NYSE:GSX

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Executive Summary

GSX Techedu Inc., a technology-driven education company, provides online K-12 after-school tutoring services in the People’s Republic of China. More Details


Snowflake Analysis

Exceptional growth potential with flawless balance sheet.


Similar Companies

Share Price & News

How has GSX Techedu's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GSX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.6%

GSX

-2.2%

US Consumer Services

-4.1%

US Market


1 Year Return

323.0%

GSX

33.5%

US Consumer Services

12.0%

US Market

Return vs Industry: GSX exceeded the US Consumer Services industry which returned 33.5% over the past year.

Return vs Market: GSX exceeded the US Market which returned 12% over the past year.


Shareholder returns

GSXIndustryMarket
7 Day2.6%-2.2%-4.1%
30 Day-23.5%-3.9%-0.2%
90 Day-22.7%-5.3%2.8%
1 Year323.0%323.0%33.9%33.5%14.6%12.0%
3 Yearn/a58.2%52.5%35.8%26.8%
5 Yearn/a236.3%212.4%75.2%55.6%

Price Volatility Vs. Market

How volatile is GSX Techedu's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is GSX Techedu undervalued compared to its fair value and its price relative to the market?

338.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GSX ($68.9) is trading above our estimate of fair value ($52.47)

Significantly Below Fair Value: GSX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GSX is poor value based on its PE Ratio (338.3x) compared to the US Consumer Services industry average (32.4x).

PE vs Market: GSX is poor value based on its PE Ratio (338.3x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: GSX is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: GSX is overvalued based on its PB Ratio (71.1x) compared to the US Consumer Services industry average (2.6x).


Next Steps

Future Growth

How is GSX Techedu forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

76.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GSX's forecast earnings growth (76.4% per year) is above the savings rate (2.2%).

Earnings vs Market: GSX's earnings (76.4% per year) are forecast to grow faster than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GSX's revenue (34.8% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: GSX's revenue (34.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GSX's Return on Equity is forecast to be very high in 3 years time (51.7%).


Next Steps

Past Performance

How has GSX Techedu performed over the past 5 years?

868.8%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: GSX has high quality earnings.

Growing Profit Margin: GSX's current net profit margins (7.3%) are higher than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if GSX's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare GSX's past year earnings growth to its 5-year average.

Earnings vs Industry: GSX earnings growth over the past year (868.8%) exceeded the Consumer Services industry 10.5%.


Return on Equity

High ROE: GSX's Return on Equity (22.1%) is considered high.


Next Steps

Financial Health

How is GSX Techedu's financial position?


Financial Position Analysis

Short Term Liabilities: GSX's short term assets (CN¥3.0B) exceed its short term liabilities (CN¥2.8B).

Long Term Liabilities: GSX's short term assets (CN¥3.0B) exceed its long term liabilities (CN¥579.9M).


Debt to Equity History and Analysis

Debt Level: GSX is debt free.

Reducing Debt: GSX has not had any debt for past 5 years.

Debt Coverage: GSX has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: GSX has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is GSX Techedu current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GSX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GSX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GSX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GSX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GSX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average board tenure


CEO

Larry Chen (48 yo)

6.17yrs

Tenure

Mr. Xiangdong Chen, also known as Larry, is a Founder of GSX Techedu Inc., and has served as its Chairman of the Board and Chief Executive Officer since August 2014. Prior to founding GSX Techedu Inc., Mr. ...


Board Members

NamePositionTenureCompensationOwnership
Xiangdong Chen
Chairman & CEO6.17yrsno data46.13%
CN¥ 7.6b
Ming Liao
Independent Director1.33yrsno datano data
Xin Fan
Independent Director1.33yrsno datano data
Yiming Hu
Independent Director1.33yrsno datano data

1.3yrs

Average Tenure

48yo

Average Age

Experienced Board: GSX's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

GSX Techedu Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GSX Techedu Inc.
  • Ticker: GSX
  • Exchange: NYSE
  • Founded: 2014
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$16.421b
  • Shares outstanding: 238.32m
  • Website: https://www.baijiahulian.com

Number of Employees


Location

  • GSX Techedu Inc.
  • Tower C, Beyondsoft Building
  • 7 East Zone, 10 Xibeiwang East Road
  • Beijing
  • 100193
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GSXNYSE (New York Stock Exchange)YesSPON ADS EACH REP 0.666 ORD SHS CL AUSUSDJun 2019

Biography

GSX Techedu Inc., a technology-driven education company, provides online K-12 after-school tutoring services in the People’s Republic of China. Its K-12 after-school tutoring courses cover various K-12 aca ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 03:22
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.