Wah Fu Education Group (WAFU) AI Stock Analysis

• Market Cap: $6.31M
• Dividend Yield: N/A
• Average Volume (3M): 15.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: -28.27%
• EPS Growth: -409.38%
• Country: US
• Employees: 122
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Education & Training Services
• EPS (TTM): -0.19
• Shares Outstanding: 4,410,559
• 10 Day Avg. Volume: 10,391
• 30 Day Avg. Volume: 15,488
• PEG Ratio: 0.53
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.36
• Enterprise Value/Market Cap: -0.59
• Enterprise Value/Revenue: -0.11
• Enterprise Value/Gross Profit: -1.48
• Enterprise Value/Ebitda: -1.61
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 43 Neutral
• 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 Business Overview & Revenue Model

Company Description

Wah 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 Money

Wah 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.

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.

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.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	6.37M	7.22M	10.69M	11.47M	8.52M	5.64M
Gross Profit	2.51M	2.99M	5.69M	5.46M	4.52M	2.25M
EBITDA	-952.39K	100.82K	2.42M	1.04M	1.29M	-1.41M
Net Income	-1.11M	-55.29K	905.89K	743.13K	1.02M	-1.64M
Balance Sheet
Total Assets	15.50M	16.16M	17.54M	18.00M	16.97M	12.57M
Cash, Cash Equivalents and Short-Term Investments	10.15M	11.05M	12.57M	11.76M	12.05M	6.83M
Total Debt	552.21K	333.26K	413.44K	142.53K	362.47K	615.93K
Total Liabilities	3.63M	4.00M	4.51M	5.99M	6.16M	3.27M
Stockholders Equity	10.93M	11.15M	11.70M	11.22M	10.20M	9.06M
Cash Flow
Free Cash Flow	-1.96M	-862.33K	1.58M	1.04M	2.25M	862.48K
Operating Cash Flow	-1.86M	-767.31K	1.61M	1.08M	2.33M	937.52K
Investing Cash Flow	-500.05K	-231.44K	36.88K	-1.68M	2.36M	-2.62M
Financing Cash Flow	0.00	0.00	0.00	-17.66K	11.31K	4.85M

Wah Fu Education Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.47
• 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 WAFU, the sentiment is Neutral. The current price of 1.47 is above the 20-day moving average (MA) of 1.42, above the 50-day MA of 1.44, and below the 200-day MA of 1.66, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 49.73 is Neutral, neither overbought nor oversold. The STOCH value of 43.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WAFU.

Wah Fu Education Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LOPE	78 Outperform	$5.37B	22.93	29.85%	―	6.31%	11.24%
LRN	77 Outperform	$6.16B	21.49	23.76%	―	14.90%	60.56%
STRA	69 Neutral	$2.08B	18.44	6.86%	2.79%	5.72%	11.02%
APEI	66 Neutral	$532.89M	29.06	8.18%	―	4.86%	―
Sector *	65 Neutral	$27.25B	15.35	-4.01%	3.14%	1.00%	1.98%
AMBO	52 Neutral	$6.67M	―	-49.39%	―	―	―
WAFU	43 Neutral	$6.31M	―	-7.52%	―	-28.27%	-409.38%