Four Seasons Education (Cayman) (FEDU) AI Stock Analysis

Four Seasons Education (Cayman)

(NYSE:FEDU)

Select Model

Rating:73Outperform

Price Target:$13.00▲(53.12% Upside)

Action:reiterated

Date:10/29/26

The stock's recovery is underpinned by a strong balance sheet and a return to profitability, though earnings quality and slowing revenue growth are key risks. The extremely low P/E ratio signals significant undervaluation, while the technical trend is positive but shows signs of near-term consolidation. Overall, the company's financial stabilization and attractive valuation drive the score.

Positive Factors

Revenue RecoveryThe sharp revenue rebound indicates that the company regained operating scale after its 2023 trough. If maintained, renewed top-line momentum can support broader cost absorption, strengthen the earnings base, and provide a foundation for more durable profitability over the next several quarters.

Negative Factors

Uneven Cash ConversionThe recent return to positive free cash flow is encouraging, but the preceding two years of meaningful outflows show that accounting profits have not converted consistently into cash. Continued volatility could constrain self-funded growth and reduce flexibility during weaker operating periods.

Four Seasons Education (Cayman) (FEDU) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $2.30M
Dividend Yield: ―
Average Volume (3M): 5,513
Price to Earnings (P/E): 0.7
Beta (1Y): 0.18
Revenue Growth: 2.34%
EPS Growth: 3245.03%
Country: US
Employees: 271
Sector: Consumer Defensive
Sector Strength: 62
Industry: Education & Training Services

Four Seasons Education (Cayman) Business Overview & Revenue Model

Company Description

Four Seasons Education (Cayman) Inc. offers supplemental academic instruction for students ranging from kindergarten to middle school across the People's Republic of China. Furthermore, the firm provides advisory services. Established in 2007, its ma...

Four Seasons Education (Cayman) Financial Statement Overview

Summary

Financial recovery is underway with a return to profitability and positive cash flow. The balance sheet is solid with low leverage (debt-to-equity 0.23). However, gross margins remain compressed, revenue growth has slowed to 1.3%, and net income relies on non-operating items, indicating earnings quality needs monitoring.

Income Statement

65Positive

Balance Sheet

80Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	254.44M	254.44M	251.08M	125.44M	34.22M	250.22M
Gross Profit	65.65M	65.65M	47.13M	45.49M	14.29M	100.61M
EBITDA	24.75M	24.75M	-2.33M	-515.00K	-30.66M	5.74M
Net Income	51.30M	30.79M	801.00K	4.96M	-29.67M	-113.46M
Balance Sheet
Total Assets	739.50M	739.50M	731.14M	674.16M	601.04M	602.53M
Cash, Cash Equivalents and Short-Term Investments	231.39M	231.39M	266.21M	296.04M	491.87M	508.43M
Total Debt	106.80M	106.80M	98.30M	42.88M	4.01M	9.65M
Total Liabilities	224.72M	224.72M	225.99M	148.02M	89.15M	100.04M
Stockholders Equity	473.63M	473.63M	454.61M	475.00M	457.73M	445.94M
Cash Flow
Free Cash Flow	0	23.12M	-37.24M	-40.06M	-34.15M	-101.20M
Operating Cash Flow	0	30.03M	20.00M	16.56M	-25.49M	-91.32M
Investing Cash Flow	0	-108.08M	2.52M	71.48M	-96.70M	4.30M
Financing Cash Flow	0	9.06M	12.37M	41.27M	-838.00K	-25.55M

Four Seasons Education (Cayman) Technical Analysis

Technical Analysis SentimentNeutral

Last Price8.49

Price Trends

50DMA10.03Positive

100DMA9.66Positive

200DMA9.90Positive

Market Momentum

MACD0.08Positive

RSI49.12Neutral

STOCH23.02Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FEDU, the sentiment is Neutral. The current price of 8.49 is below the 20-day moving average (MA) of 10.57, below the 50-day MA of 10.03, and below the 200-day MA of 9.90, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 49.12 is Neutral, neither overbought nor oversold. The STOCH value of 23.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FEDU.

Four Seasons Education (Cayman) Risk Analysis

Four Seasons Education (Cayman) disclosed 64 risk factors in its most recent earnings report. Four Seasons Education (Cayman) reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Four Seasons Education (Cayman) Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

FEDU against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FEDU	73Outperform	$21.71M	0.65	10.65%	―	2.34%	3245.03%
TAL	72Outperform	$4.75B	2.50	19.00%	―	25.56%	350.25%
EDU	70Outperform	$6.84B	15.51	12.52%	2.43%	20.74%	41.78%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
YQ	55Neutral	$29.17M	-1.74	-39.66%	―	80.33%	31.05%
GOTU	54Neutral	$531.22M	-15.86	-26.92%	―	24.86%	48.69%
COE	45Neutral	$67.80M	-0.07	52.88%	―	74.92%	-149.51%

* Consumer Defensive Sector Average

Performance Comparison

FEDU and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
FEDU	Four Seasons Education	10.15	-4.34	-29.95%
EDU	New Oriental Education & Technology	49.38	-7.12	-12.61%
COE	China Online Education Group	11.15	-35.21	-75.95%
TAL	TAL Education	10.10	-1.55	-13.30%
GOTU	Gaotu Techedu Inc.	2.18	-0.60	-21.58%
YQ	17 Education & Technology Group, Inc.	2.83	-1.97	-41.04%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 29, 2026

Four Seasons Education (Cayman) AI Stock Analysis