DUOLINGO (DUOL) Stock Fundamental Analysis
NASDAQ:DUOL - Nasdaq - US26603R1068 - Common Stock - Currency: USD
Taking everything into account, DUOL scores 6 out of 10 in our fundamental rating. DUOL was compared to 73 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. These ratings would make DUOL suitable 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.
Each year in the past 5 years DUOL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DUOL (6.80%) is better than 78.08% of its industry peers.
With a decent Return On Equity value of 10.74%, DUOL is doing good in the industry, outperforming 69.86% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.42%, DUOL is doing good in the industry, outperforming 78.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.8% | ||
| ROE | 10.74% | ||
| ROIC | 6.42% |
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 11.84%, DUOL is in the better half of the industry, outperforming 79.45% of the companies in the same industry.
DUOL's Operating Margin of 8.53% is fine compared to the rest of the industry. DUOL outperforms 65.75% of its industry peers.
DUOL has a better Gross Margin (72.78%) than 89.04% of its industry peers.
DUOL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.53% | ||
| PM (TTM) | 11.84% | ||
| GM | 72.78% |
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
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
An Altman-Z score of 30.81 indicates that DUOL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 30.81, DUOL belongs to the top of the industry, outperforming 95.89% 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 | 30.81 |
ROIC/WACC0.7
WACC9.18%
2.3 Liquidity
A Current Ratio of 2.61 indicates that DUOL has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.61, DUOL belongs to the best of the industry, outperforming 82.19% of the companies in the same industry.
A Quick Ratio of 2.61 indicates that DUOL has no problem at all paying its short term obligations.
DUOL has a better Quick ratio (2.61) than 82.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 2.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 108.25% over the past year.
Looking at the last year, DUOL shows a very strong growth in Revenue. The Revenue has grown by 40.84%.
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)40.84%
Revenue growth 3Y43.94%
Revenue growth 5Y60.24%
Sales Q2Q%37.69%
3.2 Future
The Earnings Per Share is expected to grow by 52.20% on average over the next years. This is a very strong growth
Based on estimates for the next years, DUOL will show a very strong growth in Revenue. The Revenue will grow by 21.75% on average per year.
EPS Next Y61.65%
EPS Next 2Y55.48%
EPS Next 3Y52.2%
EPS Next 5YN/A
Revenue Next Year33.91%
Revenue Next 2Y30.29%
Revenue Next 3Y28.98%
Revenue Next 5Y21.75%
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 257.53 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 25.91. DUOL is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 115.07, which means the current valuation is very expensive for DUOL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DUOL is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.85. DUOL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 257.53 | ||
| Fwd PE | 115.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DUOL is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as DUOL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 89.39 | ||
| EV/EBITDA | 302.09 |
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 52.20% in the coming years.
PEG (NY)4.18
PEG (5Y)N/A
EPS Next 2Y55.48%
EPS Next 3Y52.2%
5. Dividend
5.1 Amount
No dividends for DUOL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
520.21
+2.41 (+0.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners92.85%
Inst Owner Change2.51%
Ins Owners0.85%
Ins Owner Change-6.1%
Market Cap23.63B
Analysts75.86
Price Target451.46 (-13.22%)
Short Float %3.36%
Short Ratio1.26
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)-1.68%
Min EPS beat(2)-39%
Max EPS beat(2)35.64%
EPS beat(4)3
Avg EPS beat(4)39.49%
Min EPS beat(4)-39%
Max EPS beat(4)105.07%
EPS beat(8)7
Avg EPS beat(8)72.03%
EPS beat(12)11
Avg EPS beat(12)58.6%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.05%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)0.02%
Revenue beat(4)1
Avg Revenue beat(4)-0.56%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)0.02%
Revenue beat(8)4
Avg Revenue beat(8)0.08%
Revenue beat(12)7
Avg Revenue beat(12)0.44%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)14.86%
PT rev (3m)26.77%
EPS NQ rev (1m)-2.18%
EPS NQ rev (3m)-23.66%
EPS NY rev (1m)5.47%
EPS NY rev (3m)0.57%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.85%
Revenue NY rev (1m)2.05%
Revenue NY rev (3m)3.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 257.53 | ||
| Fwd PE | 115.07 | ||
| P/S | 31.59 | ||
| P/FCF | 89.39 | ||
| P/OCF | 82.77 | ||
| P/B | 28.66 | ||
| P/tB | 29.76 | ||
| EV/EBITDA | 302.09 |
EPS(TTM)2.02
EY0.39%
EPS(NY)4.52
Fwd EY0.87%
FCF(TTM)5.82
FCFY1.12%
OCF(TTM)6.28
OCFY1.21%
SpS16.47
BVpS18.15
TBVpS17.48
PEG (NY)4.18
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.8% | ||
| ROE | 10.74% | ||
| ROCE | 7.25% | ||
| ROIC | 6.42% | ||
| ROICexc | 3048.38% | ||
| ROICexgc | N/A | ||
| OM | 8.53% | ||
| PM (TTM) | 11.84% | ||
| GM | 72.78% | ||
| FCFM | 35.34% |
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 | 194.77% | ||
| Cap/Sales | 2.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 382.41% | ||
| Profit Quality | 298.48% | ||
| Current Ratio | 2.61 | ||
| Quick Ratio | 2.61 | ||
| Altman-Z | 30.81 |
F-Score6
WACC9.18%
ROIC/WACC0.7
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 Y61.65%
EPS Next 2Y55.48%
EPS Next 3Y52.2%
EPS Next 5YN/A
Revenue 1Y (TTM)40.84%
Revenue growth 3Y43.94%
Revenue growth 5Y60.24%
Sales Q2Q%37.69%
Revenue Next Year33.91%
Revenue Next 2Y30.29%
Revenue Next 3Y28.98%
Revenue Next 5Y21.75%
EBIT growth 1Y590.63%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year314.23%
EBIT Next 3Y99.89%
EBIT Next 5Y61.95%
FCF growth 1Y88.93%
FCF growth 3Y347%
FCF growth 5YN/A
OCF growth 1Y85.86%
OCF growth 3Y214.6%
OCF growth 5Y165.85%