NYSE:GSX

Stock Analysis Report

Executive Summary

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


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

-7.6%

GSX

-6.6%

US Consumer Services

-4.1%

US Market


1 Year Return

n/a

GSX

-6.3%

US Consumer Services

-14.9%

US Market

Return vs Industry: Insufficient data to determine how GSX performed against the US Consumer Services industry.

Return vs Market: Insufficient data to determine how GSX performed against the US Market.


Shareholder returns

GSXIndustryMarket
7 Day-7.6%-6.6%-4.1%
30 Day-9.1%-19.9%-19.1%
90 Day66.4%-13.5%-23.4%
1 Yearn/a-6.0%-6.3%-13.2%-14.9%
3 Yearn/a54.1%47.3%10.7%3.5%
5 Yearn/a115.3%90.8%28.5%14.5%

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?

17.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GSX ($41.34) is trading below our estimate of fair value ($47.2)

Significantly Below Fair Value: GSX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GSX is poor value based on its PE Ratio (309x) compared to the Consumer Services industry average (24.4x).

PE vs Market: GSX is poor value based on its PE Ratio (309x) compared to the US market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: GSX is poor value based on its PEG Ratio (7.8x)


Price to Book Ratio

PB vs Industry: GSX is overvalued based on its PB Ratio (44.9x) compared to the US Consumer Services industry average (1.6x).


Next Steps

Future Growth

How is GSX Techedu forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

39.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GSX's forecast earnings growth (39.6% per year) is above the savings rate (1.7%).

Earnings vs Market: GSX's earnings (39.6% per year) are forecast to grow faster than the US market (12.3% per year).

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

Revenue vs Market: GSX's revenue (36.5% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: GSX's revenue (36.5% 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 (51.5%).


Next Steps

Past Performance

How has GSX Techedu performed over the past 5 years?

432.3%

Last years revenue growth


Earnings and Revenue History

Quality Earnings: GSX has high quality earnings.

Growing Profit Margin: GSX became profitable in the past.


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: GSX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GSX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Services industry (17.6%).


Return on Equity

High ROE: GSX's Return on Equity (14.6%) is considered low.


Next Steps

Financial Health

How is GSX Techedu's financial position?


Financial Position Analysis

Short Term Liabilities: GSX's short term assets (CN¥1.8B) exceed its short term liabilities (CN¥1.6B).

Long Term Liabilities: GSX's short term assets (CN¥1.8B) exceed its long term liabilities (CN¥199.9M).


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

Inventory Level: GSX has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if GSX's debt is covered by short term assets.


Next Steps

Dividend

What is GSX Techedu's 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 payouts.

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

0.8yrs

Average board tenure


CEO

Larry Chen (48yo)

5.67s

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 of the Board & CEO5.67yrsno data46.07% CN¥4.3b
Ming Liao
Independent Director0.83yrno datano data
Xin Fan
Independent Director0.83yrno datano data
Yiming Hu
Independent Director0.83yrno datano data

0.8yrs

Average Tenure

47yo

Average Age

Experienced Board: GSX's board of directors are not considered experienced ( 0.8 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: GSX only recently listed within the past 12 months, with total shares outstanding growing by 43.6% 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$9.302b
  • Shares outstanding: 238.64m
  • Website: https://www.baijiahulian.com

Number of Employees


Location

  • GSX Techedu Inc.
  • East Road, Haidian District
  • No. 10 Xibeiwang hospital Beyondsoft East
  • Beijing
  • 100193
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GSXNYSE (New York Stock Exchange)YesSPONSORED ADSUSUSDJun 2019

Biography

GSX Techedu Inc., a technology-driven education company, provides online K-12 large-class after-school tutoring services in the People’s Republic of China. It offers K-12 large-class after-school tutoring courses that cover various K-12 academic subjects, including mathematics, English, Chinese, physics, chemistry, biology, history, geography, and political science. The company also provides English courses for children in kindergarten; and courses that help children in grade one through grade seven. In addition, it offers foreign language courses comprising English, Japanese, and Korean, as well as English test preparation courses for students taking post-graduate entrance exams; and professional courses primarily for working adults preparing for professional qualification exams, such as teacher’s qualification, the Chartered Financial Analyst designation, fund qualification, and securities qualification exams. Further, the company provides personal interest courses, such as yoga, fashion, guitar, and Chinese calligraphy. Additionally, it offers other courses, including offline business consulting courses, which target principals and other officers of private education institutions who want to enhance management skills; and operate Weishi, an interactive learning platform on Weixin. The company was formerly known as BaiJiaHuLian Group Holdings Limited and changed its name to GSX Techedu Inc. in January 2019. GSX Techedu Inc. was founded in 2014 and is headquartered in Beijing, the People’s Republic of China. GSX Techedu Inc. is a subsidiary of Ebetter International Group Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 05:02
End of Day Share Price2020/04/02 00:00
Earnings2019/12/31
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.