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Gaotu Techedu Inc DRC (GOTU)

Upturn stock ratingUpturn stock rating
$3.57
Last Close (24-hour delay)
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PASS
  • BUY Advisory
  • SELL Advisory (Profit)​
  • SELL Advisory (Loss)​
  • Profit
  • Loss
  • Pass (Skip investing)
Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
(see disclosures)
Time period over
  • ALL
  • YEAR
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Upturn Advisory Summary

09/17/2025: GOTU (1-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

rating

Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

Number of Analysts

rating

9 Analysts rated it

Limited analyst coverage, niche firm, research info may be scarce.

1 Year Target Price $4.33

1 Year Target Price $4.33

Analysts Price Target For last 52 week
$4.33 Target price
52w Low $1.87
Current$3.57
52w High $4.59

Analysis of Past Performance

Type Stock
Historic Profit -14.15%
Avg. Invested days 27
Today’s Advisory PASS
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 2.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 09/17/2025

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

ai summary icon Upturn AI SWOT

Gaotu Techedu Inc DRC

stock logo

Company Overview

overview logo 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.

business area logo 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 logo 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

overview logo 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 logo 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

competitor logo 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.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization 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
Full time employees 14381

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.