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DUOLINGO (DUOL) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:DUOL - US26603R1068 - Common Stock

189.31 USD
-6.97 (-3.55%)
Last: 12/15/2025, 10:54:08 AM
Fundamental Rating

6

Overall DUOL gets a fundamental rating of 6 out of 10. We evaluated DUOL against 77 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes DUOL very considerable for growth investing!


Dividend Valuation Growth Profitability Health

6

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.
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.
DUOL Yearly Net Income VS EBIT VS OCF VS FCFDUOL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 0 100M 200M

1.2 Ratios

DUOL has a better Return On Assets (20.47%) than 94.81% of its industry peers.
With an excellent Return On Equity value of 29.52%, DUOL belongs to the best of the industry, outperforming 89.61% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.05%, DUOL is doing good in the industry, outperforming 72.73% of the companies in the same industry.
Industry RankSector Rank
ROA 20.47%
ROE 29.52%
ROIC 7.05%
ROA(3y)0.17%
ROA(5y)-3.51%
ROE(3y)0.73%
ROE(5y)-5%
ROIC(3y)N/A
ROIC(5y)N/A
DUOL Yearly ROA, ROE, ROICDUOL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 0 10 -10 -20

1.3 Margins

DUOL has a Profit Margin of 40.03%. This is amongst the best in the industry. DUOL outperforms 96.10% of its industry peers.
DUOL's Operating Margin of 11.58% is fine compared to the rest of the industry. DUOL outperforms 71.43% of its industry peers.
DUOL has a better Gross Margin (71.99%) than 85.71% of its industry peers.
DUOL's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 11.58%
PM (TTM) 40.03%
GM 71.99%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.17%
GM growth 5Y0.58%
DUOL Yearly Profit, Operating, Gross MarginsDUOL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

8

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.
The number of shares outstanding for DUOL has been increased compared to 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.
DUOL Yearly Shares OutstandingDUOL Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M
DUOL Yearly Total Debt VS Total AssetsDUOL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

DUOL has an Altman-Z score of 10.87. This indicates that DUOL is financially healthy and has little risk of bankruptcy at the moment.
DUOL's Altman-Z score of 10.87 is amongst the best of the industry. DUOL outperforms 98.70% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 10.87
ROIC/WACC0.8
WACC8.83%
DUOL Yearly LT Debt VS Equity VS FCFDUOL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M

2.3 Liquidity

A Current Ratio of 2.82 indicates that DUOL has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.82, DUOL belongs to the best of the industry, outperforming 84.42% of the companies in the same industry.
DUOL has a Quick Ratio of 2.82. This indicates that DUOL is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.82, DUOL belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.82
Quick Ratio 2.82
DUOL Yearly Current Assets VS Current LiabilitesDUOL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

8

3. Growth

3.1 Past

DUOL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 330.60%, which is quite impressive.
DUOL shows a strong growth in Revenue. In the last year, the Revenue has grown by 39.86%.
DUOL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 60.26% yearly.
EPS 1Y (TTM)330.6%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1114.29%
Revenue 1Y (TTM)39.86%
Revenue growth 3Y43.95%
Revenue growth 5Y60.26%
Sales Q2Q%41.08%

3.2 Future

DUOL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 43.31% yearly.
Based on estimates for the next years, DUOL will show a very strong growth in Revenue. The Revenue will grow by 21.76% on average per year.
EPS Next Y312.77%
EPS Next 2Y53.7%
EPS Next 3Y43.31%
EPS Next 5YN/A
Revenue Next Year38.56%
Revenue Next 2Y30.36%
Revenue Next 3Y26.35%
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.
DUOL Yearly Revenue VS EstimatesDUOL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 500M 1B 1.5B 2B
DUOL Yearly EPS VS EstimatesDUOL Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 0 2 -2 4 6

4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 24.02 indicates a rather expensive valuation of DUOL.
DUOL's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.56. DUOL is around the same levels.
With a Price/Forward Earnings ratio of 42.85, DUOL can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as DUOL.
DUOL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.79.
Industry RankSector Rank
PE 24.02
Fwd PE 42.85
DUOL Price Earnings VS Forward Price EarningsDUOL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, DUOL is valued a bit more expensive than the industry average as 61.04% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DUOL indicates a somewhat cheap valuation: DUOL is cheaper than 64.94% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 25.18
EV/EBITDA 62.3
DUOL Per share dataDUOL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

DUOL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of DUOL may justify a higher PE ratio.
DUOL's earnings are expected to grow with 43.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y53.7%
EPS Next 3Y43.31%

0

5. Dividend

5.1 Amount

No dividends for DUOL!.
Industry RankSector Rank
Dividend Yield 0%

DUOLINGO

NASDAQ:DUOL (12/15/2025, 10:54:08 AM)

189.31

-6.97 (-3.55%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)11-06 2025-11-06/bmo
Earnings (Next)02-27 2026-02-27/amc
Inst Owners101.45%
Inst Owner Change6.35%
Ins Owners0.74%
Ins Owner Change-7.69%
Market Cap8.75B
Revenue(TTM)964.27M
Net Income(TTM)386.02M
Analysts74.55
Price Target308.45 (62.93%)
Short Float %14.08%
Short Ratio2.83
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)359.08%
Min EPS beat(2)54.23%
Max EPS beat(2)663.94%
EPS beat(4)3
Avg EPS beat(4)179.08%
Min EPS beat(4)-39%
Max EPS beat(4)663.94%
EPS beat(8)7
Avg EPS beat(8)120.2%
EPS beat(12)11
Avg EPS beat(12)113.9%
EPS beat(16)15
Avg EPS beat(16)93.29%
Revenue beat(2)2
Avg Revenue beat(2)1.78%
Min Revenue beat(2)0.81%
Max Revenue beat(2)2.76%
Revenue beat(4)4
Avg Revenue beat(4)1.25%
Min Revenue beat(4)0.02%
Max Revenue beat(4)2.76%
Revenue beat(8)4
Avg Revenue beat(8)0.34%
Revenue beat(12)8
Avg Revenue beat(12)0.63%
Revenue beat(16)11
Avg Revenue beat(16)0.88%
PT rev (1m)-28.81%
PT rev (3m)-31.86%
EPS NQ rev (1m)-2.95%
EPS NQ rev (3m)-5%
EPS NY rev (1m)131.5%
EPS NY rev (3m)134.33%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)1.15%
Revenue NY rev (3m)1.25%
Valuation
Industry RankSector Rank
PE 24.02
Fwd PE 42.85
P/S 9.08
P/FCF 25.18
P/OCF 24.05
P/B 6.69
P/tB 7.03
EV/EBITDA 62.3
EPS(TTM)7.88
EY4.16%
EPS(NY)4.42
Fwd EY2.33%
FCF(TTM)7.52
FCFY3.97%
OCF(TTM)7.87
OCFY4.16%
SpS20.86
BVpS28.28
TBVpS26.91
PEG (NY)0.08
PEG (5Y)N/A
Graham Number70.81
Profitability
Industry RankSector Rank
ROA 20.47%
ROE 29.52%
ROCE 7.97%
ROIC 7.05%
ROICexc 35.32%
ROICexgc 45.66%
OM 11.58%
PM (TTM) 40.03%
GM 71.99%
FCFM 36.05%
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
ROICexgc growth 3YN/A
ROICexgc 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 5Y0.58%
F-Score4
Asset Turnover0.51
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 114.39%
Cap/Sales 1.69%
Interest Coverage 250
Cash Conversion 289.08%
Profit Quality 90.05%
Current Ratio 2.82
Quick Ratio 2.82
Altman-Z 10.87
F-Score4
WACC8.83%
ROIC/WACC0.8
Cap/Depr(3y)198.51%
Cap/Depr(5y)200.22%
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)330.6%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1114.29%
EPS Next Y312.77%
EPS Next 2Y53.7%
EPS Next 3Y43.31%
EPS Next 5YN/A
Revenue 1Y (TTM)39.86%
Revenue growth 3Y43.95%
Revenue growth 5Y60.26%
Sales Q2Q%41.08%
Revenue Next Year38.56%
Revenue Next 2Y30.36%
Revenue Next 3Y26.35%
Revenue Next 5Y21.76%
EBIT growth 1Y105.42%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year347.68%
EBIT Next 3Y93.97%
EBIT Next 5Y61.95%
FCF growth 1Y229.17%
FCF growth 3Y346.8%
FCF growth 5YN/A
OCF growth 1Y213.62%
OCF growth 3Y214.6%
OCF growth 5Y165.8%

DUOLINGO / DUOL FAQ

What is the fundamental rating for DUOL stock?

ChartMill assigns a fundamental rating of 6 / 10 to DUOL.


What is the valuation status of DUOLINGO (DUOL) stock?

ChartMill assigns a valuation rating of 4 / 10 to DUOLINGO (DUOL). This can be considered as Fairly Valued.


Can you provide the profitability details for DUOLINGO?

DUOLINGO (DUOL) has a profitability rating of 6 / 10.


Can you provide the financial health for DUOL stock?

The financial health rating of DUOLINGO (DUOL) is 8 / 10.