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YOUDAO INC - ADR (DAO) Stock Fundamental Analysis

USA - NYSE:DAO - US98741T1043 - ADR

8.86 USD
-0.04 (-0.45%)
Last: 9/12/2025, 8:04:00 PM
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to DAO. DAO was compared to 74 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.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

DAO had positive earnings in the past year.
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

With an excellent Return On Assets value of 12.38%, DAO belongs to the best of the industry, outperforming 87.84% of the companies in the same industry.
Industry RankSector Rank
ROA 12.38%
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 (4.05%) which is comparable to the rest of the industry.
DAO's Operating Margin of 5.76% is in line compared to the rest of the industry. DAO outperforms 58.11% of its industry peers.
DAO has a Gross Margin (47.17%) 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 5.76%
PM (TTM) 4.05%
GM 47.17%
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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0

2. Health

2.1 Basic Checks

DAO does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for DAO has been reduced compared to 1 year ago.
Compared to 5 years ago, DAO has more shares outstanding
Compared to 1 year ago, DAO has a worse debt to assets ratio.
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
WACC7.27%
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 0.55. 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 Current ratio value of 0.55, DAO is not doing good in the industry: 82.43% of the companies in the same industry are doing better.
DAO has a Quick Ratio of 0.55. This is a bad value and indicates that DAO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.49, DAO is doing worse than 79.73% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.55
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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6

3. Growth

3.1 Past

DAO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 477.17%, which is quite impressive.
The Revenue has decreased by -1.82% in the past year.
Measured over the past years, DAO shows a very strong growth in Revenue. The Revenue has been growing by 36.04% on average per year.
EPS 1Y (TTM)477.17%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%112.2%
Revenue 1Y (TTM)-1.82%
Revenue growth 3Y11.89%
Revenue growth 5Y36.04%
Sales Q2Q%7.25%

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 61.94% on average per year.
Based on estimates for the next years, DAO will show a quite strong growth in Revenue. The Revenue will grow by 9.33% on average per year.
EPS Next Y70.69%
EPS Next 2Y67%
EPS Next 3Y61.94%
EPS Next 5YN/A
Revenue Next Year2.67%
Revenue Next 2Y7.77%
Revenue Next 3Y9.33%
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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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7

4. Valuation

4.1 Price/Earnings Ratio

DAO is valuated cheaply with a Price/Earnings ratio of 3.79.
95.95% of the companies in the same industry are more expensive than DAO, based on the Price/Earnings ratio.
DAO is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 3.50 indicates a rather cheap valuation of DAO.
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.
When comparing the Price/Forward Earnings ratio of DAO to the average of the S&P500 Index (22.73), we can say DAO is valued rather cheaply.
Industry RankSector Rank
PE 3.79
Fwd PE 3.5
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 24.03
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 61.94% in the coming years.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y67%
EPS Next 3Y61.94%

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0

5. Dividend

5.1 Amount

DAO does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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YOUDAO INC - ADR

NYSE:DAO (9/12/2025, 8:04:00 PM)

8.86

-0.04 (-0.45%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)08-14 2025-08-14/bmo
Earnings (Next)11-12 2025-11-12/bmo
Inst Owners44.85%
Inst Owner Change-6.44%
Ins Owners4.34%
Ins Owner ChangeN/A
Market Cap1.06B
Analysts83.64
Price Target13.01 (46.84%)
Short Float %0.94%
Short Ratio3.46
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)2
Avg EPS beat(2)220.32%
Min EPS beat(2)213.8%
Max EPS beat(2)226.83%
EPS beat(4)3
Avg EPS beat(4)124.62%
Min EPS beat(4)-25.91%
Max EPS beat(4)226.83%
EPS beat(8)7
Avg EPS beat(8)99.55%
EPS beat(12)9
Avg EPS beat(12)77.06%
EPS beat(16)12
Avg EPS beat(16)64.57%
Revenue beat(2)0
Avg Revenue beat(2)-85.92%
Min Revenue beat(2)-86.93%
Max Revenue beat(2)-84.9%
Revenue beat(4)0
Avg Revenue beat(4)-86.86%
Min Revenue beat(4)-88.59%
Max Revenue beat(4)-84.9%
Revenue beat(8)0
Avg Revenue beat(8)-86.23%
Revenue beat(12)0
Avg Revenue beat(12)-86.01%
Revenue beat(16)0
Avg Revenue beat(16)-86.44%
PT rev (1m)1.04%
PT rev (3m)0.61%
EPS NQ rev (1m)-23.16%
EPS NQ rev (3m)-49.74%
EPS NY rev (1m)-1.24%
EPS NY rev (3m)10.26%
Revenue NQ rev (1m)4.31%
Revenue NQ rev (3m)-6.09%
Revenue NY rev (1m)-0.87%
Revenue NY rev (3m)-1.88%
Valuation
Industry RankSector Rank
PE 3.79
Fwd PE 3.5
P/S 1.34
P/FCF N/A
P/OCF N/A
P/B N/A
P/tB N/A
EV/EBITDA 24.03
EPS(TTM)2.34
EY26.41%
EPS(NY)2.53
Fwd EY28.6%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS6.61
BVpS-2.42
TBVpS-2.55
PEG (NY)0.05
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 12.38%
ROE N/A
ROCE -31.12%
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM 5.76%
PM (TTM) 4.05%
GM 47.17%
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 Turnover3.06
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Debt/EBITDA 5.14
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.55
Quick Ratio 0.49
Altman-Z N/A
F-ScoreN/A
WACC7.27%
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)477.17%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%112.2%
EPS Next Y70.69%
EPS Next 2Y67%
EPS Next 3Y61.94%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.82%
Revenue growth 3Y11.89%
Revenue growth 5Y36.04%
Sales Q2Q%7.25%
Revenue Next Year2.67%
Revenue Next 2Y7.77%
Revenue Next 3Y9.33%
Revenue Next 5YN/A
EBIT growth 1Y1411.74%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year211.7%
EBIT Next 3Y91.07%
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