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Upturn AI SWOT - About
Gaotu Techedu Inc DRC (GOTU)
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Upturn Advisory Summary
06/27/2025: 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.
Number of Analysts
9 Analysts rated it
These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.
Year Target Price $4.19
Year Target Price $4.19
| 4 | Strong Buy |
| 2 | Buy |
| 2 | Hold |
| 0 | Under performing |
| 1 | Sell |
Analysis of Past Performance
Type Stock | Historic Profit -12.72% | Avg. Invested days 27 | 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 06/27/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 908.91M USD | Price to earnings Ratio - | 1Y Target Price 4.2 |
Price to earnings Ratio - | 1Y Target Price 4.2 | ||
Volume (30-day avg) - | Beta 0.38 | 52 Weeks Range 1.87 - 5.80 | Updated Date 06/29/2025 |
52 Weeks Range 1.87 - 5.80 | Updated Date 06/29/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.49 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
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 636110777 | Price to Sales(TTM) 0.18 |
Enterprise Value 636110777 | Price to Sales(TTM) 0.18 | ||
Enterprise Value to Revenue 0.89 | Enterprise Value to EBITDA -9.76 | Shares Outstanding 137702000 | Shares Floating 81672268 |
Shares Outstanding 137702000 | Shares Floating 81672268 | ||
Percent Insiders 5.51 | Percent Institutions 22.28 |
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 DRC, formerly known as GSX Techedu Inc., was founded in China in 2014. It initially focused on online large-class tutoring services for K-12 students. The company experienced rapid growth but faced significant regulatory changes in China's education sector, leading to a restructuring of its business model.
Core Business Areas
- Vocational Education: Provides vocational skills training, including courses in fields like finance, programming, and design, catering to adult learners seeking career advancement.
- Overseas Education: Offers programs and services to students planning to study abroad, including test preparation and application assistance.
- Digital Product: Creates learning application that could be used for studying at any age.
Leadership and Structure
The leadership team is headed by Larry Xiangdong Chen, the founder, chairman, and CEO. The company operates with a corporate structure focused on its vocational and overseas education segments.
Top Products and Market Share
Key Offerings
- Vocational Training Courses: Courses in areas like finance, accounting, and IT. While specific market share data is difficult to ascertain due to the fragmented nature of the vocational training market, Gaotu competes with companies like TAL Education (TAL), New Oriental Education (EDU), and Koolearn Technology (1797.HK) in related education segments. Revenue contributions is the highest among the businesses of Gaotu.
- Overseas Test Preparation: Courses designed to prepare students for standardized tests required for international university admissions. Competitors include Kaplan, The Princeton Review, and New Oriental Education (EDU). Revenue contributions is the second highest among the businesses of Gaotu.
Market Dynamics
Industry Overview
The Chinese education market has undergone significant regulatory changes, particularly impacting the K-12 after-school tutoring sector. The focus has shifted towards vocational training and adult education, creating new opportunities and challenges for companies like Gaotu.
Positioning
Gaotu has repositioned itself to focus on vocational training and overseas education, aiming to capitalize on the growing demand for skills-based learning and international study opportunities. Its competitive advantage lies in its online delivery platform and brand recognition in the Chinese market.
Total Addressable Market (TAM)
The global vocational training market is estimated to be in the hundreds of billions of dollars and the overseas education market is estimated to be hundreds of millions of dollars. Gaotu is positioning itself to capture a share of these markets by offering diverse courses and test prep services.
Upturn SWOT Analysis
Strengths
- Established brand recognition in China
- Online platform for scalable course delivery
- Experienced leadership team
- Diverse course offerings in vocational training
- Strong cash reserves
Weaknesses
- Reliance on the Chinese market
- Relatively new focus on vocational and overseas education
- Limited international presence
- Past controversies regarding business practices
Opportunities
- Expanding vocational training offerings in high-demand fields
- Partnerships with international universities
- Growth in the demand for online education
- Untapped markets in Southeast Asia and other regions
- Government support for vocational skills development
Threats
- Regulatory changes in China
- Intense competition in the online education market
- Economic slowdown in China
- Negative publicity affecting brand reputation
- Fluctuations in currency exchange rates
Competitors and Market Share
Key Competitors
- TAL (TAL)
- EDU (EDU)
- DAO (DAO)
Competitive Landscape
Gaotu faces intense competition in the education market. While it has brand recognition, it needs to innovate and differentiate its offerings to gain a sustainable competitive advantage.
Growth Trajectory and Initiatives
Historical Growth: Historical growth was rapid during the K-12 tutoring boom, but this has been disrupted by regulatory changes.
Future Projections: Future growth depends on the success of the vocational and overseas education segments. Analyst estimates vary widely.
Recent Initiatives: Recent initiatives include expanding course offerings in vocational training, forming partnerships with international institutions, and streamlining operations to improve profitability.
Summary
Gaotu Techedu Inc DRC has undergone a significant transformation in response to regulatory changes in China. While the company faces challenges in its new strategic direction, it has a strong balance sheet and brand recognition. The success of its vocational and overseas education segments will determine its future growth prospects. Investors should closely monitor the regulatory environment and the company's ability to execute its new strategy.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings
- Industry reports
- Analyst estimates
Disclaimers:
The data provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on thorough research and consultation with a qualified financial advisor. Market share data is based on available reports and estimates, 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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