YOUDAO INC - ADR (DAO) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:DAO • US98741T1043

10.03 USD
+0.2 (+2.03%)
Last: Feb 11, 2026, 09:54 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

DAO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 75 industry peers in the Diversified Consumer Services industry. DAO has a bad profitability rating. Also its financial health evaluation is rather negative. DAO may be a bit undervalued, certainly considering the very reasonable score on growth


Dividend Valuation Growth Profitability Health

2

1. Profitability

1.1 Basic Checks

  • In the past year DAO was profitable.
  • DAO had negative earnings in 4 of the past 5 years.
  • DAO had a negative operating cash flow in each of the past 5 years.
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

  • DAO has a Return On Assets of 8.19%. This is in the better half of the industry: DAO outperforms 74.67% of its industry peers.
Industry RankSector Rank
ROA 8.19%
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

  • DAO has a Profit Margin of 2.50%. This is comparable to the rest of the industry: DAO outperforms 53.33% of its industry peers.
  • DAO has a Operating Margin (4.31%) which is in line with its industry peers.
  • DAO has a Gross Margin of 44.91%. This is comparable to the rest of the industry: DAO outperforms 49.33% of its industry peers.
  • DAO's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 4.31%
PM (TTM) 2.5%
GM 44.91%
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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ROAROEROICOperating and Profit MarginShow most profitable peers

0

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
  • Compared to 5 years ago, DAO has more shares outstanding
  • DAO has a worse debt/assets ratio than last year.
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
WACC7.24%
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

  • A Current Ratio of 0.54 indicates that DAO may have some problems paying its short term obligations.
  • DAO's Current ratio of 0.54 is on the low side compared to the rest of the industry. DAO is outperformed by 82.67% of its industry peers.
  • DAO has a Quick Ratio of 0.54. This is a bad value and indicates that DAO is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Quick ratio value of 0.49, DAO is not doing good in the industry: 82.67% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.54
Quick Ratio 0.49
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 140.35% over the past year.
  • The Revenue has decreased by -1.43% in the past year.
  • The Revenue has been growing by 36.04% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)140.35%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-89.47%
Revenue 1Y (TTM)-1.43%
Revenue growth 3Y11.89%
Revenue growth 5Y36.04%
Sales Q2Q%3.56%

3.2 Future

  • DAO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 52.69% yearly.
  • Based on estimates for the next years, DAO will show a quite strong growth in Revenue. The Revenue will grow by 8.99% on average per year.
EPS Next Y44.18%
EPS Next 2Y58.45%
EPS Next 3Y52.69%
EPS Next 5YN/A
Revenue Next Year2.04%
Revenue Next 2Y7.29%
Revenue Next 3Y8.99%
Revenue Next 5YN/A

3.3 Evolution

  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last 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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Find the best growth stocksShow best growing peers

7

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 6.04 indicates a rather cheap valuation of DAO.
  • Based on the Price/Earnings ratio, DAO is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of DAO to the average of the S&P500 Index (28.03), we can say DAO is valued rather cheaply.
  • A Price/Forward Earnings ratio of 4.40 indicates a rather cheap valuation of DAO.
  • DAO's Price/Forward Earnings ratio is rather cheap when compared to the industry. DAO is cheaper than 100.00% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 27.97. DAO is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 6.04
Fwd PE 4.4
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as DAO.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 33.06
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 52.69% in the coming years.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y58.45%
EPS Next 3Y52.69%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • DAO does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

YOUDAO INC - ADR

NYSE:DAO (2/11/2026, 9:54:06 AM)

10.03

+0.2 (+2.03%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)11-20
Earnings (Next)02-11
Inst Owners41.57%
Inst Owner Change-0.07%
Ins Owners4.34%
Ins Owner ChangeN/A
Market Cap1.20B
Revenue(TTM)5.68B
Net Income(TTM)142.12M
Analysts81.67
Price Target12.72 (26.82%)
Short Float %2.37%
Short Ratio5.85
Dividend
Industry RankSector 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)63.8%
Min EPS beat(2)-86.2%
Max EPS beat(2)213.8%
EPS beat(4)2
Avg EPS beat(4)82.13%
Min EPS beat(4)-86.2%
Max EPS beat(4)226.83%
EPS beat(8)6
Avg EPS beat(8)84.12%
EPS beat(12)9
Avg EPS beat(12)74.24%
EPS beat(16)11
Avg EPS beat(16)55.42%
Revenue beat(2)0
Avg Revenue beat(2)-85.13%
Min Revenue beat(2)-85.82%
Max Revenue beat(2)-84.45%
Revenue beat(4)0
Avg Revenue beat(4)-86.26%
Min Revenue beat(4)-88.24%
Max Revenue beat(4)-84.45%
Revenue beat(8)0
Avg Revenue beat(8)-86%
Revenue beat(12)0
Avg Revenue beat(12)-85.66%
Revenue beat(16)0
Avg Revenue beat(16)-85.92%
PT rev (1m)0%
PT rev (3m)-2.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.92%
EPS NY rev (1m)-2.26%
EPS NY rev (3m)-11.35%
Revenue NQ rev (1m)-1.96%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.62%
Valuation
Industry RankSector Rank
PE 6.04
Fwd PE 4.4
P/S 1.46
P/FCF N/A
P/OCF N/A
P/B N/A
P/tB N/A
EV/EBITDA 33.06
EPS(TTM)1.66
EY16.55%
EPS(NY)2.28
Fwd EY22.74%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS6.88
BVpS-2.46
TBVpS-2.6
PEG (NY)0.14
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 8.19%
ROE N/A
ROCE -24%
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM 4.31%
PM (TTM) 2.5%
GM 44.91%
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
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-0.45%
GM growth 5Y11.98%
F-ScoreN/A
Asset Turnover3.28
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Debt/EBITDA 6.61
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.54
Quick Ratio 0.49
Altman-Z N/A
F-ScoreN/A
WACC7.24%
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)140.35%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-89.47%
EPS Next Y44.18%
EPS Next 2Y58.45%
EPS Next 3Y52.69%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.43%
Revenue growth 3Y11.89%
Revenue growth 5Y36.04%
Sales Q2Q%3.56%
Revenue Next Year2.04%
Revenue Next 2Y7.29%
Revenue Next 3Y8.99%
Revenue Next 5YN/A
EBIT growth 1Y75%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year212.22%
EBIT Next 3Y85.95%
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

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 6.04 and the Price/Book (PB) ratio is -4.07.


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 44.18% in the next year.