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Four Seasons Education (FEDU)
:FEDU
US Market

Four Seasons Education (Cayman) (FEDU) AI Stock Analysis

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Four Seasons Education (Cayman)

(NYSE:FEDU)

52Neutral
Four Seasons Education's financial performance shows potential with significant improvements in revenue and net income. However, challenges like operational inefficiencies and cash flow issues weigh heavily on its score. The technical analysis suggests the stock is currently lacking positive momentum, and the high P/E ratio raises valuation concerns despite an attractive dividend yield. These factors collectively result in a moderate overall score.

Four Seasons Education (Cayman) (FEDU) vs. S&P 500 (SPY)

Four Seasons Education (Cayman) Business Overview & Revenue Model

Company DescriptionFour Seasons Education (Cayman) Inc. (FEDU) is a leading education services provider located in China, specializing in after-school math education for students in primary and secondary schools. The company offers a comprehensive curriculum designed to foster academic excellence and critical thinking skills among its students. Its educational programs are delivered through both in-class and online formats, catering to a diverse student population seeking to enhance their academic performance.
How the Company Makes MoneyFour Seasons Education (Cayman) Inc. generates revenue primarily through tuition fees collected from students enrolled in its educational programs. The company offers a variety of courses that vary in duration and complexity, with fees structured accordingly. Additionally, FEDU may collaborate with schools and educational institutions to provide tailored educational services, further contributing to its income. The company's ability to maintain strong enrollment numbers and adapt to changing educational trends significantly influences its revenue generation capabilities.

Four Seasons Education (Cayman) Financial Statement Overview

Summary
Overall, Four Seasons Education shows a positive trend in revenue and net income growth, along with strong equity positions, suggesting financial resilience. However, operational inefficiencies and cash flow challenges remain areas of concern, which could affect long-term sustainability if not addressed.
Income Statement
60
Neutral
The income statement shows a significant improvement in net income, turning positive in the latest annual period with a net profit margin of 3.96%. However, the revenue growth rate is volatile, with a sharp increase in the latest year after a previous decline. The company struggles with negative EBIT and EBITDA margins, indicating operational inefficiencies.
Balance Sheet
75
Positive
The balance sheet is quite strong with a high equity ratio of 70.44%, suggesting financial stability and low leverage. The debt-to-equity ratio is low at 0.09, indicating minimal reliance on debt. Return on equity is positive, reflecting improved profitability.
Cash Flow
50
Neutral
The cash flow statement reveals challenges with free cash flow, which remains negative, impacting liquidity. While operating cash flow has turned positive, the free cash flow to net income ratio is unfavorable, highlighting cash generation issues despite reported profits.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
198.29M125.44M34.22M250.22M280.28M389.05M
Gross Profit
48.46M45.49M14.29M100.61M111.45M188.12M
EBIT
-13.99M-9.27M-35.66M-6.74M-36.48M15.14M
EBITDA
-7.99M-515.00K-32.07M5.74M-20.77M34.90M
Net Income Common Stockholders
1.99M4.96M-29.67M-113.46M-28.20M-109.49M
Balance SheetCash, Cash Equivalents and Short-Term Investments
583.32M296.04M491.87M508.43M506.56M596.47M
Total Assets
792.28M674.16M601.04M602.53M970.52M1.04B
Total Debt
390.00K42.38M3.73M8.93M144.82M199.35M
Net Debt
-582.93M-137.82M-171.97M-253.50M-265.19M-205.30M
Total Liabilities
134.33M148.02M89.15M100.04M320.80M362.66M
Stockholders Equity
651.53M475.00M457.73M445.94M649.72M674.95M
Cash FlowFree Cash Flow
0.00-40.06M-34.15M-101.20M20.68M73.01M
Operating Cash Flow
0.0016.56M-25.49M-91.32M31.12M82.19M
Investing Cash Flow
0.0071.48M-96.70M4.30M-68.00M-98.75M
Financing Cash Flow
0.0041.27M-838.00K-25.55M198.00K-26.42M

Four Seasons Education (Cayman) Technical Analysis

Technical Analysis Sentiment
Positive
Last Price10.01
Price Trends
50DMA
9.85
Positive
100DMA
10.33
Negative
200DMA
11.15
Negative
Market Momentum
MACD
-0.08
Negative
RSI
56.11
Neutral
STOCH
76.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FEDU, the sentiment is Positive. The current price of 10.01 is above the 20-day moving average (MA) of 9.40, above the 50-day MA of 9.85, and below the 200-day MA of 11.15, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 56.11 is Neutral, neither overbought nor oversold. The STOCH value of 76.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FEDU.

Four Seasons Education (Cayman) Risk Analysis

Four Seasons Education (Cayman) disclosed 63 risk factors in its most recent earnings report. Four Seasons Education (Cayman) reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Four Seasons Education (Cayman) Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
59
Neutral
$12.24B11.04-1.00%3.78%1.30%-19.54%
52
Neutral
$20.74M75.500.38%23.27%135.33%
44
Neutral
$6.53M-7.45%
37
Underperform
$9.57M-83.71%42.73%18.30%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FEDU
Four Seasons Education (Cayman)
10.01
1.15
12.98%
CLEU
China Liberal Education Holdings
2.10
-1,245.90
-99.83%
EEIQ
Elite Education Group International
0.73
-0.38
-34.23%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.