# Youdao Inc. American (DAO) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Communication Services / Diversified Telecommunication Services. Price $14.79, market value $1.8 billion.

## Valuation
- **P/E (trailing): 74.0×** (5-yr avg 75.8×, 3-yr avg 75.8×). Youdao Inc. American trades at 74.0× trailing earnings, close to its own five-year average of 75.8×. The Communication Services median in the September 2026 study was 21.1×. Forward P/E is 34.0×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 1.13**. A PEG of 1.13 is in the range usually read as fairly priced for its growth.
- **Price / sales: 0.3×**. Each dollar of revenue is priced at 0.3×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Free-cash-flow yield: 0.2%** (5-yr avg -8.7%). Free cash flow equals 0.2% of the market value, above its five-year average of -8.7%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 1.4%**. The inverse of the P/E: 1.4% of the price is earned each year.

## Profitability
- **Gross margin: 45.1%**. Youdao Inc. American keeps 45.1% of revenue after the direct cost of what it sells.
- **Operating margin: 4.4%**. 4.4% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 1.6%**. 1.6% of each dollar of sales reaches the bottom line.
- **Return on equity: -5.0%**. Return on equity is negative because earnings are negative.
- **Return on assets: 56.9%**. Each dollar of assets produces 56.9% of profit.

## Growth
- **Revenue growth (1 yr): 9.6%** (3-yr 5.1%/yr, 5-yr 11.7%/yr). Revenue grew 9.6% over the last year, against 11.7% a year compounded over five years.
- **EPS growth (1 yr): 30.0%**. Earnings per share rose 30.0%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Interest coverage: 4.7×**. Operating profit covers interest 4.7× over, a safe margin.
- **Current ratio: 0.59** (quick 0.59). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 3.17**. A Z-score of 3.17 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. Youdao Inc. American does not currently pay a dividend.

## Analyst view
- **Analyst consensus: strong_buy** (7 analysts). 7 analysts cover Youdao Inc. American; the consensus is strong_buy, with an average price target of $16.71 (+13% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 77.1%** (YTD 46.7%, 3-mo 26.8%). The shares are up 77.1% over twelve months including dividends.
- **From 52-week high: -21.9%** (76.5% above the low). Trading 22% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 41**. An RSI of 41 is neutral.
- **Beta (1 yr): 0.89** (volatility 59%). Beta of 0.89 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=DAO · Page: https://foliofundamentals.com/stocks/dao

Not investment advice.