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DUOLINGO (DUOL) Stock Fundamental Analysis

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

185.96 USD
+3.07 (+1.68%)
Last: 12/19/2025, 8:00:01 PM
186.72 USD
+0.76 (+0.41%)
After Hours: 12/19/2025, 8:00:01 PM
Fundamental Rating

6

Taking everything into account, DUOL scores 6 out of 10 in our fundamental rating. DUOL was compared to 77 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 is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, DUOL could be worth investigating further 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.
The reported net income has been mixed in the past 5 years: DUOL reported negative net income in multiple years.
In the past 5 years DUOL always reported a positive cash flow from operatings.
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

With an excellent Return On Assets value of 20.47%, DUOL belongs to the best of the industry, outperforming 94.81% of the companies in the same industry.
DUOL has a better Return On Equity (29.52%) than 89.61% of its industry peers.
DUOL has a better Return On Invested Capital (7.05%) than 72.73% of its industry peers.
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's Gross Margin of 71.99% is amongst the best of the industry. DUOL outperforms 85.71% 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 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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DUOL is destroying value.
The number of shares outstanding for DUOL has been increased compared to 1 year ago.
DUOL has more shares outstanding than it did 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

An Altman-Z score of 10.23 indicates that DUOL is not in any danger for bankruptcy at the moment.
The Altman-Z score of DUOL (10.23) is better than 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 10.23
ROIC/WACC0.8
WACC8.8%
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.
Looking at the Current ratio, with a value of 2.82, DUOL belongs to the top of the industry, outperforming 84.42% of the companies in the same industry.
A Quick Ratio of 2.82 indicates that DUOL has no problem at all paying its short term obligations.
DUOL has a better Quick ratio (2.82) than 85.71% of its industry peers.
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.
Looking at the last year, DUOL shows a very strong growth in Revenue. 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

The Earnings Per Share is expected to grow by 43.31% 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 21.76% 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

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in 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

DUOL is valuated rather expensively with a Price/Earnings ratio of 23.60.
The rest of the industry has a similar Price/Earnings ratio as DUOL.
The average S&P500 Price/Earnings ratio is at 26.38. DUOL is around the same levels.
A Price/Forward Earnings ratio of 42.09 indicates a quite expensive valuation of DUOL.
DUOL's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of DUOL to the average of the S&P500 Index (23.83), we can say DUOL is valued expensively.
Industry RankSector Rank
PE 23.6
Fwd PE 42.09
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

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DUOL indicates a slightly more expensive valuation: DUOL is more expensive than 61.04% of the companies listed in the same industry.
67.53% of the companies in the same industry are more expensive than DUOL, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 24.73
EV/EBITDA 57.39
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

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DUOL has a very decent profitability rating, which 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

DUOL does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

DUOLINGO

NASDAQ:DUOL (12/19/2025, 8:00:01 PM)

After market: 186.72 +0.76 (+0.41%)

185.96

+3.07 (+1.68%)

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 Cap8.60B
Revenue(TTM)964.27M
Net Income(TTM)386.02M
Analysts74.55
Price Target308.45 (65.87%)
Short Float %14.18%
Short Ratio2.87
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 23.6
Fwd PE 42.09
P/S 8.92
P/FCF 24.73
P/OCF 23.63
P/B 6.57
P/tB 6.91
EV/EBITDA 57.39
EPS(TTM)7.88
EY4.24%
EPS(NY)4.42
Fwd EY2.38%
FCF(TTM)7.52
FCFY4.04%
OCF(TTM)7.87
OCFY4.23%
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 10.23
F-Score4
WACC8.8%
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.