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YOUDAO INC - ADR (DAO) Stock Fundamental Analysis

USA - NYSE:DAO - US98741T1043 - ADR

10.73 USD
-0.22 (-2.01%)
Last: 10/9/2025, 9:03:51 PM
10.5 USD
-0.23 (-2.14%)
Pre-Market: 10/10/2025, 8:00:09 AM
Fundamental Rating

3

Overall DAO gets a fundamental rating of 3 out of 10. We evaluated DAO 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 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

In the past year DAO was profitable.
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 has a Return On Assets of 12.38%. This is amongst the best in the industry. DAO outperforms 88.00% of its industry peers.
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 in line with its industry peers.
DAO has a Operating Margin (5.76%) which is comparable to the rest of the industry.
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.
DAO has less shares outstanding than it did 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
WACC7.18%
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.
DAO has a worse Current ratio (0.55) than 82.67% 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.
DAO's Quick ratio of 0.49 is on the low side compared to the rest of the industry. DAO is outperformed by 80.00% of its industry peers.
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

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.
The Revenue has been growing by 36.04% on average over the past years. This is a very strong growth!
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.
DAO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.33% yearly.
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.
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

With a Price/Earnings ratio of 4.59, the valuation of DAO can be described as very cheap.
Based on the Price/Earnings ratio, DAO is valued cheaply inside the industry as 94.67% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.70. DAO is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 4.24, the valuation of DAO can be described as very cheap.
Based on the Price/Forward Earnings ratio, DAO is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.15, DAO is valued rather cheaply.
Industry RankSector Rank
PE 4.59
Fwd PE 4.24
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 28.54
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.
DAO's earnings are expected to grow with 60.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y66.84%
EPS Next 3Y60.8%

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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 (10/9/2025, 9:03:51 PM)

Premarket: 10.5 -0.23 (-2.14%)

10.73

-0.22 (-2.01%)

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 Owners41.89%
Inst Owner Change0%
Ins Owners4.34%
Ins Owner ChangeN/A
Market Cap1.28B
Analysts83.64
Price Target13.01 (21.25%)
Short Float %0.79%
Short Ratio2.52
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)-1.61%
PT rev (3m)1.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-49.74%
EPS NY rev (1m)-4.72%
EPS NY rev (3m)-5.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.31%
Revenue NY rev (1m)-1.38%
Revenue NY rev (3m)-2.47%
Valuation
Industry RankSector Rank
PE 4.59
Fwd PE 4.24
P/S 1.62
P/FCF N/A
P/OCF N/A
P/B N/A
P/tB N/A
EV/EBITDA 28.54
EPS(TTM)2.34
EY21.81%
EPS(NY)2.53
Fwd EY23.57%
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
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
WACC7.18%
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