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Sunlands Technology Group has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Good Sign:
Sunlands Technology Group shows strong financial strength.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
GuruFocus does not calculate Sunlands Technology Group's interest coverage with the available data.
Sunlands Technology Group's debt to revenue ratio for the quarter that ended in Mar. 2026 was 0.07.
As of today, Sunlands Technology Group's Altman Z-Score is 1.09.
Sunlands Technology Group (NYSE:STG) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Sunlands Technology Group has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Sunlands Technology Group Financial Strength Related Terms
STG vs SKIL, RYET, AACG: Financial Strength Comparison
For the Education & Training Services subindustry, Sunlands Technology Group's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sunlands Technology Group Financial Strength vs Education Industry
For the Education industry and Consumer Defensive sector, Sunlands Technology Group's Financial Strength distribution charts can be found below:
* The bar in red indicates where Sunlands Technology Group's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Sunlands Technology Group has enough cash to cover all of its debt. Its financial situation is stable.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Sunlands Technology Group has a Z-score of 1.09, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 1.09 is in distress zone. This implies bankruptcy possibility in the next two years.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Sunlands Technology Group (STG) has a Financial Strength of 8 as of Mar. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Sunlands Technology Group and its competitors. This is 33% above median its historical median of 6.00. Over the past decade, Sunlands Technology Group's Financial Strength has ranged from 3.00 to 8.00.
Is Sunlands Technology Group's Financial Strength too high?
Sunlands Technology Group's current Financial Strength of 8 is 33% above median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 8.00. Overall, Sunlands Technology Group has a GF Score™ of 55/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sunlands Technology Group's Financial Strength compare to SKIL and RYET?
Sunlands Technology Group's Financial Strength of 8 can be compared against companies in the Education industry. Historically, Sunlands Technology Group's own Financial Strength has ranged from 3.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Education company?
A good Financial Strength depends on the Education industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Sunlands Technology Group and its competitors. Sunlands Technology Group's current Financial Strength is 8, which is 33% above median its own 10-year median of 6.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sunlands Technology Group stock overvalued right now?
Based on GuruFocus' analysis, Sunlands Technology Group (STG) is currently considered Possible Value Trap. The stock's GF Value™ is $6.18, compared to a current price of $3.29 — trading 46.8% below its estimated fair value. The current Financial Strength is 8, which is 33% above median its 10-year median of 6.00. Sunlands Technology Group's overall GF Score™ is 55/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Sunlands Technology Group (STG), the current Financial Strength is 8 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sunlands Technology Group (STG) Overvalued in 2026?
Based on GuruFocus' analysis, Sunlands Technology Group stock appears to be undervalued.
The current stock price of $3.29 is trading 46.8% below its estimated GF Value™ of $6.18.
GuruFocus considers Sunlands Technology Group to be Possible Value Trap.
Key valuation signals for STG:
Financial Strength: 8 (33% above median its 10-year median of 6.00)
GF Value™: $6.18 vs. price of $3.29 (46.8% below fair value)
No single metric tells the full story. See the STG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sunlands Technology Group operates in China's adult online education market and adult personal interest learning market through its online platforms. The Group has a deep understanding of the educational needs of its prospective students and offers solutions to help them achieve their goals. It provides online professional courses and educational content, including interest, professional skills, professional certification preparation courses, and degree- or diploma-oriented post-secondary courses. The Group adopts a counseling-oriented sales and marketing approach to offer education solutions based on students' backgrounds and goals, delivering adult online education and personal interest learning through extensive course and content offerings.
55GF Score
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