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Sunlands Technology

STG
58
Education & Training Services · Consumer Defensive
Price
$3.76
-0.05 (-1.31%)
Market Cap
$50.5M
Exchange
New York Stock Exchange
Winston Score
58
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Jul 25, 2026 · filings through Mar 31, 2026

Sunlands Technology Group, operating through its various divisions, delivers online educational services throughout the People's Republic of China. The company specializes in post-secondary academic programs, including comprehensive preparation for the Self-Taught Higher Education Examination (STE) — a pathway for students seeking associate diplomas or bachelor's degrees — as well as training for Master of Business Administration (MBA) entrance exams. Its extensive STE course offerings span numerous disciplines, such as Chinese language and literature, legal studies, pre-school education, marketing, English, human resource management, various business administration and management fields (including modern corporate governance, financial management), advertising, accounting, administrative management, computer information management, finance, convention management, chain operation management, and visual communication and design. In addition to academic degrees, Sunlands also facilitates career development through professional certification preparation courses in diverse sectors like accounting, human resources, teaching, and finance. Established in 2003, the enterprise was formerly known as Sunlands Online Education Group before adopting its current name, Sunlands Technology Group, in August 2018. Its main offices are located in Beijing, China.

Winston Score History

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-9.6% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+3.2% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

$30M/ year

Rising (+18% vs prior year)

1.5% of revenue

Below sector average (2%)

R&D investment increasing — building for the future

Cash Position

Cash flow positive

$1.1B cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Sunlands Technology's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

+0.1% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 13.5M (2021) → 13.5M (2025)

Score breakdown

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Quality

Gross Margin
86.5%
Premium pricing power — 86.5% gross margin
Operating Margin
22.0%
Excellent — 22.0% operating margin
ROCE
9.6%
Below par — 9.6% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY
+0.9%
Nearly flat sales (0.9% YoY)
EPS YoY
+21.8%
Earnings growing fast (21.8% YoY)

Healthy double-digit earnings growth — what compounders look like.

EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion
39%
Weak — only 39% of profit becomes cash
FCF Margin
7.2%
Modest free cash flow (7.2%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
N/A
Data not available
Interest Cover
1049.73x
Comfortably covers interest (1049.7x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
0.1x
Attractive valuation — P/E 0.1

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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