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GAOTU TECHEDU INC (GOTU) Stock Fundamental Analysis

USA - NYSE:GOTU - US36257Y1091 - ADR

2.89 USD
-0.14 (-4.62%)
Last: 10/29/2025, 7:00:00 PM
2.9 USD
+0.01 (+0.35%)
After Hours: 10/29/2025, 7:00:00 PM
Fundamental Rating

3

GOTU gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 77 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 quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

1

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.
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 -11.91%. This is in the lower half of the industry: GOTU underperforms 64.94% of its industry peers.
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 RankSector 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
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

The Gross Margin of GOTU (67.24%) is better than 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 RankSector 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%
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

5

2. Health

2.1 Basic Checks

GOTU does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, GOTU has less shares outstanding
GOTU has more shares outstanding than it did 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.
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 -0.10, we must say that GOTU is in the distress zone and has some risk of bankruptcy.
GOTU's Altman-Z score of -0.10 is on the low side compared to the rest of the industry. GOTU is outperformed by 63.64% 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 -0.1
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.
GOTU has a Current ratio (1.11) which is comparable to the rest of the industry.
A Quick Ratio of 1.10 indicates that GOTU should not have too much problems paying its short term obligations.
GOTU has a Quick ratio of 1.10. This is comparable to the rest of the industry: GOTU outperforms 53.25% of its industry peers.
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

6

3. Growth

3.1 Past

GOTU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.65%.
The Revenue has grown by 56.22% in the past year. This is a very strong growth!
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)-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

The Earnings Per Share is expected to grow by 29.80% on average over the next years. This is a very strong growth
Based on estimates for the next years, GOTU will show a very strong growth in Revenue. The Revenue will grow by 22.03% on average per year.
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

The Revenue growth rate is accelerating: in the next years the growth will be better 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 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

1

4. Valuation

4.1 Price/Earnings Ratio

GOTU reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 351.76, GOTU can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as GOTU.
GOTU's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.63.
Industry RankSector Rank
PE N/A
Fwd PE 351.76
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 1 2 3

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GOTU does not grow enough to justify the current Price/Earnings ratio.
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%

0

5. Dividend

5.1 Amount

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

GAOTU TECHEDU INC

NYSE:GOTU (10/29/2025, 7:00:00 PM)

After market: 2.9 +0.01 (+0.35%)

2.89

-0.14 (-4.62%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)08-26 2025-08-26/bmo
Earnings (Next)12-02 2025-12-02
Inst Owners11.12%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap735.03M
Revenue(TTM)5.48B
Net Income(TTM)-699107000
Analysts78.46
Price Target4.35 (50.52%)
Short Float %0.91%
Short Ratio3.41
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)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 RankSector Rank
PE N/A
Fwd PE 351.76
P/S 0.95
P/FCF N/A
P/OCF N/A
P/B 3.26
P/tB 3.35
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 RankSector 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 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 -0.1
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.