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Upturn AI SWOT - About
Gaotu Techedu Inc DRC (GOTU)
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Upturn Advisory Summary
06/13/2025: GOTU (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Analysis of Past Performance
Type Stock | Historic Profit -7.73% | Avg. Invested days 26 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 06/13/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 960.92M USD | Price to earnings Ratio - | 1Y Target Price 4.19 |
Price to earnings Ratio - | 1Y Target Price 4.19 | ||
Volume (30-day avg) 1450087 | Beta 0.38 | 52 Weeks Range 1.87 - 5.80 | Updated Date 06/14/2025 |
52 Weeks Range 1.87 - 5.80 | Updated Date 06/14/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.49 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-05-15 | When - | Estimate 0.22 | Actual 0.54 |
Profitability
Profit Margin -17.9% | Operating Margin (TTM) 2.33% |
Management Effectiveness
Return on Assets (TTM) -12.71% | Return on Equity (TTM) -36.06% |
Valuation
Trailing PE - | Forward PE 526.32 | Enterprise Value 689090053 | Price to Sales(TTM) 0.19 |
Enterprise Value 689090053 | Price to Sales(TTM) 0.19 | ||
Enterprise Value to Revenue 0.97 | Enterprise Value to EBITDA -9.76 | Shares Outstanding 137702000 | Shares Floating 81672268 |
Shares Outstanding 137702000 | Shares Floating 81672268 | ||
Percent Insiders 5.51 | Percent Institutions 22.47 |
Analyst Ratings
Rating 3.89 | Target Price 4.19 | Buy 2 | Strong Buy 4 |
Buy 2 | Strong Buy 4 | ||
Hold 2 | Sell - | Strong Sell 1 | |
Strong Sell 1 |
Upturn AI SWOT
Gaotu Techedu Inc DRC
Company Overview
History and Background
Gaotu Techedu Inc. (formerly GSX Techedu Inc.) was founded in 2014 and is headquartered in Beijing, China. It is a technology-driven education company focusing on online large-class tutoring services in China. The company has evolved from offering various educational services to focusing on vocational education and digital products after regulatory changes in the after-school tutoring sector in China.
Core Business Areas
- Vocational Education: Offers courses and training programs for adults looking to enhance their professional skills and career prospects.
- Digital Products: Develops and sells educational digital products and learning materials.
- Other Services: Includes remaining K-12 business and other related activities
Leadership and Structure
Larry Xiangdong Chen serves as the Chairman and Chief Executive Officer. The company operates with a typical corporate structure including various departments such as Technology, Curriculum Development, Marketing, and Operations.
Top Products and Market Share
Key Offerings
- Vocational Courses: Offers online courses in areas like finance, accounting, and other professional skills. Data on specific market share is limited and highly competitive. Competitors include Koolearn Technology and TAL Education Group.
- Digital Learning Products: Includes online resources, digital textbooks, and other educational software. The market is competitive with many other online learning platforms. Exact revenue data not publicly available.
Market Dynamics
Industry Overview
The online education market in China has undergone significant regulatory changes, impacting after-school tutoring services. The market is shifting towards vocational training and adult education. Competition remains intense with many players vying for market share.
Positioning
Gaotu Techedu Inc. is repositioning itself as a vocational education provider and digital learning resource company after regulatory shifts. It is facing strong competition in the adult education space.
Total Addressable Market (TAM)
The TAM for vocational education in China is estimated to be substantial, potentially reaching hundreds of billions of USD. Gaotu is striving to capture a meaningful share of this market as it pivots its business.
Upturn SWOT Analysis
Strengths
- Established online learning platform
- Experienced management team
- Reputation in the education sector
- Technology infrastructure for online delivery
Weaknesses
- Dependence on regulatory environment
- Limited brand recognition in the vocational education market
- Past focus on K-12 creates perception challenges
- Relatively high marketing expenses
Opportunities
- Expanding vocational training programs
- Developing new digital learning products
- Partnerships with universities and vocational schools
- Government support for vocational education
Threats
- Intense competition in vocational education
- Further regulatory changes
- Economic downturn affecting consumer spending on education
- Rapid technological advancements requiring constant adaptation
Competitors and Market Share
Key Competitors
- TAL
- EDU
- UUVI
- HKSE:1797
Competitive Landscape
Gaotu faces significant competition in the online education market, especially in the vocational education sector. Many companies have a stronger established brand and more diverse course offerings. Gaotu's competitive advantage depends on the quality and relevance of its new vocational education programs.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: Historical growth was strong when the company focused on K-12 tutoring, but has since declined.
Future Projections: Future growth depends on the success of the company's transition to vocational education and digital products. Analyst estimates are highly variable.
Recent Initiatives: Recent initiatives include expanding vocational training programs, developing new digital learning products, and strategic partnerships.
Summary
Gaotu Techedu Inc. is a company in transition after facing severe regulatory changes in China's after-school tutoring market. It is now focused on vocational training and digital products but faces intense competition. The company's success hinges on its ability to successfully pivot its business model and establish a strong position in the vocational education space. The company needs to navigate the regulatory landscape effectively.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings
- Industry Reports
- Market Research
Disclaimers:
The information provided is for informational purposes only and should not be considered investment advice. Market share data is estimated and may vary. Financial data is based on available public information, which may be limited or outdated. Consult with a qualified financial advisor before making any investment decisions.
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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