One-glance verdict
Undervalued
$13.62 our estimate vs market $1.39
90% below our estimate, below the bear case
Fundamentals snapshot
Wah Fu Education & Technology Group Limited
WAFU · NCM · Consumer Defensive · Education & Training Services
Current price
$1.39
52-week range
$1.22 - $3.06
Market cap
$6.13M
Balance sheet
Healthy
-10.93x Concerning
Net cash $8.47M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 2.7% last year.
- Reward Free cash flow was positive in 5/10 years.
- Risk Operating margin compressed from 18.8% to -25.5% over 3 years.
- Risk Return on equity was -8.1% last year — the company lost money on shareholders' equity.
What this company does
Wah Fu Education & Technology Group Limited
Wah Fu Education & Technology Group Limited helps students in China prepare for exams online, offering platforms for universities and direct courses for individuals, which means their main income comes from selling educational services. This business model is important because it shows how they make money by providing valuable learning tools and preparing people for their tests.
How the company got here
Founded in 1999 and formerly known as Wah Fu Education Group Limited, Wah Fu Education & Technology Group Limited has evolved significantly in China's education sector. The company initially focused on providing online exam preparation services and related technology solutions. In October 2026, it officially changed its name to Wah Fu Education & Technology Group Limited to better reflect its strategic focus on integrating technology into its educational offerings and highlighting the independent growth of its technology segment. This rebranding signifies a commitment to building a technology-driven education ecosystem, leveraging its established education business as a foundation while fostering advancements in its technology segment.
What it actually does
Wah Fu Education & Technology Group Limited provides a range of online educational services and technology solutions primarily in China. The company offers online platforms for institutions like universities and training centers, as well as direct online training and exam preparation services for individual students. They also develop and maintain online education platforms and course materials for clients, including universities and government agencies.
Online Education Services
This segment is the primary revenue generator for Wah Fu. It encompasses two main areas: Business-to-Business-to-Customer (B2B2C) and Business-to-Customer (B2C) services. The B2B2C part involves providing online education platforms and cloud services to institutions such as universities and training organizations. The B2C part directly offers online training and exam preparation courses to individual students for a fee. This segment covers services for self-study examinations, continuing education, and non-diploma training programs.
Technological Development and Operation Service
This segment focuses on the research, development, and maintenance of online education platforms and related technology solutions. Wah Fu develops and maintains these platforms for its clients, which can include universities, government agencies, and private entities like publishers. The company also offers consulting, maintenance, and updating services for these online education programs, underscoring its role in providing the technological backbone for online learning.
What management is betting on now
Wah Fu's management is strategically focusing on integrating advanced technologies, such as artificial intelligence and big data, into its educational offerings to create 'smart-education' solutions. This includes expanding digital learning platforms and enhancing technology-enabled education services. The company aims to strengthen its position in the adult-oriented distance education sector by innovating in areas like higher-level self-taught examinations and continuing education informatization.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q4
$-976.47K
FY2026 Q4
$-1.44M
Revenue
$6.35M
Net income
$-1.11M
Diluted EPS
-0.25
Operating cash flow
$-1.39M
Free cash flow
$-1.44M
Fetching…
Sources
Revenue
$6.19M
Net income
$-465.30K
Diluted EPS
-0.11
Operating cash flow
$-965.59K
Free cash flow
$-976.47K
Fetching…
Sources
Is it cheap or expensive?
Fair value $13.62 vs current price $1.39
Our most-likely fair value is $13.62 a share — about 879.8% above today's price of $1.39, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $8.5M - more cash than debt. Interest coverage -10.9x.
Net debt
$-8.47M
Interest coverage
-10.93x
Wah Fu Education & Technology Group Limited's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
WAFU
BASELINE
Wah Fu Education & Technology Group Limited
Total debt $555.01K Interest coverage -10.93x This is the baseline the peer rows are being compared against.
Total debt $14.23M Interest coverage -10.53x Neither company has much profit cushion over interest right now.
Total debt $4.83M Interest coverage -6.17x Neither company has much profit cushion over interest right now.
Total debt $0.00 Interest coverage -420.85x Neither company has much profit cushion over interest right now.
Total debt $16.05M Interest coverage 1.15x This peer still has a real interest-payment cushion, while WAFU does not.
Total debt $26.15M Interest coverage 0.67x This peer still has a real interest-payment cushion, while WAFU does not.
What you should know
The case for and against WAFU
2 Rewards
2 Risks
Rewards
-
Revenue grew 2.7% last year.
-
Free cash flow was positive in 5/10 years.
Risks
-
Operating margin compressed from 18.8% to -25.5% over 3 years.
-
Return on equity was -8.1% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
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P/B
0.61x
P/S
0.96x
EV/EBITDA
1.36x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
29.4%
Operating margin
-25.5%
Net margin
-17.4%
ROE
-8.1%
ROA
-3.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.05x
Current ratio
4.12x
Quick ratio
3.50x
Total debt
$555.01K
Total cash
$9.02M
Growth
How the business has been compounding
Revenue TTM
$30.46M
Revenue 5Y CAGR
-13.7%
EPS TTM
-0.25
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-1.51M
Free CF TTM
$-1.44M
FCF margin
-4.7%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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