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GOTU 
Gaotu Techedu Inc DRC (GOTU)
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Stock price based on last close (see disclosures)
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Upturn Advisory Summary
11/04/2025: 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 $4.35
1 Year Target Price $4.35
| 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 11/04/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 684.44M USD | Price to earnings Ratio - | 1Y Target Price 4.35 |
Price to earnings Ratio - | 1Y Target Price 4.35 | ||
Volume (30-day avg) 9 | Beta 0.22 | 52 Weeks Range 1.87 - 4.56 | Updated Date 11/4/2025 |
52 Weeks Range 1.87 - 4.56 | Updated Date 11/4/2025 | ||
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 - | When - | Estimate - | Actual - |
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 397659441 | Price to Sales(TTM) 0.12 |
Enterprise Value 397659441 | Price to Sales(TTM) 0.12 | ||
Enterprise Value to Revenue 0.52 | Enterprise Value to EBITDA -9.76 | Shares Outstanding 133616331 | Shares Floating 78947378 |
Shares Outstanding 133616331 | Shares Floating 78947378 | ||
Percent Insiders 3.12 | Percent Institutions 11.11 |
Upturn AI SWOT
Gaotu Techedu Inc DRC
Company Overview
History and Background
Gaotu Techedu Inc., formerly known as GSX Techedu Inc., was founded in 2014. Initially focusing on online tutoring for K-12 students in China, the company expanded its offerings to include various educational products and services. It listed on the NYSE in 2019, but faced significant regulatory challenges in China leading to restructuring.
Core Business Areas
- Vocational Education: Focuses on providing professional skills training and development courses for adults seeking career advancement or reskilling.
- STEAM Education: Provides science, technology, engineering, arts, and mathematics courses for children and young adults.
- Digital Products: Offers digital learning materials and resources, including apps and online platforms.
Leadership and Structure
The leadership team consists of the CEO and various department heads responsible for different business segments like vocational education and STEAM education. The organizational structure shifted due to regulatory changes to focus on STEAM, vocational, and digital products.
Top Products and Market Share
Key Offerings
- Vocational Education Courses: Offers courses in areas like finance, IT, and other professional skills. Market share is growing in the vocational training sector, estimated revenue contribution is high, but difficult to pinpoint without public filings. Competitors include New Oriental Education (EDU) and TAL Education (TAL).
- STEAM Education Programs: Provides STEAM-based learning experiences for children. Market share is growing in STEAM, however is difficult to pinpoint without public filings. Competitors include DaDa English (unlisted) and VIPKid (unlisted).
- Digital Learning Platforms: Includes online learning platforms and apps. Competitors include Yuanfudao and Zuoyebang (both unlisted).
Market Dynamics
Industry Overview
The Chinese education industry has undergone significant regulatory changes, particularly impacting K-12 tutoring. The vocational and STEAM education segments are experiencing growth, but are subject to evolving regulations. Digital education is also rapidly evolving.
Positioning
Gaotu is repositioning itself to focus on vocational training and STEAM education, aiming to capitalize on growth opportunities outside of the heavily regulated K-12 tutoring sector. They are working to build a reputation for quality vocational courses and innovative STEAM programs.
Total Addressable Market (TAM)
The total addressable market for vocational education and STEAM education in China is substantial, estimated to be in the billions of dollars. Gaotu is positioned to capture a share of this market by offering specialized courses and leveraging its existing online platform.
Upturn SWOT Analysis
Strengths
- Established online platform
- Experience in online education
- Strong brand recognition (historically)
- Adaptable business model
Weaknesses
- Negative Impacted by Regulatory Changes
- Brand Damage from past marketing practices
- Limited track record in vocational education and STEAM
- Reliance on Chinese market
Opportunities
- Growing demand for vocational training in China
- Increasing interest in STEAM education among parents
- Expansion into other educational segments (e.g., adult education)
- Partnerships with universities and other educational institutions
Threats
- Further regulatory changes in China
- Intense competition from other education companies
- Economic slowdown in China
- Negative media coverage
Competitors and Market Share
Key Competitors
- TAL
- EDU
- UUU
Competitive Landscape
Gaotu faces intense competition from established education companies with more experience in vocational training and STEAM education. Its competitive advantage lies in its existing online platform and brand recognition, although those are damaged.
Growth Trajectory and Initiatives
Historical Growth: Historical growth was strong prior to the regulatory changes, driven by the demand for online K-12 tutoring.
Future Projections: Future growth is uncertain, depending on the success of Gaotu's repositioning strategy. Analyst estimates vary widely.
Recent Initiatives: Recent initiatives include expanding vocational training programs, developing STEAM education products, and restructuring the business to comply with regulations.
Summary
Gaotu Techedu Inc. DRC faces substantial challenges due to regulatory changes and market shifts in China. The company is trying to reposition into vocational training and STEAM education, but it faces strong competition in those sectors. The previous strength of the company was in K-12 tutoring which is no longer viable for them to exploit. It needs to successfully implement its new initiatives to stabilize and return to growth, whilst it continues to navigate the unpredictable regulatory environment.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company Press Releases
- Industry Reports
- Financial News Articles
- Analyst Reports
- Third Party Research
Disclaimers:
The information provided is for informational purposes only and should not be construed as investment advice. Market share data is approximate and may vary based on source. The educational landscape in China is volatile and regulatory risk exists.
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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