Sunlands Technology Group
Sunlands Technology Group Fundamental Analysis
Sunlands Technology Group (STG) shows moderate financial fundamentals with a PE ratio of 1.06, profit margin of 18.94%, and ROE of 51.85%. The company generates $2.0B in annual revenue with weak year-over-year growth of -7.84%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze STG's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSTG demonstrates superior asset utilization.
Valuation Score
ExcellentSTG trades at attractive valuation levels.
Growth Score
WeakSTG faces weak or negative growth trends.
Financial Health Score
ExcellentSTG maintains a strong and stable balance sheet.
Profitability Score
ModerateSTG maintains healthy but balanced margins.
Key Financial Metrics
Is STG Expensive or Cheap?
P/E Ratio
STG trades at 1.06 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, STG's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Sunlands Technology Group at 0.45 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.99 times EBITDA. This is generally considered low.
How Well Does STG Make Money?
Net Profit Margin
For every $100 in sales, Sunlands Technology Group keeps $18.94 as profit after all expenses.
Operating Margin
Core operations generate 19.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $51.85 in profit for every $100 of shareholder equity.
ROA
Sunlands Technology Group generates $18.12 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sunlands Technology Group generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Sunlands Technology Group generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
STG converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1.06
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.45
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.52
vs 25 benchmark
ROA
Return on assets percentage
0.18
vs 25 benchmark
ROCE
Return on capital employed
0.30
vs 25 benchmark
How STG Stacks Against Its Sector Peers
| Metric | STG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1.06 | 23.01 | Better (Cheaper) |
| ROE | 51.85% | 1228.00% | Weak |
| Net Margin | 18.94% | -4008.00% (disorted) | Strong |
| Debt/Equity | 0.15 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 1.08 | 2.35 | Neutral |
| ROA | 18.12% | -157547.00% (disorted) | Strong |
STG outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sunlands Technology Group's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-9.22%
Industry Style: Defensive, Dividend, Low Volatility
DecliningEPS CAGR
186.66%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
136.67%
Industry Style: Defensive, Dividend, Low Volatility
High Growth