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Gaotu Techedu Inc DRC (GOTU)



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Upturn Advisory Summary
09/17/2025: GOTU (1-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $4.33
1 Year Target Price $4.33
4 | Strong Buy |
2 | Buy |
2 | Hold |
0 | Sell |
1 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -14.15% | Avg. Invested days 27 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 879.30M USD | Price to earnings Ratio - | 1Y Target Price 4.33 |
Price to earnings Ratio - | 1Y Target Price 4.33 | ||
Volume (30-day avg) 9 | Beta 0.23 | 52 Weeks Range 1.87 - 4.59 | Updated Date 09/17/2025 |
52 Weeks Range 1.87 - 4.59 | Updated Date 09/17/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.39 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-08-26 | When Before Market | Estimate -1.16 | Actual -0.84 |
Profitability
Profit Margin -12.76% | Operating Margin (TTM) -17.41% |
Management Effectiveness
Return on Assets (TTM) -9.03% | Return on Equity (TTM) -32.7% |
Valuation
Trailing PE - | Forward PE 526.32 | Enterprise Value 470697288 | Price to Sales(TTM) 0.16 |
Enterprise Value 470697288 | Price to Sales(TTM) 0.16 | ||
Enterprise Value to Revenue 0.61 | Enterprise Value to EBITDA -9.76 | Shares Outstanding 133616000 | Shares Floating 78947378 |
Shares Outstanding 133616000 | Shares Floating 78947378 | ||
Percent Insiders 3.12 | Percent Institutions 11.12 |
Upturn AI SWOT
Gaotu Techedu Inc DRC

Company Overview
History and Background
Gaotu Techedu Inc. DRC, formerly GSX Techedu Inc., was founded in China in 2014. It initially focused on online large-class tutoring for K-12 students. It grew rapidly but faced significant regulatory changes in China's education sector that impacted its business model. In 2021 they had to pivot and are now focused on vocational and adult education.
Core Business Areas
- Vocational Education: Offers courses and training for adults seeking professional skills development and career advancement. This includes courses preparing them for various job skills and certifications.
- Education technology and solutions for schools: Focuses on the Chinese education market where it provides technology solutions and content to educational institutions. This may include digital tools, curricula, and other educational support services.
Leadership and Structure
The company structure is typical of a publicly traded company with a Board of Directors and executive management team. The specifics of the current leadership structure are publicly available through the company's filings with the SEC.
Top Products and Market Share
Key Offerings
- Revenue Source: Unknown, company does not provide these numbers.
- Vocational Training Courses: Provides various online courses in areas like finance, accounting, and IT to adult learners. Market share data is not easily accessible given the fragmentation of the Chinese vocational training market. Key competitors include New Oriental Education & Technology Group (EDU) and TAL Education Group (TAL), though the focus areas differ.
- Education Technology Solutions: Supplies digital learning tools, and educational content to educational institutions, focusing on technology-enhanced curriculum delivery, and administrative tools. Market share is not easily available as there are many competitors. Key competitors include TAL Education Group (TAL), New Oriental Education & Technology Group (EDU).
- Revenue Source: Unknown, company does not provide these numbers.
Market Dynamics
Industry Overview
The online education market, especially in China, has undergone significant regulatory changes, creating both challenges and opportunities. The focus is shifting from K-12 to vocational and adult education.
Positioning
Gaotu is repositioning itself in the vocational education and technology solutions for educational institutions markets. It seeks to leverage its online platform and educational expertise.
Total Addressable Market (TAM)
The TAM for vocational education in China is substantial, driven by a large workforce seeking skills upgrades. Gaotu is attempting to capture a portion of this market through specialized courses and partnerships with institutions.
Upturn SWOT Analysis
Strengths
- Established online platform
- Experienced teaching staff
- Adaptability to regulatory changes
Weaknesses
- Brand image affected by past K-12 regulations
- Relatively new entrant in vocational education market
- Uncertainty in Chinese regulations
Opportunities
- Growing demand for vocational skills
- Partnerships with vocational institutions
- Expansion into new course offerings
Threats
- Increased competition in vocational education
- Further regulatory changes
- Economic downturn affecting enrollment rates
Competitors and Market Share
Key Competitors
- EDU
- TAL
- UUVI
Competitive Landscape
Gaotu's advantage lies in its existing platform, but it faces established competitors with stronger brand recognition in the vocational education market.
Growth Trajectory and Initiatives
Historical Growth: Historical growth was strong in the K-12 sector but has declined following regulatory changes.
Future Projections: Future growth is projected to be driven by vocational education, but projections are highly dependent on successful execution of the new strategy.
Recent Initiatives: Focusing on vocational training and tech solutions, cost-cutting measures, and organizational restructuring.
Summary
Gaotu Techedu Inc. DRC is undergoing a significant transformation following regulatory changes in China. It is transitioning into vocational education and technology solutions. While it faces challenges such as competition and brand perception, opportunities exist in the growing vocational training market. Its success depends on adapting to the new landscape and successful execution of its strategy. Financials are still unstable, but are recovering.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company SEC Filings
- Industry Reports
- Analyst Estimates
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Data may be subject to change. Market share data is estimated and may not be precise.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Gaotu Techedu Inc DRC
Exchange NYSE | Headquaters - | ||
IPO Launch date 2019-06-06 | Founder, Chairman & CEO Mr. Xiangdong Chen Ph.D. | ||
Sector Consumer Defensive | Industry Education & Training Services | Full time employees 14381 | Website https://ir.gaotu.cn |
Full time employees 14381 | Website https://ir.gaotu.cn |
Gaotu Techedu Inc., a data-driven education company, provides learning services, educational content, and digitalized learning products in Mainland China. Its learning services include traditional learning services that cover academic subjects, such as mathematics, English, Chinese, physics, chemistry, biology, history, geography and political science; and non-academic tutoring services, including adolescent development, Cambridge English, international competitions and international examinations. It also offers college student and adult education services, comprising admission courses for entrance exams and interviews for postgraduate programs and civil service exams,; exam preparation courses, such as IELTS and TOEFL; consulting services for those pursuing studies abroad, as well as English courses for improving language skills which includes grammar, vocabulary, and speaking; and professional courses for qualification exams, such as teacher certification. In addition, the company offers educational content products, including course outlines, courseware, practice exercises and lesson notes, and reference books, such as Chinese dictionaries and exam question compilations for the college entrance exam; and digitalized learning products, including reading apps for young learners, and AI-based writing assessment tools that offer instant feedback, as well as learning pen and tablet devices. It provides its learning offerings to learners across various age groups from primary school students to adults through online and offline courses, and AI-powered applications. 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, China.

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