DUOLINGO (DUOL) Stock Fundamental Analysis
NASDAQ:DUOL - Nasdaq - US26603R1068 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to DUOL. DUOL was compared to 71 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 shows excellent growth, but is valued quite expensive already. With these ratings, DUOL could be worth investigating further 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
DUOL has a better Return On Assets (6.90%) than 74.65% of its industry peers.
With a decent Return On Equity value of 10.82%, DUOL is doing good in the industry, outperforming 70.42% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.63%, DUOL is doing good in the industry, outperforming 77.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 10.82% | ||
| ROIC | 6.63% |
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
DUOL has a Profit Margin of 11.93%. This is in the better half of the industry: DUOL outperforms 74.65% of its industry peers.
DUOL has a Operating Margin of 8.76%. This is in the better half of the industry: DUOL outperforms 66.20% of its industry peers.
With an excellent Gross Margin value of 72.25%, DUOL belongs to the best of the industry, outperforming 88.73% 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 | 8.76% | ||
| PM (TTM) | 11.93% | ||
| GM | 72.25% |
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.
The number of shares outstanding for DUOL has been increased compared to 1 year ago.
Compared to 5 years ago, DUOL has more shares outstanding
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
DUOL has an Altman-Z score of 22.29. This indicates that DUOL is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 22.29, DUOL belongs to the best of the industry, outperforming 94.37% 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 | 22.29 |
ROIC/WACC0.74
WACC8.99%
2.3 Liquidity
DUOL has a Current Ratio of 2.68. This indicates that DUOL is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.68, DUOL is doing good in the industry, outperforming 78.87% of the companies in the same industry.
A Quick Ratio of 2.68 indicates that DUOL has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.68, DUOL belongs to the top of the industry, outperforming 80.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 2.68 |
3. Growth
3.1 Past
DUOL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 108.25%, which is quite impressive.
The Revenue has grown by 39.16% in the past year. This is a very strong growth!
The Revenue has been growing by 60.24% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)108.25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%26.32%
Revenue 1Y (TTM)39.16%
Revenue growth 3Y43.94%
Revenue growth 5Y60.24%
Sales Q2Q%37.69%
3.2 Future
The Earnings Per Share is expected to grow by 52.84% 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 Y63.42%
EPS Next 2Y56.02%
EPS Next 3Y52.84%
EPS Next 5YN/A
Revenue Next Year34.08%
Revenue Next 2Y30.41%
Revenue Next 3Y28.73%
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 193.99 indicates a quite expensive valuation of DUOL.
Compared to the rest of the industry, the Price/Earnings ratio of DUOL is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.45, DUOL is valued quite expensively.
A Price/Forward Earnings ratio of 86.09 indicates a quite expensive valuation of DUOL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DUOL is on the same level as its industry peers.
DUOL is valuated expensively when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 193.99 | ||
| Fwd PE | 86.09 |
4.2 Price Multiples
DUOL's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DUOL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.65 | ||
| EV/EBITDA | 200.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DUOL does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as DUOL's earnings are expected to grow with 52.84% in the coming years.
PEG (NY)3.06
PEG (5Y)N/A
EPS Next 2Y56.02%
EPS Next 3Y52.84%
5. Dividend
5.1 Amount
DUOL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
391.86
-5.14 (-1.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners93.94%
Inst Owner Change2.39%
Ins Owners0.8%
Ins Owner Change-6.09%
Market Cap17.81B
Analysts75.86
Price Target499.14 (27.38%)
Short Float %4.92%
Short Ratio1.97
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)1
Avg EPS beat(2)-0.92%
Min EPS beat(2)-39%
Max EPS beat(2)37.15%
EPS beat(4)3
Avg EPS beat(4)22.51%
Min EPS beat(4)-39%
Max EPS beat(4)56.25%
EPS beat(8)7
Avg EPS beat(8)67.4%
EPS beat(12)11
Avg EPS beat(12)57.81%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)0.73%
Min Revenue beat(2)0.02%
Max Revenue beat(2)1.43%
Revenue beat(4)2
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)1.43%
Revenue beat(8)4
Avg Revenue beat(8)0.21%
Revenue beat(12)7
Avg Revenue beat(12)0.32%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)10.56%
PT rev (3m)27.21%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)22.5%
EPS NY rev (1m)1.09%
EPS NY rev (3m)10.67%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)2.59%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)2.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 193.99 | ||
| Fwd PE | 86.09 | ||
| P/S | 21.95 | ||
| P/FCF | 61.65 | ||
| P/OCF | 57.89 | ||
| P/B | 19.93 | ||
| P/tB | 20.6 | ||
| EV/EBITDA | 200.11 |
EPS(TTM)2.02
EY0.52%
EPS(NY)4.55
Fwd EY1.16%
FCF(TTM)6.36
FCFY1.62%
OCF(TTM)6.77
OCFY1.73%
SpS17.85
BVpS19.67
TBVpS19.02
PEG (NY)3.06
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 10.82% | ||
| ROCE | 7.49% | ||
| ROIC | 6.63% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 8.76% | ||
| PM (TTM) | 11.93% | ||
| GM | 72.25% | ||
| FCFM | 35.61% |
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 Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 151.48% | ||
| Cap/Sales | 2.31% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 368.72% | ||
| Profit Quality | 298.59% | ||
| Current Ratio | 2.68 | ||
| Quick Ratio | 2.68 | ||
| Altman-Z | 22.29 |
F-Score6
WACC8.99%
ROIC/WACC0.74
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)108.25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%26.32%
EPS Next Y63.42%
EPS Next 2Y56.02%
EPS Next 3Y52.84%
EPS Next 5YN/A
Revenue 1Y (TTM)39.16%
Revenue growth 3Y43.94%
Revenue growth 5Y60.24%
Sales Q2Q%37.69%
Revenue Next Year34.08%
Revenue Next 2Y30.41%
Revenue Next 3Y28.73%
Revenue Next 5Y21.76%
EBIT growth 1Y500.49%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year329.72%
EBIT Next 3Y102.89%
EBIT Next 5Y61.95%
FCF growth 1Y438.98%
FCF growth 3Y347%
FCF growth 5YN/A
OCF growth 1Y390.64%
OCF growth 3Y214.6%
OCF growth 5Y165.85%