DUOLINGO (DUOL) Stock Fundamental Analysis
USA - NASDAQ:DUOL - US26603R1068 - Common Stock
266.21 USD
+4.17 (+1.59%)
We assign a fundamental rating of 6 out of 10 to DUOL. DUOL was compared to 78 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 not overvalued while it is showing excellent growth. This is an interesting combination. This makes DUOL very considerable for growth investing!
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.
The reported net income has been mixed in the past 5 years: DUOL reported negative net income in multiple years.
DUOL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DUOL has a Return On Assets of 7.60%. This is in the better half of the industry: DUOL outperforms 78.21% of its industry peers.
Looking at the Return On Equity, with a value of 11.99%, DUOL is in the better half of the industry, outperforming 71.79% of the companies in the same industry.
The Return On Invested Capital of DUOL (7.11%) is better than 78.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.6% | ||
| ROE | 11.99% | ||
| ROIC | 7.11% |
ROA(3y)0.17%
ROA(5y)-3.51%
ROE(3y)0.73%
ROE(5y)-5%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of DUOL (13.24%) is better than 83.33% of its industry peers.
The Operating Margin of DUOL (9.72%) is better than 66.67% of its industry peers.
DUOL has a better Gross Margin (72.05%) than 85.90% 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 | 9.72% | ||
| PM (TTM) | 13.24% | ||
| GM | 72.05% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.17%
GM growth 5Y0.6%
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
The number of shares outstanding for DUOL has been increased compared to 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.
2.2 Solvency
An Altman-Z score of 14.12 indicates that DUOL is not in any danger for bankruptcy at the moment.
The Altman-Z score of DUOL (14.12) is better than 97.44% 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 | 14.12 |
ROIC/WACC0.81
WACC8.77%
2.3 Liquidity
A Current Ratio of 2.81 indicates that DUOL has no problem at all paying its short term obligations.
DUOL's Current ratio of 2.81 is amongst the best of the industry. DUOL outperforms 84.62% of its industry peers.
DUOL has a Quick Ratio of 2.81. This indicates that DUOL is financially healthy and has no problem in meeting its short term obligations.
DUOL has a better Quick ratio (2.81) than 85.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.81 |
3. Growth
3.1 Past
DUOL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 72.86%, which is quite impressive.
The Revenue has grown by 39.51% 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 60.24% on average per year.
EPS 1Y (TTM)72.86%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%78.43%
Revenue 1Y (TTM)39.51%
Revenue growth 3Y43.94%
Revenue growth 5Y60.24%
Sales Q2Q%41.46%
3.2 Future
Based on estimates for the next years, DUOL will show a very strong growth in Earnings Per Share. The EPS will grow by 50.41% on average per year.
The Revenue is expected to grow by 21.76% on average over the next years. This is a very strong growth
EPS Next Y78.31%
EPS Next 2Y60.07%
EPS Next 3Y50.41%
EPS Next 5YN/A
Revenue Next Year36.84%
Revenue Next 2Y31.27%
Revenue Next 3Y28.17%
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.
4. Valuation
4.1 Price/Earnings Ratio
DUOL is valuated quite expensively with a Price/Earnings ratio of 110.00.
The rest of the industry has a similar Price/Earnings ratio as DUOL.
When comparing the Price/Earnings ratio of DUOL to the average of the S&P500 Index (26.03), we can say DUOL is valued expensively.
DUOL is valuated quite expensively with a Price/Forward Earnings ratio of 55.56.
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 22.27, DUOL is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 110 | ||
| Fwd PE | 55.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DUOL is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DUOL indicates a somewhat cheap valuation: DUOL is cheaper than 61.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.94 | ||
| EV/EBITDA | 108.26 |
4.3 Compensation for Growth
DUOL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of DUOL may justify a higher PE ratio.
DUOL's earnings are expected to grow with 50.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.4
PEG (5Y)N/A
EPS Next 2Y60.07%
EPS Next 3Y50.41%
5. Dividend
5.1 Amount
DUOL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:DUOL (11/5/2025, 10:10:56 AM)
266.21
+4.17 (+1.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners100.56%
Inst Owner Change1.51%
Ins Owners0.77%
Ins Owner Change-4.48%
Market Cap12.20B
Revenue(TTM)885.15M
Net Income(TTM)117.18M
Analysts75.76
Price Target433.31 (62.77%)
Short Float %9.89%
Short Ratio2.4
Dividend
| Industry Rank | Sector 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)45.69%
Min EPS beat(2)37.15%
Max EPS beat(2)54.23%
EPS beat(4)3
Avg EPS beat(4)22.01%
Min EPS beat(4)-39%
Max EPS beat(4)54.23%
EPS beat(8)7
Avg EPS beat(8)56.52%
EPS beat(12)11
Avg EPS beat(12)60.02%
EPS beat(16)14
Avg EPS beat(16)51.76%
Revenue beat(2)2
Avg Revenue beat(2)2.1%
Min Revenue beat(2)1.43%
Max Revenue beat(2)2.76%
Revenue beat(4)3
Avg Revenue beat(4)1.02%
Min Revenue beat(4)-0.12%
Max Revenue beat(4)2.76%
Revenue beat(8)4
Avg Revenue beat(8)0.51%
Revenue beat(12)7
Avg Revenue beat(12)0.47%
Revenue beat(16)11
Avg Revenue beat(16)1.03%
PT rev (1m)-4.28%
PT rev (3m)-11.2%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)7.29%
EPS NY rev (1m)0.23%
EPS NY rev (3m)9.23%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)2.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 110 | ||
| Fwd PE | 55.56 | ||
| P/S | 13.78 | ||
| P/FCF | 37.94 | ||
| P/OCF | 36.31 | ||
| P/B | 12.48 | ||
| P/tB | 12.89 | ||
| EV/EBITDA | 108.26 |
EPS(TTM)2.42
EY0.91%
EPS(NY)4.79
Fwd EY1.8%
FCF(TTM)7.02
FCFY2.64%
OCF(TTM)7.33
OCFY2.75%
SpS19.32
BVpS21.32
TBVpS20.66
PEG (NY)1.4
PEG (5Y)N/A
Graham Number34.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.6% | ||
| ROE | 11.99% | ||
| ROCE | 8.04% | ||
| ROIC | 7.11% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 9.72% | ||
| PM (TTM) | 13.24% | ||
| GM | 72.05% | ||
| FCFM | 36.32% |
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 5Y0.6%
F-Score6
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 106.38% | ||
| Cap/Sales | 1.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 337.11% | ||
| Profit Quality | 274.34% | ||
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.81 | ||
| Altman-Z | 14.12 |
F-Score6
WACC8.77%
ROIC/WACC0.81
Cap/Depr(3y)198.48%
Cap/Depr(5y)200.07%
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)72.86%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%78.43%
EPS Next Y78.31%
EPS Next 2Y60.07%
EPS Next 3Y50.41%
EPS Next 5YN/A
Revenue 1Y (TTM)39.51%
Revenue growth 3Y43.94%
Revenue growth 5Y60.24%
Sales Q2Q%41.46%
Revenue Next Year36.84%
Revenue Next 2Y31.27%
Revenue Next 3Y28.17%
Revenue Next 5Y21.76%
EBIT growth 1Y141.31%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year340.31%
EBIT Next 3Y100.81%
EBIT Next 5Y61.95%
FCF growth 1Y312.16%
FCF growth 3Y347%
FCF growth 5YN/A
OCF growth 1Y285.23%
OCF growth 3Y214.6%
OCF growth 5Y165.85%
DUOLINGO / DUOL FAQ
What is the fundamental rating for DUOL stock?
ChartMill assigns a fundamental rating of 6 / 10 to DUOL.
What is the valuation status of DUOLINGO (DUOL) stock?
ChartMill assigns a valuation rating of 4 / 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.
Can you provide the financial health for DUOL stock?
The financial health rating of DUOLINGO (DUOL) is 8 / 10.