Quality Investor

17 Education & Technology Group Inc.

Rank #428DeclineWatchlistCompare with other stocks

YQ · Nasdaq · Consumer Defensive

17 Education & Technology Group Inc. (YQ) — Rank #428 by gross profitability (GP/assets 0.09) · ROE -53.9% · Piotroski F-Score 4 / 9.

As-of 2026-10-30 · 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

Company Snapshot

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

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

1,017

Industry

Education & Training Services

Exchange

Nasdaq

8/11

Flags passed

YQ fails 2 critical flags

Passes 8 of 11 quality flags, 1 caution

  • FAIL
    Revenue declining YoY

    Revenue contracted year over year

  • FAIL
    Operating margin declining

    Operating margin lower than prior year

  • CAUTION
    Dilution above 2%

    Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation

  • PASS
    Gross margin holding
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

No data Balance sheet — not counted as a pass.

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

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%

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

Profitability

Does it make money well?

Warning: Operating margin declining, Revenue declining YoY · GP/assets 0.09

Gross profitability (GP / assets)

0.09

Primary signal (Novy-Marx).

5th of 5 SIC 8200 peers

Return on equity

-53.9%

Gross margin

47.8%

4th of 5 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)

—

Cash Flow Health

Is the cash real?

No warning flags · FCF 120% above net income

Free cash flow

$30.46M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

119.7%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

29.1%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

Caution: Dilution above 2% · net cash $406.92M, F-Score 4/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.06

3rd of 5 SIC 8200 peers (best = lowest)

Current ratio

1.87×

3rd of 5 SIC 8200 peers

Quick ratio

1.53×

Net cash

$406.92M

Cash & equivalents minus total debt.

Piotroski F-Score

4 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Capital allocation quality

Composite score

2.7 / 5

Fair
Share count trend
24.7%0/5 Weak
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr3/5 Good
Net debt trajectory(deleveraging)
8.1%5/5 Strong

Lifecycle Phase History

20202025
Hypergrowth
Decline
Startup

Price History

YQ-83.7% · -30.3% CAGRSPY+82.9% · +12.8% CAGR