Is Sunlands Technology Group (STG) Halal?

NYSE Consumer Defensive China $51M
✗ NOT HALAL
Confidence: 90/100
Sunlands Technology Group (STG) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 305.9% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Sunlands Technology Group operates in the Consumer Defensive sector.

Shariah Screening — 5 Standards

Based on financial data from December 2024

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 305.9%
/ 30%
1282.1%
/ 30%
40.1%
/ 30%
1.95%
/ 5%
✗ NOT HALAL
DJIM 305.9%
/ 33%
1282.1%
/ 33%
40.1%
/ 33%
1.95%
/ 5%
✗ NOT HALAL
MSCI 8.8%
/ 33%
36.9%
/ 33%
1.2%
/ 33%
1.95%
/ 5%
✗ NOT HALAL
S&P 305.9%
/ 33%
1282.1%
/ 33%
40.1%
/ 33%
1.95%
/ 5%
✗ NOT HALAL
FTSE 8.8%
/ 33%
36.9%
/ 33%
1.2%
/ 50%
1.95%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
1.0
Forward: -9.0
EPS
$3.93
P/B Ratio
0.4
EV/EBITDA
-1.4
EV: -$649M
Revenue
$2.0B
Growth: -2.7%
Beta
1.1
Average volatility
Current Ratio
1.2

Profitability

Gross Margin 86.9%
Operating Margin 22.4%
Net Margin 18.1%
Return on Equity (ROE) 47.4%
Return on Assets (ROA) 13.3%

Cash Flow & Balance Sheet

Operating Cash Flow$196M
Free Cash Flow$195M
Total Debt$187M
Debt-to-Equity14.7
Current Ratio1.2
Total Assets$2.1B

Price & Trading

Last Close$3.80
50-Day MA$4.70
200-Day MA$6.78
Avg Volume2K
Beta1.1
52-Week Range
$3.70
$15.00

About Sunlands Technology Group (STG)

CEO
Mr. Tongbo Liu
Sector
Consumer Defensive
Industry
Education & Training Services
Country
China
Exchange
NYSE
Market Cap
$51M
Currency
USD

Sunlands Technology Group provides online education services through online and mobile platforms in the People's Republic of China. It offers adult online education and adult personal interest learning education through courses and educational content offerings, including interest, professional skills and professional certification preparation courses, and degree- or diploma-oriented post-secondary courses. The company also provides professional assistance and counseling services to help students make decisions that suit their learning needs and to formulate study plans throughout their enrollments in the courses; and exam preparation courses for exam-taking students. In addition, the company offers professional skills and interest courses, such as wealth management, voice acting, Chinese painting, and calligraphy; degree- or diploma-oriented post-secondary course that consist of preparation courses for a state-administered exam for learners pursuing associate diplomas or bachelor's degrees, and other degree- or diploma-oriented post-secondary courses. Further, it provides professional certification preparation courses cover various industries and professions, such as accounting, human resources, and teaching, as well as technical and consultation services. The company was formerly known as Sunlands Online Education Group and changed its name to Sunlands Technology Group in August 2018. Sunlands Technology Group was founded in 2003 and is headquartered in Beijing, the People's Republic of China.

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Frequently Asked Questions

Is Sunlands Technology Group (STG) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Sunlands Technology Group is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Sunlands Technology Group's debt ratio?

Sunlands Technology Group's debt ratio is 305.9% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 8.8%.

What are Sunlands Technology Group's key financial metrics?

Sunlands Technology Group has a market capitalization of $51M, trailing P/E ratio of 1.0, and revenue of $2.0B. The company maintains a gross margin of 86.9% and a net margin of 18.1%. Return on equity stands at 47.4%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.