Youdao, Inc. (DAO) is a Education & Training Services company in the Consumer Defensive sector, currently trading at $9.82. It has a SharesGrow Score of 47/100, indicating a mixed investment profile with 1 out of 7 criteria passed.
SharesGrow calculates the intrinsic value of DAO = $25.47 (+159.4% from the current price, the stock appears undervalued). Analyst consensus target is DAO = $7 (-33.8% upside).
Valuation: DAO trades at a trailing Price-to-Earnings (P/E) of 77 (S&P 500 average ~25) with a forward Price/Earnings-to-Growth (PEG) of 1.44.
Financials: revenue is $5.9B, +5.6%/yr average growth. Net income is $107M, growing at +57.1%/yr. Net profit margin is 1.8% (thin). Gross margin is 44.3% (-7.3 pp trend).
Balance sheet: total debt is $1.8B with negative equity of -$2.0B — this means total liabilities exceed total assets. This is a warning sign that may indicate accumulated losses, aggressive share buybacks, heavy debt financing, or aggressive dividend payouts. Companies like McDonald's and Starbucks also carry negative equity due to buybacks and dividends, but investors should assess whether the business generates sufficient cash flow to service its debt and sustain payouts. Current ratio is 0.59 (tight liquidity). Debt-to-assets is 92.3%. Total assets: $2.0B.
Analyst outlook: 7 / 9 analysts rate DAO as buy (78%) — strong consensus.
SharesGrow 7-Criteria breakdown: Value 38/100 (Fail), Growth 83/100 (Pass), Past 50/100 (Partial), Health 25/100 (Fail), Moat 52/100 (Partial), Future 49/100 (Partial), Income 30/100 (Fail).
