SUNLANDS TECHNOLOGY- SP ADR (STG)

US86740P2074 - ADR

8.5  +0.2 (+2.41%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to STG. STG was compared to 66 industry peers in the Diversified Consumer Services industry. While STG belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. STG does not seem to be growing, but still is valued expensively.



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7

1. Profitability

1.1 Basic Checks

STG had positive earnings in the past year.
The reported net income has been mixed in the past 5 years: STG reported negative net income in multiple years.
STG had negative operating cash flow in 4 of the past 5 years.

1.2 Ratios

STG has a better Return On Assets (30.25%) than 98.44% of its industry peers.
STG's Return On Equity of 231.32% is amongst the best of the industry. STG outperforms 98.44% of its industry peers.
Looking at the Return On Invested Capital, with a value of 40.98%, STG belongs to the top of the industry, outperforming 98.44% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for STG is significantly above the industry average of 14.49%.
The 3 year average ROIC (38.40%) for STG is below the current ROIC(40.98%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 30.25%
ROE 231.32%
ROIC 40.98%
ROA(3y)22.33%
ROA(5y)8.77%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)38.4%
ROIC(5y)N/A

1.3 Margins

With an excellent Profit Margin value of 29.67%, STG belongs to the best of the industry, outperforming 98.44% of the companies in the same industry.
STG's Operating Margin of 26.62% is amongst the best of the industry. STG outperforms 95.31% of its industry peers.
Looking at the Gross Margin, with a value of 87.70%, STG belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
STG's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 26.62%
PM (TTM) 29.67%
GM 87.7%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.09%
GM growth 5Y1.04%

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4

2. Health

2.1 Basic Checks

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

2.2 Solvency

Based on the Altman-Z score of 0.76, we must say that STG is in the distress zone and has some risk of bankruptcy.
STG's Altman-Z score of 0.76 is in line compared to the rest of the industry. STG outperforms 51.56% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that STG is not too dependend on debt financing.
The Debt to Equity ratio of STG (0.38) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF N/A
Altman-Z 0.76
ROIC/WACC5.72
WACC7.16%

2.3 Liquidity

STG has a Current Ratio of 1.02. This is a normal value and indicates that STG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of STG (1.02) is worse than 62.50% of its industry peers.
A Quick Ratio of 1.02 indicates that STG should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.02, STG is in line with its industry, outperforming 40.63% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.02
Quick Ratio 1.02

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1

3. Growth

3.1 Past

The earnings per share for STG have decreased by -1.02% in the last year.
Looking at the last year, STG shows a decrease in Revenue. The Revenue has decreased by -7.04% in the last year.
STG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.81% yearly.
EPS 1Y (TTM)-1.02%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-13.68%
Revenue 1Y (TTM)-7.04%
Revenue growth 3Y-0.67%
Revenue growth 5Y1.81%
Revenue growth Q2Q-4.67%

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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3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 1.32 indicates a rather cheap valuation of STG.
STG's Price/Earnings ratio is rather cheap when compared to the industry. STG is cheaper than 98.44% of the companies in the same industry.
STG is valuated cheaply when we compare the Price/Earnings ratio to 28.15, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 1.32
Fwd PE N/A

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A

4.3 Compensation for Growth

STG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for STG!.
Industry RankSector Rank
Dividend Yield N/A

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SUNLANDS TECHNOLOGY- SP ADR

NYSE:STG (5/17/2024, 7:04:01 PM)

8.5

+0.2 (+2.41%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap116.55M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 1.32
Fwd PE N/A
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 30.25%
ROE 231.32%
ROCE
ROIC
ROICexc
ROICexgc
OM 26.62%
PM (TTM) 29.67%
GM 87.7%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.02
Health
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.02
Quick Ratio 1.02
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-1.02%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next YN/A
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.04%
Revenue growth 3Y-0.67%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y