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Wah Fu Education Group Ltd (WAFU)
NASDAQ:WAFU
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Wah Fu Education Group
(NASDAQ:WAFU)
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Rating:43Neutral
Price Target:―
The overall stock score for Wah Fu Education Group is low due to significant financial performance challenges, including declining revenues and profitability, alongside negative cash flow trends. Technical analysis further supports a bearish outlook with all major indicators signaling weakness. Valuation concerns persist with a negative P/E ratio and no dividend yield, offering limited appeal to potential investors.
Wah Fu Education Group (WAFU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.94M
Dividend YieldN/A
Average Volume (3M)727.11K
Price to Earnings (P/E)―
Beta (1Y)0.59
Revenue Growth-14.35%
EPS Growth-744.00%
CountryUS
Employees122
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)-0.19
Shares Outstanding4,410,559
10 Day Avg. Volume366,525
30 Day Avg. Volume727,106
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-0.02
Enterprise Value/Revenue-0.02
Enterprise Value/Gross Profit-0.06
Enterprise Value/Ebitda0.16
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Wah Fu Education Group Business Overview & Revenue Model
Company DescriptionWah Fu Education Group Limited, through its subsidiaries, provides online exam preparation services and related technology solutions in the People's Republic of China. The company operates through two segments, Online Education Services; and Technological Development and Operation Services. The Online Education Services segment offers online education platforms to institutions, such as universities and training institutions, and online course development service companies. This segment provides self-study examination, continuing education, and non-diploma training platforms that allow students to enroll in courses for college credit; vocational education 1+X and higher vocational enrollment expansion teaching and educational administration platform; Huafu e-school system and paperless examination platform; and online training and examination preparation services directly to students. The Technological Development and Operation Services segment develops and maintains online education platforms and online courses for its clients, including universities and government agencies, as well as private clients, such as publishers; and provides consulting, maintenance, and updating services related to online education programs. In addition, it produces online training course materials. Wah Fu Education Group Limited was founded in 1999 and is headquartered in Beijing, the People's Republic of China.
How the Company Makes MoneyWah Fu Education Group generates revenue primarily through the sale of its online education services and technology solutions. Key revenue streams include fees from educational institutions for deploying and maintaining their customized e-learning platforms and software. The company also earns income from individual learners who subscribe to their online courses and educational content. Additionally, Wah Fu capitalizes on partnerships with educational institutions to expand its service offerings and customer base, which further contributes to its earnings.
Wah Fu Education Group Financial Statement Overview
Summary
Wah Fu Education Group exhibits concerning financial performance with declining revenues and profitability, coupled with negative cash flow trends. Despite a strong equity position and low debt, the company's operational and cash flow challenges need addressing to improve financial health and sustainability.Income Statement
The income statement reveals significant challenges, with declining revenue and profitability. The company experienced a substantial revenue decline of 32.43% from the previous year, leading to negative EBIT and EBITDA margins in the most recent period. Gross profit margin fell to 41.40%, and net profit margin turned negative at -0.77%, indicating struggles in maintaining operational efficiency and profitability.42
Neutral
Balance Sheet
The balance sheet shows a relatively strong equity position, with an equity ratio of 69.00%. The debt-to-equity ratio is low at 0.03, indicating minimal leverage, which reduces financial risk. However, the return on equity has turned negative, reflecting the company's inability to generate positive returns from its equity base in the latest period.65
Positive
Cash Flow
Cash flow analysis indicates negative trends, with a decline in operating cash flow and free cash flow turning negative. The operating cash flow to net income ratio is unfavorable due to negative net income, and free cash flow growth has reversed, indicating potential liquidity challenges and inefficiencies in cash generation.30
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.37M | 6.19M | 7.22M | 10.69M | 11.47M | 8.52M |
| Gross Profit | 2.51M | 2.58M | 2.99M | 5.69M | 5.46M | 4.52M |
| EBITDA | -952.39K | -67.86K | 100.82K | 2.42M | 1.04M | 1.29M |
| Net Income | -1.11M | -465.30K | -55.29K | 905.89K | 743.13K | 1.02M |
Balance Sheet | ||||||
| Total Assets | 15.50M | 15.45M | 16.16M | 17.54M | 18.00M | 16.97M |
| Cash, Cash Equivalents and Short-Term Investments | 10.15M | 10.13M | 11.05M | 12.57M | 11.76M | 12.05M |
| Total Debt | 552.21K | 132.25K | 333.26K | 413.44K | 142.53K | 362.47K |
| Total Liabilities | 3.63M | 3.69M | 4.00M | 4.51M | 5.99M | 6.16M |
| Stockholders Equity | 10.93M | 10.70M | 11.15M | 11.70M | 11.22M | 10.20M |
Cash Flow | ||||||
| Free Cash Flow | -1.96M | -976.47K | -862.33K | 1.58M | 1.04M | 2.25M |
| Operating Cash Flow | -1.86M | -965.59K | -767.31K | 1.61M | 1.08M | 2.33M |
| Investing Cash Flow | -500.05K | -10.63K | -231.44K | 36.88K | -1.68M | 2.36M |
| Financing Cash Flow | 0.00 | 63.02K | 0.00 | 0.00 | -17.66K | 11.31K |
Wah Fu Education Group Technical Analysis
Positive
1.79
Price Trends
1.53
Positive
1.49
Positive
1.58
Positive
Market Momentum
0.09
Negative
58.89
Neutral
61.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WAFU, the sentiment is Positive. The current price of 1.79 is above the 20-day moving average (MA) of 1.69, above the 50-day MA of 1.53, and above the 200-day MA of 1.58, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 58.89 is Neutral, neither overbought nor oversold. The STOCH value of 61.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WAFU.
Wah Fu Education Group Risk Analysis
Wah Fu Education Group disclosed 64 risk factors in its most recent earnings report. Wah Fu Education Group reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Our ordinary shares may be delisted under the Holding Foreign Companies Accountable Act if the PCAOB is unable to inspect our auditors. The delisting of our ordinary shares, or the threat of their being delisted, may materially and adversely affect the value of your investment. Furthermore, on June 22, 2021, the U.S. Senate passed the Accelerating Holding Foreign Companies Accountable Act, which, if enacted, would amend the HFCA Act and require the SEC to prohibit an issuer's securities from trading on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead of three. Q1, 2023
2.
The PRC government exerts substantial influence over the manner in which we conduct our business activities. The PRC government may also intervene or influence our operations and this offering at any time, which could result in a material change in our operations and our common stock could decline in value or become worthless. Q1, 2023
3.
Restrictions on currency exchange or outbound capital flows may limit our ability to utilize our PRC revenue effectively. Q1, 2023
Wah Fu Education Group Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.03B | 17.69 | 6.91% | 2.82% | 4.31% | -1.08% | |
77 Outperform | $6.09B | 26.30 | 30.40% | ― | 6.52% | 11.72% | |
73 Outperform | $6.47B | 24.66 | 19.46% | ― | 17.90% | 39.75% | |
71 Outperform | $696.31M | 36.53 | 10.51% | ― | 5.50% | 338.59% | |
52 Neutral | $10.11M | ― | ― | ― | ― | ― | |
43 Neutral | $7.94M | ― | -4.26% | ― | -14.35% | -744.00% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
WAFU
Wah Fu Education Group
1.79
-0.08
-4.28%
AMBO
Ambow Education Holding
3.62
2.45
209.40%
EEIQ
Elite Education Group International
0.44
-0.29
-39.73%
GV
Visionary Education Technology Holdings Group
2.10
-0.22
-9.48%
GSUN
Golden Sun Education Group Limited Class A
2.63
-4.13
-61.09%
JZ
Jianzhi Education Technology Group Company Limited ADR
1.79
-9.51
-84.16%
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.