Gaotu Stock Story

GOTU

Stock

USD 1.61 0.07 4.17%

Macroaxis Story

Gaotu Techedu Assets Non Current are comparatively stable at the moment as compared to the past year. Gaotu Techedu reported Assets Non Current of 1.09 Billion in 2021. Cash and Equivalents is likely to gain to about 967.9 M in 2022, whereas Earnings before Tax are likely to drop (3.1 B) in 2022. The fundamental rationale behind this short perspective is to break down our forecasting of Gaotu for private investors. We will try to forecast Gaotu Techedu outlook for June.

Published over two months ago

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Should you continue to rely on Gaotu Techedu (NYSE:GOTU) management?

About 50.0% of Gaotu Techedu shares are owned by institutional investors. Insiders ownership of Gaotu Techedu refers to the amount of Gaotu Techedu equity owned by Gaotu officers, directors, relatives of the leadership team, or anyone who has access to private information before it's made available to the public. Check out our latest analysis of Gaotu, including its current ownership diagnostics.

There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Gaotu Techedu. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Gaotu Techedu

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Gaotu Techedu's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Gaotu Techedu in the context of predictive analytics.

Please note, it is not enough to conduct a financial or market analysis of a single entity such as Gaotu Techedu. Your research has to be compared to or analyzed against Gaotu Techedu's peers to derive any actionable benefits. When done correctly, Gaotu Techedu's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Gaotu Techedu.

How important is Gaotu Techedu's Liquidity

Gaotu Techedu financial leverage refers to using borrowed capital as a funding source to finance Gaotu Techedu ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Gaotu Techedu financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Gaotu Techedu's total debt and its cash.

How does Gaotu utilize its cash?

To perform a cash flow analysis of Gaotu Techedu, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Gaotu Techedu is receiving and how much cash it distributes out in a given period. The Gaotu Techedu cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Gaotu Techedu Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. Gaotu Techedu reported Net Cash Flow from Operations of (4.19 Billion) in 2021

Detailed Perspective On Gaotu Techedu

Gaotu Techedu is displaying above-average volatility over the selected time horizon. Investors should scrutinize Gaotu Techedu independently to ensure intended market timing strategies are aligned with expectations about Gaotu Techedu volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Gaotu Techedu's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Gaotu Techedu's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Gaotu Techedu Implied Volatility

Gaotu Techedu's implied volatility exposes the market's sentiment of Gaotu Techedu stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Gaotu Techedu's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Gaotu Techedu stock will not fluctuate a lot when Gaotu Techedu's options are near their expiration.

Margin Breakdown

	EBITDA Margin	(0.48)
	Gross Margin	0.63
	Profit Margin	(0.51)

Are you still undecided about Gaotu Techedu?

Newest coefficient of variation is at -1730.63.

As of the 20th of May, Gaotu Techedu retains the market risk adjusted performance of (0.22), and Risk Adjusted Performance of (0.07). 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. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We were able to interpolate and analyze data for nineteen technical drivers for Gaotu Techedu, which can be compared to its competitors. Please check out Gaotu Techedu standard deviation, value at risk, as well as the relationship between the Value At Risk and kurtosis to decide if Gaotu Techedu is priced fairly, providing market reflects its last-minute price of 1.38 per share. Given that Gaotu Techedu is a hitting penny stock territory we urge to closely look at its total risk alpha.

Our Conclusion on Gaotu Techedu

Whereas many of the other players in the education & training services industry are either recovering or due for a correction, Gaotu Techedu may not be performing as strong as the other in terms of long-term growth potentials. The inconsistency in the assessment between current Gaotu valuation and our trade advice on Gaotu Techedu is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Gaotu Techedu.

Editorial Staff

Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Gaotu Techedu. Please refer to our Terms of Use for any information regarding our disclosure principles.

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Gaotu Stock Story

USD 1.61 0.07 4.17%

Should you continue to rely on Gaotu Techedu (NYSE:GOTU) management?

Predictive Modules for Gaotu Techedu

How important is Gaotu Techedu's Liquidity

How does Gaotu utilize its cash?

Detailed Perspective On Gaotu Techedu

Gaotu Techedu Implied Volatility

Margin Breakdown

Are you still undecided about Gaotu Techedu?

Our Conclusion on Gaotu Techedu

Editorial Staff

Would you like to provide feedback on the content of this article?

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