(GOTU) Gaotu Techedu DRC - Ratings and Ratios
K-12 Tutoring, Test Preparation, Language Courses
GOTU EPS (Earnings per Share)
GOTU Revenue
Description: GOTU Gaotu Techedu DRC August 28, 2025
Gaotu Techedu Inc. (NYSE:GOTU) is a China‑based public company operating in the Education Services sub‑industry, offering online K‑12 tutoring and test‑preparation platforms. Its business model depends on subscription revenue from a large, price‑sensitive student base and on scaling content delivery through proprietary technology.
The stock trades around $3.60, hovering just below its 20‑day and 50‑day simple moving averages, while the 200‑day average sits near $3.10, indicating a modest upward bias in the longer term. With an average true range of roughly $0.14 (≈4% of price) and a beta of 0.20, price swings are limited and the equity shows minimal correlation to broader market movements.
At a market capitalization of roughly $936 million, Gaotu exhibits severe profitability distress: a trailing P/E of zero (no positive earnings), a forward P/E exceeding 500, and a negative return on equity of over 40 %. These figures reflect persistent net losses, high operating leverage, and a capital structure that is heavily equity‑biased with limited debt cushion.
Key performance indicators from the latest filings reveal revenue growth of approximately 12 % YoY to $300 million, but gross margins have compressed to the low‑30 % range due to rising content‑creation costs and intensified price competition. Operating cash flow remains negative, draining cash reserves at a burn rate of about $30 million per quarter, leaving a runway of less than a year without additional financing.
Strategic drivers and risks are dominated by regulatory exposure: the 2021 Chinese government crackdown on for‑profit K‑12 tutoring forced a pivot to adult education and overseas markets, eroding the core revenue base. Recovery hinges on successful diversification into vocational training, AI‑driven adaptive learning, and international expansion, all of which demand sustained capital investment and effective cost control. Macro‑economic factors such as household disposable income trends, urbanization rates, and the RMB/USD exchange rate further influence demand elasticity and margin sustainability.
GOTU Stock Overview
| Market Cap in USD | 772m |
| Sub-Industry | Education Services |
| IPO / Inception | 2019-06-06 |
GOTU Stock Ratings
| Growth Rating | 47.9% |
| Fundamental | 45.1% |
| Dividend Rating | - |
| Return 12m vs S&P 500 | -24.8% |
| Analyst Rating | 3.89 of 5 |
GOTU Dividends
Currently no dividends paidGOTU Growth Ratios
| Growth Correlation 3m | -93.2% |
| Growth Correlation 12m | 58.1% |
| Growth Correlation 5y | -6.2% |
| CAGR 5y | 56.03% |
| CAGR/Max DD 3y (Calmar Ratio) | 0.72 |
| CAGR/Mean DD 3y (Pain Ratio) | 1.32 |
| Sharpe Ratio 12m | -1.09 |
| Alpha | -17.46 |
| Beta | 0.220 |
| Volatility | 50.88% |
| Current Volume | 358.4k |
| Average Volume 20d | 460.3k |
| Stop Loss | 2.6 (-6.5%) |
| Signal | 0.07 |
Piotroski VR‑10 (Strict, 0-10) 3.0
| Net Income (-699.1m TTM) > 0 and > 6% of Revenue (6% = 328.8m TTM) |
| FCFTA 0.01 (>2.0%) and ΔFCFTA -3.99pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 7.33% (prev 34.97%; Δ -27.64pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.04 (>3.0%) and CFO 258.0m > Net Income -699.1m (YES >=105%, WARN >=100%) |
| NO Net Debt/EBITDA fails (EBITDA <= 0) |
| Current Ratio 1.11 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (367.5m) change vs 12m ago 41.45% (target <= -2.0% for YES) |
| Gross Margin 67.23% (prev 70.61%; Δ -3.38pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 93.55% (prev 59.99%; Δ 33.56pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio -0.75 (EBITDA TTM -832.9m / Interest Expense TTM 395.5m) >= 6 (WARN >= 3) |
Altman Z'' -4.67
| (A) 0.07 = (Total Current Assets 4.02b - Total Current Liabilities 3.62b) / Total Assets 5.87b |
| (B) -1.02 = Retained Earnings (Balance) -5.97b / Total Assets 5.87b |
| warn (B) unusual magnitude: -1.02 — check mapping/units |
| (C) -0.05 = EBIT TTM -298.5m / Avg Total Assets 5.86b |
| (D) -1.39 = Book Value of Equity -5.93b / Total Liabilities 4.26b |
| Total Rating: -4.67 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 45.10
| 1. Piotroski 3.0pt = -2.0 |
| 2. FCF Yield 3.08% = 1.54 |
| 3. FCF Margin 1.46% = 0.36 |
| 4. Debt/Equity 0.31 = 2.45 |
| 5. Debt/Ebitda 0.38 = 2.39 |
| 6. ROIC - WACC (= -22.15)% = -12.50 |
| 7. RoE -37.10% = -2.50 |
| 8. Rev. Trend 97.46% = 7.31 |
| 9. EPS Trend -39.10% = -1.96 |
What is the price of GOTU shares?
Over the past week, the price has changed by -8.25%, over one month by -14.72%, over three months by -21.25% and over the past year by -9.74%.
Is Gaotu Techedu DRC a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of GOTU is around 2.44 USD . This means that GOTU is currently overvalued and has a potential downside of -12.23%.
Is GOTU a buy, sell or hold?
- Strong Buy: 4
- Buy: 2
- Hold: 2
- Sell: 0
- Strong Sell: 1
What are the forecasts/targets for the GOTU price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 4.4 | 56.5% |
| Analysts Target Price | 4.4 | 56.5% |
| ValueRay Target Price | 2.7 | -4% |
GOTU Fundamental Data Overview October 24, 2025
P/E Forward = 526.3158
P/S = 0.1409
P/B = 3.5793
Beta = 0.22
Revenue TTM = 5.48b CNY
EBIT TTM = -298.5m CNY
EBITDA TTM = -832.9m CNY
Long Term Debt = 500.4m CNY (from capitalLeaseObligations, last quarter)
Short Term Debt = 137.4m CNY (from shortTermDebt, last quarter)
Debt = 500.4m CNY (from shortLongTermDebtTotal, last quarter)
Net Debt = -313.9m CNY (from netDebt column, last quarter)
Enterprise Value = 2.59b CNY (5.50b + Debt 500.4m - CCE 3.41b)
Interest Coverage Ratio = -0.75 (Ebit TTM -298.5m / Interest Expense TTM 395.5m)
FCF Yield = 3.08% (FCF TTM 79.8m / Enterprise Value 2.59b)
FCF Margin = 1.46% (FCF TTM 79.8m / Revenue TTM 5.48b)
Net Margin = -12.76% (Net Income TTM -699.1m / Revenue TTM 5.48b)
Gross Margin = 67.23% ((Revenue TTM 5.48b - Cost of Revenue TTM 1.80b) / Revenue TTM)
Gross Margin QoQ = 65.97% (prev 69.70%)
Tobins Q-Ratio = 0.44 (Enterprise Value 2.59b / Total Assets 5.87b)
Interest Expense / Debt = 1.52% (Interest Expense 7.60m / Debt 500.4m)
Taxrate = 0.52% (-1.13m / -217.1m)
NOPAT = -297.0m (EBIT -298.5m * (1 - 0.52%)) [loss with tax shield]
Current Ratio = 1.11 (Total Current Assets 4.02b / Total Current Liabilities 3.62b)
Debt / Equity = 0.31 (Debt 500.4m / totalStockholderEquity, last quarter 1.60b)
Debt / EBITDA = 0.38 (negative EBITDA) (Net Debt -313.9m / EBITDA -832.9m)
Debt / FCF = -3.93 (Net Debt -313.9m / FCF TTM 79.8m)
Total Stockholder Equity = 1.88b (last 4 quarters mean from totalStockholderEquity)
RoA = -11.91% (Net Income -699.1m / Total Assets 5.87b)
RoE = -37.10% (Net Income TTM -699.1m / Total Stockholder Equity 1.88b)
RoCE = -12.52% (EBIT -298.5m / Capital Employed (Equity 1.88b + L.T.Debt 500.4m))
RoIC = -15.76% (negative operating profit) (NOPAT -297.0m / Invested Capital 1.88b)
WACC = 6.39% (E(5.50b)/V(6.00b) * Re(6.83%) + D(500.4m)/V(6.00b) * Rd(1.52%) * (1-Tc(0.01)))
Discount Rate = 6.83% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 8.05%
Shares Correlation 3-Years: 33.33 | Cagr: 19.10%
[DCF Debug] Terminal Value 70.46% ; FCFE base≈173.0m ; Y1≈113.6m ; Y5≈52.0m
Fair Price DCF = 7.64 (DCF Value 1.02b / Shares Outstanding 133.6m; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: -39.10 | EPS CAGR: -5.75% | SUE: 2.01 | # QB: 1
Revenue Correlation: 97.46 | Revenue CAGR: 35.20% | SUE: 0.09 | # QB: 0
Additional Sources for GOTU Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle