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

• Market Cap: $22.15M
• Dividend Yield: N/A
• Average Volume (3M): 835.00
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.81
• Revenue Growth: 32.23%
• EPS Growth: 321.98%
• Country: US
• Employees: 190
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.62
• Shares Outstanding: 2,260,058
• 10 Day Avg. Volume: 1,414
• 30 Day Avg. Volume: 835
• PEG Ratio: -0.19
• Price to Book (P/B): 0.03
• Price to Sales (P/S): 0.05
• P/FCF Ratio: -0.34
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 0.45
• Enterprise Value/Ebitda: -1.84
• 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: 49 Neutral
• Price Target: $9.00 ▼(-23.47% Downside)

The score is held back primarily by weak profitability and negative/declining free cash flow, alongside bearish technical signals with the price well below major moving averages. Offsetting factors include strong recent revenue growth, a solid low-leverage balance sheet, and a moderate P/E valuation.

Positive Factors

Sustained Revenue Growth

Strong top-line expansion—supported by double-digit revenue growth—indicates sustained demand for tutoring and digital offerings, enabling scale economies and investment in product and technology. Over a multi-month horizon this supports a broader revenue base and capacity to reinvest for longer-term growth.

Low Financial Leverage

A low debt-to-equity ratio and strong equity ratio provide durable financial flexibility, reducing interest burden and insolvency risk. This capital structure allows the company to absorb cash-flow volatility, fund strategic initiatives, and pursue investments or partnerships without excessive reliance on external debt over coming months.

Shift to Higher-Margin Mix

Management’s pivot toward higher-margin offerings and improved product mix, evidenced by sharp gross-profit and net-income gains, suggests durable margin uplift if sustained. Structural improvements in mix and execution can raise long-term cash conversion and competitiveness versus peers in education services.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow and its year-over-year decline indicate structural cash-conversion problems. Over a multi-month horizon this constrains organic reinvestment, increases dependence on external financing, and limits strategic flexibility, raising the risk profile if margins or revenue slow.

Weak Profitability Margins

Ongoing negative operating and EBITDA margins show the firm struggles to convert revenue into sustainable operating profit. Without durable margin recovery, the business may be unable to self-fund growth, invest in differentiation, or withstand cost pressures, impairing long-term financial resilience.

Declining Cash Reserves / Liquidity Risk

A decline in cash reserves reduces the company’s buffer against shocks, particularly given negative FCF and margin volatility. Over the medium term this elevates the chance of needing short-term financing, restricts operational maneuverability, and heightens refinancing or working-capital pressure if adverse trends persist.

Four Seasons Education (Cayman) Business Overview & Revenue Model

Company Description

Four Seasons Education (Cayman) Inc. provides after-school education services for kindergarten, elementary, and middle school students in the People's Republic of China. It also offers consulting service. The company was founded in 2007 and is headquartered in Shanghai, the People's Republic of China.

How the Company Makes Money

Four Seasons Education generates revenue through several key streams, primarily from tuition fees for its tutoring and educational programs. The company offers various packages that cater to different student needs, including one-on-one tutoring sessions, group classes, and online courses. Additionally, FEDU may earn income through partnerships with local schools and educational institutions, providing supplemental educational materials and workshops. The company also potentially benefits from seasonal promotions and referral programs that incentivize existing students to bring in new clients, further boosting its revenue.

Four Seasons Education (Cayman) Financial Statement Overview

Summary

Financials are mixed: revenue rebounded strongly (100.2% growth from 2024 to 2025) and leverage is low (debt-to-equity 0.22; equity ratio 62.2%), but profitability remains weak with negative EBIT/EBITDA margins and free cash flow is negative and declining (down 7% from 2024 to 2025), raising sustainability and liquidity concerns.

Income Statement

Four Seasons Education has shown a volatile revenue trend with significant fluctuations over the past years. The company managed a positive revenue growth of 100.2% from 2024 to 2025. However, profitability margins like gross and net profit margins have been weak, with the company recording negative EBIT and EBITDA margins in recent years, indicating challenges in achieving operational efficiency.

Balance Sheet

The company maintains a strong equity base with a debt-to-equity ratio of 0.22 in 2025, indicating low leverage. Return on equity is positive at 0.18% in 2025, a sign of slight improvement. The equity ratio stands at 62.2%, reflecting a solid financial structure and stability in asset financing. However, the decrease in cash reserves could pose liquidity risks.

Cash Flow

Free cash flow has been negative, with a decline of 7% from 2024 to 2025, highlighting cash management issues. The operating cash flow to net income ratio is 24.98, indicating a stronger cash-generating ability than profitability. However, the free cash flow to net income ratio is negative, emphasizing the need for improved cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	251.08M	251.08M	125.44M	34.22M	250.22M	280.28M
Gross Profit	47.13M	47.13M	45.49M	14.29M	100.61M	111.45M
EBITDA	-11.46M	-2.33M	-515.00K	-30.66M	5.74M	-20.77M
Net Income	801.00K	801.00K	4.96M	-29.67M	-113.46M	-28.20M
Balance Sheet
Total Assets	731.14M	731.14M	674.16M	601.04M	602.53M	970.52M
Cash, Cash Equivalents and Short-Term Investments	266.21M	266.21M	296.04M	491.87M	508.43M	506.56M
Total Debt	98.30M	98.30M	42.88M	4.01M	9.65M	144.82M
Total Liabilities	225.99M	225.99M	148.02M	89.15M	100.04M	320.80M
Stockholders Equity	454.61M	454.61M	475.00M	457.73M	445.94M	588.69M
Cash Flow
Free Cash Flow	0.00	-37.24M	-40.06M	-34.15M	-101.20M	20.68M
Operating Cash Flow	0.00	20.00M	16.56M	-25.49M	-91.32M	31.12M
Investing Cash Flow	0.00	2.52M	71.48M	-96.70M	4.30M	-68.00M
Financing Cash Flow	0.00	12.37M	41.27M	-838.00K	-25.55M	198.00K

Four Seasons Education (Cayman) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.76
• 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 FEDU, the sentiment is Negative. The current price of 11.76 is above the 20-day moving average (MA) of 10.90, below the 50-day MA of 11.97, and below the 200-day MA of 12.17, indicating a bearish trend. The MACD of -0.69 indicates Positive momentum. The RSI at 37.33 is Neutral, neither overbought nor oversold. The STOCH value of 57.24 is Neutral, 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 *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
VSA	51 Neutral	$1.92M	―	―	―	―	―
FEDU	49 Neutral	$22.15M	16.82	1.73%	―	32.23%	321.98%
WAFU	45 Neutral	$7.48M	-16.49	-4.26%	―	-14.35%	-744.00%
AMBO	43 Neutral	$8.00M	―	―	―	―	―
YQ	41 Neutral	$29.86M	-1.48	-44.00%	―	-48.17%	35.62%

Four Seasons Education (Cayman) Corporate Events

Four Seasons Education Reports Strong Financial Growth for H1 FY2026

On December 2, 2025, Four Seasons Education (Cayman) Inc. announced its unaudited financial results for the first half of fiscal year 2026, which ended on August 31, 2025. The company reported a 7.9% increase in revenue to RMB145.3 million, driven by growth in its enrichment learning business. Gross profit rose by 30.9% to RMB38.8 million, and net income increased significantly to RMB12.4 million, marking a 313.9% year-over-year rise. The company attributed these results to a healthy product mix, operational efficiency, and strategic execution. With a focus on high-quality learning experiences and a shift towards higher-margin tourism offerings, Four Seasons Education aims to ensure sustainable growth and long-term competitiveness.

The most recent analyst rating on (FEDU) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Four Seasons Education (Cayman) stock, see the FEDU Stock Forecast page.