GAOTU TECHEDU INC (GOTU)
US36257Y1091 - ADR
Taking everything into account, GOTU scores 3 out of 10 in our fundamental rating. GOTU was compared to 66 industry peers in the Diversified Consumer Services industry. GOTU scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. GOTU is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year GOTU has reported negative net income.
The reported net income has been mixed in the past 5 years: GOTU reported negative net income in multiple years.
In multiple years GOTU reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of GOTU (-0.13%) is comparable to the rest of the industry.
GOTU has a Return On Equity (-0.23%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.13% | ||
| ROE | -0.23% | ||
| ROIC | N/A |
ROA(3y)-20.54%
ROA(5y)-13.82%
ROE(3y)-35.84%
ROE(5y)-23.95%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 73.31%, GOTU belongs to the top of the industry, outperforming 82.81% of the companies in the same industry.
In the last couple of years the Gross Margin of GOTU has grown nicely.
GOTU does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 73.31% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.87%
GM growth 5Y2.73%
2. Health
2.1 Basic Checks
GOTU does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, GOTU has less shares outstanding
GOTU has more shares outstanding than it did 5 years ago.
GOTU has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
GOTU has an Altman-Z score of 1.06. This is a bad value and indicates that GOTU is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.06, GOTU is in line with its industry, outperforming 53.13% of the companies in the same industry.
GOTU has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.06 |
ROIC/WACCN/A
WACC7.54%
2.3 Liquidity
GOTU has a Current Ratio of 1.82. This is a normal value and indicates that GOTU is financially healthy and should not expect problems in meeting its short term obligations.
GOTU's Current ratio of 1.82 is fine compared to the rest of the industry. GOTU outperforms 65.63% of its industry peers.
A Quick Ratio of 1.81 indicates that GOTU should not have too much problems paying its short term obligations.
GOTU's Quick ratio of 1.81 is fine compared to the rest of the industry. GOTU outperforms 67.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
The earnings per share for GOTU have decreased strongly by -123.05% in the last year.
The Revenue has decreased by -7.90% in the past year.
Measured over the past years, GOTU shows a very strong growth in Revenue. The Revenue has been growing by 154.66% on average per year.
EPS 1Y (TTM)-123.05%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)-7.9%
Revenue growth 3Y154.66%
Revenue growth 5YN/A
Sales Q2Q%43.62%
3.2 Future
The Earnings Per Share is expected to grow by 13.36% on average over the next years. This is quite good.
GOTU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.77% yearly.
EPS Next Y98.57%
EPS Next 2Y41.59%
EPS Next 3Y19.02%
EPS Next 5Y13.36%
Revenue Next Year-67.39%
Revenue Next 2Y-37.43%
Revenue Next 3Y-15.45%
Revenue Next 5Y1.77%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for GOTU. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 421.03, GOTU can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GOTU is on the same level as its industry peers.
GOTU's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 421.03 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GOTU's earnings are expected to grow with 19.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y41.59%
EPS Next 3Y19.02%
5. Dividend
5.1 Amount
GOTU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GAOTU TECHEDU INC
NYSE:GOTU (11/4/2024, 8:12:38 PM)
After market: 3.09 +0.01 (+0.32%)3.08
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap799.40M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 421.03 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.13% | ||
| ROE | -0.23% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 73.31% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.81 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-123.05%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y98.57%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.9%
Revenue growth 3Y154.66%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y