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Wah Fu Education Group (WAFU) AI Stock Analysis

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WAFU

Wah Fu Education Group

(NASDAQ:WAFU)

Select Model
Rating:49Neutral
Price Target:$2.00â–²(41.84% Upside)
Action:initiatedcoverage
Date:01/13/26

Weak financials and poor valuation dominate due to revenue decline, losses, and negative cash flow, partially offset by stable technicals and low debt.

Positive Factors
Conservative balance sheetVery low leverage and sizable equity materially lower solvency risk and give management time and optionality to execute turnaround measures. Over the next 2–6 months, the conservative capital structure supports liquidity and limits immediate refinancing pressure while strategic fixes are implemented.
Negative Factors
Deteriorating profitabilityA shift from consistent profits to multi-year losses signals structural pressure on margins and returns. Persisting net losses erode retained capital and limit reinvestment capacity, making recovery harder and increasing the risk that corrective actions may require significant time or external capital.

Wah Fu Education Group (WAFU) vs. SPDR S&P 500 ETF (SPY)

-20%-10%0%10%20%WAFU-12.42%SPY+11.79%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
$6.22M
Dividend Yield
―
Average Volume (3M)
1.54M
Price to Earnings (P/E)
-5.7
Beta (1Y)
0.60
Revenue Growth
2.71%
EPS Growth
-137.63%
Country
US
Employees
105
Sector
Consumer Defensive
Sector Strength
62
Industry
Education & Training Services

Wah Fu Education Group Business Overview & Revenue Model

Company Description

Wah Fu Education Group Limited, founded in 1999 and headquartered in Beijing, People's Republic of China, specializes in delivering online educational solutions within China, focusing primarily on digital examination preparation and associated techno...

Wah Fu Education Group Financial Statement Overview

Summary

Declining revenue, widening losses, and negative cash flow drag down the score despite a solid low-debt balance sheet.

Income Statement

35Negative

Balance Sheet

75Positive

Cash Flow

25Negative
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue6.35M6.35M6.19M7.22M10.69M11.47M
Gross Profit1.85M1.85M2.58M2.99M5.69M5.46M
EBITDA-712.35K-712.35K-67.86K106.27K2.42M1.22M
Net Income-1.11M-1.11M-465.30K-55.29K905.89K743.13K
Balance Sheet
Total Assets14.45M14.45M15.45M16.16M17.54M18.00M
Cash, Cash Equivalents and Short-Term Investments9.02M9.02M10.13M11.05M12.57M11.76M
Total Debt187.94K187.94K132.25K333.26K413.44K142.53K
Total Liabilities3.16M3.16M3.69M4.00M4.51M5.99M
Stockholders Equity10.03M10.03M10.70M11.15M11.70M11.22M
Cash Flow
Free Cash Flow-1.44M-1.44M-976.47K-862.33K1.58M1.04M
Operating Cash Flow-1.39M-1.39M-965.59K-767.31K1.61M1.08M
Investing Cash Flow-22.63K-22.63K-10.63K-231.44K36.88K-1.68M
Financing Cash Flow-124.90K-124.90K63.02K00-17.66K

Wah Fu Education Group Technical Analysis

Technical Analysis SentimentNegative
Last Price1.41

Price Trends

50DMA1.43Negative
100DMA1.49Negative
200DMA1.58Negative

Market Momentum

MACD-0.00Positive
RSI41.32Neutral
STOCH16.91Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WAFU, the sentiment is Negative. The current price of 1.41 is below the 20-day moving average (MA) of 1.47, below the 50-day MA of 1.43, and below the 200-day MA of 1.58, indicating a bearish trend. The MACD of -0.00 indicates Positive momentum. The RSI at 41.32 is Neutral, neither overbought nor oversold. The STOCH value of 16.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WAFU.

Wah Fu Education Group Risk Analysis

Wah Fu Education Group disclosed 66 risk factors in its most recent earnings report. Wah Fu Education Group reported the most risks in the "Legal & Regulatory" category.

Higher RiskSector Avg.Lower RiskFinance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

0 New Risks

Wah Fu Education Group Peers Comparison

Overall Rating

UnderperformOutperform
Sector (62)

Financial Indicators

WAFU against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
Sector *62Neutral$20.33B14.63-3.31%3.23%1.93%-12.26%
EEIQEEIQ60Neutral$6.78M-0.99-62.62%―5.19%-11.78%
WAFUWAFU49Neutral$6.22M-5.68-10.66%―2.71%-137.63%
AMBOAMBO46Neutral$4.34M-0.34-2.92%―――
KIDZKIDZ40Underperform$1.24M-0.10-167.77%―17.13%57.16%

* Consumer Defensive Sector Average

Performance Comparison

-100%-50%0%50%WAFUAMBOLXEHEEIQKIDZGSUNDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
WAFU and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
WAFUWah Fu Education Group1.41-0.25-15.06%
AMBOAmbow Education Holding1.52-2.35-60.72%
LXEHLixiang Education Holding Co., Ltd.1.30-3.14-70.70%
EEIQElite Education Group International Ltd.4.12-2.04-33.12%
KIDZClassover Holdings, Inc.1.44-4498.56-99.97%
GSUNGolden Sun Education Group Limited Class A0.17-2.09-92.43%

Wah Fu Education Group Corporate Events

Wah Fu Education Group Reshapes Leadership with New CEO and Board Appointment in May 2026

May 21, 2026

On May 19, 2026, Wah Fu Education Group’s board accepted the immediate resignation of Chief Executive Officer and director Xinghui Yang, marking a swift leadership change at the Beijing-based online education provider. On the same day, the boar...

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: Dec 30, 2025