GAOTU TECHEDU INC (GOTU) Stock Fundamental Analysis
USA - NYSE:GOTU - US36257Y1091 - ADR
2.93 USD
+0.04 (+1.38%)
2.92 USD
-0.01 (-0.34%)
We assign a fundamental rating of 3 out of 10 to GOTU. GOTU was compared to 77 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 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.
In the past 5 years GOTU reported 4 times negative net income.
GOTU had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -11.91%, GOTU is doing worse than 64.94% of the companies in the same industry.
GOTU's Return On Equity of -43.59% is on the low side compared to the rest of the industry. GOTU is outperformed by 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.91% | ||
| ROE | -43.59% | ||
| 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
1.3 Margins
GOTU's Gross Margin of 67.24% is fine compared to the rest of the industry. GOTU outperforms 79.22% of its industry peers.
GOTU's Gross Margin has declined in the last couple of years.
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 | 67.24% |
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%
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.
The number of shares outstanding for GOTU has been increased compared to 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 -0.13. 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 -0.13, GOTU is doing worse than 63.64% 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 | -0.13 |
ROIC/WACCN/A
WACC7.54%
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.
GOTU's Current ratio of 1.11 is in line compared to the rest of the industry. GOTU outperforms 49.35% of its industry peers.
GOTU has a Quick Ratio of 1.10. This is a normal value and indicates that GOTU is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of GOTU (1.10) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The earnings per share for GOTU have decreased strongly by -15.65% in the last year.
Looking at the last year, GOTU shows a very strong growth in Revenue. The Revenue has grown by 56.22%.
Measured over the past years, GOTU shows a quite strong growth in Revenue. The Revenue has been growing by 16.58% on average per year.
EPS 1Y (TTM)-15.65%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%47.83%
Revenue 1Y (TTM)56.22%
Revenue growth 3Y-11.47%
Revenue growth 5Y16.58%
Sales Q2Q%37.59%
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 29.80% 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 Y74.67%
EPS Next 2Y41.95%
EPS Next 3Y29.8%
EPS Next 5YN/A
Revenue Next Year36.43%
Revenue Next 2Y30.43%
Revenue Next 3Y26.94%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for GOTU. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 356.53 indicates a quite expensive valuation of GOTU.
GOTU's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of GOTU to the average of the S&P500 Index (22.50), we can say GOTU is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 356.53 |
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 29.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y41.95%
EPS Next 3Y29.8%
5. Dividend
5.1 Amount
GOTU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.93
+0.04 (+1.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners11.12%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap745.20M
Revenue(TTM)5.48B
Net Income(TTM)-699107000
Analysts78.46
Price Target4.35 (48.46%)
Short Float %0.91%
Short Ratio3.41
Dividend
| Industry Rank | Sector 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)80.34%
Min EPS beat(2)20.05%
Max EPS beat(2)140.64%
EPS beat(4)3
Avg EPS beat(4)29.72%
Min EPS beat(4)-79.91%
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)3.04%
Min Revenue beat(2)2.54%
Max Revenue beat(2)3.53%
Revenue beat(4)4
Avg Revenue beat(4)5.59%
Min Revenue beat(4)2.54%
Max Revenue beat(4)12.44%
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)0%
PT rev (3m)2.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.95%
EPS NY rev (1m)9.63%
EPS NY rev (3m)-7.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.9%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)2.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 356.53 | ||
| P/S | 0.97 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.3 | ||
| P/tB | 3.4 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.36
EYN/A
EPS(NY)0.01
Fwd EY0.28%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS3.03
BVpS0.89
TBVpS0.86
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.91% | ||
| ROE | -43.59% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 67.24% | ||
| 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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.93
Health
| Industry Rank | Sector 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 | -0.13 |
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)-15.65%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%47.83%
EPS Next Y74.67%
EPS Next 2Y41.95%
EPS Next 3Y29.8%
EPS Next 5YN/A
Revenue 1Y (TTM)56.22%
Revenue growth 3Y-11.47%
Revenue growth 5Y16.58%
Sales Q2Q%37.59%
Revenue Next Year36.43%
Revenue Next 2Y30.43%
Revenue Next 3Y26.94%
Revenue Next 5Y22.03%
EBIT growth 1Y-1.98%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year74.91%
EBIT Next 3Y26.68%
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%
GAOTU TECHEDU INC / GOTU FAQ
What is the ChartMill fundamental rating of GAOTU TECHEDU INC (GOTU) stock?
ChartMill assigns a fundamental rating of 3 / 10 to GOTU.
Can you provide the valuation status for GAOTU TECHEDU INC?
ChartMill assigns a valuation rating of 1 / 10 to GAOTU TECHEDU INC (GOTU). This can be considered as Overvalued.
Can you provide the profitability details for GAOTU TECHEDU INC?
GAOTU TECHEDU INC (GOTU) has a profitability rating of 1 / 10.