Wah Fu Education Group Limited Ordinary Shares (WAFU)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a durable business with honest, long-record earnings, bought at a sensible price. Wah Fu Education, at $1.48 on 2026-10-13, has a market cap of only $7.3 million and 103 employees. It sells online exam preparation and technology services in China through two segments. The numbers I have do not show a strong enterprise. FairStock’s calculations show a negative P/E of -5.92, ROE of -8.07%, and ROCE of -3.58%, so the company is unprofitable and does not earn an adequate return on capital. The balance sheet has low leverage, with D/E of 0.05, and the Altman Z-Score is 2.64, which is not immediate distress but not comforting. The Piotroski F-Score is 3/9, indicating weak fundamental momentum. On valuation, P/B is 0.61, so the market values the equity below book value. That could be a bargain if the assets are real and returns can recover; Graham would ask what the assets are worth and whether losses are temporary. But with no revenue or profit growth data, no dividend yield, and a FairStock Score of 45/100, the evidence is thin. The Lynch category is none because there are only 0 years of filed results, while three years are needed. I see no clear moat: a microcap education-services firm with unprofitable operations and little history to judge. The 52-week range of $1.22 to $3.06 shows the stock has fallen sharply. In short, low debt and a discount to book are not enough without earnings power; I would need to see sustained profits and a longer filing record before calling this a sound value.

In plain English: Wah Fu Education provides online exam preparation and technology services in China. The business currently looks weak: it is losing money, earns poor returns, and has very little public reporting history. At $1.48, the price is below the accounting value of its net assets, which can look cheap, but the losses mean that cheapness is uncertain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer