Latest Ratios: P/E Ratio 1.0x · EV/EBITDA -0.1x · ROE 47.3%. (2015–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $55M | $80M | $77M | $140M | $100M | $67M | $184M | $439M | $478M | — | — |
| Enterprise Value | $-9817752 | $-358615326 | $-243209500 | $-314858065 | $-138031648 | $79M | $180M | $535M | $-512274880 | — | — |
| P/E Ratio → | 1.05 | 0.22 | 0.23 | 0.22 | 0.15 | 0.30 | — | — | — | — | — |
| P/S Ratio | 0.18 | 0.04 | 0.04 | 0.06 | 0.04 | 0.03 | 0.08 | 0.20 | 0.24 | — | — |
| P/B Ratio | 0.39 | 0.08 | 0.13 | 0.51 | — | — | — | — | — | — | — |
| P/FCF | 2.61 | 0.56 | 0.40 | 1.04 | 2.47 | — | — | — | — | — | — |
| P/OCF | 2.60 | 0.56 | 0.39 | 1.00 | 1.59 | — | — | — | 2.65 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | -0.18 | -0.12 | -0.15 | -0.06 | 0.03 | 0.08 | 0.24 | -0.26 | — | — |
| EV / EBITDA | -0.14 | -0.76 | -0.74 | -0.52 | -0.21 | 0.52 | — | — | — | — | — |
| EV / EBIT | -0.15 | -0.83 | -0.67 | -0.46 | -0.22 | 0.38 | — | — | — | — | — |
| EV / FCF | — | -2.51 | -1.25 | -2.34 | -3.41 | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 86.9% | 86.9% | 84.0% | 87.7% | 85.0% | 85.0% | 82.4% | 81.9% | 83.3% | 82.5% | 83.1% |
| Operating Margin | 22.0% | 22.0% | 15.0% | 26.6% | 26.6% | 4.6% | -29.5% | -21.0% | -52.1% | -95.6% | -61.8% |
| Net Profit Margin | 18.1% | 18.1% | 17.2% | 29.7% | 27.7% | 8.7% | -19.6% | -18.0% | -47.0% | -94.7% | -60.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 47.3% | 47.3% | 78.2% | 232.6% | — | — | — | — | — | — | — |
| ROA | 17.5% | 17.5% | 16.1% | 29.2% | 26.5% | 7.5% | -12.0% | -10.3% | -32.5% | -83.0% | -147.0% |
| ROIC | 84.8% | 84.8% | 447.4% | — | — | — | — | — | — | — | — |
| ROCE | 34.1% | 34.1% | 24.5% | 60.3% | 83.1% | 13.0% | -46.5% | -29.2% | -129.3% | -554.1% | — |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.15 | 0.15 | 0.31 | 1.12 | — | — | — | — | — | — | — |
| Debt / EBITDA | 0.29 | 0.29 | 0.57 | 0.51 | 0.78 | 4.20 | — | — | — | — | — |
| Net Debt / Equity | — | -0.46 | -0.53 | -1.65 | — | — | — | — | — | — | — |
| Net Debt / EBITDA | -0.93 | -0.93 | -0.98 | -0.75 | -0.36 | 0.08 | — | — | — | — | — |
| Debt / FCF | — | -3.07 | -1.64 | -3.39 | -5.88 | — | — | — | — | -1.33 | -0.32 |
| Interest Coverage | 505.06 | 505.06 | 68.43 | 89.30 | 61.33 | 19.08 | -55.51 | -26.43 | -426.76 | — | — |
Net cash position: cash ($577M) exceeds total debt ($139M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.18 | 1.18 | 1.10 | 1.02 | 0.66 | 0.59 | 0.71 | 0.91 | 1.12 | 0.70 | 0.37 |
| Quick Ratio | 1.18 | 1.18 | 1.08 | 1.01 | 0.65 | 0.59 | 0.65 | 0.81 | 1.04 | 0.65 | 0.32 |
| Cash Ratio | 1.07 | 1.07 | 0.98 | 0.90 | 0.56 | 0.43 | 0.58 | 0.72 | 0.98 | 0.51 | 0.29 |
| Asset Turnover | — | 0.99 | 0.94 | 1.02 | 1.02 | 0.97 | 0.68 | 0.55 | 0.53 | 0.49 | 1.71 |
| Inventory Turnover | — | — | 16.14 | 18.65 | 24.60 | 42.39 | 2.93 | 1.67 | 2.00 | 1.69 | 2.15 |
| Days Sales Outstanding | — | 3.71 | 4.50 | 4.96 | 4.21 | 8.11 | 3.49 | 1.02 | 0.72 | 2.29 | 4.25 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | 22.3% | 32.7% | — | — | — | — | — | — |
| Payout Ratio | — | — | — | 4.9% | 5.1% | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 95.6% | 446.5% | 443.5% | 456.6% | 645.7% | 328.9% | — | — | — | — | — |
| FCF Yield | 38.4% | 178.8% | 253.0% | 95.8% | 40.5% | — | — | — | — | — | — |
| Buyback Yield | 1.6% | 7.5% | 14.2% | 3.4% | 6.8% | 7.3% | 14.4% | 7.2% | 7.1% | — | — |
| Total Shareholder Yield | 1.6% | 7.5% | 14.2% | 25.7% | 39.4% | 7.3% | 14.4% | 7.2% | 7.1% | — | — |
| Shares Outstanding | — | $13M | $14M | $14M | $14M | $13M | $14M | $14M | $13M | $8M | $8M |
Regulatory and enrollment saturation
According to current market data, STG trades at a P/S multiple of 0.19 and a P/FCF of 2.73, suggesting that investors are heavily discounting the company's future earnings potential due to persistent top-line contraction and the perceived lack of a clear catalyst for renewed expansion.
The current valuation multiples appear to reflect a significant 'complexity discount' compared to broader education peers, as the market remains wary of the company's reliance on the niche STE segment. This pricing suggests that the market is not assigning value to the company's substantial cash reserves, potentially viewing them as trapped or inefficiently deployed.
Based on reported figures, STG's ROIC has fluctuated significantly, ranging from 4.1% in 2024Q2 to a peak of 35.2% in 2024Q3, indicating that the company's ability to generate returns on invested capital is highly sensitive to quarterly marketing spend and enrollment cycles.
The inconsistency in ROIC trends suggests that while the underlying digital platform is inherently scalable, the company struggles to maintain high returns on capital when faced with the need for aggressive customer acquisition. Investors should monitor whether these returns can stabilize at a higher level without a corresponding increase in the cost of student acquisition.
As reported in financial statements, STG's asset turnover remains low at 0.23, which highlights the company's reliance on a high-margin, low-asset-intensity model that nonetheless struggles to translate its digital infrastructure into consistent revenue growth across its core adult education service offerings.
The limited turnover suggests that the company's current asset base is not being fully utilized to drive top-line expansion, potentially due to market saturation in the STE segment. The lack of clear CCC data warrants further investigation into how effectively the company manages its deferred revenue float against rising operational costs.
According to recent SEC filings, STG has successfully reduced its debt-to-equity ratio to 0.15, signaling a shift toward a fortress-like balance sheet that provides a substantial buffer against the regulatory and operational risks inherent in the Chinese adult education sector.
The company's minimal debt load and high interest coverage ratio suggest that debt service is not a concern, allowing management significant flexibility in a challenging macro environment. However, this conservative stance may also imply that management lacks confidence in high-growth reinvestment opportunities, leading to the current accumulation of idle cash.
Based on an analysis of the business model, the P/E ratio is the most commonly misapplied metric for STG, as it obscures the significant impact of deferred revenue recognition and the company's substantial cash-heavy balance sheet on true economic value.
Because STG collects tuition upfront but recognizes it over long service periods, the P/E ratio fails to capture the underlying cash-generating momentum of the business. Analysts should instead focus on free cash flow and the change in deferred revenue to better understand the company's actual operational health and value.
Includes 30+ ratios · 11 years · Updated daily
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Quick answers to the most common questions about buying STG stock.
Sunlands Technology Group's current P/E ratio is 1.0x. The historical average is 0.2x. This places it at the 100th percentile of its historical range.
Sunlands Technology Group's current EV/EBITDA is -0.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 0.5x.
Sunlands Technology Group's return on equity (ROE) is 47.3%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 119.4%.
Based on historical data, Sunlands Technology Group is trading at a P/E of 1.0x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Sunlands Technology Group has 86.9% gross margin and 22.0% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Sunlands Technology Group's Debt/EBITDA ratio is 0.3x, indicating low leverage. A ratio below 2x is generally considered financially healthy.