# Gaotu Techedu Inc. (GOTU) fundamentals

Data as of 2026-11-04. NYSE, United States. Sector: Consumer Cyclical / Consumer Services. Price $2.28, market value $536 million.

## Valuation
- **P/E (trailing): n/a** (negative earnings). Gaotu Techedu Inc. reported negative earnings over the last twelve months, so the P/E is not meaningful; use price-to-sales, EV/EBITDA and free-cash-flow yield instead.
- **PEG: 0.24**. A PEG of 0.24 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.1×**. Each dollar of revenue is priced at 0.1×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 3.4×**. The shares trade at 3.4× book value; book value is a meaningful part of the valuation.
- **Free-cash-flow yield: 6.6%** (5-yr avg -38.1%). Free cash flow equals 6.6% of the market value, above its five-year average of -38.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.

## Profitability
- **Gross margin: 67.5%**. Gaotu Techedu Inc. keeps 67.5% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: -6.6%**. Operating margin is negative: the business loses money before interest and tax.
- **Net margin: -5.3%**. The company reported a net loss over the last twelve months.
- **Return on equity: -25.8%**. Return on equity is negative because earnings are negative.
- **Return on invested capital: -383.7%**. Return on all capital, debt included, is -383.7%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: -37.5%**. Each dollar of assets produces -37.5% of profit.

## Growth
- **Revenue growth (1 yr): 40.9%** (3-yr 34.4%/yr, 5-yr -4.2%/yr). Revenue grew 40.9% over the last year, against -4.2% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 66.7%**. Earnings per share rose 66.7%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 89.8%/yr**. Free cash flow has compounded at 89.8% a year over three years.

## Financial health
- **Debt to equity: 0.11**. Debt is 0.11 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.2×**. It would take 0.2 years of operating earnings to repay net borrowings, within the comfortable range.
- **Current ratio: 0.94** (quick 0.94). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 1.41**. A Z-score of 1.41 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. Gaotu Techedu Inc. does not currently pay a dividend, but it returned 9.2% of its market value through buybacks over the last year.

## Price and momentum
- **Total return (1 yr): -23.8%** (YTD -6.0%, 3-mo 13.5%). The shares are down 23.8% over twelve months including dividends.
- **From 52-week high: -20.6%** (62.9% above the low). Trading 21% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 33**. An RSI of 33 is neutral.
- **Beta (1 yr): 0.84** (volatility 47%). Beta of 0.84 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=GOTU · Page: https://foliofundamentals.com/stocks/gotu

Not investment advice.