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Upturn AI SWOT - About
Youdao Inc (DAO)
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Upturn Advisory Summary
09/17/2025: DAO (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
8 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $13.15
1 Year Target Price $13.15
| 5 | Strong Buy |
| 1 | Buy |
| 2 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -11.4% | Avg. Invested days 24 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  1.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 09/17/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.05B USD | Price to earnings Ratio 32.63 | 1Y Target Price 13.15 |
Price to earnings Ratio 32.63 | 1Y Target Price 13.15 | ||
Volume (30-day avg) 8 | Beta 0.39 | 52 Weeks Range 3.00 - 11.82 | Updated Date 09/17/2025 |
52 Weeks Range 3.00 - 11.82 | Updated Date 09/17/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.27 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 4.05% | Operating Margin (TTM) 2.03% |
Management Effectiveness
Return on Assets (TTM) 11.19% | Return on Equity (TTM) - |
Valuation
Trailing PE 32.63 | Forward PE - | Enterprise Value 1233879650 | Price to Sales(TTM) 0.19 |
Enterprise Value 1233879650 | Price to Sales(TTM) 0.19 | ||
Enterprise Value to Revenue 1.56 | Enterprise Value to EBITDA 29.6 | Shares Outstanding 31280900 | Shares Floating 26257520 |
Shares Outstanding 31280900 | Shares Floating 26257520 | ||
Percent Insiders 4.35 | Percent Institutions 41.89 |
Upturn AI SWOT
Youdao Inc
Company Overview
History and Background
Youdao Inc. was founded in 2006 as part of NetEase, a leading Chinese internet technology company. It initially focused on search engine technology before expanding into online education. Youdao was spun off and listed as a separate entity in 2019.
Core Business Areas
- Learning Services: Offers online courses and tutoring services across various subjects, catering to different age groups and learning needs. This includes both live interactive classes and pre-recorded content.
- Smart Devices: Develops and sells smart learning devices like Youdao Dictionary Pen, Youdao Smart Lamp, and other educational hardware designed to enhance the learning experience.
- Online Marketing Services: Provides marketing solutions to other education companies and businesses through Youdao's platform and user base.
Leadership and Structure
Youdao Inc. is led by CEO Zhou Feng. The company has a typical corporate structure with departments focusing on technology, product development, marketing, sales, and operations.
Top Products and Market Share
Key Offerings
- Youdao Dictionary Pen: A smart pen that instantly translates words and provides definitions. The product has gained popularity, especially among students learning English. Market share is estimated around 40% within China's smart dictionary pen market. Competitors include Hanvon and Baidu.
- Youdao Premium Courses: Online courses covering a wide range of subjects, including language learning, exam preparation, and vocational skills. While specific market share data is difficult to obtain, Youdao is a significant player in China's online education market. Competitors include TAL Education and New Oriental Education & Technology Group.
Market Dynamics
Industry Overview
The online education industry is experiencing rapid growth, driven by increasing internet penetration, demand for personalized learning, and government support for technology in education. This industry faces intense competition and evolving regulations.
Positioning
Youdao Inc. positions itself as a technology-driven education company, leveraging AI and data analytics to improve learning outcomes. It differentiates itself through its integrated approach, combining online courses with smart devices.
Total Addressable Market (TAM)
The TAM for online education in China is estimated to be several hundred billion USD and growing. Youdao Inc. is well-positioned to capture a significant share of this market, focusing on technology-driven solutions and premium content.
Upturn SWOT Analysis
Strengths
- Strong brand recognition in China
- Advanced AI and data analytics capabilities
- Integrated online course and smart device offerings
- Large user base
Weaknesses
- Heavy reliance on the Chinese market
- Intense competition in the online education sector
- Regulatory risks in the Chinese education industry
- Profitability remains a concern
Opportunities
- Expansion into new educational segments (e.g., vocational training)
- International expansion (e.g., Southeast Asia)
- Development of new AI-powered learning tools
- Strategic partnerships with schools and universities
Threats
- Increased competition from established and emerging players
- Changing government regulations on online education
- Economic slowdown in China
- Rapid technological advancements requiring constant innovation
Competitors and Market Share
Key Competitors
- TAL (TAL)
- New Oriental (EDU)
- Gaotu Techedu (GOTU)
Competitive Landscape
Youdao Inc. competes with established players like TAL Education and New Oriental Education & Technology Group, as well as emerging companies in the online education sector. Youdao's strengths lie in its technology-driven approach and integrated offerings, while its weaknesses include its reliance on the Chinese market and the intense competitive pressure.
Growth Trajectory and Initiatives
Historical Growth: Youdao Inc. has experienced significant revenue growth in recent years, driven by the increasing demand for online education in China. However, profitability has been a challenge.
Future Projections: Analyst estimates suggest continued revenue growth for Youdao Inc., driven by its strong brand, innovative products, and expansion into new markets. Profitability is expected to improve over time.
Recent Initiatives: Recent initiatives include the launch of new AI-powered learning tools, expansion into new educational segments, and strategic partnerships with schools.
Summary
Youdao Inc. demonstrates robust revenue growth fueled by its innovative approach in the online education market. However, profitability remains a challenge. The company's heavy reliance on the Chinese market and the ever-evolving regulatory landscape pose potential risks. Strategic initiatives and technology-driven solutions are essential for Youdao to maintain its competitive edge and achieve sustainable growth.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Website
- SEC Filings
- Market Research Reports
- Analyst Reports
Disclaimers:
The information provided is for informational purposes only and should not be considered as financial advice. Investment decisions should be based on individual research and consultation with a financial advisor. Market share data is estimated and may not be precise.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Youdao Inc
Exchange NYSE | Headquaters - | ||
IPO Launch date 2019-10-25 | CEO & Director Mr. Feng Zhou | ||
Sector Consumer Defensive | Industry Education & Training Services | Full time employees 3750 | Website https://www.youdao.com |
Full time employees 3750 | Website https://www.youdao.com | ||
Youdao, Inc., an internet technology company, provides online services in the fields of content, community, communication, and commerce in China. It operates through three segments: Learning Services, Smart Devices, and Online Marketing Services. The learning services mainly include tutoring services and fee-based premium services. The company provides various learning content, applications, and solutions, which cover topics and target people from various age groups for their learning needs through its websites and mobile applications. It also offers online knowledge tools, which include Youdao and other dictionaries and translation tools, as well as AI-based learning tools; STEAM courses through Youdao Premium Courses; adult courses through NetEase Cloud Classroom, such as foreign language, preparing for an exam, and picking up a new skill; and other courses consisting of China University MOOC courses. In addition, the company provides smart devices comprising Youdao Dictionary Pen, and Youdao Listening Pod, and Youdao Smart Learning Pad; education digitalization solutions, such as technologies and solutions licensed to schools or enterprise customers, including Youdao Smart Learning Terminal, Youdao Sports, and Youdao Smart Cloud; and online marketing services consisting of performance-based and brand advertising services. Further, it offers technical support to the variable interest entities (VIEs). The company was founded in 2006 and is headquartered in Hangzhou, China. Youdao, Inc. is a subsidiary of NetEase, Inc.
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