YOUDAO INC - ADR (DAO) Fundamental Analysis & Valuation
NYSE:DAO • US98741T1043
10.07 USD
-0.19 (-1.85%)
At close: Mar 5, 2026
10.07 USD
0 (0%)
After Hours: 3/5/2026, 4:15:00 PM
This DAO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, DAO scores 3 out of 10 in our fundamental rating. DAO was compared to 75 industry peers in the Diversified Consumer Services industry. DAO has a bad profitability rating. Also its financial health evaluation is rather negative. DAO scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. DAO Profitability Analysis
1.1 Basic Checks
- DAO had positive earnings in the past year.
- The reported net income has been mixed in the past 5 years: DAO reported negative net income in multiple years.
- DAO had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
- DAO has a better Return On Assets (5.45%) than 70.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.45% | ||
| ROE | N/A | ||
| ROIC | N/A |
ROA(3y)-7.68%
ROA(5y)-18.56%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- DAO has a Profit Margin (1.82%) which is in line with its industry peers.
- DAO has a Operating Margin (3.74%) which is comparable to the rest of the industry.
- The Gross Margin of DAO (44.28%) is comparable to the rest of the industry.
- DAO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.74% | ||
| PM (TTM) | 1.82% | ||
| GM | 44.28% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.96%
GM growth 5Y0.21%
2. DAO Health Analysis
2.1 Basic Checks
- DAO does not have a ROIC to compare to the WACC, probably because it is not profitable.
- DAO has more shares outstanding than it did 1 year ago.
- DAO has more shares outstanding than it did 5 years ago.
- DAO has a better debt/assets ratio than last year.
2.2 Solvency
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.29%
2.3 Liquidity
- A Current Ratio of 0.59 indicates that DAO may have some problems paying its short term obligations.
- DAO has a worse Current ratio (0.59) than 80.00% of its industry peers.
- A Quick Ratio of 0.54 indicates that DAO may have some problems paying its short term obligations.
- DAO has a worse Quick ratio (0.54) than 78.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.54 |
3. DAO Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 48.61% over the past year.
- The Revenue has been growing slightly by 5.01% in the past year.
- The Revenue has been growing by 18.52% on average over the past years. This is quite good.
EPS 1Y (TTM)48.61%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-38.63%
Revenue 1Y (TTM)5.01%
Revenue growth 3Y5.63%
Revenue growth 5Y18.52%
Sales Q2Q%17.44%
3.2 Future
- DAO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 54.77% yearly.
- DAO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.83% yearly.
EPS Next Y68.94%
EPS Next 2Y54.77%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.05%
Revenue Next 2Y12.45%
Revenue Next 3Y12.83%
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. DAO Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 7.46, which indicates a rather cheap valuation of DAO.
- DAO's Price/Earnings ratio is rather cheap when compared to the industry. DAO is cheaper than 89.33% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.03. DAO is valued rather cheaply when compared to this.
- DAO is valuated cheaply with a Price/Forward Earnings ratio of 4.42.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DAO indicates a rather cheap valuation: DAO is cheaper than 100.00% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.11, DAO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.46 | ||
| Fwd PE | 4.42 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- DAO's 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 54.77% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y54.77%
EPS Next 3YN/A
5. DAO Dividend Analysis
5.1 Amount
- No dividends for DAO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
DAO Fundamentals: All Metrics, Ratios and Statistics
10.07
-0.19 (-1.85%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)02-11 2026-02-11/bmo
Earnings (Next)05-13 2026-05-13/bmo
Inst Owners41.57%
Inst Owner Change-4.84%
Ins Owners4.34%
Ins Owner ChangeN/A
Market Cap1.20B
Revenue(TTM)5.91B
Net Income(TTM)107.60M
Analysts81.67
Price Target12.95 (28.6%)
Short Float %2.31%
Short Ratio6.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)2.78%
Min EPS beat(2)-86.2%
Max EPS beat(2)91.76%
EPS beat(4)3
Avg EPS beat(4)111.55%
Min EPS beat(4)-86.2%
Max EPS beat(4)226.83%
EPS beat(8)6
Avg EPS beat(8)85.08%
EPS beat(12)9
Avg EPS beat(12)66.17%
EPS beat(16)11
Avg EPS beat(16)59.79%
Revenue beat(2)0
Avg Revenue beat(2)-85.44%
Min Revenue beat(2)-85.79%
Max Revenue beat(2)-85.09%
Revenue beat(4)0
Avg Revenue beat(4)-85.45%
Min Revenue beat(4)-86.51%
Max Revenue beat(4)-84.41%
Revenue beat(8)0
Avg Revenue beat(8)-85.94%
Revenue beat(12)0
Avg Revenue beat(12)-85.61%
Revenue beat(16)0
Avg Revenue beat(16)-85.52%
PT rev (1m)1.83%
PT rev (3m)1.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.37%
EPS NY rev (1m)-3.01%
EPS NY rev (3m)-9.81%
Revenue NQ rev (1m)-3.59%
Revenue NQ rev (3m)-3.59%
Revenue NY rev (1m)-0.91%
Revenue NY rev (3m)-1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.46 | ||
| Fwd PE | 4.42 | ||
| P/S | 1.41 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)1.35
EY13.41%
EPS(NY)2.28
Fwd EY22.65%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS7.16
BVpS-2.39
TBVpS-2.53
PEG (NY)0.11
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.45% | ||
| ROE | N/A | ||
| ROCE | -23.05% | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 3.74% | ||
| PM (TTM) | 1.82% | ||
| GM | 44.28% | ||
| FCFM | N/A |
ROA(3y)-7.68%
ROA(5y)-18.56%
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
ROICexgc growth 3YN/A
ROICexgc 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-4.96%
GM growth 5Y0.21%
F-ScoreN/A
Asset Turnover2.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | N/A |
F-ScoreN/A
WACC8.29%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)48.61%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-38.63%
EPS Next Y68.94%
EPS Next 2Y54.77%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.01%
Revenue growth 3Y5.63%
Revenue growth 5Y18.52%
Sales Q2Q%17.44%
Revenue Next Year12.05%
Revenue Next 2Y12.45%
Revenue Next 3Y12.83%
Revenue Next 5YN/A
EBIT growth 1Y49.51%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year62.51%
EBIT Next 3Y38.42%
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A
YOUDAO INC - ADR / DAO FAQ
Can you provide the ChartMill fundamental rating for YOUDAO INC - ADR?
ChartMill assigns a fundamental rating of 3 / 10 to DAO.
What is the valuation status of YOUDAO INC - ADR (DAO) stock?
ChartMill assigns a valuation rating of 7 / 10 to YOUDAO INC - ADR (DAO). This can be considered as Undervalued.
How profitable is YOUDAO INC - ADR (DAO) stock?
YOUDAO INC - ADR (DAO) has a profitability rating of 2 / 10.
Can you provide the PE and PB ratios for DAO stock?
The Price/Earnings (PE) ratio for YOUDAO INC - ADR (DAO) is 7.46 and the Price/Book (PB) ratio is -4.21.
What is the earnings growth outlook for YOUDAO INC - ADR?
The Earnings per Share (EPS) of YOUDAO INC - ADR (DAO) is expected to grow by 68.94% in the next year.