Gaotu Techedu (GOTU) Fundamental Analysis: Revenue, Earnings & Valuation

6.32 / 10

Outperform

Fundamentally, the stock scores 6.3/10. Strengths include Asset‑MV, Profit‑MV and strong interest coverage; cash is modest. Liabilities ratios are high, and ROA is negative, suggesting caution despite overall positive fundamentals.

Analysis Checks(6/10)

ROA (%)

Value-5.38

Score3/3

Weight28.05%

1M Return3.48%

Current liabilities / Total liabilities (%)

Value85.84

Score1/3

Weight-7.02%

1M Return-1.10%

Profit-MV

Value0.66

Score2/3

Weight4.14%

1M Return0.58%

Non-current liabilities / Total liabilities (%)

Value14.16

Score1/3

Weight-7.56%

1M Return-1.18%

Rate of return on total assets (%)

Value-6.11

Score1/3

Weight3.78%

1M Return0.53%

Cash-UP

Value-0.15

Score2/3

Weight-20.70%

1M Return-4.22%

Annualized return on total assets (%)

Value-6.11

Score1/3

Weight3.78%

1M Return0.53%

Annualized net profit margin on total assets (%)

Value-5.38

Score3/3

Weight28.05%

1M Return3.48%

Interest coverage ratio (EBIT / Interest expense) (%)

Value35.11

Score2/3

Weight3.68%

1M Return0.54%

Asset-MV

Value-0.55

Score2/3

Weight63.80%

1M Return7.50%

Is GOTU fundamentally strong?

GOTU scores 6.32/10 on fundamentals and holds a Discounted valuation at present. Backed by its -20.29% ROE, -5.26% net margin, -10.20 P/E ratio, 2.63 P/B ratio, and 66.23% earnings growth, these metrics solidify its Outperform investment rating.