DUOLINGO (DUOL) Stock Fundamental Analysis
USA - NASDAQ:DUOL - US26603R1068 - Common Stock
324.02 USD
-6.54 (-1.98%)
324.05 USD
+0.03 (+0.01%)
Taking everything into account, DUOL scores 6 out of 10 in our fundamental rating. DUOL was compared to 75 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 not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, DUOL could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year DUOL was profitable.
In the past year DUOL had a positive cash flow from operations.
In multiple years DUOL reported negative net income over the last 5 years.
In the past 5 years DUOL always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.60%, DUOL is in the better half of the industry, outperforming 77.33% of the companies in the same industry.
DUOL has a better Return On Equity (11.99%) than 70.67% of its industry peers.
DUOL has a Return On Invested Capital of 7.11%. This is in the better half of the industry: DUOL outperforms 77.33% 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
Looking at the Profit Margin, with a value of 13.24%, DUOL belongs to the top of the industry, outperforming 82.67% of the companies in the same industry.
DUOL has a better Operating Margin (9.72%) than 65.33% of its industry peers.
The Gross Margin of DUOL (72.05%) is better than 85.33% of its industry peers.
DUOL's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DUOL is destroying value.
DUOL has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DUOL has been increased compared to 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 17.45 indicates that DUOL is not in any danger for bankruptcy at the moment.
DUOL's Altman-Z score of 17.45 is amongst the best of the industry. DUOL outperforms 96.00% of its industry peers.
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 | 17.45 |
ROIC/WACC0.82
WACC8.66%
2.3 Liquidity
A Current Ratio of 2.81 indicates that DUOL has no problem at all paying its short term obligations.
DUOL has a better Current ratio (2.81) than 84.00% of its industry peers.
A Quick Ratio of 2.81 indicates that DUOL has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.81, DUOL belongs to the best of the industry, outperforming 85.33% of the companies in the same industry.
| 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.
The Revenue has grown by 39.51% in the past year. This is a very strong growth!
DUOL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 60.24% yearly.
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
The Earnings Per Share is expected to grow by 50.31% on average over the next years. This is a very strong growth
DUOL is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.76% yearly.
EPS Next Y77.9%
EPS Next 2Y60.36%
EPS Next 3Y50.31%
EPS Next 5YN/A
Revenue Next Year36.84%
Revenue Next 2Y31.27%
Revenue Next 3Y28.19%
Revenue Next 5Y21.76%
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 133.89 indicates a quite expensive valuation of DUOL.
DUOL's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.40. DUOL is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 67.38, the valuation of DUOL can be described as expensive.
DUOL's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, DUOL is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 133.89 | ||
| Fwd PE | 67.38 |
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 61.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.18 | ||
| EV/EBITDA | 139.76 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 50.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.72
PEG (5Y)N/A
EPS Next 2Y60.36%
EPS Next 3Y50.31%
5. Dividend
5.1 Amount
DUOL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
324.02
-6.54 (-1.98%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners100.56%
Inst Owner Change-0.15%
Ins Owners0.77%
Ins Owner Change-8.01%
Market Cap14.85B
Analysts75.76
Price Target441.71 (36.32%)
Short Float %8.85%
Short Ratio1.83
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)-8.91%
PT rev (3m)-11.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.58%
EPS NY rev (1m)0.99%
EPS NY rev (3m)8.98%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)2.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 133.89 | ||
| Fwd PE | 67.38 | ||
| P/S | 16.77 | ||
| P/FCF | 46.18 | ||
| P/OCF | 44.2 | ||
| P/B | 15.2 | ||
| P/tB | 15.68 | ||
| EV/EBITDA | 139.76 |
EPS(TTM)2.42
EY0.75%
EPS(NY)4.81
Fwd EY1.48%
FCF(TTM)7.02
FCFY2.17%
OCF(TTM)7.33
OCFY2.26%
SpS19.32
BVpS21.32
TBVpS20.66
PEG (NY)1.72
PEG (5Y)N/A
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
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 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 | 17.45 |
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 Y77.9%
EPS Next 2Y60.36%
EPS Next 3Y50.31%
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 3Y28.19%
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%