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GAOTU TECHEDU INC (GOTU) Stock Fundamental Analysis

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

3.53  -0.05 (-1.4%)

After market: 3.5 -0.03 (-0.85%)

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. While GOTU seems to be doing ok healthwise, there are quite some concerns on its profitability. GOTU is valied quite expensively at the moment, while 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.
GOTU had negative earnings in 4 of the past 5 years.
Of the past 5 years GOTU 4 years had a positive operating cash flow.
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 has a Return On Assets of -17.60%. This is in the lower half of the industry: GOTU underperforms 64.79% of its industry peers.
The Return On Equity of GOTU (-47.17%) is worse than 60.56% of its industry peers.
Industry RankSector Rank
ROA -17.6%
ROE -47.17%
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

With an excellent Gross Margin value of 67.93%, GOTU belongs to the best of the industry, outperforming 84.51% 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 67.93%
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.
GOTU has less shares outstanding than it did 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

GOTU has an Altman-Z score of 0.02. This is a bad value and indicates that GOTU is not financially healthy and even has some risk of bankruptcy.
GOTU has a worse Altman-Z score (0.02) than 63.38% of its industry peers.
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 RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 0.02
ROIC/WACCN/A
WACC7.54%
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 1.11. 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 Current ratio value of 1.11, GOTU perfoms like the industry average, outperforming 45.07% of the companies in the same industry.
A Quick Ratio of 1.10 indicates that GOTU should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.10, GOTU perfoms like the industry average, outperforming 47.89% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.11
Quick Ratio 1.1
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

GOTU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -579.49%.
Looking at the last year, GOTU shows a very strong growth in Revenue. The Revenue has grown by 59.34%.
The Revenue has been growing by 16.58% on average over the past years. This is quite good.
EPS 1Y (TTM)-579.49%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%4809.09%
Revenue 1Y (TTM)59.34%
Revenue growth 3Y-11.47%
Revenue growth 5Y16.58%
Sales Q2Q%57.68%

3.2 Future

Based on estimates for the next years, GOTU will show a very strong growth in Earnings Per Share. The EPS will grow by 30.08% on average per year.
The Revenue is expected to grow by 22.03% on average over the next years. This is a very strong growth
EPS Next Y64.32%
EPS Next 2Y37.59%
EPS Next 3Y30.08%
EPS Next 5YN/A
Revenue Next Year32.83%
Revenue Next 2Y29.49%
Revenue Next 3Y26.41%
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.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for GOTU. No positive earnings are expected for the next year.
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 20 -20 -40 -60 -80

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 1 2

4.3 Compensation for Growth

A more expensive valuation may be justified as GOTU's earnings are expected to grow with 30.08% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y37.59%
EPS Next 3Y30.08%

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0

5. Dividend

5.1 Amount

GOTU does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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GAOTU TECHEDU INC

NYSE:GOTU (7/3/2025, 7:32:12 PM)

After market: 3.5 -0.03 (-0.85%)

3.53

-0.05 (-1.4%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)05-15 2025-05-15/bmo
Earnings (Next)08-27 2025-08-27
Inst Owners22.47%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap897.80M
Analysts77.14
Price Target4.23 (19.83%)
Short Float %2.21%
Short Ratio3.52
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)2
Avg EPS beat(2)89.36%
Min EPS beat(2)38.08%
Max EPS beat(2)140.64%
EPS beat(4)3
Avg EPS beat(4)53.41%
Min EPS beat(4)-3.17%
Max EPS beat(4)140.64%
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)2
Avg Revenue beat(2)3.2%
Min Revenue beat(2)2.54%
Max Revenue beat(2)3.86%
Revenue beat(4)4
Avg Revenue beat(4)2.81%
Min Revenue beat(4)0.98%
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)3.72%
PT rev (3m)5.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.33%
EPS NY rev (1m)14.63%
EPS NY rev (3m)61.71%
Revenue NQ rev (1m)1.86%
Revenue NQ rev (3m)5.71%
Revenue NY rev (1m)0.88%
Revenue NY rev (3m)0.71%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 1.26
P/FCF N/A
P/OCF N/A
P/B 3.32
P/tB 3.37
EV/EBITDA N/A
EPS(TTM)-0.28
EYN/A
EPS(NY)-0.04
Fwd EYN/A
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS2.8
BVpS1.06
TBVpS1.05
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -17.6%
ROE -47.17%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 67.93%
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 Turnover0.98
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 1.11
Quick Ratio 1.1
Altman-Z 0.02
F-ScoreN/A
WACC7.54%
ROIC/WACCN/A
Cap/Depr(3y)139.43%
Cap/Depr(5y)257.33%
Cap/Sales(3y)2.23%
Cap/Sales(5y)3.17%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-579.49%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%4809.09%
EPS Next Y64.32%
EPS Next 2Y37.59%
EPS Next 3Y30.08%
EPS Next 5YN/A
Revenue 1Y (TTM)59.34%
Revenue growth 3Y-11.47%
Revenue growth 5Y16.58%
Sales Q2Q%57.68%
Revenue Next Year32.83%
Revenue Next 2Y29.49%
Revenue Next 3Y26.41%
Revenue Next 5Y22.03%
EBIT growth 1Y-232.19%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year81.8%
EBIT Next 3Y29.03%
EBIT Next 5Y16.42%
FCF growth 1Y-75.07%
FCF growth 3YN/A
FCF growth 5Y-42.34%
OCF growth 1Y-27.06%
OCF growth 3YN/A
OCF growth 5Y-27.47%