DAO

BEARISH

$10.95 Live

Youdao, Inc. · NYSE

Target $12.12 (+10.7%)

$8.0 52W Range $12.96

DAO Youdao, Inc. - Fundamental Analysis

BEARISH

Console Chart News

DAO Stock | Fundamental Analysis & Investment Insights

NYSE • Consumer Defensive • Education & Training Services

Current Price Live

$10.95

Analyst Target

$12.12

+10.7% Upside

52W High

$12.96

52W Low

$8.0

Overview AI Snowflake Price Valuation Profitability Growth Health Statements Peers

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Apr 26, 2026

Market cap

$1.32B

P/E

84.23

ROE

N/A

Profit margin

1.8%

Debt/Equity

N/A

Dividend yield

N/A

AI Analysis

AI-powered fundamental assessment

Confidence

90%

DAO exhibits severe financial instability, highlighted by a weak Piotroski F-Score of 3/9 and a critical lack of liquidity. The company is trading at a massive premium to its growth-based intrinsic value of $0.91, with a current price of $10.95. Most alarming is the negative Price-to-Book ratio (-4.49), indicating negative shareholders' equity, coupled with a Current Ratio of 0.59 that suggests an inability to cover short-term obligations. While revenue growth remains positive, the sharp decline in earnings growth (-42.40%) and bearish technical trends signal significant downside risk.

Key Strengths

Consistent year-over-year revenue growth of 16.80%

Strong gross margins at 44.29%

Low Price-to-Sales ratio (0.22) suggesting undervalued revenue streams

Recent quarterly EPS beats in several periods

Positive ROA of 7.30%

Key Risks

Negative shareholders' equity (Price/Book: -4.49)

Severe liquidity risk with a Current Ratio of 0.59 and Quick Ratio of 0.49

Extreme overvaluation relative to intrinsic value ($10.95 vs $0.91)

Significant earnings contraction (-42.40% YoY)

Bearish technical trend (0/100)

AI Fair Value Estimate

Based on comprehensive analysis

$0.91

-91.7% below current price

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall

Weak

Value

Future

Past

Health

Dividend

AI Verdict

High Risk / Speculative

Key drivers: Negative Equity, Liquidity Crisis, Fundamental Overvaluation, Earnings Decline

Confidence

90%

Value

15/100

P/E 84.23, P/B -4.49, Intrinsic Value $0.91

Positives

Low P/S ratio

Watchpoints

P/E of 84.23 is excessive
Negative P/B ratio
Price is >10x intrinsic value

Future

40/100

Revenue Growth 16.80%, Earnings Growth -42.40%

Positives

Revenue growth of 16.80%
Forward P/E (27.86) suggests expected earnings recovery

Watchpoints

Earnings growth is crashing (-42.40%)
High volatility in quarterly surprises

Past

30/100

5Y Change -59.6%, historical EPS volatility

Positives

Transitioned from heavy losses in 2020-2022 to sporadic profitability

Watchpoints

5-year price change is -59.6%
History of massive quarterly EPS misses

Health

10/100

Piotroski 3/9, Current Ratio 0.59

Positives

Positive ROA

Watchpoints

Piotroski F-Score 3/9 (Weak)
Current Ratio 0.59 (Critical)
Negative Equity

Dividend

0/100

Dividend Yield N/A

Positives

No standout positives identified.

Watchpoints

No dividend paid
0/100 dividend strength

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price

$10.95

Analyst Target

$12.12

Upside/Downside

+10.7%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for DAO and closest competitors.

Updated 2026-04-24

Company	5Y	3Y	1Y	6M	1M	1W
DAO Youdao, Inc. Primary	-59.6%	+99.8%	+26.6%	-0.2%	+6.2%	+2.2%
LINC Lincoln Educational Services Corporation Peer	+549.6%	+536.5%	+143.2%	+91.9%	+10.8%	-2.1%
AFYA Afya Limited Peer	-35.4%	+25.8%	-14.1%	-11.8%	-11.3%	-0.7%
DOLE Dole plc Peer	+15.9%	+31.2%	+2.4%	+18.1%	+4.3%	-0.3%
SMPL The Simply Good Foods Company Peer	-64.2%	-66.5%	-68.1%	-51.6%	-17.1%	+13.9%

DAO

Youdao, Inc.

Primary

-59.6%

+99.8%

+26.6%

-0.2%

+6.2%

+2.2%

LIN

Lincoln Educational Services Corporation

Peer

+549.6%

+536.5%

+143.2%

+91.9%

+10.8%

-2.1%

AFY

Afya Limited

Peer

-35.4%

+25.8%

-14.1%

-11.8%

-11.3%

-0.7%

DOL

Dole plc

Peer

+15.9%

+31.2%

+2.4%

+18.1%

+4.3%

-0.3%

SMP

The Simply Good Foods Company

Peer

-64.2%

-66.5%

-68.1%

-51.6%

-17.1%

+13.9%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

84.23

27.86

N/A

-4.49

0.22

0.42

10.09

$1.32B

Profitability

Profit margins and return metrics

Profit Margin 1.82%

Operating Margin 3.85%

Gross Margin 44.29%

ROE N/A

ROA 7.3%

Growth

Revenue and earnings growth rates

Revenue Growth +16.8%

Earnings Growth -42.4%

Q/Q Revenue Growth +16.79%

Q/Q Earnings Growth -41.9%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity

N/A

Current Ratio

0.59

Weak

Quick Ratio

0.49

Poor

Cash/Share

$6.12

Financial Statement Flow

Interactive flow visualization showing how money moves through the company Q4 2025

Revenue

$1.6B

Gross Margin

45.1%

Op. Margin

4.3%

Net Margin

3.1%

Total Assets

$2.0B

Liabilities

$3.9B

Equity

$-2.0B

Debt/Equity

-1.98x

Quarterly Earnings History

EPS performance vs analyst estimates

2026-05-14

$N/A

2026-02-11

$0.4

+57.5% surprise

2025-08-14

$-0.15

-1101.0% surprise

2025-05-15

$0.68

+229.7% surprise

Consumer Defensive Sector Comparison

Comparing DAO against 155 companies in the Consumer Defensive sector (9 bullish, 56 neutral, 90 bearish)

P/E Ratio

84.23

This Stock

36.74

Sector Avg

+129.3% (Expensive)

Profit Margin

1.82%

This Stock

-8.54%

Sector Avg

-121.3% (Weaker)

Revenue Growth

16.8%

This Stock

121.62%

Sector Avg

-86.2% (Slower)

Current Ratio

0.59

This Stock

2.37

Sector Avg

-75.2% (Weaker)

Similar Companies

Peer comparison within the same industry

Company	AI Rating	Market Cap	P/E	ROE	Profit Margin	Price
DAO Youdao, Inc.	BEARISH	$1.32B	84.23	-%	1.8%	$10.95
LINC Lincoln Educational...	NEUTRAL	$1.3B	63.84	10.6%	3.9%	$40.86	Compare
AFYA Afya Limited	NEUTRAL	$1.25B	8.94	16.7%	20.1%	$13.76	Compare
DOLE Dole plc	NEUTRAL	$1.44B	14.97	8.7%	0.6%	$15.12	Compare
SMPL The Simply Good Foods Company	BEARISH	$1.1B	-	-6.4%	-7.5%	$11.89	Compare

DAO Youdao, Inc.

BEARISH

Mkt Cap

$1.3B

P/E

84.2

ROE

Price

$10.95

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Past News Coverage

Recent headlines mentioning DAO from our newsroom.

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DAO

DAO Youdao, Inc. - Fundamental Analysis

At a glance

AI Analysis

Key Strengths

Key Risks

Performance Snowflake

Stock Price & Analyst Targets

Multi-Horizon Performance vs Peers

Historical Performance Trends

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Valuation Metrics

Profitability

Growth

Financial Health

Financial Statement Flow

Quarterly Earnings History

Consumer Defensive Sector Comparison

Similar Companies

Past News Coverage

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