GAOTU TECHEDU INC (GOTU)

US36257Y1091 - ADR

6.88  +0.43 (+6.67%)

Fundamental Rating

4

GOTU gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 65 industry peers in the Diversified Consumer Services industry. No worries on liquidiy or solvency for GOTU as it has an excellent financial health rating, but there are worries on the profitability. GOTU is quite expensive at the moment. It does show a decent growth rate.



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2

1. Profitability

1.1 Basic Checks

GOTU had negative earnings in the past year.
In multiple years GOTU reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: GOTU reported negative operating cash flow in multiple years.

1.2 Ratios

GOTU has a Return On Assets of -0.13%. This is comparable to the rest of the industry: GOTU outperforms 57.81% of its industry peers.
GOTU has a Return On Equity of -0.23%. This is comparable to the rest of the industry: GOTU outperforms 59.38% of its industry peers.
Industry RankSector 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's Gross Margin of 73.31% is amongst the best of the industry. GOTU outperforms 84.38% of its industry peers.
GOTU's Gross Margin has improved 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 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%

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7

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
Compared to 5 years ago, GOTU has more shares outstanding
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

An Altman-Z score of 2.72 indicates that GOTU is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.72, GOTU is in the better half of the industry, outperforming 73.44% of the companies in the same industry.
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 2.72
ROIC/WACCN/A
WACC7.54%

2.3 Liquidity

A Current Ratio of 1.82 indicates that GOTU should not have too much problems paying its short term obligations.
GOTU has a Current ratio of 1.82. This is in the better half of the industry: GOTU outperforms 67.19% of its industry peers.
GOTU has a Quick Ratio of 1.81. 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 (1.81) is better than 68.75% of its industry peers.
Industry RankSector Rank
Current Ratio 1.82
Quick Ratio 1.81

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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 -303.77%.
Looking at the last year, GOTU shows a quite strong growth in Revenue. The Revenue has grown by 18.52% in the last year.
Measured over the past years, GOTU shows a very strong growth in Revenue. The Revenue has been growing by 49.44% on average per year.
EPS 1Y (TTM)-303.77%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-282.48%
Revenue 1Y (TTM)18.52%
Revenue growth 3Y-25.38%
Revenue growth 5Y49.44%
Revenue growth Q2Q20.87%

3.2 Future

GOTU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 214.28% yearly.
GOTU is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 43.65% yearly.
EPS Next Y677.78%
EPS Next 2Y301.52%
EPS Next 3Y214.28%
EPS Next 5YN/A
Revenue Next Year51.5%
Revenue Next 2Y45.81%
Revenue Next 3Y43.65%
Revenue Next 5YN/A

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 stable.

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2

4. Valuation

4.1 Price/Earnings Ratio

GOTU reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 123.21, the valuation of GOTU can be described as expensive.
GOTU's Price/Forward Earnings ratio is in line with the industry average.
GOTU is valuated expensively when we compare the Price/Forward Earnings ratio to 21.67, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 123.21

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GOTU's earnings are expected to grow with 214.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y301.52%
EPS Next 3Y214.28%

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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 (4/25/2024, 1:39:14 PM)

6.88

+0.43 (+6.67%)

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 Cap1.78B
Analysts
Price Target
Dividend
Industry RankSector 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 RankSector Rank
PE N/A
Fwd PE 123.21
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 RankSector 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 RankSector 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)
Growth
EPS 1Y (TTM)-303.77%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y677.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)18.52%
Revenue growth 3Y-25.38%
Revenue growth 5Y
Revenue growth 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