Is Gaotu Techedu Stock a Good Investment?
Gaotu Techedu Investment Advice | GOTU |
- Examine Gaotu Techedu's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Gaotu Techedu's leadership team and their track record. Good management can help Gaotu Techedu navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Diversified Consumer Services space and any emerging trends that could impact Gaotu Techedu's business and its evolving consumer preferences.
- Compare Gaotu Techedu's performance and market position to its competitors. Analyze how Gaotu Techedu is positioned in terms of product offerings, innovation, and market share.
- Check if Gaotu Techedu pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Gaotu Techedu's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Gaotu Techedu DRC stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Gaotu Techedu DRC is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Very risky | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Above Average | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Gaotu Techedu Stock
Researching Gaotu Techedu's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 29.0% of the company shares are owned by institutional investors. The company has price-to-book (P/B) ratio of 1.79. Some equities with similar Price to Book (P/B) outperform the market in the long run. Gaotu Techedu DRC recorded a loss per share of 0.33. The entity had not issued any dividends in recent years.
To determine if Gaotu Techedu is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Gaotu Techedu's research are outlined below:
| Gaotu Techedu DRC had very high historical volatility over the last 90 days | |
| Gaotu Techedu DRC has high likelihood to experience some financial distress in the next 2 years | |
| The company reported the previous year's revenue of 2.96 B. Net Loss for the year was (7.3 M) with profit before overhead, payroll, taxes, and interest of 1.8 B. | |
| Gaotu Techedu DRC has a poor financial position based on the latest SEC disclosures | |
| Latest headline from gurufocus.com: Gaotu Techedu to Report Third Quarter 2024 Financial Results on December 4, 2024 |
Gaotu Techedu Quarterly Good Will |
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Gaotu Techedu uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Gaotu Techedu DRC. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Gaotu Techedu's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 27th of February 2024 Upcoming Quarterly Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View |
Earnings surprises can significantly impact Gaotu Techedu's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Gaotu Techedu's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2024-05-21 | 2024-03-31 | -0.03 | 0.01 | 0.04 | 133 | ||
2019-11-05 | 2019-09-30 | 0.09 | 0.01 | -0.08 | 88 | ||
2019-08-22 | 2019-06-30 | 0.12 | 0.04 | -0.08 | 66 | ||
2023-02-28 | 2022-12-31 | 0.24 | 0.33 | 0.09 | 37 | ||
2020-09-02 | 2020-06-30 | 0.38 | 0.29 | -0.09 | 23 | ||
2024-02-27 | 2023-12-31 | -0.53 | -0.4 | 0.13 | 24 | ||
2020-02-18 | 2019-12-31 | 0.62 | 0.79 | 0.17 | 27 | ||
2022-06-06 | 2022-03-31 | 0.03 | 0.21 | 0.18 | 600 |
Know Gaotu Techedu's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Gaotu Techedu is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Gaotu Techedu DRC backward and forwards among themselves. Gaotu Techedu's institutional investor refers to the entity that pools money to purchase Gaotu Techedu's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Healthcare Of Ontario Pension Plan Trust Fund | 2024-09-30 | 1.6 M | Blackrock Inc | 2024-06-30 | 882.9 K | Bnp Paribas Arbitrage, Sa | 2024-06-30 | 815.5 K | Connor Clark & Lunn Inv Mgmt Ltd | 2024-06-30 | 768.3 K | Jpmorgan Chase & Co | 2024-06-30 | 724.8 K | Millennium Management Llc | 2024-06-30 | 579 K | Bright Valley Capital Ltd | 2024-06-30 | 500 K | State Street Corp | 2024-06-30 | 435.1 K | Voloridge Investment Management, Llc | 2024-09-30 | 335.1 K | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 14.8 M | Goldman Sachs Group Inc | 2024-06-30 | 7.7 M |
Gaotu Techedu's market capitalization trends
The company currently falls under 'Small-Cap' category with a current market capitalization of 659.78 M.Market Cap |
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Gaotu Techedu's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Capital Employed | (0.04) | (0.05) |
Determining Gaotu Techedu's profitability involves analyzing its financial statements and using various financial metrics to determine if Gaotu Techedu is a good buy. For example, gross profit margin measures Gaotu Techedu's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Gaotu Techedu's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Gaotu Techedu's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Gaotu Techedu DRC. Check Gaotu Techedu's Beneish M Score to see the likelihood of Gaotu Techedu's management manipulating its earnings.
Evaluate Gaotu Techedu's management efficiency
Gaotu Techedu DRC has return on total asset (ROA) of (0.0954) % which means that it has lost $0.0954 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.2053) %, meaning that it created substantial loss on money invested by shareholders. Gaotu Techedu's management efficiency ratios could be used to measure how well Gaotu Techedu manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to drop to -0.0014 in 2024. Return On Capital Employed is likely to drop to -0.05 in 2024. Change To Liabilities is expected to grow at the current pace this year, whereas Total Current Liabilities is likely to drop slightly above 1.8 B in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 11.92 | 7.13 | |
| Tangible Book Value Per Share | 11.75 | 7.07 | |
| Enterprise Value Over EBITDA | (65.92) | (62.63) | |
| Price Book Value Ratio | 2.16 | 2.26 | |
| Enterprise Value Multiple | (65.92) | (62.63) | |
| Price Fair Value | 2.16 | 2.26 | |
| Enterprise Value | 6.2 B | 5.9 B |
Understanding the operational decisions made by Gaotu Techedu management offers insights into its financial robustness. This evaluation is crucial for assessing the stock's investment potential.
Beta 0.019 |
Basic technical analysis of Gaotu Stock
As of the 26th of November, Gaotu Techedu retains the Standard Deviation of 6.57, market risk adjusted performance of (0.37), and Risk Adjusted Performance of (0.05). Gaotu Techedu technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices.Gaotu Techedu's Outstanding Corporate Bonds
Gaotu Techedu issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Gaotu Techedu DRC uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Gaotu bonds can be classified according to their maturity, which is the date when Gaotu Techedu DRC has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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Understand Gaotu Techedu's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Gaotu Techedu's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.05) | |||
| Market Risk Adjusted Performance | (0.37) | |||
| Mean Deviation | 3.88 | |||
| Coefficient Of Variation | (1,273) | |||
| Standard Deviation | 6.57 | |||
| Variance | 43.12 | |||
| Information Ratio | (0.1) | |||
| Jensen Alpha | (0.69) | |||
| Total Risk Alpha | (1.56) | |||
| Treynor Ratio | (0.38) | |||
| Maximum Drawdown | 41.91 | |||
| Value At Risk | (8.22) | |||
| Potential Upside | 9.51 | |||
| Skewness | 0.9166 | |||
| Kurtosis | 6.25 |
| Risk Adjusted Performance | (0.05) | |||
| Market Risk Adjusted Performance | (0.37) | |||
| Mean Deviation | 3.88 | |||
| Coefficient Of Variation | (1,273) | |||
| Standard Deviation | 6.57 | |||
| Variance | 43.12 | |||
| Information Ratio | (0.1) | |||
| Jensen Alpha | (0.69) | |||
| Total Risk Alpha | (1.56) | |||
| Treynor Ratio | (0.38) | |||
| Maximum Drawdown | 41.91 | |||
| Value At Risk | (8.22) | |||
| Potential Upside | 9.51 | |||
| Skewness | 0.9166 | |||
| Kurtosis | 6.25 |
Consider Gaotu Techedu's intraday indicators
Gaotu Techedu intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Gaotu Techedu stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Gaotu Techedu Corporate Filings
6K | 27th of August 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges. | ViewVerify |
| 25th of April 2024 Other Reports | ViewVerify | |
13A | 6th of February 2024 An amended filing to the original Schedule 13G | ViewVerify |
Gaotu Stock media impact
Far too much social signal, news, headlines, and media speculation about Gaotu Techedu that are available to investors today. That information is available publicly through Gaotu media outlets and privately through word of mouth or via Gaotu internal channels. However, regardless of the origin, that massive amount of Gaotu data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Gaotu Techedu news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Gaotu Techedu relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Gaotu Techedu's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Gaotu Techedu alpha.
Gaotu Techedu Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Gaotu Techedu can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Gaotu Techedu Corporate Management
| Bin Luo | Senior Business | Profile | |
| Sherry Liu | IR Manager | Profile | |
| Xiuping Qi | Vice President | Profile | |
| Wei Liu | Vice President | Profile |
Additional Tools for Gaotu Stock Analysis
When running Gaotu Techedu's price analysis, check to measure Gaotu Techedu's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Gaotu Techedu is operating at the current time. Most of Gaotu Techedu's value examination focuses on studying past and present price action to predict the probability of Gaotu Techedu's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Gaotu Techedu's price. Additionally, you may evaluate how the addition of Gaotu Techedu to your portfolios can decrease your overall portfolio volatility.