Four Seasons Education (Cayman) Inc. (FEDU) AI Stock Analysis
FEDU AI stock analysis summary
AI ResearchFour Seasons Education (Cayman) Inc. (FEDU) provides after-school education and consulting services across China. In FY2026, the company generated revenue of $254.4M and net income of $30.8M, recovering from a net loss of -$113.5M in FY2022. It holds $231.4M in cash and short-term investments against $106.8M in total debt as of May 31, 2026.
- Market cap
- $24.1M
- Revenue (TTM)
- $254.4M
- P/E
- 5.7x
- 1Y return
- -21.2% S&P 500 16.8%
- Avg. target
- $4.37 -58.9% vs last close
Bull case
- FY2026 net income reached $30.8M with positive free cash flow of $23.1M, up from negative free cash flow in FY2025.
- The company held $231.4M in cash and short-term investments as of May 31, 2026, resulting in net cash of $124.6M.
- FEDU trades at a trailing P/E of 5.7x and an enterprise value of $4.5M, below the 18.6x median of its US-listed Consumer Defensive peers.
Bear case
- The mean analyst price target of $4.37 sits 58.9% below the last close of $10.64.
- Quarterly revenue fell 6.2% year-over-year in the latest quarter ended May 31, 2026.
- The company's share count increased by 948.5% over the past 5 years, representing substantial dilution.
What Four Seasons Education does
Four Seasons Education (Cayman) Inc., headquartered in Shanghai, China, specializes in providing comprehensive after-school education services tailored for kindergarten, elementary, and middle school students throughout the People's Republic of China. Established in 2007, the company offers a range of academic programs designed to enhance students' learning experiences beyond regular school hours, emphasizing subjects crucial to academic success. In addition to its educational programs, Four Seasons Education distinguishes itself through its consulting services, which provide strategic guidance and educational expertise to schools, parents, and educational institutions across China to help shape educational policies and optimize learning outcomes.
Growth and profitability
Revenue dropped from $250.2M in FY2022 to $34.2M in FY2023, before rebounding to $125.4M in FY2024, $251.1M in FY2025, and $254.4M in FY2026. Gross margin stood at 25.8% in FY2026, while operating margin turned positive at 2.7%. Net income reached $30.8M in FY2026 compared to $801,000 in FY2025 and a net loss of -$113.5M in FY2022. Over the 5-year period from FY2021 to FY2026, revenue CAGR was -1.9%. For the trailing twelve months, revenue was $254.4M with diluted EPS of $1.88. In the latest quarter ended May 31, 2026, quarterly revenue fell 6.2% year-over-year, while quarterly earnings grew 358.6%.
Balance sheet and cash flow
As of May 31, 2026, Four Seasons Education held $231.4M in cash and short-term investments and $106.8M in total debt, resulting in net cash of $124.6M. Total assets were $739.5M against shareholders' equity of $473.6M. The company maintains a current ratio of 1.85 and a debt-to-equity ratio of 0.23. In FY2026, operating cash flow reached $30.0M and free cash flow turned positive at $23.1M, with capital expenditures of $6.9M. Over the past 5 years, the share count changed by 948.5%.
Valuation and performance
With a market cap of $24.1M and an enterprise value of $4.5M, FEDU trades at a trailing P/E of 5.7x, below the 18.6x median of its US-listed Consumer Defensive peers. Its price-to-sales of 0.1x and EV/EBITDA of 1.2x also sit below peer medians of 0.7x and 11.7x, respectively. The stock trades at a price-to-book ratio of 0.3x. Over the past year, FEDU returned -21.2% compared to a 16.8% gain for SPY. Over 5 years, the stock returned -39.1% versus 83.0% for SPY.
What analysts expect
Analyst coverage indicates a mean price target of $4.37, which is 58.9% below the last close of $10.64 on October 16, 2026. Over the last 4 quarters, the company delivered 1 EPS beat. No forward earnings estimates, rating counts, or upcoming earnings dates are available.
Key risks and what to watch
- Trailing twelve-month operating margin remains negative at -2.3%, despite positive full-year FY2026 operating margin of 2.7%.
- FEDU has underperformed the broader market significantly, posting a 5-year return of -39.1% compared to 83.0% for SPY.
- The company achieved only 1 EPS beat across the last 4 quarters.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this FEDU AI stock analysis
This page is an AI-written research summary of Four Seasons Education (Cayman) Inc. (FEDU). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: FEDU income statement, FEDU balance sheet, FEDU key metrics, FEDU chart. See the FEDU stock overview for the latest quote and news.
FEDU AI stock analysis FAQ
What is Four Seasons Education's market cap and cash position?
Four Seasons Education has a market cap of $24.1M and held $231.4M in cash and short-term investments as of May 31, 2026, giving it net cash of $124.6M.
Does Four Seasons Education (FEDU) pay a dividend?
No dividend details are reported for Four Seasons Education.
How has FEDU stock performed relative to the S&P 500?
Over the past year, FEDU returned -21.2% while SPY gained 16.8%. Over 5 years, FEDU dropped 39.1% versus an 83.0% gain for SPY.
What is the analyst price target for FEDU?
Analysts have a mean price target of $4.37 for FEDU, which is 58.9% below its closing price of $10.64 on October 16, 2026.