Sunlands Technology GroupSTG -2.97%63 Return-on-Tangible-Equity is 31.82% as of Mar. 2026, which is 49% below its 10-year median of 62.74. GuruFocus rates STG with a GF Score™ of 63/100 and a GF Value™ of $6.21 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 246 Education companies, Sunlands Technology Group ranks better than 81.3% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Sunlands Technology Group's annualized net income for the quarter that ended in Mar. 2026 was $44.6 Mil. Sunlands Technology Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $140.2 Mil. Therefore, Sunlands Technology Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 31.82%.
The historical rank and industry rank for Sunlands Technology Group's Return-on-Tangible-Equity or its related term are showing as below:
STG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 42.48 Med: 62.74 Max: 77.56
Current: 42.48
During the past 11 years, Sunlands Technology Group's highest Return-on-Tangible-Equity was 77.56%. The lowest was 42.48%. And the median was 62.74%.
STG's Return-on-Tangible-Equity is ranked better than 81.3% of 246
companies
in the Education industry
Industry Median: 11.395
vs STG: 42.48
Sunlands Technology Group (NYSE:STG) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Sunlands Technology Group Return-on-Tangible-Equity Related Terms
Sunlands Technology Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sunlands Technology Group's Return-on-Tangible-Equity can be seen below:
* 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 Return-on-Tangible-Equity Chart
STG vs SKIL, AACG, RYET: Return-on-Tangible-Equity Comparison
For the Education & Training Services subindustry, Sunlands Technology Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Education Industry
For the Education industry and Consumer Defensive sector, Sunlands Technology Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sunlands Technology Group's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 31.82% mean?
Sunlands Technology Group (STG) has a Return-on-Tangible-Equity of 31.82% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sunlands Technology Group and its competitors. This is 49% below median its historical median of 62.74. Over the past decade, Sunlands Technology Group's Return-on-Tangible-Equity has ranged from 42.48 to 77.56. According to the industry distribution chart, Sunlands Technology Group ranks #46 out of 246 companies in the Education industry, placing it in the top 18.7%.
Is Sunlands Technology Group's Return-on-Tangible-Equity too high?
Sunlands Technology Group's current Return-on-Tangible-Equity of 31.82% is 49% below median its 10-year median of 62.74. Over the past 10 years, this metric has ranged from a low of 42.48 to a high of 77.56. The Education industry median Return-on-Tangible-Equity is 11.40. Sunlands Technology Group's value of 31.82% is 179.2% above this industry median. Based on the distribution chart, Sunlands Technology Group ranks #46 out of 246 companies in the Education industry, which is in the top quartile — a strong position relative to peers. Overall, Sunlands Technology Group has a GF Score™ of 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sunlands Technology Group's Return-on-Tangible-Equity compare to SKIL and AACG?
According to the Education industry distribution chart, Sunlands Technology Group ranks #46 out of 246 companies for Return-on-Tangible-Equity. This places Sunlands Technology Group in the top 19% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.40. Sunlands Technology Group's value of 31.82% is 179.2% above this benchmark. Historically, Sunlands Technology Group's own Return-on-Tangible-Equity has ranged from 42.48 to 77.56 over the past decade. While the company's 10-year median is 62.74 vs. the industry median of 11.40, Sunlands Technology Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Education company?
The median Return-on-Tangible-Equity among Education companies is 11.40, based on 246 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sunlands Technology Group's current Return-on-Tangible-Equity of 31.82% is 179.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sunlands Technology Group and its competitors. For the Education industry, the median Return-on-Tangible-Equity is 11.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sunlands Technology Group's current Return-on-Tangible-Equity is 31.82%, which is 49% below median its own 10-year median of 62.74. 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 $6.21, compared to a current price of $3.92 — trading 36.9% below its estimated fair value. The current Return-on-Tangible-Equity is 31.82%, which is 49% below median its 10-year median of 62.74 and 179.2% above the Education industry median of 11.40. Sunlands Technology Group's overall GF Score™ is 63/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Sunlands Technology Group (STG), the current Return-on-Tangible-Equity is 31.82% 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 $3.92 is trading 36.9% below its estimated GF Value™ of $6.21.
GuruFocus considers Sunlands Technology Group to be Possible Value Trap.
Key valuation signals for STG:
Return-on-Tangible-Equity: 31.82% (49% below median its 10-year median of 62.74)
GF Value™: $6.21 vs. price of $3.92 (36.9% below fair value)
Industry Position: 179.2% above the Education median (#46 of 246)
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.
63GF Score
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