SUNLANDS TECHNOLOGY- SP ADR (STG) Stock Fundamental Analysis

USA - New York Stock Exchange - NYSE:STG - US86740P2074 - ADR

5.31 USD

+0.09 (+1.72%)

Last: 1/27/2026, 8:04:00 PM

Fundamental Rating

Taking everything into account, STG scores 5 out of 10 in our fundamental rating. STG was compared to 76 industry peers in the Diversified Consumer Services industry. Both the health and profitability get an excellent rating, making STG a very profitable company, without any liquidiy or solvency issues. STG has a valuation in line with the averages, but it does not seem to be growing.

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1. Profitability

1.1 Basic Checks

In the past year STG was profitable.
Of the past 5 years STG 4 years were profitable.
In multiple years STG reported negative operating cash flow during the last 5 years.

1.2 Ratios

With an excellent Return On Assets value of 18.12%, STG belongs to the best of the industry, outperforming 90.79% of the companies in the same industry.
Looking at the Return On Equity, with a value of 41.98%, STG belongs to the top of the industry, outperforming 92.11% of the companies in the same industry.
STG has a Return On Invested Capital of 23.73%. This is amongst the best in the industry. STG outperforms 96.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STG is significantly above the industry average of 10.15%.
The 3 year average ROIC (39.95%) for STG is well above the current ROIC(23.73%). The reason for the recent decline needs to be investigated.

		Industry Rank	Sector Rank
ROA	18.12%
ROE	41.98%
ROIC	23.73%

ROA(3y)24.89%

ROA(5y)13.98%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)39.95%

ROIC(5y)N/A

1.3 Margins

Looking at the Profit Margin, with a value of 18.94%, STG belongs to the top of the industry, outperforming 86.84% of the companies in the same industry.
In the last couple of years the Profit Margin of STG has grown nicely.
STG has a Operating Margin of 19.13%. This is amongst the best in the industry. STG outperforms 81.58% of its industry peers.
In the last couple of years the Operating Margin of STG has grown nicely.
STG's Gross Margin of 86.03% is amongst the best of the industry. STG outperforms 97.37% of its industry peers.
STG's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	19.13%
PM (TTM)	18.94%
GM	86.03%

OM growth 3Y48.68%

OM growth 5YN/A

PM growth 3Y25.3%

PM growth 5YN/A

GM growth 3Y-0.39%

GM growth 5Y0.5%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

STG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
STG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, STG has less shares outstanding
Compared to 1 year ago, STG has an improved debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 0.86, we must say that STG is in the distress zone and has some risk of bankruptcy.
STG has a Altman-Z score (0.86) which is comparable to the rest of the industry.
There is no outstanding debt for STG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	N/A
Altman-Z	0.86

ROIC/WACC3.37

WACC7.05%

2.3 Liquidity

A Current Ratio of 1.08 indicates that STG should not have too much problems paying its short term obligations.
STG has a Current ratio (1.08) which is in line with its industry peers.
STG has a Quick Ratio of 1.08. This is a normal value and indicates that STG is financially healthy and should not expect problems in meeting its short term obligations.
STG has a Quick ratio (1.08) which is in line with its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.08
Quick Ratio	1.08

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

STG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.92%.
Measured over the past years, STG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.31% on average per year.
The Revenue has decreased by -0.72% in the past year.
Measured over the past years, STG shows a decrease in Revenue. The Revenue has been decreasing by -1.93% on average per year.

EPS 1Y (TTM)-10.92%

EPS 3Y15.31%

EPS 5YN/A

EPS Q2Q%38.33%

Revenue 1Y (TTM)-0.72%

Revenue growth 3Y-7.42%

Revenue growth 5Y-1.93%

Sales Q2Q%3.05%

3.2 Future

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.

EPS Next YN/A

EPS Next 2YN/A

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next YearN/A

Revenue Next 2YN/A

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.

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4. Valuation

4.1 Price/Earnings Ratio

STG is valuated cheaply with a Price/Earnings ratio of 1.30.
Based on the Price/Earnings ratio, STG is valued cheaper than 98.68% of the companies in the same industry.
STG is valuated cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	1.3
Fwd PE	N/A

4.2 Price Multiples

STG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. STG is cheaper than 98.68% of the companies in the same industry.