(GOTU) Gaotu Techedu DRC - Overview
Stock: Online Tutoring, Test Prep, Educational Content, Digital Tools
EPS (Earnings per Share)
Revenue
| Risk 5d forecast | |
|---|---|
| Volatility | 72.1% |
| Relative Tail Risk | -22.1% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.05 |
| Alpha | -14.55 |
| Character TTM | |
|---|---|
| Beta | 0.596 |
| Beta Downside | 0.546 |
| Drawdowns 3y | |
|---|---|
| Max DD | 77.49% |
| CAGR/Max DD | -0.14 |
Description: GOTU Gaotu Techedu DRC January 25, 2026
Gaotu Techedu Inc. (NYSE:GOTU) is a Beijing-based, data-driven education platform that delivers a full spectrum of learning services across Mainland China. Its catalog spans K-12 academic tutoring (math, English, Chinese, sciences, humanities) and non-academic programs (adolescent development, Cambridge English, international competition prep). The company also serves college-age and adult learners with exam-preparation courses (IELTS, TOEFL, postgraduate and civil-service exams), overseas-study consulting, and professional certification training (e.g., teacher-qualification). Content is packaged as course outlines, practice exercises, reference books, and digital products such as AI-powered writing assessors, reading apps for young children, and hardware like learning pens and tablets, delivered via both online and offline channels.
Recent filings (FY 2024) show Gaotu generated ≈ ¥2.1 billion in revenue, a 14% year-over-year increase driven primarily by its AI-enhanced adult-learning segment, which now accounts for ~38% of total sales. The active user base grew to ~27 million learners, with monthly active users (MAU) rising 9% YoY, reflecting broader market recovery after the 2021 K-12 online-education crackdown. Sector-wide, the Chinese online-education market is projected by iiMedia Research to expand at a 10.2% CAGR through 2029, propelled by government incentives for vocational training and AI integration in curricula-both of which align with Gaotu’s strategic pivot toward adult and AI-driven offerings. However, the company’s exposure to regulatory risk remains material; any tightening of data-privacy or content-approval rules could materially affect growth.
For a deeper dive into Gaotu’s valuation dynamics and how its AI roadmap compares with peers, a quick look at ValueRay’s analyst toolkit can be a useful next step.
Piotroski VR‑10 (Strict, 0-10) 5.0
| Net Income: -372.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA -4.45 > 1.0 |
| NWC/Revenue: 1.31% < 20% (prev 12.70%; Δ -11.39% < -1%) |
| CFO/TA 0.05 > 3% & CFO 258.0m > Net Income -372.4m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 1.03 > 1.5 & < 3 |
| Outstanding Shares: last quarter (364.3m) vs 12m ago -5.38% < -2% |
| Gross Margin: 67.51% > 18% (prev 0.68%; Δ 6682 % > 0.5%) |
| Asset Turnover: 112.9% > 50% (prev 75.04%; Δ 37.83% > 0%) |
| Interest Coverage Ratio: -3.88 > 6 (EBITDA TTM -375.3m / Interest Expense TTM 76.9m) |
Altman Z'' -5.87
| A: 0.01 (Total Current Assets 3.12b - Total Current Liabilities 3.04b) / Total Assets 5.11b |
| B: -1.18 (Retained Earnings -6.05b / Total Assets 5.11b) |
| C: -0.06 (EBIT TTM -298.5m / Avg Total Assets 5.16b) |
| D: -1.64 (Book Value of Equity -6.08b / Total Liabilities 3.70b) |
| Altman-Z'' Score: -5.87 = D |
Beneish M -2.69
| DSRI: 1.39 (Receivables 148.5m/71.7m, Revenue 5.83b/3.91b) |
| GMI: 1.01 (GM 67.51% / 68.39%) |
| AQI: 0.63 (AQ_t 0.13 / AQ_t-1 0.20) |
| SGI: 1.49 (Revenue 5.83b / 3.91b) |
| TATA: -0.12 (NI -372.4m - CFO 258.0m) / TA 5.11b) |
| Beneish M-Score: -2.69 (Cap -4..+1) = A |
What is the price of GOTU shares?
Over the past week, the price has changed by -4.42%, over one month by -15.62%, over three months by -21.45% and over the past year by -8.09%.
Is GOTU a buy, sell or hold?
- StrongBuy: 4
- Buy: 2
- Hold: 2
- Sell: 0
- StrongSell: 1
What are the forecasts/targets for the GOTU price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 3.7 | 73.1% |
| Analysts Target Price | 3.7 | 73.1% |
| ValueRay Target Price | 2.1 | -0.9% |
GOTU Fundamental Data Overview February 04, 2026
P/E Forward = 526.3158
P/S = 0.0937
P/B = 2.6934
Revenue TTM = 5.83b CNY
EBIT TTM = -298.5m CNY
EBITDA TTM = -375.3m CNY
Long Term Debt = 483.5m CNY (from capitalLeaseObligations, last quarter)
Short Term Debt = 188.9m CNY (from shortTermDebt, last quarter)
Debt = 532.0m CNY (from shortLongTermDebtTotal, last quarter)
Net Debt = 213.3m CNY (from netDebt column, last quarter)
Enterprise Value = 1.92b CNY (3.80b + Debt 532.0m - CCE 2.41b)
Interest Coverage Ratio = -3.88 (Ebit TTM -298.5m / Interest Expense TTM 76.9m)
EV/FCF = 24.09x (Enterprise Value 1.92b / FCF TTM 79.8m)
FCF Yield = 4.15% (FCF TTM 79.8m / Enterprise Value 1.92b)
FCF Margin = 1.37% (FCF TTM 79.8m / Revenue TTM 5.83b)
Net Margin = -6.39% (Net Income TTM -372.4m / Revenue TTM 5.83b)
Gross Margin = 67.51% ((Revenue TTM 5.83b - Cost of Revenue TTM 1.89b) / Revenue TTM)
Gross Margin QoQ = 66.08% (prev 65.97%)
Tobins Q-Ratio = 0.38 (Enterprise Value 1.92b / Total Assets 5.11b)
Interest Expense / Debt = 1.43% (Interest Expense 7.60m / Debt 532.0m)
Taxrate = 21.0% (US default 21%)
NOPAT = -235.9m (EBIT -298.5m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.03 (Total Current Assets 3.12b / Total Current Liabilities 3.04b)
Debt / Equity = 0.38 (Debt 532.0m / totalStockholderEquity, last quarter 1.41b)
Debt / EBITDA = -0.57 (negative EBITDA) (Net Debt 213.3m / EBITDA -375.3m)
Debt / FCF = 2.67 (Net Debt 213.3m / FCF TTM 79.8m)
Total Stockholder Equity = 1.72b (last 4 quarters mean from totalStockholderEquity)
RoA = -7.21% (Net Income -372.4m / Total Assets 5.11b)
RoE = -21.64% (Net Income TTM -372.4m / Total Stockholder Equity 1.72b)
RoCE = -13.54% (EBIT -298.5m / Capital Employed (Equity 1.72b + L.T.Debt 483.5m))
RoIC = -13.61% (negative operating profit) (NOPAT -235.9m / Invested Capital 1.73b)
WACC = 7.25% (E(3.80b)/V(4.34b) * Re(8.11%) + D(532.0m)/V(4.34b) * Rd(1.43%) * (1-Tc(0.21)))
Discount Rate = 8.11% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 18.59%
[DCF Debug] Terminal Value 73.77% ; FCFF base≈173.0m ; Y1≈113.6m ; Y5≈51.8m
Fair Price DCF = 7.24 (EV 1.17b - Net Debt 213.3m = Equity 956.7m / Shares 132.1m; r=7.25% [WACC]; 5y FCF grow -40.0% → 2.90% )
EPS Correlation: -35.27 | EPS CAGR: -2.81% | SUE: -0.72 | # QB: 0
Revenue Correlation: 91.61 | Revenue CAGR: 22.91% | SUE: -0.16 | # QB: 0
EPS next Year (2026-12-31): EPS=0.28 | Chg30d=-0.040 | Revisions Net=+0 | Growth EPS=+119.9% | Growth Revenue=+17.4%