YOUDAO INC - ADR (DAO) Stock Fundamental Analysis
USA - NYSE:DAO - US98741T1043 - ADR
10.43 USD
-0.35 (-3.25%)
10.43 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to DAO. DAO was compared to 78 industry peers in the Diversified Consumer Services industry. Both the profitability and financial health of DAO have multiple concerns. DAO may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year DAO was profitable.
In the past 5 years DAO reported 4 times 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 12.38%, DAO belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
| Industry Rank | Sector 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
1.3 Margins
The Profit Margin of DAO (4.05%) is better than 61.54% of its industry peers.
DAO has a Operating Margin (5.76%) which is comparable to the rest of the industry.
The Gross Margin of DAO (47.17%) is comparable to the rest of the industry.
DAO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
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
The debt/assets ratio for DAO is higher compared to a year ago.
2.2 Solvency
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.13%
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.
DAO has a worse Current ratio (0.55) than 79.49% of its industry peers.
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.
With a Quick ratio value of 0.49, DAO is not doing good in the industry: 78.21% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 477.17% over the past year.
Looking at the last year, DAO shows a decrease in Revenue. The Revenue has decreased by -1.82% 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)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
DAO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 60.80% yearly.
The Revenue is expected to grow by 9.33% on average over the next years. This is quite good.
EPS Next Y62.63%
EPS Next 2Y66.84%
EPS Next 3Y60.8%
EPS Next 5YN/A
Revenue Next Year2.67%
Revenue Next 2Y7.77%
Revenue Next 3Y9.33%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 4.46, the valuation of DAO can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of DAO indicates a rather cheap valuation: DAO is cheaper than 94.87% of the companies listed in the same industry.
DAO is valuated cheaply when we compare the Price/Earnings ratio to 26.06, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 4.12, which indicates a rather cheap valuation of DAO.
Based on the Price/Forward Earnings ratio, DAO is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.73, DAO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.46 | ||
| Fwd PE | 4.12 |
4.2 Price Multiples
DAO's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 27.81 |
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 60.80% in the coming years.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y66.84%
EPS Next 3Y60.8%
5. Dividend
5.1 Amount
DAO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.43
-0.35 (-3.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners41.89%
Inst Owner Change0.23%
Ins Owners4.34%
Ins Owner ChangeN/A
Market Cap1.25B
Revenue(TTM)5.63B
Net Income(TTM)228.00M
Analysts81.67
Price Target13.01 (24.74%)
Short Float %0.81%
Short Ratio2.49
Dividend
| Industry Rank | Sector 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)-85.91%
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)-88.58%
Max Revenue beat(4)-84.9%
Revenue beat(8)0
Avg Revenue beat(8)-86.22%
Revenue beat(12)0
Avg Revenue beat(12)-86.01%
Revenue beat(16)0
Avg Revenue beat(16)-86.44%
PT rev (1m)0%
PT rev (3m)1.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.16%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.46 | ||
| Fwd PE | 4.12 | ||
| P/S | 1.58 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.81 |
EPS(TTM)2.34
EY22.44%
EPS(NY)2.53
Fwd EY24.25%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS6.61
BVpS-2.42
TBVpS-2.55
PEG (NY)0.07
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector 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
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 Turnover3.06
Health
| Industry Rank | Sector 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
WACC7.13%
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 Y62.63%
EPS Next 2Y66.84%
EPS Next 3Y60.8%
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 Year172.29%
EBIT Next 3Y90.99%
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 for 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 3 / 10.
Can you provide the PE and PB ratios for DAO stock?
The Price/Earnings (PE) ratio for YOUDAO INC - ADR (DAO) is 4.46 and the Price/Book (PB) ratio is -4.31.
How financially healthy is YOUDAO INC - ADR?
The financial health rating of YOUDAO INC - ADR (DAO) is 0 / 10.