(EDTK) Skillful Craftsman - Ratings and Ratios

Skillful Craftsman Education Technology Limited (NASDAQ:EDTK) is a leading provider of vocational online education and technology services in China, primarily targeting college students and graduates. Established in 2013 and headquartered in Wuxi, the company offers a comprehensive range of educational services spanning vocational, continuing, basic, and higher education. Its three core platforms include the Lifelong Education Public Service Platform, which features approximately 200 courses designed to promote continuous learning and skill development. The Vocational Training platform offers 642 courses across diverse fields such as mechanics, electronics, auto repair, and construction, equipping students with practical skills in high-demand industries. Additionally, the Virtual Simulation Experimental Training platform provides immersive learning experiences through 12 experimental programs, enhancing technical proficiency in simulated environments.

Beyond education, the company delivers a suite of technology services, encompassing software development and maintenance, hardware installation, testing, and related consulting and training services. These offerings cater to private companies, academic institutions, and government agencies, positioning Skillful Craftsman as a versatile solutions provider in the tech-enabled education sector. The company also ventures into financial education through its investment educational platform, offering courses on global securities markets, basic securities knowledge, fundamental analysis, and technical analysis. This initiative aims to empower individuals with the knowledge to make informed investment decisions. Furthermore, Skillful Craftsman addresses employment needs through its flexible employment services, providing recruitment outsourcing solutions for employers seeking permanent staff hires.

From a technical standpoint, EDTK is currently trading at $1.03, with a 20-day average volume of 3,359 shares. The stocks short-term moving averages (SMA 20 and SMA 50) are slightly above the current price at $1.04 and $1.05, respectively, while the SMA 200 stands at $1.06. This configuration suggests a bearish trend in the near term. The Average True Range (ATR) of 0.05 indicates low volatility, implying that price movements are likely to remain subdued. Over the next three months, EDTK may face resistance at the SMA 50 and SMA 200 levels, while support could be tested around $1.00. Given the low ATR, sideways trading with minimal price fluctuations is anticipated.

Fundamentally, Skillful Craftsman Education Technology Limited has a market capitalization of $16.41 million, classifying it as a micro-cap stock. The price-to-sales (P/S) ratio of 26.28 reflects a premium valuation, signaling market confidence in the companys revenue growth potential. However, the price-to-book (P/B) ratio of 0.86 suggests that the stock may be undervalued relative to its book value. The absence of a price-to-earnings (P/E) ratio indicates that the company is either loss-making or not generating consistent earnings, which could temper investor sentiment. Looking ahead, the high P/S ratio underscores the markets expectation of future growth, but the lack of profitability may continue to weigh on the stock price.