Youdao Inc. American Depositary Shares each representing one Class A Ordinary Share (DAO)
FairStock Score: 25/100 — RISKY
Key Financials
| Current Price | $19.10 |
| Market Cap | $1.3B |
| P/E Ratio | 100.53 |
| ROE | —% |
| Dividend Yield | 0% |
| Sector | Consumer Defensive |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
I look at Youdao as a Chinese online education and smart-device company selling learning services and advertising. It is in a sector where scale, brand, and content can matter, but the numbers do not yet show a durable moat. In the latest reported quarter, fiscal Q2 2026, revenue was $1.5B and net income was $73.8M, a 5.03% margin. That is a thin profit on a large revenue base, and the provided return and balance-sheet metrics are incomplete: ROE and debt-to-equity are not available, while ROCE is only 8.48%. The FairStock-calculated Piotroski F-Score is 6/9, respectable but not fortress-like, and the FairStock-calculated Altman Z-Score of 0.40 is weak. Growth looks uneven: the data set lists revenue growth of 3.48% and profit growth of 515.40%, but with only 0 years of filed results, the Lynch category is none, because 3 years are needed. Valuation is the hard part. At the close on 2026-10-13, the price was $18.12, market cap $1.3B, the provided EPS figure is $0.19, and the FairStock-calculated P/E is 95.37. PEG is 0.18 and EV/EBITDA is 10.18, which might look reasonable if profit growth persists, but a 95 times earnings multiple on $0.19 EPS leaves no margin of safety. The stock is near the top of its 52-week range of $8.38-$18.94. FairStock Score is 25/100. I would need more years of consistent profits, better balance-sheet visibility, and a lower price before calling this a Graham-style bargain.
In plain English: Youdao provides online learning services, smart devices, and online marketing in China. The latest reported quarter showed a profit of $73.8 million on $1.5 billion of revenue, but the overall financial record looks weak to mixed. At $18.12, the shares look expensive relative to the small earnings per share shown.
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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash
Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer