Quality Investor

17 Education & Technology Group Inc.

Rank #452Decline

YQ · Nasdaq · Consumer Defensive

17 Education & Technology Group Inc. (YQ) — Rank #452 by gross profitability (GP/assets 0.09) · ROE -53.9% · Piotroski F-Score 4 / 9.

As-of 2026-09-15 · CIK 0001821468 · all metrics point-in-time as of the filing date.

About

17 Education & Technology Group Inc., an education technology company, provides education and education technology services in the People's Republic of China.

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It provides teaching and learning SaaS products, such as classroom solutions, question banks, homework assignments, self-directed learning, and multi-role reporting, etc. for regional educational authorities and schools. The company also provides other educational products and services, including membership-based premium educational content subscriptions to its selected educational contents, light courses, Chinese reading, math oral arithmetic, reading machines, study plans, and associated services. 17 Education & Technology Group Inc.

was incorporated in 2012 and is headquartered in Beijing, the People's Republic of China.

Industry
Education & Training Services
Sector
Consumer Defensive
State
F4
Filer Category
Non-accelerated filer
Fiscal Year End
December 31

Price History

YQ-85.2% · -31.8% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E, P/B, and dividend yield matter most — book value provides a floor.

Market Cap

$32.84M

P/E (annual)

P/S (annual)

0.3

P/B

0.1

P/OCF (annual)

0.9

Shareholder Yield

-24.7%

Employees

1,017

Industry

Education & Training Services

Exchange

Nasdaq

Signal Flags

1 yellow2 red
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Revenue declining YoYRevenue contracted year over year
Operating margin decliningOperating margin lower than prior year

Quality Profile

Profitability

1/1 pass
GP / assets
0.09
Return on equity
-53.9%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.06
Current ratio
1.87×
Net cash
$406.92M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
29.1%

Growth

0/2 pass
Revenue growth
-44.0%
Piotroski F-Score
4 / 9
Share dilution
24.7%

Terry Smith quality gate

Passes 0/5 Terry Smith thresholds

2 of 5 thresholds not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

21.7%

fairly valued

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 24.7% — per-share value needs a total required return of 46.4% once share-count change is priced in.

vs. own 6-year median revenue growth: -16.6%

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

16.6%

r = 10% (base)

21.7%

r = 12%

26.1%

Net debt / market cap: -24.0%

Note: current FCF margin is 1.9σ above its historical mean — implied growth may understate valuation risk if the margin reverts.

Base FCF: $30.5M3Y mean FCF: -$118.9M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / S

Price / revenue per share

10.0xExpensive
3.6xmed 7.4x19.8x

P / B

Price / book value per share

3.7xFair
1.7xmed 3.1x4.2x

P / GP

Price / gross profit per share

21.0xExpensive
9.9xmed 15.6x34.6x

Asset value and restructuring potential (balance-sheet strength) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.09

Primary signal (Novy-Marx).

8th of 8 SIC 8200 peers

Return on equity

-53.9%

Gross margin

47.8%

6th of 8 SIC 8200 peers

Revenue growth (YoY)

-44.0%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-41.6%

Revenue CAGR (5Y)

-39.4%

Earnings CAGR (3Y)

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.06

6th of 8 SIC 8200 peers (best = lowest)

Current ratio

1.87×

4th of 8 SIC 8200 peers

Quick ratio

1.53×

Net cash

$406.92M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$30.46M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

1.20

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

29.1%

Stock-based comp intensity.

Piotroski F-Score

F-Score

4 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Hypergrowth
Decline
Startup