DUOLINGO (DUOL)
US26603R1068 - Common Stock
DUOL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 65 industry peers in the Diversified Consumer Services industry. While DUOL has a great health rating, its profitability is only average at the moment. DUOL is valued quite expensively, but it does show have an excellent growth rating.
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 the past 5 years DUOL reported 4 times negative net income.
In the past 5 years DUOL always reported a positive cash flow from operatings.
1.2 Ratios
DUOL has a better Return On Assets (1.68%) than 65.63% of its industry peers.
DUOL has a better Return On Equity (2.44%) than 64.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.68% | ||
| ROE | 2.44% | ||
| ROIC | N/A |
ROA(3y)-5.13%
ROA(5y)-7.73%
ROE(3y)-6.75%
ROE(5y)-12.22%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 3.02%, DUOL is in the better half of the industry, outperforming 64.06% of the companies in the same industry.
DUOL has a better Gross Margin (73.27%) than 82.81% 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 | N/A | ||
| PM (TTM) | 3.02% | ||
| GM | 73.27% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.78%
GM growth 5YN/A
2. Health
2.1 Basic Checks
DUOL does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for DUOL has been increased compared to 1 year 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
DUOL has an Altman-Z score of 20.20. This indicates that DUOL is financially healthy and has little risk of bankruptcy at the moment.
DUOL has a better Altman-Z score (20.20) than 98.44% of its industry peers.
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 | 20.2 |
ROIC/WACCN/A
WACC9.27%
2.3 Liquidity
A Current Ratio of 3.24 indicates that DUOL has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.24, DUOL belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
DUOL has a Quick Ratio of 3.24. This indicates that DUOL is financially healthy and has no problem in meeting its short term obligations.
DUOL has a Quick ratio of 3.24. This is amongst the best in the industry. DUOL outperforms 84.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.24 | ||
| Quick Ratio | 3.24 |
3. Growth
3.1 Past
DUOL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 122.67%, which is quite impressive.
Looking at the last year, DUOL shows a very strong growth in Revenue. The Revenue has grown by 43.73%.
DUOL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 48.65% yearly.
EPS 1Y (TTM)122.67%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q174.29%
Revenue 1Y (TTM)43.73%
Revenue growth 3Y48.65%
Revenue growth 5YN/A
Revenue growth Q2Q45.46%
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 147.88% on average per year.
The Revenue is expected to grow by 31.31% on average over the next years. This is a very strong growth
EPS Next Y275%
EPS Next 2Y164.08%
EPS Next 3Y147.88%
EPS Next 5YN/A
Revenue Next Year37.71%
Revenue Next 2Y32.19%
Revenue Next 3Y31.31%
Revenue Next 5YN/A
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 655.97 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.
The average S&P500 Price/Earnings ratio is at 24.55. DUOL is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 174.93 indicates a quite expensive valuation of DUOL.
DUOL's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.92, DUOL is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 655.97 | ||
| Fwd PE | 174.93 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as DUOL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 68.35 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as DUOL's earnings are expected to grow with 147.88% in the coming years.
PEG (NY)2.39
PEG (5Y)N/A
EPS Next 2Y164.08%
EPS Next 3Y147.88%
5. Dividend
5.1 Amount
DUOL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DUOLINGO
NASDAQ:DUOL (5/1/2024, 7:00:01 PM)
After market: 223.03 0 (0%)223.03
-2.72 (-1.2%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.56B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 655.97 | ||
| Fwd PE | 174.93 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.39
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.68% | ||
| ROE | 2.44% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 3.02% | ||
| GM | 73.27% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.24 | ||
| Quick Ratio | 3.24 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)122.67%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y275%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)43.73%
Revenue growth 3Y48.65%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y