GOTU

Consumer Defensive

Gaotu Techedu Inc. · Education & Training Services · $630M

UQS Score — Balanced Preset
53.6
Good

Gaotu Techedu Inc. scores 53.6/100 using the Balanced preset.

UQS vs Consumer Defensive Sector
GOTU
53.6
Sector avg
38.4
Quality
Weak
Moat
Weak
Growth
Strong
Risk
Neutral
Valuation
Attractive

What is Gaotu Techedu Inc.?

Gaotu Techedu is a Beijing-based, technology-driven education company focused on online tutoring and professional courses for learners across China.

Gaotu generates revenue by delivering online K-12 after-school tutoring, foreign language courses, professional qualification prep, and graduate entrance exam coaching. It also sells smart learning devices, including a multi-function translation pen, and offers the Gaotu App as an interactive learning platform for students of various ages.

Incorporated in 2014 and headquartered in Beijing, China, the company operates under the Gaotu brand after a name change in June 2021.

  • Online K-12 tutoring across core academic subjects
  • Professional and qualification exam preparation courses
  • Foreign language and post-graduate test prep programs
  • Smart learning devices and the Gaotu App

Is GOTU a Good Stock to Buy?

UQS Score rates GOTU as Below Average overall.

Growth stands out as the strongest pillar in GOTU's profile, suggesting the business is expanding at a pace that stands above many peers. Valuation is rated Attractive, meaning the market may not be fully pricing in that growth trajectory.

Both the Quality and Moat pillars are rated Weak, pointing to limited competitive durability and below-average business fundamentals relative to sector peers.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does GOTU pay dividends?

No — Gaotu Techedu Inc. does not currently pay a dividend.

Gaotu Techedu does not currently pay a dividend. As a growth-oriented education technology company, it directs available capital toward expanding its course catalog, technology infrastructure, and user base rather than returning cash to shareholders.

When does GOTU report earnings?

Gaotu Techedu reports earnings on a quarterly cadence, typical for US-listed equities.

The company's Growth pillar rating suggests meaningful revenue expansion in recent periods, though Quality metrics remain a watch point for investors evaluating earnings consistency. Results can be sensitive to regulatory shifts in China's private education sector.

For the most recent quarter's results, visit Gaotu Techedu's investor relations page directly.

GOTU Price History

-89.4% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Gaotu Techedu Inc.?

$
Today it would be worth
$708
That's a -92.9% total return, or -41.1% annualized.

Based on Gaotu Techedu Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

Frequently Asked Questions

What does Gaotu Techedu do?

Gaotu Techedu provides online K-12 tutoring, professional qualification prep, and foreign language courses to students across China. It also sells smart learning devices and operates the Gaotu App, an interactive platform serving multiple student groups.

Does GOTU pay dividends?

No, GOTU does not pay a dividend. The company reinvests capital into growing its course offerings and technology platform rather than distributing cash to shareholders.

When does GOTU report earnings?

Gaotu Techedu follows a quarterly reporting cadence standard for US-listed companies. For exact dates and the latest results, check the investor relations section of the company's official website.

Is GOTU a good stock to buy?

UQS Score rates GOTU as Below Average overall. While Growth and Valuation pillars show relative strength, Weak Quality and Moat ratings highlight meaningful concerns. Pro members can view the complete pillar breakdown to form a more informed view.

Is GOTU overvalued?

The UQS Valuation pillar for GOTU is rated Attractive, suggesting the stock may be priced below what fundamentals could support. However, Valuation alone does not determine investment merit — Quality and Moat weaknesses are also part of the picture.

What is GOTU's market cap bracket?

GOTU is classified as a small-cap stock, meaning its total market value is relatively modest compared to large or mega-cap peers in the education technology space.

Is GOTU a long-term quality investment?

As a long-term quality indicator, GOTU's Below Average UQS Score reflects concerns around business durability and fundamentals. The Strong Growth pillar offers some optimism, but Weak Moat and Quality ratings suggest elevated uncertainty over a longer horizon.

What sector does GOTU belong to?

GOTU is classified under the Consumer Defensive sector. This reflects its role providing education services — a category that tends to see relatively stable demand even during broader economic downturns.

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Pro Analysis

GOTU — Score History

45505560Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 2 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 21, 202652.927.615.098.450.2100.0+2.8
Apr 2, 202650.116.715.098.450.2100.0

GOTU — Pillar Breakdown

Quality

28.6/100 (25%)

Gaotu Techedu Inc. currently shows below-average quality metrics, suggesting challenges with profitability.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Return on EquityWeak

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityWeak

Bottom-line profit as a share of revenue.

Gross Profit / AssetsStrong

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationStrong

Free cash flow relative to market value.

Growth

100.0/100 (20%)

Gaotu Techedu Inc. is growing rapidly with strong revenue and earnings expansion.

Recent Revenue TrendStrong

Revenue trajectory over the last twelve months.

3Y Revenue CAGRStrong

Compound annual revenue growth rate over 3 years.

EPS GrowthStrong

Year-over-year earnings per share growth.

Forward Revenue OutlookStrong

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

51.2/100 (15%)

Gaotu Techedu Inc. has some risk factors including moderate leverage or solvency concerns.

Financial LeverageStrong

Debt levels relative to earnings capacity.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioWeak

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

100.0/100 (15%)

Gaotu Techedu Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.

Earnings YieldStrong

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowStrong

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

Moat

15/100 (25%)

Gaotu Techedu Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for GOTU.

Score Composition

Quality
28.6×25%7.2
Growth
100.0×20%20.0
Risk
51.2×15%7.7
Valuation
100.0×15%15.0
Moat
15.0×25%3.8
Total
53.6Good

Financial Data

More Stock Analysis

How is the GOTU UQS Score Calculated?

The UQS (Unified Quality Score) for Gaotu Techedu Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Gaotu Techedu Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Gaotu Techedu Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.