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GAOTU TECHEDU INC (GOTU) Stock Fundamental Analysis

NYSE:GOTU - New York Stock Exchange, Inc. - US36257Y1091 - ADR - Currency: USD

2.67  +0.1 (+3.89%)

After market: 2.6693 0 (-0.03%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to GOTU. GOTU was compared to 71 industry peers in the Diversified Consumer Services industry. The financial health of GOTU is average, but there are quite some concerns on its profitability. GOTU is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

GOTU had negative earnings in the past year.
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.
GOTU Yearly Net Income VS EBIT VS OCF VS FCFGOTU Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 0 1B -1B -2B -3B -4B

1.2 Ratios

Looking at the Return On Assets, with a value of -0.13%, GOTU is in line with its industry, outperforming 50.00% of the companies in the same industry.
GOTU has a Return On Equity of -0.23%. This is comparable to the rest of the industry: GOTU outperforms 53.13% of its industry peers.
Industry RankSector 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
GOTU Yearly ROA, ROE, ROICGOTU Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 0 100 -100 200

1.3 Margins

The Gross Margin of GOTU (73.31%) is better than 89.06% of its industry peers.
GOTU's Gross Margin has improved in the last couple of years.
GOTU does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector 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%
GOTU Yearly Profit, Operating, Gross MarginsGOTU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100

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6

2. Health

2.1 Basic Checks

GOTU does not have a ROIC to compare to the WACC, probably because it is not profitable.
GOTU has less shares outstanding than it did 1 year ago.
The number of shares outstanding for GOTU has been increased compared to 5 years ago.
There is no outstanding debt for GOTU. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
GOTU Yearly Shares OutstandingGOTU Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M
GOTU Yearly Total Debt VS Total AssetsGOTU Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.2 Solvency

Based on the Altman-Z score of 0.86, we must say that GOTU is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.86, GOTU perfoms like the industry average, 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 RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 0.86
ROIC/WACCN/A
WACC9.03%
GOTU Yearly LT Debt VS Equity VS FCFGOTU Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 0 2B -2B 4B -4B

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 68.75% 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 has a Quick ratio of 1.81. This is in the better half of the industry: GOTU outperforms 70.31% of its industry peers.
Industry RankSector Rank
Current Ratio 1.82
Quick Ratio 1.81
GOTU Yearly Current Assets VS Current LiabilitesGOTU Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B

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3

3. Growth

3.1 Past

The earnings per share for GOTU have decreased strongly by -123.05% in the last year.
Looking at the last year, GOTU shows a decrease in Revenue. The Revenue has decreased by -7.90% in the last year.
GOTU shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 154.66% yearly.
EPS 1Y (TTM)-123.05%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-729.7%
Revenue 1Y (TTM)-7.9%
Revenue growth 3Y154.66%
Revenue growth 5YN/A
Sales Q2Q%56.15%

3.2 Future

GOTU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.52% yearly.
The Revenue is expected to decrease by -0.16% on average over the next years.
EPS Next Y98.57%
EPS Next 2Y41.59%
EPS Next 3Y17.59%
EPS Next 5Y13.52%
Revenue Next Year-67.39%
Revenue Next 2Y-37.43%
Revenue Next 3Y-15.65%
Revenue Next 5Y-0.16%

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
GOTU Yearly Revenue VS EstimatesGOTU Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B
GOTU Yearly EPS VS EstimatesGOTU Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 -2 -4 -6 -8 -10

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1

4. Valuation

4.1 Price/Earnings Ratio

GOTU reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 372.42, the valuation of GOTU can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as GOTU.
When comparing the Price/Forward Earnings ratio of GOTU to the average of the S&P500 Index (22.68), we can say GOTU is valued expensively.
Industry RankSector Rank
PE N/A
Fwd PE 372.42
GOTU Price Earnings VS Forward Price EarningsGOTU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 100 200 300

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
GOTU Per share dataGOTU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.5 -0.5 1 1.5

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as GOTU's earnings are expected to grow with 17.59% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y41.59%
EPS Next 3Y17.59%

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0

5. Dividend

5.1 Amount

No dividends for GOTU!.
Industry RankSector Rank
Dividend Yield N/A

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GAOTU TECHEDU INC

NYSE:GOTU (2/21/2025, 8:24:17 PM)

After market: 2.6693 0 (-0.03%)

2.67

+0.1 (+3.89%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)12-04 2024-12-04/bmo
Earnings (Next)02-26 2025-02-26/bmo
Inst Owners23.46%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap679.07M
Analysts76.92
Price Target4.26 (59.55%)
Short Float %3.42%
Short Ratio3.35
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-12.57%
PT rev (3m)-21.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-1.8%
EPS NY rev (3m)-19.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)-0.72%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 372.42
P/S 1.66
P/FCF N/A
P/OCF N/A
P/B 1.59
P/tB 1.59
EV/EBITDA N/A
EPS(TTM)-0.52
EYN/A
EPS(NY)0.01
Fwd EY0.27%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS1.6
BVpS1.68
TBVpS1.68
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.13%
ROE -0.23%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 73.31%
FCFM 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
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-ScoreN/A
Asset Turnover0.55
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.82
Quick Ratio 1.81
Altman-Z 0.86
F-ScoreN/A
WACC9.03%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-123.05%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-729.7%
EPS Next Y98.57%
EPS Next 2Y41.59%
EPS Next 3Y17.59%
EPS Next 5Y13.52%
Revenue 1Y (TTM)-7.9%
Revenue growth 3Y154.66%
Revenue growth 5YN/A
Sales Q2Q%56.15%
Revenue Next Year-67.39%
Revenue Next 2Y-37.43%
Revenue Next 3Y-15.65%
Revenue Next 5Y-0.16%
EBIT growth 1Y-26.31%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-696.17%
EBIT Next 3Y-51.45%
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A