DUOLINGO (DUOL) Stock Fundamental Analysis
USA - NASDAQ:DUOL - US26603R1068 - Common Stock
326.39 USD
+12.9 (+4.11%)
326 USD
-0.39 (-0.12%)
Overall DUOL gets a fundamental rating of 6 out of 10. We evaluated DUOL against 75 industry peers in the Diversified Consumer Services industry. DUOL is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. DUOL shows excellent growth, but is valued quite expensive already. This makes DUOL very considerable for growth investing!
1. Profitability
1.1 Basic Checks
DUOL had positive earnings in the past year.
DUOL had a positive operating cash flow in the past year.
In multiple years DUOL reported negative net income over the last 5 years.
DUOL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DUOL's Return On Assets of 7.60% is fine compared to the rest of the industry. DUOL outperforms 77.33% of its industry peers.
With a decent Return On Equity value of 11.99%, DUOL is doing good in the industry, outperforming 70.67% of the companies in the same industry.
DUOL has a better Return On Invested Capital (7.11%) than 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 81.33% of the companies in the same industry.
DUOL's Operating Margin of 9.72% is fine compared to the rest of the industry. DUOL outperforms 65.33% of its industry peers.
Looking at the Gross Margin, with a value of 72.05%, DUOL belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
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
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.
The number of shares outstanding for DUOL has been increased compared to 5 years ago.
DUOL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 16.62 indicates that DUOL is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 16.62, DUOL belongs to the best of the industry, outperforming 96.00% 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 | 16.62 |
ROIC/WACC0.8
WACC8.84%
2.3 Liquidity
A Current Ratio of 2.81 indicates that DUOL has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.81, DUOL belongs to the best of the industry, outperforming 82.67% of the companies in the same industry.
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's Quick ratio of 2.81 is amongst the best of the industry. DUOL outperforms 84.00% 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
The Earnings Per Share is expected to grow by 50.78% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 21.76% on average over the next years. This is a very strong growth
EPS Next Y76.15%
EPS Next 2Y59.96%
EPS Next 3Y50.78%
EPS Next 5YN/A
Revenue Next Year36.84%
Revenue Next 2Y31.32%
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
Based on the Price/Earnings ratio of 134.87, the valuation of DUOL can be described as expensive.
DUOL's Price/Earnings is on the same level as the industry average.
DUOL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.32.
The Price/Forward Earnings ratio is 68.21, which means the current valuation is very expensive for DUOL.
The rest of the industry has a similar Price/Forward Earnings ratio as DUOL.
The average S&P500 Price/Forward Earnings ratio is at 22.89. DUOL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 134.87 | ||
| Fwd PE | 68.21 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DUOL.
The rest of the industry has a similar Price/Free Cash Flow ratio as DUOL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.52 | ||
| EV/EBITDA | 131.91 |
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.
A more expensive valuation may be justified as DUOL's earnings are expected to grow with 50.78% in the coming years.
PEG (NY)1.77
PEG (5Y)N/A
EPS Next 2Y59.96%
EPS Next 3Y50.78%
5. Dividend
5.1 Amount
DUOL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
326.39
+12.9 (+4.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners100.56%
Inst Owner Change0.43%
Ins Owners0.77%
Ins Owner Change-9.24%
Market Cap14.96B
Analysts78.06
Price Target452.67 (38.69%)
Short Float %8.48%
Short Ratio1.91
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)-6.93%
PT rev (3m)-9.31%
EPS NQ rev (1m)1.64%
EPS NQ rev (3m)7.36%
EPS NY rev (1m)0%
EPS NY rev (3m)7.79%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)2.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 134.87 | ||
| Fwd PE | 68.21 | ||
| P/S | 16.9 | ||
| P/FCF | 46.52 | ||
| P/OCF | 44.52 | ||
| P/B | 15.31 | ||
| P/tB | 15.8 | ||
| EV/EBITDA | 131.91 |
EPS(TTM)2.42
EY0.74%
EPS(NY)4.79
Fwd EY1.47%
FCF(TTM)7.02
FCFY2.15%
OCF(TTM)7.33
OCFY2.25%
SpS19.32
BVpS21.32
TBVpS20.66
PEG (NY)1.77
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 | 16.62 |
F-Score6
WACC8.84%
ROIC/WACC0.8
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 Y76.15%
EPS Next 2Y59.96%
EPS Next 3Y50.78%
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 2Y31.32%
Revenue Next 3Y28.19%
Revenue Next 5Y21.76%
EBIT growth 1Y141.31%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year319.63%
EBIT Next 3Y100.92%
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%