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YOUDAO INC - ADR (DAO) Stock Fundamental Analysis

NYSE:DAO - US98741T1043 - ADR

8.9 USD
-0.18 (-1.98%)
Last: 8/25/2025, 11:12:46 AM
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to DAO. DAO was compared to 71 industry peers in the Diversified Consumer Services industry. DAO has a bad profitability rating. Also its financial health evaluation is rather negative. 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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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.
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

The Return On Assets of DAO (9.55%) is better than 80.28% 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

The Profit Margin of DAO (2.66%) is comparable to the rest of the industry.
With a Operating Margin value of 4.01%, DAO perfoms like the industry average, outperforming 57.75% of the companies in the same industry.
The Gross Margin of DAO (48.47%) 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 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.
Compared to 5 years ago, DAO has more shares outstanding
The debt/assets ratio for DAO is higher compared to a year ago.
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
WACC8.02%
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's Current ratio of 0.48 is on the low side compared to the rest of the industry. DAO is outperformed by 81.69% of its industry peers.
A Quick Ratio of 0.42 indicates that DAO may have some problems paying its short term obligations.
The Quick ratio of DAO (0.42) is worse than 84.51% of its industry peers.
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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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 been growing slightly by 4.39% 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)4.39%
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.
DAO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.46% yearly.
EPS Next Y70.69%
EPS Next 2Y67%
EPS Next 3Y61.94%
EPS Next 5YN/A
Revenue Next Year4.11%
Revenue Next 2Y8.4%
Revenue Next 3Y9.46%
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 3.80.
Compared to the rest of the industry, the Price/Earnings ratio of DAO indicates a rather cheap valuation: DAO is cheaper than 95.77% of the companies listed in the same industry.
DAO is valuated cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 3.51, the valuation of DAO can be described as very cheap.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.81, DAO is valued rather cheaply.
Industry RankSector Rank
PE 3.8
Fwd PE 3.51
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 34.75
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

DAO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DAO's earnings are expected to grow with 61.94% in the coming years. This may justify a more expensive valuation.
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 (8/25/2025, 11:12:46 AM)

8.9

-0.18 (-1.98%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
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
Analysts82
Price Target13.22 (48.54%)
Short Float %1.14%
Short Ratio4.71
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)-87.86%
Min Revenue beat(2)-88.68%
Max Revenue beat(2)-87.04%
Revenue beat(4)0
Avg Revenue beat(4)-87.34%
Min Revenue beat(4)-88.68%
Max Revenue beat(4)-86.51%
Revenue beat(8)0
Avg Revenue beat(8)-86.39%
Revenue beat(12)0
Avg Revenue beat(12)-86.19%
Revenue beat(16)0
Avg Revenue beat(16)-86.85%
PT rev (1m)3.1%
PT rev (3m)19.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)85.15%
EPS NY rev (1m)-1.24%
EPS NY rev (3m)10.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.79%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)-4.24%
Valuation
Industry RankSector Rank
PE 3.8
Fwd PE 3.51
P/S 1.38
P/FCF N/A
P/OCF N/A
P/B N/A
P/tB N/A
EV/EBITDA 34.75
EPS(TTM)2.34
EY26.29%
EPS(NY)2.53
Fwd EY28.47%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS6.45
BVpS-2.39
TBVpS-2.52
PEG (NY)0.05
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
WACC8.02%
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)4.39%
Revenue growth 3Y11.89%
Revenue growth 5Y36.04%
Sales Q2Q%7.25%
Revenue Next Year4.11%
Revenue Next 2Y8.4%
Revenue Next 3Y9.46%
Revenue Next 5YN/A
EBIT growth 1Y192.19%
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