GOTU

Gaotu Techedu Inc.

Fundamental data last updated:August 12, 2026

We may earn a commission from partner links. This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate.

company profile

SECTOR

Consumer Defensive

industry

Education & Training Services

Exchange

NYSE

County of HQ

CN

Next Earnings Date

Pending Announcement

Business Summary

Gaotu Techedu Inc., a technology-driven education company, provides online K-12 after-school tutoring services in the People's Republic of China. Its K-12 after-school tutoring courses cover various K-12 academic subjects, including mathematics, English, Chinese, physics, chemistry, biology, history, geography, and political science. The company also provides foreign language courses comprising English and Japanese, as well as English test preparation courses for students taking post-graduate entrance exams; and professional courses primarily for working adults preparing for professional qualification exams, such as teacher's qualification, the Chartered Financial Analyst designation, securities qualification exams, and other exams. In addition, it offers admission courses for admission tests, including national graduate entrance examination, civil service examinations, and others; and Gaotu App, an interactive learning app to various student groups. Further, the company provides other courses, including offline business consulting courses to enhance management skills for principals and other officers of private education institutions; and develops and sells smart devices, such as multi-function translation pen, as well as teaching and learning tools, which includes smart learning machine. The company was formerly known as GSX Techedu Inc. and changed its name to Gaotu Techedu Inc. in June 2021. Gaotu Techedu Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.

 


VALUATION

P/E

-2.02

Market Cap ($M USD)

$664.30M

Forward P/E

1.53

PEG

0.01

PRICE TO SALES

0.73

PRICE TO BOOK

3.53

EV / EBITDA

-8.68

5-Year Average P/E

Free Cash Flow Yield

5.49%

DCF Value

$-10.18

Graham Number

N/A

Price to FCF

18.23

EV to FCF

17.71

Earnings Yield

-7.31%

FCF Yield

5.49%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$0.90

Next Year EPS Growth Estimate

$1.18

Next Year Revenue Growth Estimate

$9.01B

Return on Equity (ROE)

-20.84%

FREE CASH FLOW

Operating Margin

-8.19%

Debt-to-Equity

0.47

Piotroski F-Score

4

Altman Z-Score

-0.20

Return on Invested Capital (ROIC)

-25.73%

Current Ratio

0.94

Quick Ratio

0.92

Net Debt to EBITDA

0.25

Interest Coverage

0.00

Gross Profit margin

67.44%

FCF PER SHARE

$0.68

REVENUE PER SHARE

$17.02

Gainseekers Quantitative Analysis

Summary

GOTU Gaotu Techedu Inc. presents a perplexing valuation scenario. The stock has traded significantly below its DCF Value, suggesting potential undervaluation. However, the negative Price/Earnings ratio and Altman Z-score signal financial distress, raising red flags about its long-term viability. The Forward P/E ratio is enticingly low, hinting at future profitability, yet the negative Earnings Yield contradicts this optimism. Overall, the market appears skeptical, pricing in substantial risk despite some promising forward-looking metrics.

AI Exposure / Tech Reliance

Operating in the Education & Training Services industry, GOTU is poised to leverage AI advancements to enhance learning experiences and operational efficiency. Its sector is ripe for tech-driven transformation, potentially allowing the company to streamline costs and personalize education. However, its ability to adapt swiftly will be crucial in maintaining competitive advantage.

The Bull Case

For the value or GARP investor, GOTU offers intriguing prospects. The Forward PEG ratio is exceptionally low, indicating potential undervaluation relative to growth. Despite a negative ROIC, the FCF Yield suggests some degree of capital efficiency. The Piotroski F-Score of 4 indicates moderate financial health, while a robust Gross Profit Margin points to strong pricing power. These elements combine to create a narrative of potential upside if management can execute effectively.

The Bear Case

Yet, the structural risks are glaring. The negative ROIC and Operating Margin highlight inefficiencies and potential management missteps. The Price/Book ratio is elevated, suggesting the stock might be overvalued relative to its assets. Additionally, the Altman Z-score is alarmingly low, indicating potential financial instability. With a Current Ratio below 1, liquidity concerns loom large, making this a risky proposition for cautious investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$2.94

Institutional Ownership %

1-Year Beta

0.63

Insider Buying % (6 Mo)

Distance to 52-Week High

128.18%

Distance to 52-Week Low

8.84%

EARNINGS SURPRISE %

35.21%

50-DAY SMA

$1.92

200-DAY SMA

$2.55

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.