Sunlands Online Education Group (STG) AI Stock Analysis

• Market Cap: $85.97M
• Dividend Yield: N/A
• Average Volume (3M): 7.97K
• Price to Earnings (P/E): 1.8
• Beta (1Y): 0.61
• Revenue Growth: -1.75%
• EPS Growth: -11.71%
• Country: US
• Employees: 2,071
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 1.31
• Shares Outstanding: 5,199,346
• 10 Day Avg. Volume: 6,475
• 30 Day Avg. Volume: 7,968
• PEG Ratio: -0.04
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 2.89
• Enterprise Value/Market Cap: -0.06
• Enterprise Value/Revenue: >-0.01
• Enterprise Value/Gross Profit: >-0.01
• Enterprise Value/Ebitda: -0.01
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $5.50 ▼(-7.25% Downside)

Sunlands Technology Group's overall stock score reflects a strong financial recovery and attractive valuation, offset by bearish technical indicators and concerns over future revenue growth. The earnings call provided positive insights into profitability improvements but also highlighted challenges such as decreased deferred revenue and increased expenses.

Positive Factors

Profitability Improvement

The significant improvement in profitability, with gross profit outpacing revenue growth, indicates effective cost management and a strong business model, which can sustain long-term financial health.

AI-Driven Platform Enhancements

The integration of AI technology enhances operational efficiency and accuracy, providing a competitive edge and potential for scalable growth in the online education sector.

Robust Cash Position

A strong cash position provides financial flexibility for strategic investments and resilience against economic fluctuations, supporting sustainable growth.

Negative Factors

Decreased Deferred Revenue

A decrease in deferred revenue suggests potential challenges in future revenue streams, impacting long-term growth prospects and financial stability.

Increased Product Development Expenses

Rising product development costs may pressure margins if not matched by revenue growth, potentially affecting profitability and resource allocation.

Cautious Revenue Outlook

A projected decline in revenue reflects market challenges and could hinder strategic growth initiatives, affecting long-term business performance.

Sunlands Online Education Group Business Overview & Revenue Model

Company Description

Sunlands Technology Group, through its subsidiaries, provides online education services in the People's Republic of China. It offers various degree- and diploma-oriented post-secondary courses, including preparation courses for the self-taught higher education examination (STE) for learners pursuing associate diplomas or bachelor's degrees, as well as for the entrance examinations of Master of Business Administration programs. The company's STE courses include Chinese language and literature, law, pre-school education, marketing, English, human resource management, business administration, business management, modern corporate governance, financial management, advertising, accounting, administrative management, computer information management, finance, convention management, chain operation management, and visual communication and design. It also provides professional certification preparation courses in various industries and professions, such as accounting, human resources, teaching, and finance. The company was formerly known as Sunlands Online Education Group and changed its name to Sunlands Technology Group in August 2018. Sunlands Technology Group was founded in 2003 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Sunlands Online Education Group generates revenue primarily through tuition fees paid by students enrolling in its online courses and programs. The company offers various pricing models, including one-time payments and subscription-based access to its course offerings. Additionally, Sunlands may earn revenue from partnerships with educational institutions and corporations that seek to provide training or certification programs through its platform. The company also benefits from economies of scale as it attracts a growing number of students, which contributes to its earnings through increased enrollment and course completion rates.

Sunlands Online Education Group Financial Statement Overview

Summary

Sunlands Online Education Group shows a solid recovery in financial performance with improved profitability and cash flow metrics. The company has effectively managed its cash resources, and the balance sheet has improved with positive stockholders' equity. However, the negative revenue growth remains a concern.

Income Statement

Sunlands Online Education Group has shown improvement in its profitability metrics. The gross profit margin and net profit margin have remained strong, indicating efficient cost management. However, the revenue growth rate has been negative, reflecting a decline in total revenue over the past periods, which is a concern for future growth prospects.

Balance Sheet

The company's balance sheet shows a positive shift with an increase in stockholders' equity from negative to positive over recent periods, indicating improved financial health. The debt-to-equity ratio is favorable, suggesting low financial leverage. However, historical negative equity remains a concern, though it is progressively improving.

Cash Flow

The cash flow statement shows positive free cash flow, and the operating cash flow has improved significantly. The company has effectively managed its cash resources, with a high free cash flow to net income ratio, reflecting strong cash generation relative to reported earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.03B	1.99B	2.16B	2.32B	2.51B	2.20B
Gross Profit	1.75B	1.67B	1.89B	1.97B	2.13B	1.82B
EBITDA	437.87M	391.65M	714.39M	663.63M	246.48M	-608.75M
Net Income	385.06M	342.08M	640.83M	643.96M	219.06M	-432.34M
Balance Sheet
Total Assets	2.12B	2.12B	2.12B	2.28B	2.59B	3.26B
Cash, Cash Equivalents and Short-Term Investments	776.41M	783.26M	905.88M	824.18M	810.87M	1.28B
Total Debt	136.97M	186.90M	308.61M	515.88M	639.07M	756.37M
Total Liabilities	1.21B	1.52B	1.84B	2.66B	3.61B	4.47B
Stockholders Equity	916.78M	601.35M	277.04M	-374.49M	-1.01B	-1.21B
Cash Flow
Free Cash Flow	0.00	195.11M	134.44M	40.43M	-389.79M	-215.60M
Operating Cash Flow	0.00	195.52M	140.80M	62.65M	-373.25M	-188.64M
Investing Cash Flow	0.00	-358.86M	-71.82M	659.04M	342.68M	-349.31M
Financing Cash Flow	0.00	-112.73M	-74.66M	-465.33M	-38.90M	-59.08M

Sunlands Online Education Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STG, the sentiment is Positive. The current price of 5.93 is above the 20-day moving average (MA) of 5.71, below the 50-day MA of 6.64, and below the 200-day MA of 6.93, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 48.96 is Neutral, neither overbought nor oversold. The STOCH value of 64.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STG.

Sunlands Online Education Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STG	68 Neutral	$85.97M	1.79	51.94%	―	-1.75%	-11.71%
IH	68 Neutral	$135.04M	9.28	11.49%	3.32%	-12.39%	-19.46%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
VSA	51 Neutral	$102.07K	―	―	―	―	―
YQ	50 Neutral	$42.65M	-2.20	-36.17%	―	-23.15%	54.85%
CHGG	42 Neutral	$98.18M	―	-46.37%	―	-32.37%	90.99%
SKIL	41 Neutral	$63.14M	―	-126.76%	―	-2.33%	66.82%

Sunlands Online Education Group Corporate Events

Sunlands Technology Group Reports Strong Q3 2025 Financial Performance

Sunlands Technology Group announced its unaudited financial results for the third quarter of 2025, showing a 6.5% increase in net revenues to RMB523.0 million and a significant 40.5% rise in net income to RMB125.4 million compared to the same period in 2024. The company attributes its growth to a strategic focus on high-margin courses and effective cost management, which have enhanced profitability and operational efficiency, despite a decline in new student enrollments. The results highlight Sunlands’ strong financial health and its ability to leverage market trends and technological innovation to sustain growth.

Sunlands Technology Group Announces December 2025 AGM

Sunlands Technology Group announced it will hold its annual general meeting of shareholders on December 19, 2025, in Beijing and virtually. The meeting will not include proposals or resolutions but will serve as an open forum for shareholders and ADS holders to discuss company affairs with management. The record date for determining shareholders entitled to attend the AGM is November 26, 2025. This meeting provides an opportunity for stakeholders to engage directly with the company’s management, potentially influencing future strategic directions.