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GAOTU TECHEDU INC (GOTU) Stock Fundamental Analysis

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

2.69  0 (0%)

After market: 2.7098 +0.02 (+0.74%)

Fundamental Rating

3

Overall GOTU gets a fundamental rating of 3 out of 10. We evaluated GOTU against 72 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 quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

GOTU had negative earnings in the past year.
In the past 5 years GOTU reported 4 times negative net income.
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 2024 0 1B -1B -2B -3B -4B

1.2 Ratios

GOTU's Return On Assets of -18.00% is on the low side compared to the rest of the industry. GOTU is outperformed by 60.56% of its industry peers.
GOTU has a worse Return On Equity (-54.25%) than 60.56% of its industry peers.
Industry RankSector Rank
ROA -18%
ROE -54.25%
ROIC N/A
ROA(3y)-5.95%
ROA(5y)-18.53%
ROE(3y)-18.02%
ROE(5y)-37.22%
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 2024 0 100 -100 200

1.3 Margins

Looking at the Gross Margin, with a value of 68.05%, GOTU belongs to the top of the industry, outperforming 83.10% of the companies in the same industry.
In the last couple of years the Gross Margin of GOTU has declined.
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 68.05%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.35%
GM growth 5Y-1.84%
GOTU Yearly Profit, Operating, Gross MarginsGOTU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 -100

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5

2. Health

2.1 Basic Checks

GOTU does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for GOTU has been reduced compared to 1 year ago.
GOTU has more shares outstanding than it did 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 2024 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 2024 2B 4B 6B 8B 10B

2.2 Solvency

Based on the Altman-Z score of -0.44, we must say that GOTU is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of GOTU (-0.44) is worse than 61.97% of its industry peers.
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 -0.44
ROIC/WACCN/A
WACC7.75%
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 2024 0 2B -2B 4B -4B

2.3 Liquidity

GOTU has a Current Ratio of 1.12. This is a normal value and indicates that GOTU is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.12, GOTU perfoms like the industry average, outperforming 43.66% of the companies in the same industry.
GOTU has a Quick Ratio of 1.11. This is a normal value and indicates that GOTU is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.11, GOTU perfoms like the industry average, outperforming 46.48% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.12
Quick Ratio 1.11
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 2024 2B 4B 6B 8B

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6

3. Growth

3.1 Past

The earnings per share for GOTU have decreased strongly by -7525.00% in the last year.
Looking at the last year, GOTU shows a very strong growth in Revenue. The Revenue has grown by 53.79%.
GOTU shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.58% yearly.
EPS 1Y (TTM)-7525%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-20%
Revenue 1Y (TTM)53.79%
Revenue growth 3Y-11.47%
Revenue growth 5Y16.58%
Sales Q2Q%82.47%

3.2 Future

GOTU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.99% yearly.
The Revenue is expected to grow by 22.03% on average over the next years. This is a very strong growth
EPS Next Y70.61%
EPS Next 2Y36.46%
EPS Next 3Y27.99%
EPS Next 5YN/A
Revenue Next Year30.96%
Revenue Next 2Y28.05%
Revenue Next 3Y24.77%
Revenue Next 5Y22.03%

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 accelerating.
GOTU Yearly Revenue VS EstimatesGOTU Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 5B 10B 15B
GOTU Yearly EPS VS EstimatesGOTU Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 -2 -4 -6 -8 -10

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for GOTU. In the last year negative earnings were reported.
Also next year GOTU is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
GOTU Price Earnings VS Forward Price EarningsGOTU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20

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 2

4.3 Compensation for Growth

A more expensive valuation may be justified as GOTU's earnings are expected to grow with 27.99% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y36.46%
EPS Next 3Y27.99%

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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 (4/17/2025, 8:25:18 PM)

After market: 2.7098 +0.02 (+0.74%)

2.69

0 (0%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)02-26 2025-02-26/bmo
Earnings (Next)05-21 2025-05-21
Inst Owners23.46%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap684.16M
Analysts77.14
Price Target4.04 (50.19%)
Short Float %3.93%
Short Ratio2.76
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)1
Avg EPS beat(2)-20.91%
Min EPS beat(2)-79.91%
Max EPS beat(2)38.08%
EPS beat(4)2
Avg EPS beat(4)22.74%
Min EPS beat(4)-79.91%
Max EPS beat(4)135.95%
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)1
Avg Revenue beat(2)0.85%
Min Revenue beat(2)-2.17%
Max Revenue beat(2)3.86%
Revenue beat(4)2
Avg Revenue beat(4)0.26%
Min Revenue beat(4)-2.17%
Max Revenue beat(4)3.86%
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)1.12%
PT rev (3m)-17.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)52.45%
EPS NY rev (3m)24.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.7%
Revenue NY rev (3m)-1.01%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 1.1
P/FCF N/A
P/OCF N/A
P/B 2.58
P/tB 2.62
EV/EBITDA N/A
EPS(TTM)-0.53
EYN/A
EPS(NY)-0.16
Fwd EYN/A
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS2.45
BVpS1.04
TBVpS1.03
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -18%
ROE -54.25%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 68.05%
FCFM N/A
ROA(3y)-5.95%
ROA(5y)-18.53%
ROE(3y)-18.02%
ROE(5y)-37.22%
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 3Y2.35%
GM growth 5Y-1.84%
F-ScoreN/A
Asset Turnover0.78
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 1.12
Quick Ratio 1.11
Altman-Z -0.44
F-ScoreN/A
WACC7.75%
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)-7525%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-20%
EPS Next Y70.61%
EPS Next 2Y36.46%
EPS Next 3Y27.99%
EPS Next 5YN/A
Revenue 1Y (TTM)53.79%
Revenue growth 3Y-11.47%
Revenue growth 5Y16.58%
Sales Q2Q%82.47%
Revenue Next Year30.96%
Revenue Next 2Y28.05%
Revenue Next 3Y24.77%
Revenue Next 5Y22.03%
EBIT growth 1Y-693.14%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year77.76%
EBIT Next 3Y24.95%
EBIT Next 5Y16.42%
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A