One-glance verdict
Undervalued
$16.69 our estimate vs market $1.49
91% below our estimate, below the bear case
Fundamentals snapshot
Wah Fu Education Group Limited
WAFU · NCM · Consumer Defensive · Education & Training Services
Current price
$1.49
52-week range
$1.22 - $3.06
Market cap
$6.57M
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 Group Limited
Wah Fu Education Group is an online education company in China that creates digital learning platforms and test-preparation courses. The company makes money by selling these online tools to institutions like universities and government agencies, and also directly to students. This is important because it gives the company two different ways to earn revenue (the total money brought in from sales), from large contracts with organizations as well as from a broad base of individual customers.
How the company got here
Founded in 1999, Wah Fu Education Group has its roots in providing online education services in China. The company has focused on adult and continuing education, establishing itself in areas like self-study exam preparation. Over the years, it has built a reputation in China's distance learning sector for adults. More recently, the company has been making a significant push into artificial intelligence (AI) to create smarter and more digital education models.
What it actually does
Wah Fu Education Group provides online learning and exam preparation services in China. Think of it as a company that builds and manages the technology and course materials for online learning. They work with universities and other institutions to create online education platforms, and they also offer courses directly to students who want to prepare for exams or earn college credits. Their services cover everything from developing the online courses to maintaining the technology that delivers them.
Online Education Services
This is a major part of Wah Fu's business, where they provide online training and exam preparation directly to individual students. Students pay a fee to access these services, which might include courses for self-study higher education exams or other non-degree training. This segment functions much like an online school, where the students are the direct customers.
Technological Development and Operation Service
In this part of the business, Wah Fu works with other organizations like universities, training institutions, and even government agencies. Instead of teaching students directly, they develop and maintain the online education platforms and courses for these clients. These institutions pay Wah Fu for their technology and expertise to help them offer their own online learning programs. This is a significant business-to-business (a model where businesses sell to other businesses) operation for the company.
What management is betting on now
The company is heavily focused on integrating Artificial Intelligence (AI) into its educational services. They are developing an "AI Ecosystem" with the goal of creating more intelligent and digital learning solutions. This includes creating AI-powered teaching platforms and customized AI models for different educational fields like agriculture and medicine. By securing government recognition and potential subsidies (financial assistance from the government) for their AI projects, they are aiming to expand their business into adult education and digital training with this new technology.
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 $16.69 vs current price $1.49
Our most-likely fair value is $16.69 a share — about 1,019.8% above today's price of $1.49, 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 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 Group Limited
Total debt $555.01K Interest coverage -10.93x This is the baseline the peer rows are being compared against.
Total debt $14.15M 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 $15.96M Interest coverage 1.15x This peer still has a real interest-payment cushion, while WAFU does not.
Total debt $23.59M 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)
—
Forward P/E
—
P/B
0.61x
P/S
1.03x
EV/EBITDA
0.81x
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
—
Payout ratio
0.0%
Last ex-div date
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