YOUDAO INC - ADR (DAO) Fundamental Analysis & Valuation

NYSE:DAO • US98741T1043

Current stock price

9.95 USD
-0.17 (-1.68%)
Last:

This DAO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. DAO Profitability Analysis

1.1 Basic Checks

  • DAO had positive earnings in the past year.
  • In multiple years DAO reported negative net income over the last 5 years.
  • 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 2025 0 -500M -1B -1.5B

1.2 Ratios

  • DAO's Return On Assets of 5.45% is fine compared to the rest of the industry. DAO outperforms 69.86% of its industry peers.
Industry RankSector Rank
ROA 5.45%
ROE N/A
ROIC N/A
ROA(3y)-7.68%
ROA(5y)-18.56%
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 2025 0 1K 2K

1.3 Margins

  • With a Profit Margin value of 1.82%, DAO perfoms like the industry average, outperforming 53.42% of the companies in the same industry.
  • The Operating Margin of DAO (3.74%) is comparable to the rest of the industry.
  • DAO's Gross Margin of 44.28% is in line compared to the rest of the industry. DAO outperforms 47.95% of its industry peers.
  • In the last couple of years the Gross Margin of DAO has remained more or less at the same level.
Industry RankSector Rank
OM 3.74%
PM (TTM) 1.82%
GM 44.28%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.96%
GM growth 5Y0.21%
DAO Yearly Profit, Operating, Gross MarginsDAO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 -40 -60

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0

2. DAO Health Analysis

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 increased compared to 1 year ago.
  • DAO has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for DAO has been reduced compared to a year ago.
DAO Yearly Shares OutstandingDAO Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 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
WACC8.65%
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 2025 0 -1B -2B

2.3 Liquidity

  • A Current Ratio of 0.59 indicates that DAO may have some problems paying its short term obligations.
  • DAO has a Current ratio of 0.59. This is amonst the worse of the industry: DAO underperforms 82.19% of its industry peers.
  • A Quick Ratio of 0.54 indicates that DAO may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.54, DAO is doing worse than 82.19% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.59
Quick Ratio 0.54
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 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. DAO Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 48.61% over the past year.
  • Looking at the last year, DAO shows a small growth in Revenue. The Revenue has grown by 5.01% in the last year.
  • The Revenue has been growing by 18.52% on average over the past years. This is quite good.
EPS 1Y (TTM)48.61%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-38.63%
Revenue 1Y (TTM)5.01%
Revenue growth 3Y5.63%
Revenue growth 5Y18.52%
Sales Q2Q%17.44%

3.2 Future

  • DAO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.03% yearly.
  • DAO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.83% yearly.
EPS Next Y45.48%
EPS Next 2Y50.66%
EPS Next 3Y38.03%
EPS Next 5YN/A
Revenue Next Year12.32%
Revenue Next 2Y13.17%
Revenue Next 3Y12.83%
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 2028 2B 4B 6B 8B
DAO Yearly EPS VS EstimatesDAO Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 -5 -10 -15

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7

4. DAO Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 7.37, which indicates a rather cheap valuation of DAO.
  • Based on the Price/Earnings ratio, DAO is valued cheaper than 89.04% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 24.88. DAO is valued rather cheaply when compared to this.
  • DAO is valuated cheaply with a Price/Forward Earnings ratio of 5.07.
  • Based on the Price/Forward Earnings ratio, DAO is valued cheaper than 98.63% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.19. DAO is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 7.37
Fwd PE 5.07
DAO Price Earnings VS Forward Price EarningsDAO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
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.
  • A more expensive valuation may be justified as DAO's earnings are expected to grow with 38.03% in the coming years.
PEG (NY)0.16
PEG (5Y)N/A
EPS Next 2Y50.66%
EPS Next 3Y38.03%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. DAO Dividend Analysis

5.1 Amount

  • No dividends for DAO!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

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DAO Fundamentals: All Metrics, Ratios and Statistics

YOUDAO INC - ADR

NYSE:DAO (3/27/2026, 8:10:15 PM)

9.95

-0.17 (-1.68%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)02-11
Earnings (Next)05-13
Inst Owners30.62%
Inst Owner Change-4.84%
Ins Owners4.34%
Ins Owner Change0%
Market Cap1.19B
Revenue(TTM)5.91B
Net Income(TTM)107.60M
Analysts85
Price Target13.03 (30.95%)
Short Float %2.89%
Short Ratio7.19
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)2.78%
Min EPS beat(2)-86.2%
Max EPS beat(2)91.76%
EPS beat(4)3
Avg EPS beat(4)111.55%
Min EPS beat(4)-86.2%
Max EPS beat(4)226.83%
EPS beat(8)6
Avg EPS beat(8)85.08%
EPS beat(12)9
Avg EPS beat(12)66.17%
EPS beat(16)11
Avg EPS beat(16)59.79%
Revenue beat(2)0
Avg Revenue beat(2)-85.47%
Min Revenue beat(2)-85.82%
Max Revenue beat(2)-85.12%
Revenue beat(4)0
Avg Revenue beat(4)-85.48%
Min Revenue beat(4)-86.54%
Max Revenue beat(4)-84.44%
Revenue beat(8)0
Avg Revenue beat(8)-85.97%
Revenue beat(12)0
Avg Revenue beat(12)-85.64%
Revenue beat(16)0
Avg Revenue beat(16)-85.56%
PT rev (1m)0.61%
PT rev (3m)2.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-13.89%
EPS NY rev (3m)-16.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.59%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)-1.34%
Valuation
Industry RankSector Rank
PE 7.37
Fwd PE 5.07
P/S 1.39
P/FCF N/A
P/OCF N/A
P/B N/A
P/tB N/A
EV/EBITDA N/A
EPS(TTM)1.35
EY13.57%
EPS(NY)1.96
Fwd EY19.74%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS7.15
BVpS-2.39
TBVpS-2.52
PEG (NY)0.16
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 5.45%
ROE N/A
ROCE -23.05%
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM 3.74%
PM (TTM) 1.82%
GM 44.28%
FCFM N/A
ROA(3y)-7.68%
ROA(5y)-18.56%
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-4.96%
GM growth 5Y0.21%
F-ScoreN/A
Asset Turnover2.99
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.59
Quick Ratio 0.54
Altman-Z N/A
F-ScoreN/A
WACC8.65%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)48.61%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-38.63%
EPS Next Y45.48%
EPS Next 2Y50.66%
EPS Next 3Y38.03%
EPS Next 5YN/A
Revenue 1Y (TTM)5.01%
Revenue growth 3Y5.63%
Revenue growth 5Y18.52%
Sales Q2Q%17.44%
Revenue Next Year12.32%
Revenue Next 2Y13.17%
Revenue Next 3Y12.83%
Revenue Next 5YN/A
EBIT growth 1Y49.51%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year62.51%
EBIT Next 3Y38.42%
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A

YOUDAO INC - ADR / DAO Fundamental Analysis 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 of YOUDAO INC - ADR (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 2 / 10.


Can you provide the PE and PB ratios for DAO stock?

The Price/Earnings (PE) ratio for YOUDAO INC - ADR (DAO) is 7.37 and the Price/Book (PB) ratio is -4.17.


What is the earnings growth outlook for YOUDAO INC - ADR?

The Earnings per Share (EPS) of YOUDAO INC - ADR (DAO) is expected to grow by 45.48% in the next year.