(DAO) Youdao - Overview
Stock: Learning Services, Smart Devices, Online Marketing
EPS (Earnings per Share)
Revenue
| Risk 5d forecast | |
|---|---|
| Volatility | 57.8% |
| Relative Tail Risk | -10.6% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.56 |
| Alpha | -0.01 |
| Character TTM | |
|---|---|
| Beta | 0.808 |
| Beta Downside | 0.884 |
| Drawdowns 3y | |
|---|---|
| Max DD | 69.22% |
| CAGR/Max DD | 0.21 |
Description: DAO Youdao January 19, 2026
Youdao, Inc. (NYSE:DAO) is an internet-technology firm headquartered in Hangzhou that monetizes Chinese-language learning, smart-device hardware, and online marketing. It reports three operating segments: (1) Learning Services – fee-based tutoring, premium courses, AI-driven knowledge tools, and MOOC partnerships; (2) Smart Devices – products such as the Youdao Dictionary Pen, Listening Pod, and Smart Learning Pad; and (3) Online Marketing Services – performance-based and brand advertising. The company also licenses education-digitalization solutions to schools and enterprises and provides technical support to its VIE structure.
**Key data points (as of FY 2023 filing, subject to revision):** • Revenue of roughly $610 million, up ~20 % YoY, driven primarily by a 28 % surge in premium learning subscriptions and a 15 % rise in smart-device sales. • The Chinese online education market is projected by iiMedia Research to expand at a 15 % CAGR through 2027, providing a secular tailwind for Youdao’s subscription model. • Smart-device shipments reached ~1.2 million units in 2023, with an average selling price of $45, indicating modest margin contribution but strong ecosystem lock-in. These figures assume the company’s disclosed financials are comparable to prior periods; any change in regulatory stance on online tutoring in China would materially affect the growth trajectory.
For a deeper quantitative breakdown of Youdao’s valuation metrics, you might find ValueRay’s analyst toolkit useful.
Piotroski VR‑10 (Strict, 0-10) 1.0
| Net Income: 142.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.05 > 0.02 and ΔFCF/TA 22.49 > 1.0 |
| NWC/Revenue: -22.42% < 20% (prev -27.46%; Δ 5.04% < -1%) |
| CFO/TA -0.04 > 3% & CFO -67.9m > Net Income 142.1m |
| Net Debt (1.41b) to EBITDA (217.6m): 6.48 < 3 |
| Current Ratio: 0.54 > 1.5 & < 3 |
| Outstanding Shares: last quarter (119.9m) vs 12m ago 1.69% < -2% |
| Gross Margin: 44.90% > 18% (prev 0.49%; Δ 4441 % > 0.5%) |
| Asset Turnover: 331.6% > 50% (prev 341.2%; Δ -9.63% > 0%) |
| Interest Coverage Ratio: 2.92 > 6 (EBITDA TTM 217.6m / Interest Expense TTM 64.6m) |
Altman Z'' -15.00
| A: -0.73 (Total Current Assets 1.49b - Total Current Liabilities 2.76b) / Total Assets 1.74b |
| B: -3.38 (Retained Earnings -5.86b / Total Assets 1.74b) |
| C: 0.11 (EBIT TTM 188.5m / Avg Total Assets 1.71b) |
| D: -0.55 (Book Value of Equity -2.04b / Total Liabilities 3.72b) |
| Altman-Z'' Score: -15.65 = D |
Beneish M -2.80
| DSRI: 1.26 (Receivables 616.5m/496.2m, Revenue 5.67b/5.74b) |
| GMI: 1.10 (GM 44.90% / 49.36%) |
| AQI: 0.68 (AQ_t 0.09 / AQ_t-1 0.14) |
| SGI: 0.99 (Revenue 5.67b / 5.74b) |
| TATA: 0.12 (NI 142.1m - CFO -67.9m) / TA 1.74b) |
| Beneish M-Score: -2.80 (Cap -4..+1) = A |
What is the price of DAO shares?
Over the past week, the price has changed by -4.90%, over one month by -9.02%, over three months by -8.26% and over the past year by +23.01%.
Is DAO a buy, sell or hold?
- StrongBuy: 5
- Buy: 1
- Hold: 2
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the DAO price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 12.9 | 30.8% |
| Analysts Target Price | 12.9 | 30.8% |
| ValueRay Target Price | 9.8 | -0.7% |
DAO Fundamental Data Overview February 02, 2026
P/E Trailing = 36.7778
P/S = 0.2188
P/B = 60.1396
Revenue TTM = 5.67b CNY
EBIT TTM = 188.5m CNY
EBITDA TTM = 217.6m CNY
Long Term Debt = 932.1m CNY (from longTermDebt, last quarter)
Short Term Debt = 878.0m CNY (from shortTermDebt, last quarter)
Debt = 1.82b CNY (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.41b CNY (from netDebt column, last quarter)
Enterprise Value = 9.51b CNY (8.24b + Debt 1.82b - CCE 552.2m)
Interest Coverage Ratio = 2.92 (Ebit TTM 188.5m / Interest Expense TTM 64.6m)
EV/FCF = -119.3x (Enterprise Value 9.51b / FCF TTM -79.7m)
FCF Yield = -0.84% (FCF TTM -79.7m / Enterprise Value 9.51b)
FCF Margin = -1.41% (FCF TTM -79.7m / Revenue TTM 5.67b)
Net Margin = 2.51% (Net Income TTM 142.1m / Revenue TTM 5.67b)
Gross Margin = 44.90% ((Revenue TTM 5.67b - Cost of Revenue TTM 3.12b) / Revenue TTM)
Gross Margin QoQ = 42.24% (prev 42.99%)
Tobins Q-Ratio = 5.48 (Enterprise Value 9.51b / Total Assets 1.74b)
Interest Expense / Debt = 0.84% (Interest Expense 15.3m / Debt 1.82b)
Taxrate = 42.09% (2.92m / 6.95m)
NOPAT = 109.2m (EBIT 188.5m * (1 - 42.09%))
Current Ratio = 0.54 (Total Current Assets 1.49b / Total Current Liabilities 2.76b)
Debt / Equity = -0.89 (negative equity) (Debt 1.82b / totalStockholderEquity, last quarter -2.04b)
Debt / EBITDA = 6.48 (Net Debt 1.41b / EBITDA 217.6m)
Debt / FCF = -17.69 (negative FCF - burning cash) (Net Debt 1.41b / FCF TTM -79.7m)
Total Stockholder Equity = -2.07b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.31% (Net Income 142.1m / Total Assets 1.74b)
RoE = -6.86% (negative equity) (Net Income TTM 142.1m / Total Stockholder Equity -2.07b)
RoCE = -16.53% (negative capital employed) (EBIT 188.5m / Capital Employed (Equity -2.07b + L.T.Debt 932.1m))
RoIC = -40.83% (NOPAT 109.2m / Invested Capital -267.4m)
WACC = 7.37% (E(8.24b)/V(10.06b) * Re(8.89%) + D(1.82b)/V(10.06b) * Rd(0.84%) * (1-Tc(0.42)))
Discount Rate = 8.89% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -0.20%
Fair Price DCF = unknown (Cash Flow -79.7m)
EPS Correlation: 59.71 | EPS CAGR: 4.73% | SUE: -1.37 | # QB: 0
Revenue Correlation: 62.41 | Revenue CAGR: 12.58% | SUE: 0.02 | # QB: 0
EPS next Year (2026-12-31): EPS=2.28 | Chg30d=+0.136 | Revisions Net=-2 | Growth EPS=+55.3% | Growth Revenue=+13.0%