GOTU
Gaotu Techedu·NYSE
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7.41 / 10
Outperform
GOTU's fundamentals show a quality score of 7.4/10. Key strengths include a healthy cash position (Cash-UP factor score 2), strong interest coverage ratio (2), and positive profit-to-market value (3). However, the equity ratio (1) and asset-liability ratio (2) present leverage concerns, while net income-to-revenue (1) and asset-to-market value (0) lag. Overall, the balance sheet needs tightening, but profitability and liquidity remain adequate.
Analysis Checks(7/10)
Revenue-MV
Value0.63
Score2/3
Weight16.56%
1M Return5.34%
Value0.63
Score2/3
Weight16.56%
1M Return5.34%
Equity ratio (Total liabilities / Shareholders’ equity attributable to parent company) (%)
Value2.62
Score1/3
Weight-2.43%
1M Return-0.56%
Value2.62
Score1/3
Weight-2.43%
1M Return-0.56%
Net income-Revenue
Value-0.15
Score1/3
Weight6.28%
1M Return1.53%
Value-0.15
Score1/3
Weight6.28%
1M Return1.53%
Long-term debt to working capital ratio (%)
Value8.62
Score2/3
Weight13.17%
1M Return2.88%
Value8.62
Score2/3
Weight13.17%
1M Return2.88%
Asset-MV
Value-0.51
Score0/3
Weight-11.38%
1M Return-4.17%
Value-0.51
Score0/3
Weight-11.38%
1M Return-4.17%
Asset-liability ratio (%)
Value72.38
Score2/3
Weight3.60%
1M Return0.82%
Value72.38
Score2/3
Weight3.60%
1M Return0.82%
Profit-MV
Value0.47
Score3/3
Weight67.70%
1M Return12.07%
Value0.47
Score3/3
Weight67.70%
1M Return12.07%
Cash-UP
Value-0.05
Score2/3
Weight-3.70%
1M Return-1.14%
Value-0.05
Score2/3
Weight-3.70%
1M Return-1.14%
Interest coverage ratio (EBIT / Interest expense) (%)
Value15.51
Score2/3
Weight6.16%
1M Return1.53%
Value15.51
Score2/3
Weight6.16%
1M Return1.53%
Current ratio
Value1.03
Score2/3
Weight4.05%
1M Return0.97%
Value1.03
Score2/3
Weight4.05%
1M Return0.97%
Revenue-MV
Value0.63
Score2/3
Weight16.56%
1M Return5.34%
Value0.63
Score2/3
Weight16.56%
1M Return5.34%
Asset-liability ratio (%)
Value72.38
Score2/3
Weight3.60%
1M Return0.82%
Value72.38
Score2/3
Weight3.60%
1M Return0.82%
Equity ratio (Total liabilities / Shareholders’ equity attributable to parent company) (%)
Value2.62
Score1/3
Weight-2.43%
1M Return-0.56%
Value2.62
Score1/3
Weight-2.43%
1M Return-0.56%
Profit-MV
Value0.47
Score3/3
Weight67.70%
1M Return12.07%
Value0.47
Score3/3
Weight67.70%
1M Return12.07%
Net income-Revenue
Value-0.15
Score1/3
Weight6.28%
1M Return1.53%
Value-0.15
Score1/3
Weight6.28%
1M Return1.53%
Cash-UP
Value-0.05
Score2/3
Weight-3.70%
1M Return-1.14%
Value-0.05
Score2/3
Weight-3.70%
1M Return-1.14%
Long-term debt to working capital ratio (%)
Value8.62
Score2/3
Weight13.17%
1M Return2.88%
Value8.62
Score2/3
Weight13.17%
1M Return2.88%
Interest coverage ratio (EBIT / Interest expense) (%)
Value15.51
Score2/3
Weight6.16%
1M Return1.53%
Value15.51
Score2/3
Weight6.16%
1M Return1.53%
Asset-MV
Value-0.51
Score0/3
Weight-11.38%
1M Return-4.17%
Value-0.51
Score0/3
Weight-11.38%
1M Return-4.17%
Current ratio
Value1.03
Score2/3
Weight4.05%
1M Return0.97%
Value1.03
Score2/3
Weight4.05%
1M Return0.97%
Is GOTU undervalued or overvalued?
- GOTU scores 7.41/10 on fundamentals and holds a Discounted valuation at present. Backed by its -14.29% ROE, -5.90% net margin, -5.46 P/E ratio, 2.63 P/B ratio, and 66.08% earnings growth, these metrics solidify its Outperform investment rating.
