DUOLINGO (DUOL) Stock Fundamental Analysis
NASDAQ:DUOL - Nasdaq - US26603R1068 - Common Stock - Currency: USD
Overall DUOL gets a fundamental rating of 6 out of 10. We evaluated DUOL against 72 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
In the past year DUOL was profitable.
DUOL had a positive operating cash flow in the past year.
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 76.39% of its industry peers.
With a decent Return On Equity value of 10.82%, DUOL is doing good in the industry, outperforming 70.83% of the companies in the same industry.
DUOL's Return On Invested Capital of 6.63% is fine compared to the rest of the industry. DUOL outperforms 77.78% of its industry peers.
| 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's Profit Margin of 11.93% is fine compared to the rest of the industry. DUOL outperforms 76.39% of its industry peers.
With a decent Operating Margin value of 8.76%, DUOL is doing good in the industry, outperforming 66.67% of the companies in the same industry.
With an excellent Gross Margin value of 72.25%, DUOL belongs to the best of the industry, outperforming 88.89% 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
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.
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 26.68 indicates that DUOL is not in any danger for bankruptcy at the moment.
DUOL's Altman-Z score of 26.68 is amongst the best of the industry. DUOL outperforms 97.22% 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 | 26.68 |
ROIC/WACC0.73
WACC9.05%
2.3 Liquidity
A Current Ratio of 2.68 indicates that DUOL has no problem at all paying its short term obligations.
DUOL has a Current ratio of 2.68. This is in the better half of the industry: DUOL outperforms 79.17% of its industry peers.
A Quick Ratio of 2.68 indicates that DUOL has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.68, DUOL belongs to the best of the industry, outperforming 80.56% 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.
Looking at the last year, DUOL shows a very strong growth in Revenue. The Revenue has grown by 39.16%.
DUOL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 60.24% yearly.
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
Based on estimates for the next years, DUOL will show a very strong growth in Earnings Per Share. The EPS will grow by 52.20% on average per year.
DUOL is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.76% yearly.
EPS Next Y61.65%
EPS Next 2Y55.48%
EPS Next 3Y52.2%
EPS Next 5YN/A
Revenue Next Year34.08%
Revenue Next 2Y30.31%
Revenue Next 3Y28.73%
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 238.36, the valuation of DUOL can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as DUOL.
DUOL is valuated expensively when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 106.51, the valuation of DUOL can be described as expensive.
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 22.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 238.36 | ||
| Fwd PE | 106.51 |
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 | 75.75 | ||
| EV/EBITDA | 244.74 |
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)3.87
PEG (5Y)N/A
EPS Next 2Y55.48%
EPS Next 3Y52.2%
5. Dividend
5.1 Amount
DUOL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
481.48
+7.7 (+1.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners92.85%
Inst Owner Change2.39%
Ins Owners0.85%
Ins Owner Change-8.21%
Market Cap21.88B
Analysts75.86
Price Target491.14 (2.01%)
Short Float %3.15%
Short Ratio1.31
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)8.79%
PT rev (3m)34.59%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)-21.46%
EPS NY rev (1m)5.47%
EPS NY rev (3m)0.57%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)2.99%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)2.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 238.36 | ||
| Fwd PE | 106.51 | ||
| P/S | 26.98 | ||
| P/FCF | 75.75 | ||
| P/OCF | 71.13 | ||
| P/B | 24.48 | ||
| P/tB | 25.32 | ||
| EV/EBITDA | 244.74 |
EPS(TTM)2.02
EY0.42%
EPS(NY)4.52
Fwd EY0.94%
FCF(TTM)6.36
FCFY1.32%
OCF(TTM)6.77
OCFY1.41%
SpS17.85
BVpS19.67
TBVpS19.02
PEG (NY)3.87
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 | 26.68 |
F-Score6
WACC9.05%
ROIC/WACC0.73
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)39.16%
Revenue growth 3Y43.94%
Revenue growth 5Y60.24%
Sales Q2Q%37.69%
Revenue Next Year34.08%
Revenue Next 2Y30.31%
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%