXN16,862 Mil. TAL Education Group's average shareholder tangible equity for the quarter that ended in Feb. 2026 was MXN59,583 Mil. Therefore, TAL Education Group's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 28.30%.
The historical rank and industry rank for TAL Education Group's Return-on-Tangible-Equity or its related term are showing as below:
MEX:TAL N'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -27.46 Med: 1.15 Max: 34.69
Current: 15.85
During the past 13 years, TAL Education Group's highest Return-on-Tangible-Equity was 34.69%. The lowest was -27.46%. And the median was 1.15%.
MEX:TAL N's Return-on-Tangible-Equity is ranked better than 58.54% of 246
companies
in the Education industry
Industry Median: 11.685
vs MEX:TAL N: 15.85
TAL Education Group (MEX:TAL N) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
TAL Education Group Return-on-Tangible-Equity Related Terms
TAL Education Group Return-on-Tangible-Equity Historical Data
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The historical data trend for TAL Education Group's Return-on-Tangible-Equity 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.
TAL Education Group Return-on-Tangible-Equity Chart
MEX:TAL N vs LAUR, GHC, CVSA: Return-on-Tangible-Equity Comparison
For the Education & Training Services subindustry, TAL Education Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Education Industry
For the Education industry and Consumer Defensive sector, TAL Education Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where TAL Education Group's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Feb. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 28.30% mean?
TAL Education Group (MEX:TAL N) has a Return-on-Tangible-Equity of 28.30% as of Feb. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on TAL Education Group and its competitors. This is 2361% above median its historical median of 1.15. According to the industry distribution chart, TAL Education Group ranks #102 out of 246 companies in the Education industry, placing it in the top 41.5%.
Is TAL Education Group's Return-on-Tangible-Equity too high?
TAL Education Group's current Return-on-Tangible-Equity of 28.30% is 2361% above median its 10-year median of 1.15. The Education industry median Return-on-Tangible-Equity is 11.69. TAL Education Group's value of 28.30% is 142.2% above this industry median. Based on the distribution chart, TAL Education Group ranks #102 out of 246 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 Return-on-Tangible-Equity compare to LAUR and GHC?
According to the Education industry distribution chart, TAL Education Group ranks #102 out of 246 companies for Return-on-Tangible-Equity. This puts TAL Education Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.69. TAL Education Group's value of 28.30% is 142.2% above this benchmark. While the company's 10-year median is 1.15 vs. the industry median of 11.69, 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 Return-on-Tangible-Equity for an Education company?
The median Return-on-Tangible-Equity among Education companies is 11.69, based on 246 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TAL Education Group's current Return-on-Tangible-Equity of 28.30% is 142.2% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on TAL Education Group and its competitors. For the Education industry, the median Return-on-Tangible-Equity is 11.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TAL Education Group's current Return-on-Tangible-Equity is 28.30%, which is 2361% above median its own 10-year median of 1.15. 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 MXN379.88, compared to a current price of MXN170.00 — trading 55.2% below its estimated fair value. The current Return-on-Tangible-Equity is 28.30%, which is 2361% above median its 10-year median of 1.15 and 142.2% above the Education industry median of 11.69. TAL Education Group's overall GF Score™ is 64/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For TAL Education Group (MEX:TAL N), the current Return-on-Tangible-Equity is 28.30% 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 MXN170.00 is trading 55.2% below its estimated GF Value™ of MXN379.88.
GuruFocus considers TAL Education Group to be Significantly Undervalued.
Key valuation signals for MEX:TAL N:
Return-on-Tangible-Equity: 28.30% (2361% above median its 10-year median of 1.15)
GF Value™: MXN379.88 vs. price of MXN170.00 (55.2% below fair value)
Industry Position: 142.2% above the Education median (#102 of 246)
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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