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Sunlands Online Education Group (STG)
NYSE:STG
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Sunlands Online Education Group
(NYSE:STG)
Rating:80Outperform
Price Target:
$12.50
▲(43.35% Upside)
Sunlands Online Education Group (STG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$117.63M
Dividend YieldN/A
Average Volume (3M)13.72K
Price to Earnings (P/E)2.4
Beta (1Y)0.63
Revenue Growth-3.74%
EPS Growth-26.52%
CountryUS
Employees2,071
SectorConsumer Defensive
Sector Strength45
IndustryEducation & Training Services
Share Statistics
EPS (TTM)1.30
Shares Outstanding5,199,346
10 Day Avg. Volume9,520
30 Day Avg. Volume13,722
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap-0.05
Enterprise Value/Revenue>-0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda-0.02
Forecast
1Y Price Target
$12.50Price Target Upside43.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Sunlands Online Education Group Business Overview & Revenue Model
Company DescriptionSunlands 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 MoneySunlands 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 Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 19, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive sentiment with solid revenue and net income growth driven by interest-based learning and a focus on the silver demographic. Although there were some declines in deferred revenue and short-term investments, the company's profitability and cash flow resilience were emphasized.Q2-2025 Updates
Positive Updates
Solid Revenue Growth
Net revenue reached RMB 539 million, up 9.5% year-over-year, supported by resilient learner demand and course expansion.
Significant Increase in Net Income
Net income surged to RMB 126.6 million, with a net margin expanding to 23.5%, representing a 54% increase from the same period last year and 68.5% sequential jump.
Strong Growth in Interest-Based Learning
Interest-based learning achieved over 15% year-over-year revenue growth, with a significant focus on the silver demographic.
Resilient Cash Flow
Net cash from operating activities remained positive for the eighth consecutive quarter.
High Customer Satisfaction
High satisfaction levels for certain courses generally above 95%.
Continued Profitability
Achieved 17 consecutive quarters of profitability.
Negative Updates
Decrease in Deferred Revenue
Deferred revenue balance decreased from RMB 916.5 million as of December 31, 2024, to RMB 814.3 million as of June 30, 2025.
Reduction in Short-Term Investments
Short-term investments decreased from RMB 276 million as of December 31, 2024, to RMB 166.6 million as of June 30, 2025.
Company Guidance
During Sunlands' Second Quarter 2025 Earnings Conference Call, the company provided an optimistic outlook supported by several key financial metrics. Net revenue for the quarter rose by 9.5% year-over-year to RMB 539 million, driven by strong demand in interest-based courses, which accounted for 78% of total revenue. The company achieved a net income of RMB 126.6 million, marking a 54% increase from the same period last year and a 68.5% sequential jump, with a net margin expansion to 23.5%. New student enrollments in interest-based courses exceeded 300,000 for the first half of 2025, contributing to cumulative enrollments of over 2.1 million since 2020. The company also reported a robust course completion rate of 18% and a repurchase rate of 16% among its more than 1 million paying users. Sunlands anticipates net revenues for the fourth quarter of 2025 to be between RMB 500 million and RMB 520 million, indicating a year-over-year increase of 1.8% to 5.8%.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.70
Positive
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.65
Positive
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.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.95B | 1.99B | 2.16B | 2.32B | 2.51B | 2.20B |
| Gross Profit | 1.64B | 1.67B | 1.89B | 1.97B | 2.13B | 1.82B |
| EBITDA | 318.34M | 391.65M | 714.39M | 657.72M | 246.48M | -649.02M |
| Net Income | 304.52M | 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 | 796.90M | 783.26M | 905.88M | 824.18M | 810.87M | 1.28B |
| Total Debt | 160.92M | 186.90M | 308.61M | 515.88M | 639.07M | 756.37M |
| Total Liabilities | 1.46B | 1.52B | 1.84B | 2.66B | 3.61B | 4.47B |
| Stockholders Equity | 661.58M | 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
Neutral
8.72
Price Trends
9.21
Negative
7.30
Positive
6.70
Positive
Market Momentum
-0.12
Positive
44.81
Neutral
21.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STG, the sentiment is Neutral. The current price of 8.72 is below the 20-day moving average (MA) of 9.61, below the 50-day MA of 9.21, and above the 200-day MA of 6.70, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 44.81 is Neutral, neither overbought nor oversold. The STOCH value of 21.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for STG.
Sunlands Online Education Group Risk Analysis
Sunlands Online Education Group disclosed 87 risk factors in its most recent earnings report. Sunlands Online Education Group 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 3 New Risks
1.
The Group is subject to the uncertainty to continue to achieve profitability in the future. Q4, 2023
2.
If the Group fails to manage its business growth effectively, the success of the Group's business model will be compromised. Q4, 2023
3.
Failure to adequately and promptly respond to changes in the exams students must take to pursue their desired degrees, diplomas or certifications could cause the Group's education services to be less attractive to students. Q4, 2023
Sunlands Online Education Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $117.63M | 2.44 | 54.65% | ― | -3.74% | -26.52% | |
63 Neutral | $20.52B | 14.80 | -2.68% | 3.09% | 1.95% | -4.76% | |
48 Neutral | $281.20M | ― | 180.24% | ― | 91.86% | 52.66% | |
43 Neutral | $50.53M | ― | -97.59% | ― | -23.75% | -201.80% | |
| ― | $16.57M | ― | -16.90% | ― | ― | ― | |
75 Outperform | $141.17M | 10.39 | 11.29% | 3.10% | -9.70% | -30.98% |
* Consumer Defensive Sector Average
Performance Comparison
STG
Sunlands Online Education Group
8.72
3.22
58.55%
COE
China Online Education Group
47.99
32.99
219.93%
BEDU
Bright Scholar Education Holdings
1.70
-0.18
-9.57%
EDTK
Skillful Craftsman Education Technology
1.04
-0.08
-7.14%
IH
iHuman
2.74
1.24
82.67%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.