DUOLINGO (DUOL)
US26603R1068 - Common Stock
Taking everything into account, DUOL scores 6 out of 10 in our fundamental rating. DUOL was compared to 66 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 not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, DUOL could be worth investigating further for growth investing!.
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.
DUOL had negative earnings in 4 of the past 5 years.
DUOL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.12%, DUOL belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
The Return On Equity of DUOL (10.55%) is better than 73.44% of its industry peers.
DUOL has a Return On Invested Capital of 5.59%. This is in the better half of the industry: DUOL outperforms 70.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.12% | ||
| ROE | 10.55% | ||
| ROIC | 5.59% |
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
With an excellent Profit Margin value of 12.59%, DUOL belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
DUOL has a better Operating Margin (7.87%) than 62.50% of its industry peers.
With an excellent Gross Margin value of 73.13%, DUOL belongs to the best of the industry, outperforming 82.81% 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 | 7.87% | ||
| PM (TTM) | 12.59% | ||
| GM | 73.13% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DUOL is destroying value.
DUOL has more shares outstanding than it did 1 year ago.
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
DUOL has an Altman-Z score of 21.65. This indicates that DUOL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 21.65, DUOL belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
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 | 21.65 |
ROIC/WACC0.62
WACC9.07%
2.3 Liquidity
DUOL has a Current Ratio of 3.09. This indicates that DUOL is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.09, DUOL belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
A Quick Ratio of 3.09 indicates that DUOL has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.09, DUOL belongs to the top of the industry, outperforming 82.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.09 | ||
| Quick Ratio | 3.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 777.78% over the past year.
Looking at the last year, DUOL shows a very strong growth in Revenue. The Revenue has grown by 42.48%.
The Revenue has been growing by 48.65% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)777.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%716.67%
Revenue 1Y (TTM)42.48%
Revenue growth 3Y48.65%
Revenue growth 5YN/A
Sales Q2Q%39.94%
3.2 Future
DUOL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 134.58% yearly.
DUOL is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 30.95% yearly.
EPS Next Y502%
EPS Next 2Y200.65%
EPS Next 3Y134.58%
EPS Next 5YN/A
Revenue Next Year40.49%
Revenue Next 2Y34.76%
Revenue Next 3Y30.95%
Revenue Next 5YN/A
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
With a Price/Earnings ratio of 172.03, DUOL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of DUOL is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.65, DUOL is valued quite expensively.
With a Price/Forward Earnings ratio of 102.44, DUOL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DUOL is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.50, DUOL is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 172.03 | ||
| Fwd PE | 102.44 |
4.2 Price Multiples
DUOL's Enterprise Value to EBITDA is on the same level as the industry average.
DUOL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.59 | ||
| EV/EBITDA | 198.5 |
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.
DUOL has a very decent profitability rating, which may justify a higher PE ratio.
DUOL's earnings are expected to grow with 134.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
PEG (5Y)N/A
EPS Next 2Y200.65%
EPS Next 3Y134.58%
5. Dividend
5.1 Amount
No dividends for DUOL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DUOLINGO
NASDAQ:DUOL (11/19/2024, 10:26:03 AM)
314.82
+7.9 (+2.57%)
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 Cap13.85B
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
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 | 172.03 | ||
| Fwd PE | 102.44 | ||
| 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)0.34
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.12% | ||
| ROE | 10.55% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.87% | ||
| PM (TTM) | 12.59% | ||
| GM | 73.13% | ||
| 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 Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.09 | ||
| Quick Ratio | 3.09 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)777.78%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y502%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)42.48%
Revenue growth 3Y48.65%
Revenue growth 5Y
Sales 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