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Upturn AI SWOT - About
Gaotu Techedu Inc DRC (GOTU)
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Upturn Advisory Summary
08/14/2025: GOTU (1-star) is currently NOT-A-BUY. Pass it for now.
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
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $4.2
1 Year Target Price $4.2
| 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  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 08/14/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 926.24M USD | Price to earnings Ratio - | 1Y Target Price 4.2 |
Price to earnings Ratio - | 1Y Target Price 4.2 | ||
Volume (30-day avg) 9 | Beta 0.2 | 52 Weeks Range 1.87 - 4.59 | Updated Date 08/15/2025 |
52 Weeks Range 1.87 - 4.59 | Updated Date 08/15/2025 | ||
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 - | 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 653891479 | Price to Sales(TTM) 0.18 |
Enterprise Value 653891479 | Price to Sales(TTM) 0.18 | ||
Enterprise Value to Revenue 0.92 | Enterprise Value to EBITDA -9.76 | Shares Outstanding 137702000 | Shares Floating 81672268 |
Shares Outstanding 137702000 | Shares Floating 81672268 | ||
Percent Insiders 5.51 | Percent Institutions 22.61 |
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 K-12 after-school tutoring services. The company experienced rapid growth, becoming a significant player in China's online education market. However, regulatory changes in China's education sector in 2021 significantly impacted its business model, leading to restructuring and a shift in focus.
Core Business Areas
- Vocational Education: Focuses on providing online vocational training courses for adults, including professional skills training and exam preparation.
- Digital Products: Offers a range of digital products such as self-paced online courses, educational software, and content resources.
- Other Services: Includes educational content and technology solutions for educational institutions and corporate clients.
Leadership and Structure
The leadership team consists of top management, including the CEO and CFO, overseeing various departments such as technology, marketing, and operations. The organizational structure is hierarchical, with functional teams reporting to senior management.
Top Products and Market Share
Key Offerings
- Vocational Skills Training: Provides online courses for vocational skills such as accounting, finance, and IT. Market share data is difficult to obtain precisely due to the fragmented nature of the market, but Gaotu holds a significant position due to its established brand. Competitors include Koolearn Technology Holding (EDU), TAL Education Group (TAL) and New Oriental Education (EDU).
- Professional Certification Courses: Offers online preparation courses for professional certifications. Market share data is difficult to obtain precisely due to the fragmented nature of the market. Competitors include Koolearn Technology Holding (EDU), TAL Education Group (TAL) and New Oriental Education (EDU).
- Self-Paced Online Courses: Offers a variety of self-paced online courses covering a range of subjects. Market share data is difficult to obtain precisely due to the fragmented nature of the market. Competitors include Coursera (COUR) and Udemy (UDMY)
Market Dynamics
Industry Overview
The online education market is experiencing growth, driven by increasing demand for flexible learning options and technological advancements. However, it is also subject to regulatory uncertainties and intense competition.
Positioning
Gaotu is positioned as a provider of quality online education services, particularly in vocational training. It faces competition from other online education platforms and traditional education providers.
Total Addressable Market (TAM)
The global online education market is estimated to be in the hundreds of billions of dollars. Gaotu's position within this TAM is focused on vocational training and digital products, aiming to capture a significant share through quality content and effective marketing.
Upturn SWOT Analysis
Strengths
- Established Brand Recognition
- Experienced Management Team
- Strong Technology Infrastructure
- Diverse Course Offerings
Weaknesses
- Reliance on Regulatory Environment
- Intense Competition
- Limited Geographic Diversification
- Past Regulatory Scrutiny
Opportunities
- Expansion into New Vocational Fields
- Strategic Partnerships with Institutions
- Technological Innovations
- Growth in Emerging Markets
Threats
- Regulatory Changes
- Economic Downturn
- Increased Competition
- Negative Publicity
Competitors and Market Share
Key Competitors
- EDU
- TAL
- COUR
- UDMY
Competitive Landscape
Gaotu faces a highly competitive landscape, requiring it to differentiate itself through quality content, effective marketing, and strong technology.
Growth Trajectory and Initiatives
Historical Growth: Gaotu experienced rapid growth in its early years, followed by a significant downturn due to regulatory changes.
Future Projections: Future growth projections depend on successful adaptation to the new regulatory environment and expansion into new business areas. Analyst estimates vary.
Recent Initiatives: Recent initiatives include focusing on vocational training, developing digital products, and exploring partnerships with educational institutions.
Summary
Gaotu is navigating a challenging environment due to regulatory changes in China. Its focus on vocational training and digital products shows promise, but intense competition and regulatory uncertainties remain significant risks. The company's success hinges on its ability to adapt and innovate in the evolving online education market. Prior regulatory issues are a lingering concern, while new market opportunities give it hope.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings
- Industry Reports
- Analyst Estimates
Disclaimers:
The information provided is for informational purposes only and should not be construed as financial advice. Investment decisions should be based on thorough research and consultation with a qualified financial advisor. Market share data is based on estimates due to lack of publicly available information.
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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