Gaotu Techedu Inc. American Depositary Shares (GOTU)
FairStock Score: 55/100 — STEADY
Key Financials
| Current Price | $2.61 |
| Market Cap | $462M |
| P/E Ratio | -13.05 |
| ROE | -25.1% |
| Dividend Yield | —% |
| Sector | Consumer Defensive |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
As a value investor, I start with the business and the numbers. Gaotu Techedu provides AI-powered learning services and digital education products in China, employing 17,483 people. The latest filed quarter, fiscal Q2 2026, shows revenue of $1.7B but a net loss of $135.8M, for a -8.13% net margin. That is not a healthy operation. The company data also show revenue growth of 13.16% and profit growth of -72.17%, though the filing period for those growth rates is not specified. FairStock calculations show ROE of -25.10%, ROCE of -4.51%, and debt-to-equity of 1.07. A Piotroski F-Score of 2/9 and Altman Z-Score of -1.28 point to weak financial strength and possible distress. The stock closed at $2.78 on 2026-10-13, with a market cap of $462.3M. The P/E is -13.90 because EPS is -$0.20. The P/B is 4.21, which is not a bargain for a loss-making business. FairStock scores it 55/100, and no Lynch category can be assigned because only 0 years of filed annual results exist versus the 3 needed. The beta of 0.71 suggests lower volatility, but volatility is not value. Education in China can be a large market, yet without durable profits or a demonstrated moat, I cannot call this a high-quality compounder. I would want evidence that losses are shrinking, returns are turning positive, and leverage is falling before the price looks attractive.
In plain English: Gaotu Techedu is a Chinese education company that provides AI-powered learning services and products from pre-school through adult education. The business looks weak right now: in its latest quarter it lost money, returns are negative, and it carries meaningful debt. At $2.78 per share, the price does not look clearly cheap against those numbers, especially because there are no profits to support it.
The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.
Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash
Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer