Overall DUOL gets a fundamental rating of 6 out of 10. We evaluated DUOL against 76 industry peers in the Diversified Consumer Services industry. DUOL has an excellent financial health rating, but there are some minor concerns on its profitability. DUOL is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make DUOL suitable for growth investing!

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year DUOL was profitable.
DUOL had a positive operating cash flow in the past year.
In multiple years DUOL reported negative net income over the last 5 years.
Each year in the past 5 years DUOL had a positive operating cash flow.

1.2 Ratios

DUOL's Return On Assets of 20.47% is amongst the best of the industry. DUOL outperforms 93.42% of its industry peers.
With an excellent Return On Equity value of 29.52%, DUOL belongs to the best of the industry, outperforming 88.16% of the companies in the same industry.
DUOL has a Return On Invested Capital of 7.05%. This is in the better half of the industry: DUOL outperforms 71.05% of its industry peers.

		Industry Rank	Sector Rank
ROA	20.47%
ROE	29.52%
ROIC	7.05%

ROA(3y)0.17%

ROA(5y)-3.51%

ROE(3y)0.73%

ROE(5y)-5%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

With an excellent Profit Margin value of 40.03%, DUOL belongs to the best of the industry, outperforming 96.05% of the companies in the same industry.
With a decent Operating Margin value of 11.58%, DUOL is doing good in the industry, outperforming 71.05% of the companies in the same industry.
The Gross Margin of DUOL (71.99%) is better than 88.16% of its industry peers.
In the last couple of years the Gross Margin of DUOL has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	11.58%
PM (TTM)	40.03%
GM	71.99%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y0.17%

GM growth 5Y0.58%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

DUOL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DUOL has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, DUOL has more shares outstanding
There is no outstanding debt for DUOL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

DUOL has an Altman-Z score of 8.83. This indicates that DUOL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.83, DUOL belongs to the top of the industry, outperforming 98.68% of the companies in the same industry.
There is no outstanding debt for DUOL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	8.83

ROIC/WACC0.79

WACC8.9%

2.3 Liquidity

A Current Ratio of 2.82 indicates that DUOL has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.82, DUOL belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
A Quick Ratio of 2.82 indicates that DUOL has no problem at all paying its short term obligations.
DUOL has a better Quick ratio (2.82) than 84.21% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.82
Quick Ratio	2.82

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 330.60% over the past year.
The Revenue has grown by 39.86% in the past year. This is a very strong growth!
The Revenue has been growing by 60.26% on average over the past years. This is a very strong growth!

EPS 1Y (TTM)330.6%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%1114.29%

Revenue 1Y (TTM)39.86%

Revenue growth 3Y43.95%

Revenue growth 5Y60.26%

Sales Q2Q%41.08%

3.2 Future

DUOL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 43.24% yearly.
DUOL is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.76% yearly.

EPS Next Y316.31%

EPS Next 2Y53.96%

EPS Next 3Y43.24%

EPS Next 5YN/A

Revenue Next Year38.56%

Revenue Next 2Y30.31%

Revenue Next 3Y26.38%

Revenue Next 5Y21.76%

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.

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4. Valuation

4.1 Price/Earnings Ratio

DUOL is valuated rather expensively with a Price/Earnings ratio of 19.79.
63.16% of the companies in the same industry are more expensive than DUOL, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of DUOL to the average of the S&P500 Index (27.21), we can say DUOL is valued slightly cheaper.
A Price/Forward Earnings ratio of 35.19 indicates a quite expensive valuation of DUOL.
DUOL's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.26. DUOL is valued slightly more expensive when compared to this.

		Industry Rank	Sector Rank
PE	19.79
Fwd PE	35.19

4.2 Price Multiples

DUOL's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DUOL indicates a somewhat cheap valuation: DUOL is cheaper than 71.05% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	20.74
EV/EBITDA	46.67

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.
DUOL has a very decent profitability rating, which may justify a higher PE ratio.
DUOL's earnings are expected to grow with 43.24% in the coming years. This may justify a more expensive valuation.