DUOLINGO (DUOL) Stock Fundamental Analysis

NASDAQ:DUOL • US26603R1068

111.11 USD
-1.35 (-1.2%)
At close: Feb 19, 2026
111.7 USD
+0.59 (+0.53%)
Pre-Market: 2/20/2026, 6:01:02 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

Taking everything into account, DUOL scores 7 out of 10 in our fundamental rating. DUOL was compared to 75 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 not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, DUOL could be worth investigating further for growth investing!.


Dividend Valuation Growth Profitability Health

6

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 multiple years DUOL reported negative net income over the last 5 years.
  • 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 2024 0 100M 200M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 20.47%, DUOL belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
  • DUOL's Return On Equity of 29.52% is amongst the best of the industry. DUOL outperforms 89.33% of its industry peers.
  • DUOL has a Return On Invested Capital of 7.05%. This is in the better half of the industry: DUOL outperforms 69.33% 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

  • With an excellent Profit Margin value of 40.03%, DUOL belongs to the best of the industry, outperforming 97.33% of the companies in the same industry.
  • Looking at the Operating Margin, with a value of 11.58%, DUOL is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
  • DUOL has a better Gross Margin (71.99%) than 89.33% 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

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DUOL is destroying value.
  • Compared to 1 year ago, DUOL has more shares outstanding
  • DUOL has more shares outstanding than it did 5 years ago.
  • 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.
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 6.78 indicates that DUOL is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 6.78, DUOL belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
  • 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 6.78
ROIC/WACC0.81
WACC8.73%
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

  • DUOL has a Current Ratio of 2.82. This indicates that DUOL is financially healthy and has no problem in meeting its short term obligations.
  • With an excellent Current ratio value of 2.82, DUOL belongs to the best of the industry, outperforming 85.33% of the companies in the same industry.
  • DUOL has a Quick Ratio of 2.82. This indicates that DUOL is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 2.82, DUOL belongs to the top of the industry, outperforming 85.33% of the companies in the same industry.
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

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 330.60% over the past year.
  • DUOL shows a strong growth in Revenue. In the last year, the Revenue has grown by 39.86%.
  • The Revenue has been growing by 60.26% on average over the past years. This is a very strong growth!
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 43.20% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 21.76% on average over the next years. This is a very strong growth
EPS Next Y361.41%
EPS Next 2Y53.87%
EPS Next 3Y43.2%
EPS Next 5YN/A
Revenue Next Year38.69%
Revenue Next 2Y30.31%
Revenue Next 3Y26.4%
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 8

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Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 14.10, which indicates a correct valuation of DUOL.
  • Based on the Price/Earnings ratio, DUOL is valued a bit cheaper than 73.33% of the companies in the same industry.
  • DUOL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.09.
  • With a Price/Forward Earnings ratio of 25.10, DUOL can be considered very expensive at the moment.
  • The rest of the industry has a similar Price/Forward Earnings ratio as DUOL.
  • DUOL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 27.98, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 14.1
Fwd PE 25.1
DUOL Price Earnings VS Forward Price EarningsDUOL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • DUOL's Enterprise Value to EBITDA is on the same level as the industry average.
  • 74.67% 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 14.78
EV/EBITDA 31.02
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 43.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y53.87%
EPS Next 3Y43.2%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • No dividends for DUOL!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

DUOLINGO

NASDAQ:DUOL (2/19/2026, 8:00:01 PM)

Premarket: 111.7 +0.59 (+0.53%)

111.11

-1.35 (-1.2%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)11-06
Earnings (Next)02-26
Inst Owners101.42%
Inst Owner Change3.77%
Ins Owners0.77%
Ins Owner Change-3.35%
Market Cap5.14B
Revenue(TTM)964.27M
Net Income(TTM)386.02M
Analysts75.48
Price Target289.98 (160.98%)
Short Float %18.12%
Short Ratio3.36
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)-4.61%
PT rev (3m)-33.08%
EPS NQ rev (1m)-7.12%
EPS NQ rev (3m)-1.65%
EPS NY rev (1m)10.83%
EPS NY rev (3m)158.77%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)1.25%
Valuation
Industry RankSector Rank
PE 14.1
Fwd PE 25.1
P/S 5.33
P/FCF 14.78
P/OCF 14.12
P/B 3.93
P/tB 4.13
EV/EBITDA 31.02
EPS(TTM)7.88
EY7.09%
EPS(NY)4.43
Fwd EY3.98%
FCF(TTM)7.52
FCFY6.77%
OCF(TTM)7.87
OCFY7.08%
SpS20.86
BVpS28.28
TBVpS26.91
PEG (NY)0.04
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 6.78
F-Score4
WACC8.73%
ROIC/WACC0.81
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 Y361.41%
EPS Next 2Y53.87%
EPS Next 3Y43.2%
EPS Next 5YN/A
Revenue 1Y (TTM)39.86%
Revenue growth 3Y43.95%
Revenue growth 5Y60.26%
Sales Q2Q%41.08%
Revenue Next Year38.69%
Revenue Next 2Y30.31%
Revenue Next 3Y26.4%
Revenue Next 5Y21.76%
EBIT growth 1Y105.42%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year359.74%
EBIT Next 3Y95.97%
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 7 / 10 to DUOL.


Can you provide the valuation status for DUOLINGO?

ChartMill assigns a valuation rating of 6 / 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.


What is the financial health of DUOLINGO (DUOL) stock?

The financial health rating of DUOLINGO (DUOL) is 8 / 10.