Stock fact sheet · data as of
Sunlands Technology Group (STG): fair value, margin of safety and Wheel Score
Ticker symbol STG · Consumer Defensive · Education & Training Services · China · ADR · Value
STG is an American depositary share (ADR): the US listing of Sunlands Technology Group, whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.
Is STG undervalued?
STG has a margin of safety of 97%: the stock closed at 2.40 on 5 Nov 2026 against a GLS average fair value of 80.63. 8 of the 8 valuation models that produced a number sit above the price. Our scans treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
The 8 models disagree widely: Lynch gives 17.80 while GLS Growth gives 224.11. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, STG is clearly cheaper than it is fast-growing, so the nightly engine files it under Value (value score 97, growth score 56, out of 100).
Nine valuation models for STG
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 159.28 | +6537% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 28.72 | +1097% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 65.23 | +2618% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 17.80 | +642% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 224.11 | +9238% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 48.52 | +1922% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 60.72 | +2430% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 40.67 | +1595% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -1.97 | -182% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - STG passes 5 of the nine Piotroski tests, which falls one point short of the "Piotroski 6 or more" Wheel Trade Filter. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 6.0 out of 10: a record that is solid on some of the four parts the score weighs (returns on capital, pricing power, lasting growth, balance sheet) and weaker on others.
Returns on capital are high - ROIC 33.7%, ROE 38.7%, ROA 17.9% - with debt at 0.15 times equity and a free-cash-flow yield of 62.9%.
Sunlands Technology Group pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Sales of products 86%, Other Revenue 14% (fiscal year FY2025).
Institutional ownership scores 1/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 33.7% |
|---|---|---|---|
| GLS Moat | 6.0 / 10 | ROE | 38.7% |
| Debt / equity | 0.15 | ROA | 17.9% |
| Free-cash-flow yield | 62.9% | Payout ratio | 0% |
| Institutions | 1 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 31: No options
STG has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business. It fails the first Wheel Trade Filter (options that actually trade), so the score stays under 70 and is shown as "No options" (31 here). The valuation and quality numbers still apply to owning the shares outright.
Volume runs at 0k shares a day on a market cap of $34M, with a beta of 1.56 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that weak.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | no listed options |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 5/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Fails | no implied volatility |
| 8 | Big enough | Fails | market cap $34M (under $1.0B) |
| 9 | Not a penny stock | Fails | price 2.40 (under $5) |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 97% below fair value | |
| Premium | Weak | no option data | |
| Moat | Good | moat 6.0/10 | |
| Health | Fair | Piotroski 5/9 | |
| Red Flags | Fair | not scored yet - half marks | |
| Option trading | Weak | no option volume data | |
| Stability | Weak | beta 1.56, $34M company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 25 Nov 2026, 20 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Education & Training Services
The 12 companies below are the closest to Sunlands Technology Group by market cap within the Education & Training Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| YQ 17 Education & Technology Group Inc. | 3.01 | 5.87 | +49% | 35Weak | $29M |
| SKIL Skillsoft Corp. | 4.65 | 22.39 | +79% | 26No options | $42M |
| GNS Genius Group Limited | 0.1150 | 2.94 | +96% | 20No options | $22M |
| COE 51Talk Online Education Group | 11.28 | 2,033.37 | +99% | 28No options | $67M |
| CHGG Chegg, Inc. | 0.6397 | 0.4820 | -33% | 11Weak | $71M |
| YOUL Youlife Group Inc. | 0.1884 | 4.30 | +96% | 29No options | $15M |
| EDTK Skillful Craftsman Education Technology Limited | 0.9117 | - | - | 11No options | $15M |
| IH iHuman Inc. | 1.14 | 9.91 | +88% | 30No options | $12M |
| LGCY Legacy Education Inc. | 9.22 | 16.59 | +44% | 33No options | $118M |
| AACG ATA Creativity Global | 0.6100 | 0.5582 | -9% | 12No options | $10M |
| EXDW Exceed World, Inc. | 0.2925 | 0.1688 | -73% | 11No options | $10M |
| ASPU Aspen Group, Inc. | 0.2200 | 4.59 | +95% | 27No options | $7M |
⚖ Compare STG with 7 of them All Consumer Defensive stocks →
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Start free See the Sunday ScanQuestions about STG
Is STG undervalued right now?
By the GLS models, yes: at 2.40 the stock is 97% below the average fair value of 80.63 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of STG and what does it mean?
STG has no listed options in our nightly snapshot, so it cannot be wheeled; it fails the first Wheel Trade Filter (options that actually trade), stays under 70 and is shown as "No options".
What is the GLS fair value for STG?
80.63 per share as of 5 Nov 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Sunlands Technology Group report earnings next?
The next earnings report is due on 25 Nov 2026, 20 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does STG have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on STG, so the wheel strategy cannot be run on it and the Wheel Score stays under 70.
Is STG an ADR?
Yes. STG is an American depositary share (ADR): the US listing of Sunlands Technology Group, whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.