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YOUDAO INC - ADR (DAO) Stock Fundamental Analysis

NYSE:DAO - New York Stock Exchange, Inc. - US98741T1043 - ADR - Currency: USD

8.99  -0.09 (-0.99%)

Fundamental Rating

3

DAO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 72 industry peers in the Diversified Consumer Services industry. DAO may be in some trouble as it scores bad on both profitability and health. A decent growth rate in combination with a cheap valuation! Better keep an eye on DAO.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

In the past year DAO was profitable.
DAO had negative earnings in 4 of the past 5 years.
In the past 5 years DAO always reported negative operating cash flow.
DAO Yearly Net Income VS EBIT VS OCF VS FCFDAO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 -500M -1B -1.5B

1.2 Ratios

The Return On Assets of DAO (9.55%) is better than 83.33% of its industry peers.
Industry RankSector Rank
ROA 9.55%
ROE N/A
ROIC N/A
ROA(3y)-20.14%
ROA(5y)-36.58%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
DAO Yearly ROA, ROE, ROICDAO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 2024 0 500 1K 1.5K 2K 2.5K

1.3 Margins

Looking at the Profit Margin, with a value of 2.66%, DAO is in line with its industry, outperforming 56.94% of the companies in the same industry.
With a decent Operating Margin value of 4.01%, DAO is doing good in the industry, outperforming 61.11% of the companies in the same industry.
DAO has a Gross Margin (48.47%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of DAO has grown nicely.
Industry RankSector Rank
OM 4.01%
PM (TTM) 2.66%
GM 48.47%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.45%
GM growth 5Y11.98%
DAO Yearly Profit, Operating, Gross MarginsDAO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40 -60

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2. Health

2.1 Basic Checks

DAO does not have a ROIC to compare to the WACC, probably because it is not profitable.
DAO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, DAO has more shares outstanding
The debt/assets ratio for DAO is higher compared to a year ago.
DAO Yearly Shares OutstandingDAO Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
DAO Yearly Total Debt VS Total AssetsDAO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

2.2 Solvency

Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z N/A
ROIC/WACCN/A
WACC8.43%
DAO Yearly LT Debt VS Equity VS FCFDAO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 -1B -2B

2.3 Liquidity

DAO has a Current Ratio of 0.48. 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 (0.48) than 81.94% of its industry peers.
DAO has a Quick Ratio of 0.48. 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's Quick ratio of 0.42 is on the low side compared to the rest of the industry. DAO is outperformed by 83.33% of its industry peers.
Industry RankSector Rank
Current Ratio 0.48
Quick Ratio 0.42
DAO Yearly Current Assets VS Current LiabilitesDAO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 166.91% over the past year.
Looking at the last year, DAO shows a decrease in Revenue. The Revenue has decreased by -1.51% in the last year.
DAO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 36.04% yearly.
EPS 1Y (TTM)166.91%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
Revenue 1Y (TTM)-1.51%
Revenue growth 3Y11.89%
Revenue growth 5Y36.04%
Sales Q2Q%-6.72%

3.2 Future

Based on estimates for the next years, DAO will show a very strong growth in Earnings Per Share. The EPS will grow by 58.20% on average per year.
The Revenue is expected to grow by 10.77% on average over the next years. This is quite good.
EPS Next Y54.81%
EPS Next 2Y65.66%
EPS Next 3Y58.2%
EPS Next 5YN/A
Revenue Next Year8.71%
Revenue Next 2Y10.4%
Revenue Next 3Y10.77%
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.
DAO Yearly Revenue VS EstimatesDAO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B
DAO Yearly EPS VS EstimatesDAO Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 -5 -10 -15

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4. Valuation

4.1 Price/Earnings Ratio

DAO is valuated cheaply with a Price/Earnings ratio of 6.33.
Based on the Price/Earnings ratio, DAO is valued cheaper than 95.83% of the companies in the same industry.
DAO is valuated cheaply when we compare the Price/Earnings ratio to 26.52, which is the current average of the S&P500 Index.
DAO is valuated cheaply with a Price/Forward Earnings ratio of 3.61.
Based on the Price/Forward Earnings ratio, DAO is valued cheaply inside the industry as 98.61% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.25, DAO is valued rather cheaply.
Industry RankSector Rank
PE 6.33
Fwd PE 3.61
DAO Price Earnings VS Forward Price EarningsDAO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DAO is on the same level as its industry peers.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 34.75
DAO Per share dataDAO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as DAO's earnings are expected to grow with 58.20% in the coming years.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y65.66%
EPS Next 3Y58.2%

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5. Dividend

5.1 Amount

No dividends for DAO!.
Industry RankSector Rank
Dividend Yield N/A

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YOUDAO INC - ADR

NYSE:DAO (6/6/2025, 8:04:00 PM)

8.99

-0.09 (-0.99%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)05-15 2025-05-15/bmo
Earnings (Next)08-20 2025-08-20/bmo
Inst Owners44.9%
Inst Owner Change-2.95%
Ins Owners4.35%
Ins Owner ChangeN/A
Market Cap1.07B
Analysts83.64
Price Target11.02 (22.58%)
Short Float %1.23%
Short Ratio3.35
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)100.46%
Min EPS beat(2)-25.91%
Max EPS beat(2)226.83%
EPS beat(4)3
Avg EPS beat(4)85.26%
Min EPS beat(4)-25.91%
Max EPS beat(4)226.83%
EPS beat(8)7
Avg EPS beat(8)74.59%
EPS beat(12)8
Avg EPS beat(12)56.71%
EPS beat(16)11
Avg EPS beat(16)51.18%
Revenue beat(2)0
Avg Revenue beat(2)-87.86%
Min Revenue beat(2)-88.68%
Max Revenue beat(2)-87.04%
Revenue beat(4)0
Avg Revenue beat(4)-87.34%
Min Revenue beat(4)-88.68%
Max Revenue beat(4)-86.51%
Revenue beat(8)0
Avg Revenue beat(8)-86.39%
Revenue beat(12)0
Avg Revenue beat(12)-86.19%
Revenue beat(16)0
Avg Revenue beat(16)-86.85%
PT rev (1m)0%
PT rev (3m)50.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)65.45%
EPS NY rev (1m)-1.63%
EPS NY rev (3m)-2.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.19%
Valuation
Industry RankSector Rank
PE 6.33
Fwd PE 3.61
P/S 1.39
P/FCF N/A
P/OCF N/A
P/B N/A
P/tB N/A
EV/EBITDA 34.75
EPS(TTM)1.42
EY15.8%
EPS(NY)2.49
Fwd EY27.73%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS6.45
BVpS-2.39
TBVpS-2.52
PEG (NY)0.12
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 9.55%
ROE N/A
ROCE -21.41%
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM 4.01%
PM (TTM) 2.66%
GM 48.47%
FCFM N/A
ROA(3y)-20.14%
ROA(5y)-36.58%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.45%
GM growth 5Y11.98%
F-ScoreN/A
Asset Turnover3.6
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Debt/EBITDA 7.19
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.48
Quick Ratio 0.42
Altman-Z N/A
F-ScoreN/A
WACC8.43%
ROIC/WACCN/A
Cap/Depr(3y)88.88%
Cap/Depr(5y)141.65%
Cap/Sales(3y)0.65%
Cap/Sales(5y)1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)166.91%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
EPS Next Y54.81%
EPS Next 2Y65.66%
EPS Next 3Y58.2%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.51%
Revenue growth 3Y11.89%
Revenue growth 5Y36.04%
Sales Q2Q%-6.72%
Revenue Next Year8.71%
Revenue Next 2Y10.4%
Revenue Next 3Y10.77%
Revenue Next 5YN/A
EBIT growth 1Y192.19%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year186.58%
EBIT Next 3Y85.17%
EBIT Next 5YN/A
FCF growth 1Y82.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y84.47%
OCF growth 3YN/A
OCF growth 5YN/A