Wah Fu Education Group (WAFU) AI Stock Analysis

• Market Cap: $6.79M
• Dividend Yield: N/A
• Average Volume (3M): 4.70M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: -28.27%
• EPS Growth: -409.38%
• Country: US
• Employees: 122
• Sector: Consumer Defensive
• Sector Strength: 78
• Industry: Education & Training Services
• EPS (TTM): -0.19
• Shares Outstanding: 4,410,559
• 10 Day Avg. Volume: 66,029
• 30 Day Avg. Volume: 4,697,696
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.97
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Wah Fu Education Group faces significant challenges with declining revenue and profitability, impacting its financial performance score. Technical analysis indicates a mixed outlook, with some short-term weaknesses but potential long-term support. The negative P/E ratio and lack of dividend yield pose valuation concerns. Overall, the stock score reflects these substantial risks and uncertainties.

Wah Fu Education Group Business Overview & Revenue Model

Company Description

Wah Fu Education Group (WAFU) is a technology-driven education company based in China, focusing on providing online education services and technology solutions. The company specializes in offering educational content and platforms for both higher education institutions and private customers. Wah Fu's core products include online learning modules, educational cloud services, and comprehensive software solutions aimed at enhancing learning experiences and institutional efficiency.

How the Company Makes Money

Wah Fu Education Group generates revenue primarily through the sale of its online education services and technology solutions. Key revenue streams include fees from educational institutions for deploying and maintaining their customized e-learning platforms and software. The company also earns income from individual learners who subscribe to their online courses and educational content. Additionally, Wah Fu capitalizes on partnerships with educational institutions to expand its service offerings and customer base, which further contributes to its earnings.

Wah Fu Education Group Financial Statement Overview

Summary

Wah Fu Education Group exhibits concerning financial performance with declining revenues and profitability, coupled with negative cash flow trends. Despite a strong equity position and low debt, the company's operational and cash flow challenges need addressing to improve financial health and sustainability.

Income Statement

The income statement reveals significant challenges, with declining revenue and profitability. The company experienced a substantial revenue decline of 32.43% from the previous year, leading to negative EBIT and EBITDA margins in the most recent period. Gross profit margin fell to 41.40%, and net profit margin turned negative at -0.77%, indicating struggles in maintaining operational efficiency and profitability.

Balance Sheet

The balance sheet shows a relatively strong equity position, with an equity ratio of 69.00%. The debt-to-equity ratio is low at 0.03, indicating minimal leverage, which reduces financial risk. However, the return on equity has turned negative, reflecting the company's inability to generate positive returns from its equity base in the latest period.

Cash Flow

Cash flow analysis indicates negative trends, with a decline in operating cash flow and free cash flow turning negative. The operating cash flow to net income ratio is unfavorable due to negative net income, and free cash flow growth has reversed, indicating potential liquidity challenges and inefficiencies in cash generation.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
6.37M	7.22M	10.69M	11.47M	8.52M	5.64M
	Gross Profit
2.51M	2.99M	5.69M	5.46M	4.52M	2.25M
	EBIT
-1.08M	-240.52K	2.01M	1.04M	1.09M	-1.57M
	EBITDA
-952.39K	106.27K	2.42M	1.04M	1.29M	-1.41M
	Net Income Common Stockholders
-1.11M	-55.29K	905.89K	743.13K	1.02M	-1.64M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.60M	11.05M	12.57M	11.76M	12.05M	6.83M
	Total Assets
7.29M	16.16M	17.54M	18.00M	16.97M	12.57M
	Total Debt
0.00	333.26K	413.44K	142.53K	362.47K	615.93K
	Net Debt
-5.60M	-10.71M	-12.15M	-11.62M	-11.69M	-6.22M
	Total Liabilities
1.04M	4.00M	4.51M	5.99M	6.16M	3.27M
	Stockholders Equity
6.15M	11.15M	11.70M	11.22M	10.20M	9.06M
Cash Flow		Free Cash Flow
-1.96M	-862.33K	1.58M	1.04M	2.25M	862.48K
	Operating Cash Flow
-1.86M	-767.31K	1.61M	1.08M	2.33M	937.52K
	Investing Cash Flow
-500.05K	-231.44K	36.88K	-1.68M	2.36M	-2.62M
	Financing Cash Flow
0.00	0.00	0.00	-17.66K	11.31K	4.85M

Wah Fu Education Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WAFU, the sentiment is Negative. The current price of 1.54 is below the 20-day moving average (MA) of 1.63, below the 50-day MA of 1.81, and below the 200-day MA of 1.79, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 46.12 is Neutral, neither overbought nor oversold. The STOCH value of 41.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WAFU.

Wah Fu Education Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LRN	79 Outperform	$5.68B	20.90	22.95%	―	13.13%	56.75%
LOPE	72 Outperform	$5.03B	21.61	30.13%	―	7.50%	13.70%
APEI	68 Neutral	$404.18M	40.44	5.41%	―	4.00%	―
STRA	68 Neutral	$2.03B	17.62	6.80%	2.92%	7.68%	61.28%
Sector *	63 Neutral	$20.94B	14.39	-10.05%	3.13%	1.25%	3.11%
AMBO	51 Neutral	$8.18M	―	-49.39%	―	―	―
WAFU	48 Neutral	$6.79M	―	-7.52%	―	-28.27%	-409.38%