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DUOLINGO (DUOL) Stock Fundamental Analysis

NASDAQ:DUOL - Nasdaq - US26603R1068 - Common Stock

337.28  -13.85 (-3.94%)

After market: 337.28 0 (0%)

Fundamental Rating

6

DUOL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 71 industry peers in the Diversified Consumer Services industry. DUOL has an excellent financial health rating, but there are some minor concerns on its profitability. DUOL is valued quite expensive, but it does show an excellent growth. This makes DUOL very considerable for growth investing!


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year DUOL was profitable.
In the past year DUOL had a positive cash flow from operations.
In the past 5 years DUOL reported 4 times negative net income.
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 0 50M -50M 100M 150M

1.2 Ratios

DUOL has a better Return On Assets (7.12%) than 84.38% of its industry peers.
The Return On Equity of DUOL (10.55%) is better than 70.31% of its industry peers.
DUOL's Return On Invested Capital of 5.59% is fine compared to the rest of the industry. DUOL outperforms 67.19% of its industry peers.
Industry RankSector 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
DUOL Yearly ROA, ROE, ROICDUOL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 0 -5 -10 -15 -20 -25

1.3 Margins

DUOL's Profit Margin of 12.59% is amongst the best of the industry. DUOL outperforms 85.94% of its industry peers.
The Operating Margin of DUOL (7.87%) is comparable to the rest of the industry.
Looking at the Gross Margin, with a value of 73.13%, DUOL belongs to the top of the industry, outperforming 85.94% of the companies in the same industry.
DUOL's Gross Margin has been stable in the last couple of years.
Industry RankSector 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
DUOL Yearly Profit, Operating, Gross MarginsDUOL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 0 20 -20 40 60

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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.
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.
DUOL Yearly Shares OutstandingDUOL Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 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 200M 400M 600M 800M

2.2 Solvency

An Altman-Z score of 24.59 indicates that DUOL is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 24.59, DUOL belongs to the best of the industry, outperforming 98.44% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 24.59
ROIC/WACC0.49
WACC11.49%
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 0 200M 400M 600M

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.
DUOL's Current ratio of 3.09 is amongst the best of the industry. DUOL outperforms 81.25% of its industry peers.
A Quick Ratio of 3.09 indicates that DUOL has no problem at all paying its short term obligations.
DUOL's Quick ratio of 3.09 is amongst the best of the industry. DUOL outperforms 82.81% of its industry peers.
Industry RankSector Rank
Current Ratio 3.09
Quick Ratio 3.09
DUOL Yearly Current Assets VS Current LiabilitesDUOL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 200M 400M 600M 800M

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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 777.78%, which is quite impressive.
The Revenue has grown by 42.48% in the past year. This is a very strong growth!
DUOL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 48.65% yearly.
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 135.04% yearly.
DUOL is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 26.78% yearly.
EPS Next Y508.63%
EPS Next 2Y197.76%
EPS Next 3Y135.04%
EPS Next 5YN/A
Revenue Next Year40.74%
Revenue Next 2Y35.14%
Revenue Next 3Y31.46%
Revenue Next 5Y26.78%

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 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0 2 -2 4

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3

4. Valuation

4.1 Price/Earnings Ratio

DUOL is valuated quite expensively with a Price/Earnings ratio of 184.31.
The rest of the industry has a similar Price/Earnings ratio as DUOL.
DUOL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.29.
Based on the Price/Forward Earnings ratio of 111.89, the valuation of DUOL can be described as expensive.
DUOL's Price/Forward Earnings ratio is in line with the industry average.
DUOL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.44.
Industry RankSector Rank
PE 184.31
Fwd PE 111.89
DUOL Price Earnings VS Forward Price EarningsDUOL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as DUOL.
The rest of the industry has a similar Price/Free Cash Flow ratio as DUOL.
Industry RankSector Rank
P/FCF 64.92
EV/EBITDA 229.15
DUOL Per share dataDUOL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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 DUOL's earnings are expected to grow with 135.04% in the coming years.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y197.76%
EPS Next 3Y135.04%

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0

5. Dividend

5.1 Amount

DUOL does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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DUOLINGO

NASDAQ:DUOL (1/21/2025, 8:00:02 PM)

After market: 337.28 0 (0%)

337.28

-13.85 (-3.94%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)N/A N/A
Inst Owners93.89%
Inst Owner Change-0.97%
Ins Owners0.88%
Ins Owner Change-17.07%
Market Cap14.83B
Analysts75.38
Price Target351.67 (4.27%)
Short Float %3.6%
Short Ratio2.27
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)45.94%
Min EPS beat(2)35.64%
Max EPS beat(2)56.25%
EPS beat(4)4
Avg EPS beat(4)61.33%
Min EPS beat(4)35.64%
Max EPS beat(4)105.07%
EPS beat(8)8
Avg EPS beat(8)81.31%
EPS beat(12)12
Avg EPS beat(12)64.7%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.7%
Min Revenue beat(2)-1.27%
Max Revenue beat(2)-0.12%
Revenue beat(4)0
Avg Revenue beat(4)-0.57%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)-0.04%
Revenue beat(8)4
Avg Revenue beat(8)0.32%
Revenue beat(12)7
Avg Revenue beat(12)0.76%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)5.36%
PT rev (3m)45.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.4%
EPS NY rev (1m)0%
EPS NY rev (3m)8.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.29%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.95%
Valuation
Industry RankSector Rank
PE 184.31
Fwd PE 111.89
P/S 21.51
P/FCF 64.92
P/OCF 59.01
P/B 18.04
P/tB 18.78
EV/EBITDA 229.15
EPS(TTM)1.83
EY0.54%
EPS(NY)3.01
Fwd EY0.89%
FCF(TTM)5.2
FCFY1.54%
OCF(TTM)5.72
OCFY1.69%
SpS15.68
BVpS18.7
TBVpS17.96
PEG (NY)0.36
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 7.12%
ROE 10.55%
ROCE 6.18%
ROIC 5.59%
ROICexc N/A
ROICexgc N/A
OM 7.87%
PM (TTM) 12.59%
GM 73.13%
FCFM 33.14%
ROA(3y)-5.13%
ROA(5y)-7.73%
ROE(3y)-6.75%
ROE(5y)-12.22%
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 3Y0.78%
GM growth 5YN/A
F-Score6
Asset Turnover0.57
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 249.06%
Cap/Sales 3.32%
Interest Coverage 250
Cash Conversion 396.3%
Profit Quality 263.3%
Current Ratio 3.09
Quick Ratio 3.09
Altman-Z 24.59
F-Score6
WACC11.49%
ROIC/WACC0.49
Cap/Depr(3y)209.38%
Cap/Depr(5y)245.12%
Cap/Sales(3y)2.6%
Cap/Sales(5y)3.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)777.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%716.67%
EPS Next Y508.63%
EPS Next 2Y197.76%
EPS Next 3Y135.04%
EPS Next 5YN/A
Revenue 1Y (TTM)42.48%
Revenue growth 3Y48.65%
Revenue growth 5YN/A
Sales Q2Q%39.94%
Revenue Next Year40.74%
Revenue Next 2Y35.14%
Revenue Next 3Y31.46%
Revenue Next 5Y26.78%
EBIT growth 1Y250.68%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year4156.83%
EBIT Next 3Y332.56%
EBIT Next 5Y166.09%
FCF growth 1Y609.62%
FCF growth 3Y116.97%
FCF growth 5YN/A
OCF growth 1Y491.49%
OCF growth 3Y105.47%
OCF growth 5YN/A