Sunlands Technology Group (STG) AI Stock Analysis

Sunlands Technology Group, founded in 2003 and headquartered in Beijing, China, provides online education services through its subsidiaries. The company offers post-secondary courses designed for students seeking degrees and diplomas, including preparation programs for the self-taught higher education examination. Its curriculum covers subjects such as Chinese language and literature, law, marketing, English, and business administration. Sunlands Technology Group also provides training for professional certification examinations across fields including accounting, human resources, teaching, and finance, delivering instruction to students nationwide through its technological infrastructure.

From FY2021 to FY2024, revenue contracted each year, moving from $2.51B in FY2021 to $2.32B in FY2022, $2.16B in FY2023, and $1.99B in FY2024, before rising 1.5% to $2.02B in FY2025. Across the 5-year period from FY2020 to FY2025, revenue posted a CAGR of -1.7%. Gross margin remained elevated, standing at 86.9% in FY2025, while operating margin reached 22.0% and net income totaled $365.6M. Over the trailing twelve months, revenue was $1.84B with an operating margin of 20.5%. However, in the latest quarter ended June 30, 2026, quarterly revenue fell 24.6% and quarterly earnings fell 32.9% year-over-year.

As of June 30, 2026, Sunlands Technology Group held $857.8M in cash and short-term investments against total debt of $133.2M, resulting in a net cash position of $724.7M. The company reported shareholders' equity of $1.07B, total assets of $1.97B, a current ratio of 1.60, and a debt-to-equity ratio of 0.12. In FY2025, operating cash flow was $142.8M and free cash flow was $142.6M. Cash usage included capital expenditures of $207,162 and share buybacks of $6.0M.

Sunlands Technology Group had a market cap of $32.6M and an enterprise value of -$71.0M. The stock trades at a trailing P/E of 0.7x and a forward P/E of 6.7x, compared to medians of 18.6x and 14.3x for its US-listed Consumer Defensive peers. Its price-to-sales multiple is 0.0x versus the peer median of 0.7x, while its EV/EBITDA is 0.6x compared to 11.7x for peers. Over the past year, the stock fell 65.4%, lagging the S&P 500 return of 16.8%, and its 5-year return of -38.6% trailed the index return of 83.0%.

Wall Street analysts have established a mean price target of $1.03 for Sunlands Technology Group, which implies downside of 59.6% from its last close of $2.55 on October 16, 2026. Over the last four quarters, the company beat earnings per share estimates once. Its next earnings report is scheduled for November 19, 2026. Institutional investors hold 38.8% of shares, insiders hold 11.0%, and short interest represents 0.7% of the float.

This page is an AI-written research summary of Sunlands Technology Group (STG). 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: STG income statement, STG chart. See the STG stock overview for the latest quote and news.