DUOLINGO (DUOL) Stock Fundamental Analysis

NASDAQ:DUOL • US26603R1068

110.39 USD
+0.96 (+0.88%)
Last: Feb 25, 2026, 11:45 AM
Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to DUOL. DUOL was compared to 75 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! This makes DUOL very considerable for growth investing!


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • In the past year DUOL was profitable.
  • DUOL had a positive operating cash flow in the past year.
  • In multiple years DUOL reported negative net income over the last 5 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

  • DUOL has a better Return On Assets (20.47%) than 92.00% of its industry peers.
  • With an excellent Return On Equity value of 29.52%, DUOL belongs to the best of the industry, outperforming 89.33% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 7.05%, DUOL is in the better half of the industry, outperforming 69.33% of the companies in the same industry.
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.
  • The Operating Margin of DUOL (11.58%) is better than 73.33% of its industry peers.
  • With an excellent Gross Margin value of 71.99%, DUOL belongs to the best of the industry, outperforming 89.33% of the companies in the same industry.
  • DUOL's Gross Margin has been stable in the last couple of years.
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

  • 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 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

  • DUOL has an Altman-Z score of 6.70. This indicates that DUOL is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of DUOL (6.70) is better than 96.00% of its industry peers.
  • 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 6.7
ROIC/WACC0.81
WACC8.67%
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.
  • A Quick Ratio of 2.82 indicates that DUOL has no problem at all paying its short term obligations.
  • DUOL's Quick ratio of 2.82 is amongst the best of the industry. DUOL outperforms 85.33% 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.
  • The Revenue has grown by 39.86% in the past year. This is a very strong growth!
  • Measured over the past years, DUOL shows a very strong growth in Revenue. The Revenue has been growing by 60.26% on average per year.
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
  • 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 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

6

4. Valuation

4.1 Price/Earnings Ratio

  • DUOL is valuated correctly with a Price/Earnings ratio of 14.01.
  • 73.33% of the companies in the same industry are more expensive than DUOL, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 26.98, DUOL is valued a bit cheaper.
  • A Price/Forward Earnings ratio of 24.93 indicates a rather expensive valuation of DUOL.
  • DUOL's Price/Forward Earnings is on the same level as the industry average.
  • DUOL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 28.01, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 14.01
Fwd PE 24.93
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.
  • Based on the Price/Free Cash Flow ratio, DUOL is valued a bit cheaper than 74.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.68
EV/EBITDA 30.41
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.
  • A more expensive valuation may be justified as DUOL's earnings are expected to grow with 43.20% in the coming years.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y53.87%
EPS Next 3Y43.2%

0

5. Dividend

5.1 Amount

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

DUOLINGO

NASDAQ:DUOL (2/25/2026, 11:45:00 AM)

110.39

+0.96 (+0.88%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)11-06
Earnings (Next)02-26
Inst Owners101.42%
Inst Owner Change-5.27%
Ins Owners0.77%
Ins Owner Change-6.5%
Market Cap5.10B
Revenue(TTM)964.27M
Net Income(TTM)386.02M
Analysts75.48
Price Target289.98 (162.69%)
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)-2.61%
PT rev (3m)-6.22%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)1.27%
EPS NY rev (1m)10.41%
EPS NY rev (3m)158.77%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.25%
Valuation
Industry RankSector Rank
PE 14.01
Fwd PE 24.93
P/S 5.29
P/FCF 14.68
P/OCF 14.02
P/B 3.9
P/tB 4.1
EV/EBITDA 30.41
EPS(TTM)7.88
EY7.14%
EPS(NY)4.43
Fwd EY4.01%
FCF(TTM)7.52
FCFY6.81%
OCF(TTM)7.87
OCFY7.13%
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 6.7
F-Score4
WACC8.67%
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.