DUOLINGO (DUOL)
US26603R1068 - Common Stock
We assign a fundamental rating of 6 out of 10 to DUOL. DUOL was compared to 67 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 valued quite expensively, but it does show have an excellent growth rating. These ratings could make DUOL a good candidate 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.
In the past 5 years DUOL always reported a positive cash flow from operatings.
1.2 Ratios
DUOL has a better Return On Assets (7.12%) than 84.62% of its industry peers.
The Return On Equity of DUOL (10.55%) is better than 70.77% 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 67.69% 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
DUOL has a Profit Margin of 12.59%. This is amongst the best in the industry. DUOL outperforms 84.62% of its industry peers.
DUOL has a Operating Margin of 7.87%. This is comparable to the rest of the industry: DUOL outperforms 60.00% of its industry peers.
DUOL has a Gross Margin of 73.13%. This is amongst the best in the industry. DUOL outperforms 83.08% 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 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
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
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.
2.2 Solvency
DUOL has an Altman-Z score of 23.53. This indicates that DUOL is financially healthy and has little risk of bankruptcy at the moment.
DUOL has a better Altman-Z score (23.53) than 96.92% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 23.53 |
ROIC/WACC0.61
WACC9.21%
2.3 Liquidity
A Current Ratio of 3.09 indicates that DUOL has no problem at all paying its short term obligations.
The Current ratio of DUOL (3.09) is better than 83.08% 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 84.62% of its industry peers.
| 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%.
Measured over the past years, DUOL shows a very strong growth in Revenue. The Revenue has been growing by 48.65% on average per year.
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 134.46% yearly.
The Revenue is expected to grow by 26.78% on average over the next years. This is a very strong growth
EPS Next Y503%
EPS Next 2Y198.5%
EPS Next 3Y134.46%
EPS Next 5YN/A
Revenue Next Year40.75%
Revenue Next 2Y35.01%
Revenue Next 3Y31.28%
Revenue Next 5Y26.78%
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
Based on the Price/Earnings ratio of 186.95, the valuation of DUOL can be described as expensive.
DUOL's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.73. DUOL is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 112.93, 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.
When comparing the Price/Forward Earnings ratio of DUOL to the average of the S&P500 Index (22.83), we can say DUOL is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 186.95 | ||
| Fwd PE | 112.93 |
4.2 Price Multiples
DUOL's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as DUOL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 65.85 | ||
| EV/EBITDA | 218.12 |
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 134.46% in the coming years.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y198.5%
EPS Next 3Y134.46%
5. Dividend
5.1 Amount
DUOL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DUOLINGO
NASDAQ:DUOL (12/20/2024, 8:06:07 PM)
After market: 342.123 0 (0%)342.12
+6.9 (+2.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners93.89%
Inst Owner Change2.7%
Ins Owners0.88%
Ins Owner Change-12.09%
Market Cap15.05B
Analysts76.67
Price Target333.78 (-2.44%)
Short Float %3.76%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)21.67%
PT rev (3m)39.78%
EPS NQ rev (1m)-0.35%
EPS NQ rev (3m)-1.4%
EPS NY rev (1m)0.17%
EPS NY rev (3m)7.56%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)2.29%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 186.95 | ||
| Fwd PE | 112.93 | ||
| P/S | 21.82 | ||
| P/FCF | 65.85 | ||
| P/OCF | 59.85 | ||
| P/B | 18.29 | ||
| P/tB | 19.05 | ||
| EV/EBITDA | 218.12 |
EPS(TTM)1.83
EY0.53%
EPS(NY)3.03
Fwd EY0.89%
FCF(TTM)5.2
FCFY1.52%
OCF(TTM)5.72
OCFY1.67%
SpS15.68
BVpS18.7
TBVpS17.96
PEG (NY)0.37
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 23.53 |
F-Score6
WACC9.21%
ROIC/WACC0.61
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 Y503%
EPS Next 2Y198.5%
EPS Next 3Y134.46%
EPS Next 5YN/A
Revenue 1Y (TTM)42.48%
Revenue growth 3Y48.65%
Revenue growth 5YN/A
Sales Q2Q%39.94%
Revenue Next Year40.75%
Revenue Next 2Y35.01%
Revenue Next 3Y31.28%
Revenue Next 5Y26.78%
EBIT growth 1Y250.68%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year4158.3%
EBIT Next 3Y332.24%
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