Elite Education Group International (EEIQ) AI Stock Analysis

• Market Cap: $5.31M
• Dividend Yield: N/A
• Average Volume (3M): 320.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• Revenue Growth: 44.99%
• EPS Growth: 61.58%
• Country: US
• Employees: 43
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): -0.14
• Shares Outstanding: 23,671,667
• 10 Day Avg. Volume: 106,174
• 30 Day Avg. Volume: 320,991
• PEG Ratio: 0.04
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.77
• P/FCF Ratio: -2.13
• Enterprise Value/Market Cap: 0.41
• Enterprise Value/Revenue: 0.24
• Enterprise Value/Gross Profit: 0.39
• Enterprise Value/Ebitda: -1.04
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: $0.23 ▼(-26.77% Downside)

The score is weighed down primarily by sustained net losses and ongoing negative operating/free cash flow, which increase financing dependence. Technicals also pressure the score as the stock trades below all key moving averages with negative MACD. Valuation contributes only modestly because the negative P/E is not very informative without positive earnings, and no dividend yield is available.

Positive Factors

High Gross Margins

Sustained gross margins in the low-60s to mid-70s indicate the core educational offering generates strong unit economics. This structural margin buffer can support profitability once operating expenses are controlled and enables scalable contribution margins as enrollment or program licensing grows over time.

Improving Cash Burn

Material reduction in operating cash outflows demonstrates progress toward operational stabilization and a longer runway. If the trend continues, lower cash burn reduces near-term financing needs and dilution risk, improving the company's ability to execute longer-term growth initiatives sustainably.

International Partnership Expansion

A multi-year MOU to deliver a master's program expands addressable markets and diversifies revenue sources structurally. Institutional partnerships like this can create recurring enrollment streams, local distribution scale, and credential recognition that supports durable top-line growth beyond domestic channels.

Negative Factors

Sustained Net Losses

Five consecutive years of net losses and a deeply negative margin indicate structural profitability issues. Persistent losses erode equity, constrain reinvestment in product and marketing, and raise the likelihood of continued external financing, which can impair long-term competitive positioning if not reversed.

Negative Operating & Free Cash Flow

Recurrent negative operating and free cash flow show the business is not self-funding and must rely on external capital. This structural cash deficit limits strategic flexibility, increases dilution or interest burden, and raises execution risk for multi-year initiatives unless cash generation turns positive.

Rising Leverage & Financing Dependence

Leverage rising from very low levels to ~0.49 while losses persist increases solvency and liquidity risk. Higher debt amplifies fixed obligations and reduces financial flexibility, making the company more vulnerable to revenue volatility and limiting its ability to invest in growth without further external financing.

Elite Education Group International Business Overview & Revenue Model

Company Description

Elite Education Group International Limited, together with its subsidiaries, offers study abroad and post-study services to Chinese students in the United States. The company provides international English proficiency test counseling, registration, and test placement services for students with no or poor language skills; admission application services; visa counseling and guidance services; logistical and organizational support for the student applicants prior to their departure to the educational institutions; accommodation arrangements; welcome services; and dormitory services. In addition, it offers catering, academic guidance, internship, and shuttle bus services. The company was founded in 2012 and is based in Middletown, Ohio.

How the Company Makes Money

EEIQ generates revenue through multiple streams, including tuition fees from students enrolled in its academic programs and pathway courses. The company partners with various universities and educational institutions, earning commissions for students placed in these programs. Additionally, EEIQ provides consultancy services to international students, charging fees for guidance on admissions, visa applications, and other support services. Significant partnerships with educational institutions not only enhance its offerings but also contribute to its financial stability by ensuring a steady flow of students and associated fees.

Elite Education Group International Financial Statement Overview

Summary

Financial performance is weak: the company has been loss-making for five straight years with 2025 net margin still deeply negative (~-27%). Operating and free cash flow remain negative (2025 OCF ~-$2.9M; FCF ~-$3.2M), implying continued reliance on financing. Positives include consistently strong gross margins (low-60% to mid-70% range) and year-over-year improvement in losses and cash burn in 2025, but revenue remains volatile and leverage has risen (debt-to-equity ~0.49).

Income Statement

Profitability is the key weakness: the company has been loss-making for five straight annual periods (2021–2025), with 2025 net margin still deeply negative (~-27%) despite a material improvement from 2024 (~-73%). Revenue has been volatile and modest in scale, with 2025 down ~4% year over year after growth in 2024. A clear positive is consistently strong gross margin (roughly low-60% to mid-70% range), suggesting the core offering can generate healthy gross profit, but operating costs remain too high relative to revenue.

Balance Sheet

Leverage is moderate and trending up: debt-to-equity increased from very low levels in 2020–2022 to ~0.49 in 2025, indicating rising reliance on debt. Total equity improved versus 2024, which helps cushion losses, but recurring net losses imply ongoing pressure on book value over time. Overall, the balance sheet looks serviceable today, but the direction of leverage and persistent losses elevate risk.

Cash Flow

Cash generation is weak: operating cash flow has been negative in most years and was ~-$2.9M in 2025 (still negative, though improved from ~-$9.5M in 2024). Free cash flow remains negative (~-$3.2M in 2025), indicating the business is not yet self-funding. The improvement in cash burn is a positive, but the pattern of sustained negative cash flow increases financing dependence.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.94M	8.94M	8.15M	5.71M	6.33M	5.34M
Gross Profit	5.52M	5.52M	4.89M	3.80M	4.06M	3.19M
EBITDA	-2.09M	-2.09M	-6.46M	-6.36M	-6.07M	-1.17M
Net Income	-2.43M	-2.43M	-5.99M	-6.66M	-5.96M	-1.08M
Balance Sheet
Total Assets	25.78M	25.78M	23.29M	19.21M	24.00M	24.01M
Cash, Cash Equivalents and Short-Term Investments	5.09M	5.09M	1.15M	4.97M	11.44M	16.54M
Total Debt	4.33M	4.33M	3.09M	1.13M	1.02M	721.29K
Total Liabilities	11.36M	11.36M	12.41M	8.28M	6.72M	9.07M
Stockholders Equity	8.81M	8.81M	5.17M	9.14M	15.10M	14.94M
Cash Flow
Free Cash Flow	-3.24M	-3.24M	-9.52M	-5.27M	-4.67M	-296.34K
Operating Cash Flow	-2.95M	-2.95M	-9.48M	-5.25M	-4.61M	322.19K
Investing Cash Flow	1.46M	1.46M	716.77K	-877.63K	-651.48K	-514.53K
Financing Cash Flow	5.11M	5.11M	4.95M	-1.25M	200.00K	9.32M

Elite Education Group International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EEIQ, the sentiment is Negative. The current price of 0.31 is above the 20-day moving average (MA) of 0.26, above the 50-day MA of 0.28, and below the 200-day MA of 0.47, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 33.07 is Neutral, neither overbought nor oversold. The STOCH value of 25.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EEIQ.

Elite Education Group International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
WAFU	45 Neutral	$7.72M	-16.59	-4.26%	―	-14.35%	-744.00%
EEIQ	43 Neutral	$5.31M	-1.43	-48.49%	―	44.99%	61.58%
AMBO	43 Neutral	$7.63M	―	―	―	―	―
JZ	40 Underperform	$6.93M	-0.20	-238.22%	―	-87.12%	74.35%
GV	37 Underperform	$6.67M	-0.33	―	―	―	―