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YOUDAO INC - ADR (DAO) Stock Fundamental Analysis

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

8.59  +0.19 (+2.26%)

Fundamental Rating

3

DAO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 71 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

DAO had positive earnings in the past year.
In the past 5 years DAO reported 4 times negative net income.
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's Return On Assets of 9.55% is amongst the best of the industry. DAO outperforms 81.69% 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

DAO has a Profit Margin (2.66%) which is comparable to the rest of the industry.
DAO's Operating Margin of 4.01% is fine compared to the rest of the industry. DAO outperforms 60.56% of its industry peers.
The Gross Margin of DAO (48.47%) is comparable to the rest of the industry.
DAO's Gross Margin has improved in the last couple of years.
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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0

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.
DAO has more shares outstanding than it did 5 years ago.
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
WACC6.7%
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 Current ratio of 0.48. This is amonst the worse of the industry: DAO underperforms 81.69% of its industry peers.
A Quick Ratio of 0.42 indicates that DAO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.42, DAO is doing worse than 83.10% of the companies in the same industry.
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

DAO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 166.91%, which is quite impressive.
Looking at the last year, DAO shows a decrease in Revenue. The Revenue has decreased by -1.51% in the last year.
The Revenue has been growing by 36.04% on average over the past years. This is a very strong growth!
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 60.74% on average per year.
The Revenue is expected to grow by 10.05% on average over the next years. This is quite good.
EPS Next Y72.84%
EPS Next 2Y64.83%
EPS Next 3Y60.74%
EPS Next 5YN/A
Revenue Next Year5.28%
Revenue Next 2Y8.9%
Revenue Next 3Y10.05%
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.
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

With a Price/Earnings ratio of 6.05, the valuation of DAO can be described as very cheap.
Based on the Price/Earnings ratio, DAO is valued cheaply inside the industry as 94.37% of the companies are valued more expensively.
DAO is valuated cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 3.48, which 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 98.59% 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 (21.90), we can say DAO is valued rather cheaply.
Industry RankSector Rank
PE 6.05
Fwd PE 3.48
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

DAO's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 33
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 60.74% in the coming years.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y64.83%
EPS Next 3Y60.74%

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0

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 (7/3/2025, 7:15:15 PM)

8.59

+0.19 (+2.26%)

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 Owners44.96%
Inst Owner Change-2.95%
Ins Owners4.34%
Ins Owner ChangeN/A
Market Cap1.03B
Analysts83.64
Price Target12.82 (49.24%)
Short Float %1.17%
Short Ratio4.59
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)-87.83%
Min Revenue beat(2)-88.65%
Max Revenue beat(2)-87%
Revenue beat(4)0
Avg Revenue beat(4)-87.31%
Min Revenue beat(4)-88.65%
Max Revenue beat(4)-86.48%
Revenue beat(8)0
Avg Revenue beat(8)-86.36%
Revenue beat(12)0
Avg Revenue beat(12)-86.15%
Revenue beat(16)0
Avg Revenue beat(16)-86.82%
PT rev (1m)16.3%
PT rev (3m)16.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)65.45%
EPS NY rev (1m)11.65%
EPS NY rev (3m)15.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.84%
Revenue NY rev (1m)-3.16%
Revenue NY rev (3m)-3.69%
Valuation
Industry RankSector Rank
PE 6.05
Fwd PE 3.48
P/S 1.33
P/FCF N/A
P/OCF N/A
P/B N/A
P/tB N/A
EV/EBITDA 33
EPS(TTM)1.42
EY16.53%
EPS(NY)2.47
Fwd EY28.73%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS6.46
BVpS-2.4
TBVpS-2.53
PEG (NY)0.08
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
WACC6.7%
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 Y72.84%
EPS Next 2Y64.83%
EPS Next 3Y60.74%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.51%
Revenue growth 3Y11.89%
Revenue growth 5Y36.04%
Sales Q2Q%-6.72%
Revenue Next Year5.28%
Revenue Next 2Y8.9%
Revenue Next 3Y10.05%
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