GSX Techedu Inc. (NYSE:GOTU) shares traded lower over the last trading session, losing -12.05% on 05/24/21. The shares fell to a low of $18.60 before closing at $19.05. Intraday shares traded counted 13.05 million, which was -9.67% lower than its 30-day average trading volume of 11.90M. GOTU’s previous close was $21.66 while the outstanding shares total 242.58M. The stock’s Relative Strength Index (RSI) is 31.75, with weekly volatility at 9.28% and ATR at 2.75. The GOTU stock’s 52-week price range has touched low of $19.39 and a $149.05 high.
Investors have identified the Education & Training Services company GSX Techedu Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $5.53 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
GSX Techedu Inc. (GOTU) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 1.3 billion total, with 643.28 million as their total liabilities.
GOTU were able to record 48.92 million as free cash flow during the 08/26/2021 quarter of the year, this saw their quarterly net cash flow reduce by 43.1 million. In cash movements, the company had a total of 92.45 million as operating cash flow.
Potential earnings growth for GSX Techedu Inc. (GOTU)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/26/2021 quarter of the year, GSX Techedu Inc. recorded a total of -539.04 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 124.9% coming in sequential stages and their sales for the 08/26/2021 quarter increasing by 153.71%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent -123.63 million trying to sell their products during the last quarter, with the result yielding a gross income of -415.4 million. This allows shareholders to hold on to 242.58M with the recently reported earning now reading 0.34 cents per share. This is a figure that compared to analyst’s prediction for their 08/26/2021 (-0.39 cents a share).
Having a look at the company’s valuation, the company is expected to record -0.10 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on GOTU sounds very interesting.