Operating Margin % is calculated as Operating Income divided by its Revenue. Gaotu Techedu's Operating Income for the
three
months ended in Mar. 2026 was €0.9 Mil. Gaotu Techedu's Revenue for the
three
months ended in Mar. 2026 was €212.0 Mil. Therefore, Gaotu Techedu's Operating Margin % for the quarter that ended in Mar. 2026 was 0.41%.
Good Sign:
Gaotu Techedu Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Gaotu Techedu's Operating Margin % or its related term are showing as below:
FRA:18WA'
s Operating Margin % Range Over the Past 10 Years
Min: -94.72 Med: -8.19 Max: 10.2
Current: -8.28
FRA:18WA's Operating Margin % is ranked worse than 83.72% of 258
companies
in the Education industry
Industry Median: 9.46
vs FRA:18WA: -8.28
Gaotu Techedu's 5-Year Average Operating Margin % Growth Rate was 18.30% per year.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Gaotu Techedu Operating Margin % Related Terms
Gaotu Techedu Operating Margin % Historical Data
* Premium members only.
The historical data trend for Gaotu Techedu's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:18WA vs KLC, FC, COE: Operating Margin % Comparison
For the Education & Training Services subindustry, Gaotu Techedu's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Gaotu Techedu Operating Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Gaotu Techedu's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Gaotu Techedu's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Gaotu Techedu's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Gaotu Techedu (FRA:18WA) has a Operating Margin % of 0.41% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Gaotu Techedu and its competitors. According to the industry distribution chart, Gaotu Techedu ranks #216 out of 258 companies in the Education industry, placing it in the top 83.7%.
Is Gaotu Techedu's Operating Margin % too high?
Gaotu Techedu's current Operating Margin % is 0.41%. The Education industry median Operating Margin % is 9.46. Gaotu Techedu's value of 0.41% is 95.7% below this industry median. Based on the distribution chart, Gaotu Techedu ranks #216 out of 258 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, Gaotu Techedu has a GF Score™ of 66/100, reflecting its overall financial health beyond just this single metric.
How does Gaotu Techedu's Operating Margin % compare to KLC and FC?
According to the Education industry distribution chart, Gaotu Techedu ranks #216 out of 258 companies for Operating Margin %. This places Gaotu Techedu in the lower half of its industry. The industry median Operating Margin % is 9.46. Gaotu Techedu's value of 0.41% is 95.7% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Education company?
The median Operating Margin % among Education companies is 9.46, based on 258 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gaotu Techedu's current Operating Margin % of 0.41% is 95.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Gaotu Techedu and its competitors. For the Education industry, the median Operating Margin % is 9.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gaotu Techedu's current Operating Margin % is 0.41%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gaotu Techedu stock overvalued right now?
Gaotu Techedu (FRA:18WA) has a current Operating Margin % of 0.41%. The stock's GF Value™ is €4.55, compared to a current price of €1.38 — trading 69.7% below its estimated fair value. The current Operating Margin % is 0.41% and 95.7% below the Education industry median of 9.46. Gaotu Techedu's overall GF Score™ is 66/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Gaotu Techedu (FRA:18WA), the current Operating Margin % is 0.41% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Gaotu Techedu (FRA:18WA) Overvalued in 2026?
Based on GuruFocus' analysis, Gaotu Techedu stock appears to be undervalued.
The current stock price of €1.38 is trading 69.7% below its estimated GF Value™ of €4.55.
Key valuation signals for FRA:18WA:
Operating Margin %: 0.41%
GF Value™: €4.55 vs. price of €1.38 (69.7% below fair value)
Industry Position: 95.7% below the Education median (#216 of 258)
No single metric tells the full story. See the FRA:18WA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gaotu Techedu Inc is a technology-driven education company that provides online live courses in a large-class setting backed by its proprietary technology infrastructure. The company offers courses in large-class format, which amplifies the benefits of online education and allows it to rapidly expand its student base. It operates solely in the PRC and all assets are located in the PRC. The learning services that the company offers include Traditional Learning Services, Non-Academic Tutoring Services, and College Student and Adult Education Services. It derives maximum revenue from Learning Services and also from Educational content & digitalized learning products.
66GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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