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YOUDAO INC - ADR (DAO) Stock Fundamental Analysis

NYSE:DAO - New York Stock Exchange, Inc. - US98741T1043 - ADR - Currency: USD

10.26  -0.13 (-1.25%)

After market: 10.0551 -0.2 (-2%)

Fundamental Rating

2

DAO gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 71 industry peers in the Diversified Consumer Services industry. DAO may be in some trouble as it scores bad on both profitability and health. DAO has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

DAO had positive earnings in the past year.
DAO had a negative operating cash flow in the past year.
In the past 5 years DAO always reported negative net income.
DAO had a negative operating cash flow in each of the past 5 years.
DAO Yearly Net Income VS EBIT VS OCF VS FCFDAO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 -500M -1B -1.5B

1.2 Ratios

DAO has a worse Return On Assets (-33.01%) than 78.13% of its industry peers.
Industry RankSector Rank
ROA -33.01%
ROE N/A
ROIC N/A
ROA(3y)-34.25%
ROA(5y)-43.59%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
DAO Yearly ROA, ROE, ROICDAO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 0 500 1K 1.5K 2K 2.5K

1.3 Margins

DAO has a Gross Margin (51.35%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of DAO has grown nicely.
DAO does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 51.35%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.42%
GM growth 5Y11.65%
DAO Yearly Profit, Operating, Gross MarginsDAO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 -40 -60

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0

2. Health

2.1 Basic Checks

DAO does not have a ROIC to compare to the WACC, probably because it is not profitable.
DAO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
DAO Yearly Shares OutstandingDAO Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
DAO Yearly Total Debt VS Total AssetsDAO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

2.2 Solvency

DAO has an Altman-Z score of -2.58. This is a bad value and indicates that DAO is not financially healthy and even has some risk of bankruptcy.
DAO's Altman-Z score of -2.58 is on the low side compared to the rest of the industry. DAO is outperformed by 75.00% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z -2.58
ROIC/WACCN/A
WACC8.92%
DAO Yearly LT Debt VS Equity VS FCFDAO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 0 500M -500M -1B -1.5B -2B

2.3 Liquidity

A Current Ratio of 0.42 indicates that DAO may have some problems paying its short term obligations.
DAO's Current ratio of 0.42 is on the low side compared to the rest of the industry. DAO is outperformed by 90.63% of its industry peers.
A Quick Ratio of 0.35 indicates that DAO may have some problems paying its short term obligations.
The Quick ratio of DAO (0.35) is worse than 90.63% of its industry peers.
Industry RankSector Rank
Current Ratio 0.42
Quick Ratio 0.35
DAO Yearly Current Assets VS Current LiabilitesDAO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 123.41% over the past year.
EPS 1Y (TTM)123.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%37.66%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-10.01%

3.2 Future

The Earnings Per Share is expected to grow by 102.90% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.23% on average over the next years. This is quite good.
EPS Next Y58.71%
EPS Next 2Y102.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.02%
Revenue Next 2Y10.23%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

DAO Yearly Revenue VS EstimatesDAO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B
DAO Yearly EPS VS EstimatesDAO Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 -5 -10 -15

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 11.27, which indicates a very decent valuation of DAO.
89.06% of the companies in the same industry are more expensive than DAO, based on the Price/Earnings ratio.
DAO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
With a Price/Forward Earnings ratio of 7.12, the valuation of DAO can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DAO indicates a rather cheap valuation: DAO is cheaper than 96.88% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of DAO to the average of the S&P500 Index (22.68), we can say DAO is valued rather cheaply.
Industry RankSector Rank
PE 11.27
Fwd PE 7.12
DAO Price Earnings VS Forward Price EarningsDAO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
DAO Per share dataDAO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as DAO's earnings are expected to grow with 102.90% in the coming years.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y102.9%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for DAO!.
Industry RankSector Rank
Dividend Yield N/A

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YOUDAO INC - ADR

NYSE:DAO (2/21/2025, 8:11:52 PM)

After market: 10.0551 -0.2 (-2%)

10.26

-0.13 (-1.25%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)02-20 2025-02-20/bmo
Earnings (Next)05-21 2025-05-21/bmo
Inst Owners44.9%
Inst Owner Change-2.82%
Ins Owners4.35%
Ins Owner ChangeN/A
Market Cap1.23B
Analysts81.67
Price Target7.33 (-28.56%)
Short Float %0.85%
Short Ratio1.63
Dividend
Industry RankSector 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)2
Avg EPS beat(2)60.66%
Min EPS beat(2)37.26%
Max EPS beat(2)84.06%
EPS beat(4)3
Avg EPS beat(4)28.35%
Min EPS beat(4)-22.04%
Max EPS beat(4)84.06%
EPS beat(8)5
Avg EPS beat(8)34.49%
EPS beat(12)8
Avg EPS beat(12)30.9%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-85.54%
Min Revenue beat(2)-86.05%
Max Revenue beat(2)-85.04%
Revenue beat(4)0
Avg Revenue beat(4)-85.7%
Min Revenue beat(4)-86.05%
Max Revenue beat(4)-85.04%
Revenue beat(8)0
Avg Revenue beat(8)-85.85%
Revenue beat(12)0
Avg Revenue beat(12)-87.17%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.18%
PT rev (3m)18.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)198.78%
EPS NY rev (3m)165.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-2.25%
Valuation
Industry RankSector Rank
PE 11.27
Fwd PE 7.12
P/S 1.65
P/FCF N/A
P/OCF N/A
P/B N/A
P/tB N/A
EV/EBITDA N/A
EPS(TTM)0.91
EY8.87%
EPS(NY)1.44
Fwd EY14.05%
FCF(TTM)-0.53
FCFYN/A
OCF(TTM)-0.51
OCFYN/A
SpS6.21
BVpS-2.52
TBVpS-2.65
PEG (NY)0.19
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -33.01%
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 51.35%
FCFM N/A
ROA(3y)-34.25%
ROA(5y)-43.59%
ROE(3y)N/A
ROE(5y)N/A
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 3Y5.42%
GM growth 5Y11.65%
F-Score3
Asset Turnover3.23
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 60.22%
Cap/Sales 0.33%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.42
Quick Ratio 0.35
Altman-Z -2.58
F-Score3
WACC8.92%
ROIC/WACCN/A
Cap/Depr(3y)146.12%
Cap/Depr(5y)167.78%
Cap/Sales(3y)1.11%
Cap/Sales(5y)1.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)123.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%37.66%
EPS Next Y58.71%
EPS Next 2Y102.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-10.01%
Revenue Next Year10.02%
Revenue Next 2Y10.23%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y39.8%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year140.88%
EBIT Next 3Y46.4%
EBIT Next 5YN/A
FCF growth 1Y32.23%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y27.35%
OCF growth 3YN/A
OCF growth 5YN/A