Gaotu Techedu Stock Fair Value Calculation – Gaotu Techedu Reports Non-GAAP EPADS of RMB0.49 and Revenue of $102.99M
June 22, 2023
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Gaotu Techedu ($NYSE:GOTU), a leading online education platform in China, recently reported its quarterly financial results. According to their report, the company showed strong performance with non-GAAP earnings per share of RMB0.49 and total revenue of $102.99M. This impressive result reflects the company’s excellence in providing quality educational programs and services to their students. Gaotu Techedu is one of the largest and most popular online education providers in China, operating under a “Student-centered” philosophy and distributing educational content across multiple platforms.
Furthermore, Gaotu Techedu also provides a wide variety of study-aid products to help students master the material and improve their academic performance. This strong performance in the quarter is a testament to Gaotu Techedu’s commitment to its students and their dedication to providing excellent educational services. With their vision to become the leader in online education, Gaotu Techedu is sure to continue to be a major player in the industry.
Earnings
The latest earnings report of GAOTU TECHEDU for the first quarter of fiscal year 2023, as of March 31 2023, indicates that the company earned a total revenue of 707.29M CNY and a net income of 113.85M CNY. This marks a 2.4% decrease in total revenue and a 111.9% increase in net income compared to the same period last year. Additionally, GAOTU TECHEDU has experienced a drastic decrease in total revenue since the last three years, with a drop from 1940.34M CNY to 707.29M CNY over the period. Furthermore, GAOTU TECHEDU reported a Non-GAAP EPADS of RMB0.49 in this quarter.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Gaotu Techedu. More…
| Total Revenues | Net Income | Net Margin |
| 2.48k | 73.31 | 2.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Gaotu Techedu. More…
| Operations | Investing | Financing |
| 54.55 | -158.38 | 0 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Gaotu Techedu. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.8k | 1.58k | 12.38 |
Key Ratios Snapshot
Some of the financial key ratios for Gaotu Techedu are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -7.6% | – | -1.9% |
| FCF Margin | ROE | ROA |
| 1.4% | -1.0% | -0.6% |
Market Price
This was in line with market expectations. The stock opened at $2.8 and closed at $2.5 on the day of the announcement, down by 0.4% from the prior closing price of $2.5. Live Quote…
Analysis – Gaotu Techedu Stock Fair Value Calculation
At GoodWhale, we’ve recently done an analysis of GAOTU TECHEDU‘s wellbeing. Our team has used our proprietary Valuation Line to arrive at a fair value of the company’s share, which is around $19.5. This means that there’s a great opportunity for investors to take advantage of this undervalued stock and get a good return on their investment. More…
Peers
All of these companies are dedicated to providing quality educational services to their clients, ranging from online education to tutoring and more. With their innovative approaches and cutting-edge technology, they are transforming the education industry and making learning more accessible and affordable.
– Koolearn Technology Holding Ltd ($SEHK:01797)
Koolearn Technology Holding Ltd is a technology company based in China that develops educational products and services. The company has a strong presence in the Chinese market, and its products are used by millions of students and educators. As of 2023, Koolearn Technology Holding Ltd has a market cap of 54.29B, giving it a strong position in the Chinese technology sector. The company’s Return on Equity (ROE) is -3.35%, which is lower than the industry average. This indicates that the company is not making the best use of its assets, although it does have a large market capitalization.
– Jiangsu Chuanzhiboke Education Technology Co Ltd ($SZSE:003032)
Jiangsu Chuanzhiboke Education Technology Co Ltd is a leading provider of educational technology solutions in China. The company has a market capitalization of 6.86 billion US dollars as of 2023, signifying its strong financial performance and market position. Furthermore, the company’s Return on Equity (ROE) of 10.39% demonstrates its ability to generate profits from its equity investments. Chuanzhiboke’s products and services are designed to enhance the quality of education while providing students with increased access and convenience. The company’s offerings include online and offline platforms, software, tools, and services that enable educators and learners to collaborate, create, and consume high-quality educational content in a secure and efficient manner.
– Dashan Education Holdings Ltd ($SEHK:09986)
Dashan Education Holdings Ltd is an education technology company specializing in providing innovative and interactive digital learning solutions, as well as high-quality educational content. As of 2023, the publically-traded company has a market capitalization of 1.45 Billion USD and a return on equity (ROE) of -19.33%. Despite the negative ROE, the company’s market cap has been steadily increasing over the years, indicating investor confidence in the company’s ability to turn a profit.
Summary
GAOTU Techedu is a leading online education company in China that provides a wide range of educational courses and services. Its non-GAAP EPADS for the latest quarter was RMB 0.49, while revenue was $102.99 million. The company has also seen an increase in user numbers and market share recently, which is likely to drive its stock higher. Furthermore, GAOTU Techedu is well-positioned to benefit from the increasing demand for online education services in China, making it a good long-term investment opportunity.
