YOUDAO INC - ADR (DAO)
US98741T1043 - ADR
DAO gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 66 industry peers in the Diversified Consumer Services industry. DAO may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, DAO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year DAO has reported negative net income.
DAO had a negative operating cash flow in the past year.
In the past 5 years DAO always reported negative net income.
In the past 5 years DAO always reported negative operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -33.01%, DAO is doing worse than 76.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -33.01% | ||
| ROE | N/A | ||
| ROIC | N/A |
ROA(3y)-34.25%
ROA(5y)-43.59%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 51.35%, DAO is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Gross Margin of DAO has grown nicely.
The Profit Margin and Operating Margin are not available for DAO so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 51.35% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.42%
GM growth 5Y11.65%
2. Health
2.1 Basic Checks
DAO does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, DAO has less shares outstanding
The number of shares outstanding for DAO has been increased compared to 5 years ago.
Compared to 1 year ago, DAO has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -3.45, we must say that DAO is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -3.45, DAO is not doing good in the industry: 82.81% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | -3.45 |
ROIC/WACCN/A
WACC6.76%
2.3 Liquidity
DAO has a Current Ratio of 0.42. This is a bad value and indicates that DAO is not financially healthy enough and could expect problems in meeting its short term obligations.
DAO has a worse Current ratio (0.42) than 89.06% of its industry peers.
A Quick Ratio of 0.35 indicates that DAO may have some problems paying its short term obligations.
The Quick ratio of DAO (0.35) is worse than 89.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.95% over the past year.
The Revenue has been growing slightly by 7.50% in the past year.
DAO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 49.09% yearly.
EPS 1Y (TTM)24.95%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q132%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y28.72%
Revenue growth 5Y49.09%
Revenue growth Q2Q1.82%
3.2 Future
The Earnings Per Share is expected to grow by 38.55% on average over the next years. This is a very strong growth
DAO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.08% yearly.
EPS Next Y69.15%
EPS Next 2Y47.71%
EPS Next 3Y38.55%
EPS Next 5YN/A
Revenue Next Year14.71%
Revenue Next 2Y14.23%
Revenue Next 3Y14.08%
Revenue Next 5YN/A
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
DAO reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year DAO is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A more expensive valuation may be justified as DAO's earnings are expected to grow with 38.55% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y47.71%
EPS Next 3Y38.55%
5. Dividend
5.1 Amount
No dividends for DAO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
YOUDAO INC - ADR
NYSE:DAO (5/17/2024, 7:04:00 PM)
After market: 3.69 -0.02 (-0.54%)3.71
-0.23 (-5.84%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap443.42M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -33.01% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 51.35% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover3.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)24.95%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y69.15%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.5%
Revenue growth 3Y28.72%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y