Ratings Youdao, Inc.

Equities

DAO

US98741T1043

Market Closed - Nyse Other stock markets 04:00:02 2024-05-31 pm EDT			5-day change	1st Jan Change
3.73 ^USD	-2.36%		+1.63%	-5.33%

May. 23	Transcript : Youdao, Inc., Q1 2024 Earnings Call, May 23, 2024
May. 23	Earnings Flash (DAO) YOUDAO Reports Q1 EPS $0.01	MT

Summary

The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
Overall, and from a short-term perspective, the company presents an interesting fundamental situation.

Strengths

The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.23 for the 2024 fiscal year.
Given the positive cash flows generated by its business, the company's valuation level is an asset.
For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
For the past twelve months, EPS forecast has been revised upwards.
Analysts covering this company mostly recommend stock overweighting or purchase.
The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Historically, the company has been releasing figures that are above expectations.

Weaknesses

The company's profitability before interest, taxes, depreciation and amortization characterizes fragile margins.
Low profitability weakens the company.
For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.
For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.
Over the past twelve months, analysts' opinions have been revised negatively.
Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
The price targets of various analysts who make up the consensus differ significantly. This reflects different assessments and/or a difficulty in valuing the company.

Ratings chart - Surperformance

Chart ESG Refinitiv

Sector: Software

	1st Jan change	Capi.	ESG Refinitiv
YOUDAO, INC.	-5.33%	446M	C-
SYNOPSYS INC.	+8.91%	85.92B	B
CADENCE DESIGN SYSTEMS, INC.	+5.14%	77.91B	B+
DASSAULT SYSTÈMES SE	-16.20%	52.89B	B+
PALANTIR TECHNOLOGIES INC.	+26.18%	48.28B	D+
THE TRADE DESK, INC.	+28.93%	45.38B	D+
ATLASSIAN CORPORATION	-34.05%	40.83B	B-
SEA LIMITED	+66.72%	38.78B	D+
TAKE-TWO INTERACTIVE SOFTWARE, INC.	-0.36%	27.48B	C+
ROBLOX CORPORATION	-26.47%	21.52B	-

Investor Rating

Trading Rating

ESG Refinitiv

Financials

Sales growth

Earnings Growth

EBITDA / Sales

Profitability

Finances

Valuation

P/E ratio

EV / Sales

Price to Book

Price to Free Cash Flow

Yield

Momentum

1 year Revenue revision

4 months Revenue revision

7 days Revenue revision

1 year EPS revision

4 months EPS revision

Consensus

Analyst Opinion

Potential Price Target

4m Target Price Revision

4m Revision of opinion

12m Revision of opinion

Business Predictability

Analyst Coverage

Divergence of Estimates

Divergence of analysts' opinions

Divergence of Target Price

Earnings quality

Environment

Emissions

Innovation

Use of resources

Governance

CSR Strategy

Management

Shareholders

Controversy

Technical analysis

ST Timing

MT Timing

LT Timing

RSI

Bollinger Spread

Unusual volumes