DUOLINGO (DUOL) Stock Fundamental Analysis
USA - NASDAQ:DUOL - US26603R1068 - Common Stock
306.73 USD
-5.27 (-1.69%)
307.1 USD
+0.37 (+0.12%)
DUOL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 77 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! This makes DUOL very considerable for growth investing!
1. Profitability
1.1 Basic Checks
DUOL had positive earnings in the past year.
In the past year DUOL had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: DUOL reported negative net income in multiple years.
Each year in the past 5 years DUOL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DUOL (7.60%) is better than 77.92% of its industry peers.
Looking at the Return On Equity, with a value of 11.99%, DUOL is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
DUOL's Return On Invested Capital of 7.11% is fine compared to the rest of the industry. DUOL outperforms 77.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.6% | ||
| ROE | 11.99% | ||
| ROIC | 7.11% |
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
The Profit Margin of DUOL (13.24%) is better than 83.12% of its industry peers.
DUOL has a better Operating Margin (9.72%) than 66.23% of its industry peers.
DUOL's Gross Margin of 72.05% is amongst the best of the industry. DUOL outperforms 85.71% 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 | 9.72% | ||
| PM (TTM) | 13.24% | ||
| GM | 72.05% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.17%
GM growth 5Y0.6%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DUOL is destroying value.
Compared to 1 year ago, DUOL has more shares outstanding
DUOL has more shares outstanding than it did 5 years ago.
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
An Altman-Z score of 16.29 indicates that DUOL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 16.29, DUOL belongs to the top of the industry, outperforming 97.40% of the companies in the same industry.
DUOL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 16.29 |
ROIC/WACC0.82
WACC8.66%
2.3 Liquidity
DUOL has a Current Ratio of 2.81. This indicates that DUOL is financially healthy and has no problem in meeting its short term obligations.
DUOL has a better Current ratio (2.81) than 84.42% of its industry peers.
DUOL has a Quick Ratio of 2.81. This indicates that DUOL is financially healthy and has no problem in meeting its short term obligations.
DUOL has a Quick ratio of 2.81. This is amongst the best in the industry. DUOL outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.81 |
3. Growth
3.1 Past
DUOL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 72.86%, which is quite impressive.
DUOL shows a strong growth in Revenue. In the last year, the Revenue has grown by 39.51%.
The Revenue has been growing by 60.24% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)72.86%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%78.43%
Revenue 1Y (TTM)39.51%
Revenue growth 3Y43.94%
Revenue growth 5Y60.24%
Sales Q2Q%41.46%
3.2 Future
Based on estimates for the next years, DUOL will show a very strong growth in Earnings Per Share. The EPS will grow by 50.41% on average per year.
The Revenue is expected to grow by 21.76% on average over the next years. This is a very strong growth
EPS Next Y78.31%
EPS Next 2Y60.07%
EPS Next 3Y50.41%
EPS Next 5YN/A
Revenue Next Year36.84%
Revenue Next 2Y31.27%
Revenue Next 3Y28.17%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 126.75 indicates a quite expensive valuation of DUOL.
The rest of the industry has a similar Price/Earnings ratio as DUOL.
DUOL is valuated expensively when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 64.02, DUOL can be considered very expensive at the moment.
DUOL's Price/Forward Earnings ratio is in line with the industry average.
DUOL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 126.75 | ||
| Fwd PE | 64.02 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DUOL.
DUOL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DUOL is cheaper than 62.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.72 | ||
| EV/EBITDA | 128.81 |
4.3 Compensation for Growth
DUOL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of DUOL may justify a higher PE ratio.
DUOL's earnings are expected to grow with 50.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.62
PEG (5Y)N/A
EPS Next 2Y60.07%
EPS Next 3Y50.41%
5. Dividend
5.1 Amount
No dividends for DUOL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
306.73
-5.27 (-1.69%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners100.56%
Inst Owner Change0.02%
Ins Owners0.77%
Ins Owner Change-5.66%
Market Cap14.05B
Revenue(TTM)885.15M
Net Income(TTM)117.18M
Analysts75.76
Price Target441.71 (44.01%)
Short Float %9.89%
Short Ratio2.4
Dividend
| Industry Rank | Sector 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)45.69%
Min EPS beat(2)37.15%
Max EPS beat(2)54.23%
EPS beat(4)3
Avg EPS beat(4)22.01%
Min EPS beat(4)-39%
Max EPS beat(4)54.23%
EPS beat(8)7
Avg EPS beat(8)56.52%
EPS beat(12)11
Avg EPS beat(12)60.02%
EPS beat(16)14
Avg EPS beat(16)51.76%
Revenue beat(2)2
Avg Revenue beat(2)2.1%
Min Revenue beat(2)1.43%
Max Revenue beat(2)2.76%
Revenue beat(4)3
Avg Revenue beat(4)1.02%
Min Revenue beat(4)-0.12%
Max Revenue beat(4)2.76%
Revenue beat(8)4
Avg Revenue beat(8)0.51%
Revenue beat(12)7
Avg Revenue beat(12)0.47%
Revenue beat(16)11
Avg Revenue beat(16)1.03%
PT rev (1m)-2.42%
PT rev (3m)-9.48%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)7.29%
EPS NY rev (1m)0.23%
EPS NY rev (3m)9.23%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)2.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 126.75 | ||
| Fwd PE | 64.02 | ||
| P/S | 15.88 | ||
| P/FCF | 43.72 | ||
| P/OCF | 41.84 | ||
| P/B | 14.38 | ||
| P/tB | 14.85 | ||
| EV/EBITDA | 128.81 |
EPS(TTM)2.42
EY0.79%
EPS(NY)4.79
Fwd EY1.56%
FCF(TTM)7.02
FCFY2.29%
OCF(TTM)7.33
OCFY2.39%
SpS19.32
BVpS21.32
TBVpS20.66
PEG (NY)1.62
PEG (5Y)N/A
Graham Number34.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.6% | ||
| ROE | 11.99% | ||
| ROCE | 8.04% | ||
| ROIC | 7.11% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 9.72% | ||
| PM (TTM) | 13.24% | ||
| GM | 72.05% | ||
| FCFM | 36.32% |
ROA(3y)0.17%
ROA(5y)-3.51%
ROE(3y)0.73%
ROE(5y)-5%
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 3Y0.17%
GM growth 5Y0.6%
F-Score6
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 106.38% | ||
| Cap/Sales | 1.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 337.11% | ||
| Profit Quality | 274.34% | ||
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.81 | ||
| Altman-Z | 16.29 |
F-Score6
WACC8.66%
ROIC/WACC0.82
Cap/Depr(3y)198.48%
Cap/Depr(5y)200.07%
Cap/Sales(3y)2.71%
Cap/Sales(5y)2.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)72.86%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%78.43%
EPS Next Y78.31%
EPS Next 2Y60.07%
EPS Next 3Y50.41%
EPS Next 5YN/A
Revenue 1Y (TTM)39.51%
Revenue growth 3Y43.94%
Revenue growth 5Y60.24%
Sales Q2Q%41.46%
Revenue Next Year36.84%
Revenue Next 2Y31.27%
Revenue Next 3Y28.17%
Revenue Next 5Y21.76%
EBIT growth 1Y141.31%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year340.31%
EBIT Next 3Y100.81%
EBIT Next 5Y61.95%
FCF growth 1Y312.16%
FCF growth 3Y347%
FCF growth 5YN/A
OCF growth 1Y285.23%
OCF growth 3Y214.6%
OCF growth 5Y165.85%
DUOLINGO / DUOL FAQ
What is the fundamental rating for DUOL stock?
ChartMill assigns a fundamental rating of 6 / 10 to DUOL.
What is the valuation status of DUOLINGO (DUOL) stock?
ChartMill assigns a valuation rating of 4 / 10 to DUOLINGO (DUOL). This can be considered as Fairly Valued.
Can you provide the profitability details for DUOLINGO?
DUOLINGO (DUOL) has a profitability rating of 6 / 10.
Can you provide the financial health for DUOL stock?
The financial health rating of DUOLINGO (DUOL) is 8 / 10.