Sunlands Online Education Group (STG)
NYSE:STG
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Sunlands Online Education Group
(NYSE:STG)
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Rating:68Neutral
Price Target:
$5.50
▼(-12.00% Downside)
Action:ReiteratedDate:11/25/25
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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Sunlands Online Education Group (STG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$47.01M
Dividend YieldN/A
Average Volume (3M)7.97K
Price to Earnings (P/E)1.6
Beta (1Y)0.69
Revenue Growth-0.84%
EPS Growth-11.01%
CountryUS
Employees2,071
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.40
Shares Outstanding5,108,694
10 Day Avg. Volume6,475
30 Day Avg. Volume7,968
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)0.94
Price to Sales (P/S)0.28
P/FCF Ratio2.89
Enterprise Value/Market Cap-2.45
Enterprise Value/Revenue-0.06
Enterprise Value/Gross Profit-0.07
Enterprise Value/Ebitda-0.26
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 hig...
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...
Sunlands Online Education Group Earnings Call Summary
Earnings Call Date:Nov 20, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 21, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a strong financial performance in terms of revenue and net income growth, with significant improvements in profitability and a robust cash position. However, the decrease in deferred revenue and increased product development expenses pose challenges, along with a cautious revenue outlook for the next fiscal year.Positive Updates
Strong Revenue and Net Income Growth
Net revenue increased to $523 million, with a 6.5% year-over-year growth. Net income surged 40.5% year over year to $125.4 million, demonstrating the resilience and stability of Sunlands Technology Group's operations.
Negative Updates
Decrease in Deferred Revenue
The deferred revenue balance decreased to $695.5 million as of September 30, 2025, from $916.5 million as of December 31, 2024.
Read all updates
Q3-2025 Updates
Positive
Negative
Strong Revenue and Net Income Growth
Net revenue increased to $523 million, with a 6.5% year-over-year growth. Net income surged 40.5% year over year to $125.4 million, demonstrating the resilience and stability of Sunlands Technology Group's operations.
Read all positive updates
Company Guidance
During the third quarter of 2025, Sunlands Technology Group reported a net revenue of $523 million, marking a 6.5% increase from the previous year. The company achieved a net income of $125.4 million, a substantial 40.5% increase year over year, with a net margin expansion to 24%. Gross profit rose by 13.1% to $462.7 million, while the cost of revenues decreased by 26.5% to $60.3 million. Sales and marketing expenses were reduced by 7.7% to $279.7 million. Product development expenses saw a significant rise of 48.2% to $8.7 million, mainly due to increased compensation for expanding product development personnel. The company ended the quarter with $601 million in cash, cash equivalents, and restricted cash. Looking ahead, Sunlands Technology Group anticipates net revenues for the full year 2025 to be between $440 million and $460 million, reflecting a projected year-over-year decrease of 4.9% to 9%.Sunlands Online Education Group Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
65
Positive
Cash Flow
75
Positive
| 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
Negative
6.25
Price Trends
4.46
Negative
5.11
Negative
6.71
Negative
Market Momentum
-0.30
Positive
26.77
Positive
41.54
Neutral
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 6.25 is above the 20-day moving average (MA) of 4.06, above the 50-day MA of 4.46, and below the 200-day MA of 6.71, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 26.77 is Positive, neither overbought nor oversold. The STOCH value of 41.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $47.01M | 1.57 | 51.85% | ― | -0.84% | -11.01% | |
67 Neutral | $89.95M | 2.47 | 11.71% | 3.93% | -8.09% | -15.28% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
55 Neutral | $696.71K | ― | 35.54% | ― | ― | ― | |
50 Neutral | $96.15M | -0.97 | -67.91% | ― | -32.37% | 90.99% | |
45 Neutral | $37.19M | -0.56 | -709.20% | ― | -3.55% | 61.83% | |
43 Neutral | $15.82M | -1.67 | -45.82% | ― | -48.17% | 35.62% |
* Consumer Defensive Sector Average
STG
Sunlands Online Education Group
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Sunlands Online Education Group Corporate Events
Sunlands Technology Group Reports Strong Q3 2025 Financial Performance
Nov 20, 2025
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 peri...
Sunlands Technology Group Announces December 2025 AGM
Nov 14, 2025
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 ...
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.