Stock fact sheet · data as of
Sunlands Technology Group (STG): fair value, margin of safety and Wheel Score
Consumer Defensive · Education & Training Services · China · ADR · Value
Is STG undervalued?
STG has a margin of safety of 99%: the stock closed at 2.61 on 16 Oct 2026 against a GLS average fair value of 189.57. 8 of the 8 valuation models that produced a number sit above the price. Our screens 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 17.74 while Graham Number gives 421.17. 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.
The nightly engine files STG under Value: positive earnings at a P/E of 18 or less.
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 | 154.66 | +5826% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 421.17 | +16037% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 65.01 | +2391% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 17.74 | +580% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 223.37 | +8458% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 232.84 | +8821% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 361.19 | +13739% | 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 | 40.54 | +1453% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -13.82 | -630% | 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 Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 5.5 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in 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 60.8%.
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 | 5.5 / 10 | ROE | 38.7% |
| Debt / equity | 0.15 | ROA | 17.9% |
| Free-cash-flow yield | 60.8% | Payout ratio | 0% |
| Institutions | 1 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 39: 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; the Wheel Score is capped at 39 and shown as "No options" (39 here). The valuation and quality numbers still apply to owning the shares outright.
Volume runs at 9k shares a day on a market cap of $35M, with a beta of 1.48 - 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 gives that 5 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 99% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 8 / 15 | moat 5.5/10 | |
| Premium | 0 / 20 | no option data | |
| Stability | 5 / 20 | 9k shares/day, $35M cap, beta 1.48 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 25 Nov 2026, 40 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. | 3.48 | 30.51 | +89% | 45Weak | $34M |
| GNS Genius Group Limited | 0.1373 | 2.94 | +95% | 38No options | $26M |
| YOUL Youlife Group Inc. | 0.2997 | 6.09 | +95% | 37No options | $24M |
| SKIL Skillsoft Corp. | 5.67 | 22.39 | +75% | 39No options | $52M |
| COE 51Talk Online Education Group | 11.70 | 2,033.37 | +99% | 39No options | $69M |
| EDTK Skillful Craftsman Education Technology Limited | 0.9301 | - | - | 25No options | $15M |
| CHGG Chegg, Inc. | 0.7598 | 1.36 | +44% | 45Weak | $84M |
| IH iHuman Inc. | 1.15 | 19.95 | +94% | 39No options | $12M |
| AACG ATA Creativity Global | 0.6330 | 3.94 | +84% | 39No options | $10M |
| EXDW Exceed World, Inc. | 0.2925 | 0.1692 | -73% | 5No options | $10M |
| LGCY Legacy Education Inc. | 10.35 | 16.51 | +37% | 39No options | $133M |
| ASPU Aspen Group, Inc. | 0.2750 | 4.47 | +94% | 39No options | $9M |
⚖ 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 2.61 the stock is 99% below the average fair value of 189.57 (data as of 16 Oct 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; its Wheel Score is capped at 39 and shown as "No options".
What is the GLS fair value for STG?
189.57 per share as of 16 Oct 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, 40 days from the data date of 16 Oct 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 is capped at 39.