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

• Market Cap: $16.34M
• Dividend Yield: 29.53%
• Average Volume (3M): 11.69K
• Price to Earnings (P/E): 59.5
• Beta (1Y): 0.61
• Revenue Growth: 135.33%
• EPS Growth: N/A
• Country: US
• Employees: 190
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Education & Training Services
• EPS (TTM): 0.13
• Shares Outstanding: 2,116,342
• 10 Day Avg. Volume: 11,694
• 30 Day Avg. Volume: 11,687
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.13
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

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) Business Overview & Revenue Model

Company Description

Four 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 Money

Four 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

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

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

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
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
125.44M	34.22M	250.22M	280.28M	389.05M
	Gross Profit
45.49M	14.29M	100.61M	111.45M	188.12M
	EBIT
-9.27M	-35.66M	-6.74M	-36.48M	15.14M
	EBITDA
-515.00K	-32.07M	5.74M	-20.77M	34.90M
	Net Income Common Stockholders
4.96M	-29.67M	-113.46M	-28.20M	-109.49M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
296.04M	491.87M	508.43M	506.56M	596.47M
	Total Assets
674.16M	601.04M	602.53M	970.52M	1.04B
	Total Debt
42.38M	3.73M	8.93M	144.82M	199.35M
	Net Debt
-137.82M	-171.97M	-253.50M	-265.19M	-205.30M
	Total Liabilities
148.02M	89.15M	100.04M	320.80M	362.66M
	Stockholders Equity
475.00M	457.73M	445.94M	649.72M	674.95M
Cash Flow		Free Cash Flow
-40.06M	-34.15M	-101.20M	20.68M	73.01M
	Operating Cash Flow
16.56M	-25.49M	-91.32M	31.12M	82.19M
	Investing Cash Flow
71.48M	-96.70M	4.30M	-68.00M	-98.75M
	Financing Cash Flow
41.27M	-838.00K	-25.55M	198.00K	-26.42M

Four Seasons Education (Cayman) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FEDU, the sentiment is Negative. The current price of 7.72 is below the 20-day moving average (MA) of 7.73, below the 50-day MA of 8.86, and below the 200-day MA of 10.87, indicating a bearish trend. The MACD of -0.48 indicates Negative momentum. The RSI at 47.78 is Neutral, neither overbought nor oversold. The STOCH value of 90.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FEDU.

Four Seasons Education (Cayman) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$6.86B	11.61	3.16%	4.15%	2.41%	-21.45%
FEDU	52 Neutral	$16.34M	59.48	0.38%	29.53%	135.33%	―
CLEU	44 Neutral	$5.55M	―	-7.45%	―	―	―
EEIQ	37 Underperform	$8.52M	―	-83.71%	―	42.73%	18.30%