GAOTU TECHEDU INC (GOTU)
US36257Y1091 - ADR
We assign a fundamental rating of 3 out of 10 to GOTU. GOTU was compared to 65 industry peers in the Diversified Consumer Services industry. The financial health of GOTU is average, but there are quite some concerns on its profitability. While showing a medium growth rate, GOTU is valued expensive at the moment.
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.
1.2 Ratios
The Return On Assets of GOTU (-0.13%) is comparable to the rest of the industry.
The Return On Equity of GOTU (-0.23%) 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
GOTU has a Gross Margin of 73.31%. This is amongst the best in the industry. GOTU outperforms 81.25% of its industry peers.
In the last couple of years the Gross Margin of GOTU has grown nicely.
The Profit Margin and Operating Margin are not available for GOTU so they could not be analyzed.
| 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.
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.
2.2 Solvency
GOTU has an Altman-Z score of 0.84. 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 0.84, GOTU is in line with its industry, outperforming 50.00% of the companies in the same industry.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.84 |
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 67.19% 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 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
GOTU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -123.05%.
The Revenue has decreased by -7.90% in the past 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%N/A
Revenue 1Y (TTM)-7.9%
Revenue growth 3Y154.66%
Revenue growth 5YN/A
Sales Q2Q%43.62%
3.2 Future
Based on estimates for the next years, GOTU will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.36% on average per year.
Based on estimates for the next years, GOTU will show a small growth in Revenue. The Revenue will grow by 1.73% on average per year.
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-15.47%
Revenue Next 5Y1.73%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GOTU reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
GOTU is valuated quite expensively with a Price/Forward Earnings ratio of 358.12.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GOTU is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of GOTU to the average of the S&P500 Index (21.99), we can say GOTU is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 358.12 |
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 (9/18/2024, 8:04:50 PM)
Premarket: 2.8 +0.17 (+6.46%)2.63
-0.03 (-1.13%)
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 Cap682.60M
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)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 358.12 | ||
| 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