DUOLINGO (DUOL) Stock Fundamental Analysis
NASDAQ:DUOL - Nasdaq - US26603R1068 - Common Stock - Currency: USD
Taking everything into account, DUOL scores 6 out of 10 in our fundamental rating. DUOL was compared to 71 industry peers in the Diversified Consumer Services industry. While DUOL has a great health rating, its profitability is only average at the moment. DUOL is valued quite expensively, but it does show have an excellent growth rating. This makes DUOL very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year DUOL was profitable.
DUOL had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 6.80%, DUOL belongs to the best of the industry, outperforming 80.28% of the companies in the same industry.
With a decent Return On Equity value of 10.74%, DUOL is doing good in the industry, outperforming 69.01% of the companies in the same industry.
DUOL has a better Return On Invested Capital (6.42%) than 76.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.8% | ||
| ROE | 10.74% | ||
| ROIC | 6.42% |
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 (11.84%) is better than 78.87% of its industry peers.
DUOL's Operating Margin of 8.53% is fine compared to the rest of the industry. DUOL outperforms 64.79% of its industry peers.
The Gross Margin of DUOL (72.78%) is better than 88.73% of its industry peers.
DUOL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.53% | ||
| PM (TTM) | 11.84% | ||
| GM | 72.78% |
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
Compared to 5 years 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 19.80. This indicates that DUOL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of DUOL (19.80) is better than 97.18% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 19.8 |
ROIC/WACC0.7
WACC9.19%
2.3 Liquidity
DUOL has a Current Ratio of 2.61. This indicates that DUOL is financially healthy and has no problem in meeting its short term obligations.
DUOL has a better Current ratio (2.61) than 83.10% of its industry peers.
DUOL has a Quick Ratio of 2.61. This indicates that DUOL is financially healthy and has no problem in meeting its short term obligations.
DUOL has a Quick ratio of 2.61. This is amongst the best in the industry. DUOL outperforms 83.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 2.61 |
3. Growth
3.1 Past
DUOL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 450.00%, which is quite impressive.
Looking at the last year, DUOL shows a very strong growth in Revenue. The Revenue has grown by 40.85%.
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)450%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%15.38%
Revenue 1Y (TTM)40.85%
Revenue growth 3Y43.94%
Revenue growth 5Y60.24%
Sales Q2Q%38.79%
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 50.50% on average per year.
The Revenue is expected to grow by 21.75% on average over the next years. This is a very strong growth
EPS Next Y47.66%
EPS Next 2Y48.69%
EPS Next 3Y50.5%
EPS Next 5YN/A
Revenue Next Year31.22%
Revenue Next 2Y28.46%
Revenue Next 3Y27.1%
Revenue Next 5Y21.75%
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 174.60.
The rest of the industry has a similar Price/Earnings ratio as DUOL.
DUOL is valuated expensively when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 118.24 indicates a quite expensive valuation of DUOL.
DUOL's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, DUOL is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 174.6 | ||
| Fwd PE | 118.24 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DUOL.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DUOL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.87 | ||
| EV/EBITDA | 184.85 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DUOL does not grow enough to justify the current Price/Earnings ratio.
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 50.50% in the coming years.
PEG (NY)3.66
PEG (5Y)N/A
EPS Next 2Y48.69%
EPS Next 3Y50.5%
5. Dividend
5.1 Amount
DUOL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
326.5
+0.1 (+0.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners92.85%
Inst Owner Change-0.01%
Ins Owners0.85%
Ins Owner Change-10.39%
Market Cap14.77B
Analysts74.81
Price Target393.06 (20.39%)
Short Float %3.27%
Short Ratio1.45
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)1
Avg EPS beat(2)-1.68%
Min EPS beat(2)-39%
Max EPS beat(2)35.64%
EPS beat(4)3
Avg EPS beat(4)39.49%
Min EPS beat(4)-39%
Max EPS beat(4)105.07%
EPS beat(8)7
Avg EPS beat(8)72.03%
EPS beat(12)11
Avg EPS beat(12)58.6%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.05%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)0.02%
Revenue beat(4)1
Avg Revenue beat(4)-0.56%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)0.02%
Revenue beat(8)4
Avg Revenue beat(8)0.08%
Revenue beat(12)7
Avg Revenue beat(12)0.44%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)7.72%
PT rev (3m)11.77%
EPS NQ rev (1m)12.45%
EPS NQ rev (3m)-15.38%
EPS NY rev (1m)-8.13%
EPS NY rev (3m)-8.4%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 174.6 | ||
| Fwd PE | 118.24 | ||
| P/S | 19.75 | ||
| P/FCF | 55.87 | ||
| P/OCF | 51.73 | ||
| P/B | 17.91 | ||
| P/tB | 18.6 | ||
| EV/EBITDA | 184.85 |
EPS(TTM)1.87
EY0.57%
EPS(NY)2.76
Fwd EY0.85%
FCF(TTM)5.84
FCFY1.79%
OCF(TTM)6.31
OCFY1.93%
SpS16.53
BVpS18.23
TBVpS17.55
PEG (NY)3.66
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.8% | ||
| ROE | 10.74% | ||
| ROCE | 7.25% | ||
| ROIC | 6.42% | ||
| ROICexc | 3048.38% | ||
| ROICexgc | N/A | ||
| OM | 8.53% | ||
| PM (TTM) | 11.84% | ||
| GM | 72.78% | ||
| FCFM | 35.34% |
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
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 3Y0.17%
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 | 194.77% | ||
| Cap/Sales | 2.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 382.41% | ||
| Profit Quality | 298.48% | ||
| Current Ratio | 2.61 | ||
| Quick Ratio | 2.61 | ||
| Altman-Z | 19.8 |
F-Score6
WACC9.19%
ROIC/WACC0.7
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)450%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%15.38%
EPS Next Y47.66%
EPS Next 2Y48.69%
EPS Next 3Y50.5%
EPS Next 5YN/A
Revenue 1Y (TTM)40.85%
Revenue growth 3Y43.94%
Revenue growth 5Y60.24%
Sales Q2Q%38.79%
Revenue Next Year31.22%
Revenue Next 2Y28.46%
Revenue Next 3Y27.1%
Revenue Next 5Y21.75%
EBIT growth 1Y590.63%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year314.23%
EBIT Next 3Y99.89%
EBIT Next 5Y61.95%
FCF growth 1Y88.93%
FCF growth 3Y347%
FCF growth 5YN/A
OCF growth 1Y85.86%
OCF growth 3Y214.6%
OCF growth 5Y165.85%