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Upturn AI SWOT - About
Gaotu Techedu Inc DRC (GOTU)
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Upturn Advisory Summary
04/01/2025: GOTU (2-star) is a SELL. SELL since 3 days. Profits (23.40%). Updated daily EoD!
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit 101.31% | Avg. Invested days 29 | Today’s Advisory SELL |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  5.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 750.34M USD | Price to earnings Ratio - | 1Y Target Price 34.7 |
Price to earnings Ratio - | 1Y Target Price 34.7 | ||
Volume (30-day avg) 3564660 | Beta 0.02 | 52 Weeks Range 1.87 - 8.44 | Updated Date 03/30/2025 |
52 Weeks Range 1.87 - 8.44 | Updated Date 03/30/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.33 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -17.65% | Operating Margin (TTM) -46.02% |
Management Effectiveness
Return on Assets (TTM) -9.54% | Return on Equity (TTM) -20.53% |
Valuation
Trailing PE - | Forward PE 526.32 | Enterprise Value 453895375 | Price to Sales(TTM) 0.17 |
Enterprise Value 453895375 | Price to Sales(TTM) 0.17 | ||
Enterprise Value to Revenue 0.72 | Enterprise Value to EBITDA -9.76 | Shares Outstanding 148779008 | Shares Floating 92021330 |
Shares Outstanding 148779008 | Shares Floating 92021330 | ||
Percent Insiders 7.58 | Percent Institutions 28.52 |
Analyst Ratings
Rating 4 | Target Price 34.7 | Buy 1 | Strong Buy 5 |
Buy 1 | Strong Buy 5 | ||
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.
Similar Companies
EDU
New Oriental Education & Technology
EDU
New Oriental Education & Technology
TAL
TAL Education Group
TAL
TAL Education Group
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 - | Website https://ir.gaotu.cn |
Full time employees - | Website https://ir.gaotu.cn | ||
Gaotu Techedu Inc., a technology-driven education company, provides learning services, educational content, and digitalized learning products in the People's Republic of China. The company offers traditional online academic subject tutoring services that covers academic subjects, such as mathematics, English, Chinese, physics, chemistry, biology, history, geography, and political science for students; non-academic tutoring services; personal interest courses comprising chess learning, family relationships and education, humanities, and science courses; and professional courses primarily for college students and adults preparing for professional qualification exams, such as teacher's qualification, Chartered Financial Analyst designation, Certified Public Accountant designation, and other exams. It also offers admission courses for admission tests and interviews, including national-post graduate entrance examination, civil service examinations, and others; foreign language courses; overseas study related services; and courses to prepare and pass certain language exams for study abroad, such as IELTS and TOEFL. In addition, the company designs and develops course outlines, interactive courseware, practice exercises, and lesson notes; publishes reference books comprising Chinese dictionary, dictionary of idioms, and past exam questions for the college entrance examination; and develops, expands, and upgrades education-centric digital products and solutions, as well as learning apps. Further, it offers books and digitalized auxiliary learning tools, such as smart devices and translation pens; and online tutoring services. 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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