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

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Four Seasons Education (Cayman)

(NYSE:FEDU)

Select Model

Rating:63Neutral

Price Target:$9.00▲(5.88% Upside)

Action:downgraded

Date:11/06/26

FEDU’s score is driven mainly by improving financial performance supported by a solid balance sheet, partially offset by uneven cash-flow conversion. Valuation is a clear positive due to the extremely low P/E. Technicals are the primary near-term risk, with the stock trading below key moving averages and negative MACD indicating weak momentum.

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: $1.92M
Dividend Yield: ―
Average Volume (3M): 6,998
Price to Earnings (P/E): 0.5
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

Financials show a real recovery: revenue rebounded strongly after the 2023 trough and net profit improved markedly by 2026. The balance sheet is a major support with sizeable equity and manageable leverage, though debt has risen. The main drag is cash-flow quality—free cash flow was meaningfully negative in 2024–2025 and only turned positive in 2026, indicating inconsistent cash conversion.

Income Statement

62Positive

Balance Sheet

78Positive

Cash Flow

48Neutral

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 SentimentNegative

Last Price8.50

Price Trends

50DMA10.01Negative

100DMA9.62Negative

200DMA9.88Negative

Market Momentum

MACD-0.20Positive

RSI39.56Neutral

STOCH17.34Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FEDU, the sentiment is Negative. The current price of 8.50 is below the 20-day moving average (MA) of 10.39, below the 50-day MA of 10.01, and below the 200-day MA of 9.88, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 39.56 is Neutral, neither overbought nor oversold. The STOCH value of 17.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
TAL	73Outperform	$4.77B	2.53	19.00%	―	25.56%	350.25%
EDU	72Outperform	$7.20B	16.36	12.52%	2.22%	20.74%	41.78%
YQ	66Neutral	$32.64M	-1.68	-39.66%	―	80.33%	31.05%
GOTU	65Neutral	$552.38M	-16.55	-26.92%	―	24.86%	48.69%
FEDU	63Neutral	$21.05M	0.55	10.65%	―	2.34%	3245.03%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
COE	45Neutral	$67.50M	-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	8.50	-5.25	-38.18%
EDU	New Oriental Education & Technology	53.96	0.71	1.34%
COE	China Online Education Group	11.22	-33.82	-75.09%
TAL	TAL Education	10.19	-1.55	-13.20%
GOTU	Gaotu Techedu Inc.	2.27	-0.44	-16.24%
YQ	17 Education & Technology Group, Inc.	2.74	-2.23	-44.87%

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: Nov 05, 2026

Four Seasons Education (Cayman) AI Stock Analysis