Wah Fu Education Group Ltd (WAFU)
NASDAQ:WAFU
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Wah Fu Education Group
(NASDAQ:WAFU)
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Rating:45Neutral
Price Target:
$1.50
▼(-7.98% Downside)
Action:ReiteratedDate:12/30/25
The score is primarily held back by deteriorating profitability and ongoing negative operating/free cash flow despite a low-leverage balance sheet. Technicals also lean bearish (below key moving averages with negative MACD), while valuation is constrained by a negative P/E driven by losses and no dividend yield support.
Positive Factors
Conservative balance sheet
Very low leverage and sizable equity materially lower solvency risk and give management time and optionality to execute turnaround measures. Over the next 2–6 months, the conservative capital structure supports liquidity and limits immediate refinancing pressure while strategic fixes are implemented.
Negative Factors
Deteriorating profitability
A shift from consistent profits to multi-year losses signals structural pressure on margins and returns. Persisting net losses erode retained capital and limit reinvestment capacity, making recovery harder and increasing the risk that corrective actions may require significant time or external capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and sizable equity materially lower solvency risk and give management time and optionality to execute turnaround measures. Over the next 2–6 months, the conservative capital structure supports liquidity and limits immediate refinancing pressure while strategic fixes are implemented.
Read all positive factors
Wah Fu Education Group (WAFU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.88M
Dividend YieldN/A
Average Volume (3M)743.25K
Price to Earnings (P/E)―
Beta (1Y)0.68
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. Volume48,592
30 Day Avg. Volume743,245
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)0.66
Price to Sales (P/S)1.14
P/FCF Ratio-7.23
Enterprise Value/Market Cap-0.36
Enterprise Value/Revenue-0.38
Enterprise Value/Gross Profit-0.87
Enterprise Value/Ebitda-5.14
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
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 Techn...
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...
Wah Fu Education Group Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
72
Positive
Cash Flow
26
Negative
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.45M | 6.19M | 7.22M | 10.69M | 11.47M | 8.52M |
| Gross Profit | 2.82M | 2.58M | 2.99M | 5.69M | 5.46M | 4.52M |
| EBITDA | 475.72K | -67.86K | 106.27K | 2.42M | 1.22M | 1.29M |
| Net Income | -85.86K | -465.30K | -55.29K | 905.89K | 743.13K | 1.02M |
Balance Sheet | ||||||
| Total Assets | 15.85M | 15.45M | 16.16M | 17.54M | 18.00M | 16.97M |
| Cash, Cash Equivalents and Short-Term Investments | 9.58M | 10.13M | 11.05M | 12.57M | 11.76M | 12.05M |
| Total Debt | 254.76K | 132.25K | 333.26K | 413.44K | 142.53K | 362.47K |
| Total Liabilities | 4.00M | 3.69M | 4.00M | 4.51M | 5.99M | 6.16M |
| Stockholders Equity | 10.70M | 10.70M | 11.15M | 11.70M | 11.22M | 10.20M |
Cash Flow | ||||||
| Free Cash Flow | 303.30K | -976.47K | -862.33K | 1.58M | 1.04M | 2.25M |
| Operating Cash Flow | 317.28K | -965.59K | -767.31K | 1.61M | 1.08M | 2.33M |
| Investing Cash Flow | -721.50K | -10.63K | -231.44K | 36.88K | -1.68M | 2.36M |
| Financing Cash Flow | 27.36K | 63.02K | 0.00 | 0.00 | -17.66K | 11.31K |
Wah Fu Education Group Technical Analysis
Negative
1.63
Price Trends
1.67
Negative
1.66
Negative
1.63
Negative
Market Momentum
-0.03
Positive
45.83
Neutral
20.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WAFU, the sentiment is Negative. The current price of 1.63 is above the 20-day moving average (MA) of 1.63, below the 50-day MA of 1.67, and below the 200-day MA of 1.63, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 45.83 is Neutral, neither overbought nor oversold. The STOCH value of 20.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
51 Neutral | $7.21M | -2.84 | -48.49% | ― | 44.99% | 61.58% | |
49 Neutral | $6.86M | 5.80 | ― | ― | ― | ― | |
45 Neutral | $6.88M | -11.97 | -4.26% | ― | -14.35% | -744.00% | |
| ― | $1.70M | -0.08 | ― | ― | ― | ― | |
40 Underperform | $6.54M | -0.19 | -9999.00% | ― | -87.12% | 74.35% |
* Consumer Defensive Sector Average
WAFU
Wah Fu Education Group
1.56
0.14
9.86%
AMBO
Ambow Education Holding
2.40
-0.35
-12.73%
EEIQ
Elite Education Group International
4.87
-6.97
-58.86%
GV
Visionary Education Technology Holdings Group
0.30
-1.51
-83.26%
GSUN
Golden Sun Education Group Limited Class A
0.44
-2.69
-86.04%
JZ
Jianzhi Education Technology Group Company Limited ADR
0.85
-6.25
-88.06%
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.