Stock fact sheet · data as of
17 Education & Technology Group Inc. (YQ): fair value, margin of safety and Wheel Score
Ticker symbol YQ · Consumer Defensive · Education & Training Services · China · ADR · Speculative
YQ is an American depositary share (ADR): the US listing of 17 Education & Technology Group Inc., 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 YQ undervalued?
17 Education & Technology Group Inc. (YQ) closed at 3.01 on 5 Nov 2026. The GLS average fair value - the simple average of the 2 valuation models that produced a positive number - is 5.87, which puts the price 49% below it. 1 of the 2 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
Only 2 of the nine models produced a value (DCF, 10 Cap); the others need a dividend, positive free cash flow or positive book value the company does not have yet, so the average rests on a narrow base.
The nightly engine files YQ under Speculative - it is losing money or its Piotroski health score is 3 or lower - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.
Nine valuation models for YQ
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 | 2.69 | -11% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | - | - | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields; no value tonight |
| Lynch | - | - | EPS × the earnings growth rate (PEG of 1), growth capped at 25%; no value tonight |
| GLS Growth | - | - | EPS compounded ten years at the blended growth rate, discounted back at 15% a year; no value tonight |
| 10 Cap | 9.05 | +201% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | - | - | Earnings power value: current EPS capitalised at 9% with no growth; no value tonight |
| Zombie (liquidation) | 3.82 | +27% | 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 weak: YQ passes 4 of the nine Piotroski tests. Our scans drop the stock at the health filter; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is low at 2.1 out of 10: returns on capital, margins or the balance sheet have not shown a lasting edge yet - often a young company, a thin-margin business or one that has only recently turned profitable.
Returns on capital are thin or negative - ROIC -49.8%, ROE -52.4%, ROA -25.4% - with debt at 0.05 times equity and a free-cash-flow yield of 15.2%.
17 Education & Technology Group Inc. 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 Service 80%, Net Product Revenues 20% (fiscal year FY2025).
Institutional ownership scores 5/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 4 / 9 | ROIC | -49.8% |
|---|---|---|---|
| GLS Moat | 2.1 / 10 | ROE | -52.4% |
| Debt / equity | 0.05 | ROA | -25.4% |
| Free-cash-flow yield | 15.2% | Payout ratio | 0% |
| Institutions | 5 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 35: Weak
YQ scores 35 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 1, options that actually trade - options too quiet (24 open interest, 12 a day); and filter 2, a real business, not a gamble - speculative (a loss, or a weak Piotroski score); and filter 4, financially healthy - Piotroski 4/9 (under 6); and filter 7, a premium worth selling - implied volatility 100% (over 80%); and filter 8, big enough - market cap $29M (under $1.0B); and filter 9, not a penny stock - price 3.01 (under $5), and the parts are thin too - value strong, premium weak, moat weak, health fair, red flags strong, option trading weak, stability fair. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 100%, above the 80% ceiling of the Wheel Trade Filter on premium. The premium looks generous, but moves of that size can blow through any strike. Chain open interest is thin - 24 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 16k shares a day on a market cap of $29M, with a beta of 1.01; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | options too quiet (24 open interest, 12 a day) |
| 2 | A real business, not a gamble | Fails | speculative (a loss, or a weak Piotroski score) |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 4/9 (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 | implied volatility 100% (over 80%) |
| 8 | Big enough | Fails | market cap $29M (under $1.0B) |
| 9 | Not a penny stock | Fails | price 3.01 (under $5) |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 49% below fair value | |
| Premium | Weak | implied volatility 100% | |
| Moat | Weak | moat 2.1/10 | |
| Health | Fair | Piotroski 4/9 | |
| Red Flags | Strong | Red Flags score 100/100 | |
| Option trading | Weak | 12 contracts a day, 24 open interest | |
| Stability | Fair | beta 1.01, $29M 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 8 Dec 2026 (after the close), 33 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
No analyst upgrades or downgrades were recorded in the last 30 days.
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 17 Education & Technology Group Inc. 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 |
|---|---|---|---|---|---|
| STG Sunlands Technology Group | 2.40 | 80.63 | +97% | 31No options | $34M |
| GNS Genius Group Limited | 0.1150 | 2.94 | +96% | 20No options | $22M |
| SKIL Skillsoft Corp. | 4.65 | 22.39 | +79% | 26No options | $42M |
| YOUL Youlife Group Inc. | 0.1884 | 4.30 | +96% | 29No options | $15M |
| EDTK Skillful Craftsman Education Technology Limited | 0.9117 | - | - | 11No options | $15M |
| COE 51Talk Online Education Group | 11.28 | 2,033.37 | +99% | 28No options | $67M |
| CHGG Chegg, Inc. | 0.6397 | 0.4820 | -33% | 11Weak | $71M |
| IH iHuman Inc. | 1.14 | 9.91 | +88% | 30No options | $12M |
| AACG ATA Creativity Global | 0.6100 | 0.5582 | -9% | 12No options | $10M |
| EXDW Exceed World, Inc. | 0.2925 | 0.1688 | -73% | 11No options | $10M |
| LGCY Legacy Education Inc. | 9.22 | 16.59 | +44% | 33No options | $118M |
| ASPU Aspen Group, Inc. | 0.2200 | 4.59 | +95% | 27No options | $7M |
Scan the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about YQ
Is YQ undervalued right now?
By the GLS models, yes: at 3.01 the stock is 49% below the average fair value of 5.87 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of YQ and what does it mean?
YQ scores 35 out of 100 (Weak) - it fails Wheel Trade Filters 1, 2, 4, 7, 8, 9. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for YQ?
5.87 per share as of 5 Nov 2026 - the simple average of the 2 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 17 Education & Technology Group Inc. report earnings next?
The next earnings report is due on 8 Dec 2026 (after the close), 33 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does YQ have listed options, and how liquid are they?
Yes. The nightly snapshot found 4 listed contracts with 24 open interest across all expiries and implied volatility of 100% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.
Is YQ an ADR?
Yes. YQ is an American depositary share (ADR): the US listing of 17 Education & Technology Group Inc., 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.