Sunlands Technology GroupSTG -9.31%63 ROE % is 31.81% as of Mar. 2026, which is 49% below its 10-year median of 62.65. GuruFocus rates STG with a GF Score™ of 63/100 and a GF Value™ of $6.22 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 263 Education companies, Sunlands Technology Group ranks better than 95.06% on this metric.
The historical rank and industry rank for Sunlands Technology Group's ROE % or its related term are showing as below:
STG'
s ROE % Range Over the Past 10 Years
Min: 42.46 Med: 62.65 Max: 77.41
Current: 42.46
During the past 11 years, Sunlands Technology Group's highest ROE % was 77.41%. The lowest was 42.46%. And the median was 62.65%.
STG's ROE % is ranked better than 95.06% of 263
companies
in the Education industry
Industry Median: 7.31
vs STG: 42.46
Sunlands Technology Group (NYSE:STG) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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.
For the Education & Training Services subindustry, Sunlands Technology Group's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Education Industry
For the Education industry and Consumer Defensive sector, Sunlands Technology Group's ROE % distribution charts can be found below:
* The bar in red indicates where Sunlands Technology Group's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Sunlands Technology Group (STG) has a ROE % of 31.81% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Sunlands Technology Group and its competitors. This is 49% below median its historical median of 62.65. Over the past decade, Sunlands Technology Group's ROE % has ranged from 42.46 to 77.41. According to the industry distribution chart, Sunlands Technology Group ranks #13 out of 263 companies in the Education industry, placing it in the top 4.9%.
Is Sunlands Technology Group's ROE % too high?
Sunlands Technology Group's current ROE % of 31.81% is 49% below median its 10-year median of 62.65. Over the past 10 years, this metric has ranged from a low of 42.46 to a high of 77.41. The Education industry median ROE % is 7.31. Sunlands Technology Group's value of 31.81% is 335.2% above this industry median. Based on the distribution chart, Sunlands Technology Group ranks #13 out of 263 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 ROE % compare to JDZG and SKIL?
According to the Education industry distribution chart, Sunlands Technology Group ranks #13 out of 263 companies for ROE %. This places Sunlands Technology Group in the top 5% of its industry — outperforming the majority of peers. The industry median ROE % is 7.31. Sunlands Technology Group's value of 31.81% is 335.2% above this benchmark. Historically, Sunlands Technology Group's own ROE % has ranged from 42.46 to 77.41 over the past decade. While the company's 10-year median is 62.65 vs. the industry median of 7.31, 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 ROE % for an Education company?
The median ROE % among Education companies is 7.31, based on 263 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sunlands Technology Group's current ROE % of 31.81% is 335.2% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Sunlands Technology Group and its competitors. For the Education industry, the median ROE % is 7.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sunlands Technology Group's current ROE % is 31.81%, which is 49% below median its own 10-year median of 62.65. 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 $6.22, compared to a current price of $4.09 — trading 34.2% below its estimated fair value. The current ROE % is 31.81%, which is 49% below median its 10-year median of 62.65 and 335.2% above the Education industry median of 7.31. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Sunlands Technology Group (STG), the current ROE % is 31.81% 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 $4.09 is trading 34.2% below its estimated GF Value™ of $6.22.
GuruFocus considers Sunlands Technology Group to be Possible Value Trap.
Key valuation signals for STG:
ROE %: 31.81% (49% below median its 10-year median of 62.65)
GF Value™: $6.22 vs. price of $4.09 (34.2% below fair value)
Industry Position: 335.2% above the Education median (#13 of 263)
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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