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: -3.74%
• EPS Growth: -26.52%
• Country: US
• Employees: 2,071
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 1.30
• 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: 66 Neutral
• Price Target: $6.50 ▲(13.04% Upside)

Sunlands Online Education Group's overall stock score is driven primarily by its strong financial performance and attractive valuation. The company's profitability and cash flow generation are strong, but technical indicators suggest bearish momentum, which is a concern. The positive sentiment from the earnings call supports a favorable outlook, although the lack of revenue growth remains a challenge.

Sunlands Online Education Group Business Overview & Revenue Model

Company Description

Sunlands Online Education Group (STG) is a leading online education provider in China, specializing in offering a wide range of courses and programs through its innovative digital platform. The company primarily focuses on adult education, providing preparation courses for various professional exams, as well as academic tutoring and skill enhancement programs. With a commitment to leveraging technology to enhance learning experiences, Sunlands aims to make quality education accessible and convenient for its users.

How the Company Makes Money

Sunlands generates revenue primarily through tuition fees paid by students for their online courses. The company offers a variety of pricing models, including subscription-based services and one-time course fees, catering to different learning needs and preferences. Additionally, Sunlands has established partnerships with various educational institutions and industry organizations, which can provide further avenues for revenue through collaborative programs and endorsements. The company also benefits from economies of scale as it expands its student base, thereby increasing its overall profitability.

Sunlands Online Education Group Financial Statement Overview

Summary

Sunlands Online Education Group demonstrates a solid recovery in financial performance with improved profitability and cash flow metrics. While revenue growth has been a challenge, the company's ability to generate cash flow and improve equity position is promising. Continued focus on revenue growth and maintaining profitability will be crucial for sustained financial health.

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	2.00B	1.99B	2.16B	2.32B	2.51B	2.20B
Gross Profit	1.70B	1.67B	1.89B	1.97B	2.13B	1.82B
EBITDA	365.59M	391.65M	714.39M	663.63M	246.48M	-608.75M
Net Income	348.92M	342.08M	640.83M	643.96M	219.06M	-432.34M
Balance Sheet
Total Assets	2.15B	2.12B	2.12B	2.28B	2.59B	3.26B
Cash, Cash Equivalents and Short-Term Investments	752.97M	783.26M	905.88M	824.18M	810.87M	1.28B
Total Debt	163.22M	186.90M	308.61M	515.88M	639.07M	756.37M
Total Liabilities	1.36B	1.52B	1.84B	2.66B	3.61B	4.47B
Stockholders Equity	790.86M	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: Negative
• Last Price: 5.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STG, the sentiment is Negative. The current price of 5.75 is below the 20-day moving average (MA) of 6.51, below the 50-day MA of 7.52, and below the 200-day MA of 7.01, indicating a bearish trend. The MACD of -0.54 indicates Positive momentum. The RSI at 24.08 is Positive, neither overbought nor oversold. The STOCH value of 18.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STG.

Sunlands Online Education Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IH	68 Neutral	$135.04M	9.28	11.71%	3.07%	-8.09%	-15.28%
STG	66 Neutral	$85.97M	1.79	54.65%	―	-3.74%	-26.52%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
VSA	51 Neutral	$1.97M	-0.37	―	―	―	―
YQ	50 Neutral	$42.65M	-2.20	-36.22%	―	-22.39%	53.68%
SKIL	42 Neutral	$107.74M	-0.89	-126.76%	―	-2.33%	66.82%
CHGG	39 Underperform	$132.22M	―	-46.37%	―	-32.37%	90.99%

Sunlands Online Education Group Corporate Events

Sunlands Technology Group Reports Strong Q2 2025 Financial Results

Sunlands Technology Group reported its unaudited financial results for the second quarter of 2025, showing a 9.5% increase in net revenues to RMB539.0 million compared to the same period in 2024. The company achieved a significant rise in net income to RMB126.6 million, with a net income margin of 23.5%, driven by structural cost optimization and increased operating leverage. Despite a decrease in new student enrollments, the company maintained a strong financial position with positive cash flow, enabling continued investment in AI integration and personalized learning solutions. The strategic shift towards interest-based courses, which now constitute 77.6% of total revenues, has been a key driver of growth.