MeritValue

Four Seasons Education (Cayman) Inc.

FEDUdata completeness 100%9 fiscal years on file

Data notes: no data for concept 'interestExpense'

The thesis, from the filings

Four Seasons Education (Cayman) Inc. earns about -5% on invested capital, with a roughly flat share count. The applicable estimate puts fair value near $0.05 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$39.7M1$4.94M2$17.4M3$34.5M4$37.1M5
Net income−$18M6−$4.28M7$690,0008$111,0009$4.49M10
Operating cash flow−$14.5M11−$3.68M12$2.3M13$2.75M14$4.38M15
Capital expenditure$1.57M16$1.25M17$7.87M18$7.86M19$912,00020
Free cash flow (derived)−$16M11−$4.93M12−$5.57M13−$5.11M14$3.47M15
Total debt——$5.56M21$11.3M22$13.1M23
Cash & equivalents$41.6M24$25.3M25$25M26$28.9M27$19.9M28
Diluted shares22.5M21.2M23.6M22.1M22.9M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$30.15
your share of equity
Profit it earned you last year
$1.96
Free cash flow it threw off
$1.51
Debt you’d be carrying
$5.73

10 shares is a claim on $30.15 of net worth that earned you $1.96 and generated $1.51 of cash last year, against $5.73 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-5% avg · 5y
FY22 -26%FY23 -9%FY24 1%FY25 0%FY26 7%

It earned an average -5% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+2% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback. Total debt has risen 136% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
$0.05
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$111,000
  • growthAssumed0.0%
Graham Number
$3.68
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F/A · period ending 2022-02-28 · accession 0000950170-23-007130 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 20-F · period ending 2023-02-28 · accession 0000950170-23-030412 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 20-F · period ending 2024-02-29 · accession 0000950170-24-078480 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 20-F · period ending 2025-02-28 · accession 0000950170-25-090163 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 20-F · period ending 2026-02-28 · accession 0001193125-26-273350 (RevenueFromContractWithCustomerExcludingAssessedTax)
  6. 20-F/A · period ending 2022-02-28 · accession 0000950170-23-007130 (NetIncomeLoss)
  7. 20-F · period ending 2023-02-28 · accession 0000950170-23-030412 (NetIncomeLoss)
  8. 20-F · period ending 2024-02-29 · accession 0000950170-24-078480 (NetIncomeLoss)
  9. 20-F · period ending 2025-02-28 · accession 0000950170-25-090163 (NetIncomeLoss)
  10. 20-F · period ending 2026-02-28 · accession 0001193125-26-273350 (NetIncomeLoss)
  11. 20-F/A · period ending 2022-02-28 · accession 0000950170-23-007130 (NetCashProvidedByUsedInOperatingActivities)
  12. 20-F · period ending 2023-02-28 · accession 0000950170-23-030412 (NetCashProvidedByUsedInOperatingActivities)
  13. 20-F · period ending 2024-02-29 · accession 0000950170-24-078480 (NetCashProvidedByUsedInOperatingActivities)
  14. 20-F · period ending 2025-02-28 · accession 0000950170-25-090163 (NetCashProvidedByUsedInOperatingActivities)
  15. 20-F · period ending 2026-02-28 · accession 0001193125-26-273350 (NetCashProvidedByUsedInOperatingActivities)
  16. 20-F/A · period ending 2022-02-28 · accession 0000950170-23-007130 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 20-F · period ending 2023-02-28 · accession 0000950170-23-030412 (PaymentsToAcquirePropertyPlantAndEquipment)
  18. 20-F · period ending 2024-02-29 · accession 0000950170-24-078480 (PaymentsToAcquirePropertyPlantAndEquipment)
  19. 20-F · period ending 2025-02-28 · accession 0000950170-25-090163 (PaymentsToAcquirePropertyPlantAndEquipment)
  20. 20-F · period ending 2026-02-28 · accession 0001193125-26-273350 (PaymentsToAcquirePropertyPlantAndEquipment)
  21. 20-F · period ending 2024-02-29 · accession 0000950170-24-078480 (LongTermDebtNoncurrent)
  22. 20-F · period ending 2025-02-28 · accession 0000950170-25-090163 (LongTermDebtNoncurrent)
  23. 20-F · period ending 2026-02-28 · accession 0001193125-26-273350 (LongTermDebtNoncurrent)
  24. 20-F/A · period ending 2022-02-28 · accession 0000950170-23-007130 (CashAndCashEquivalentsAtCarryingValue)
  25. 20-F · period ending 2023-02-28 · accession 0000950170-23-030412 (CashAndCashEquivalentsAtCarryingValue)
  26. 20-F · period ending 2024-02-29 · accession 0000950170-24-078480 (CashAndCashEquivalentsAtCarryingValue)
  27. 20-F · period ending 2025-02-28 · accession 0000950170-25-090163 (CashAndCashEquivalentsAtCarryingValue)
  28. 20-F · period ending 2026-02-28 · accession 0001193125-26-273350 (CashAndCashEquivalentsAtCarryingValue)