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Upturn AI SWOT - About
Youdao Inc (DAO)
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Upturn Advisory Summary
07/02/2025: 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 $12.04
1 Year Target Price $12.04
| 5 | Strong Buy |
| 1 | Buy |
| 2 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -0.83% | Avg. Invested days 26 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  1.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 07/02/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.03B USD | Price to earnings Ratio 50.65 | 1Y Target Price 12.04 |
Price to earnings Ratio 50.65 | 1Y Target Price 12.04 | ||
Volume (30-day avg) 8 | Beta 0.3 | 52 Weeks Range 2.86 - 11.82 | Updated Date 07/2/2025 |
52 Weeks Range 2.86 - 11.82 | Updated Date 07/2/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.17 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 2.65% | Operating Margin (TTM) 8.01% |
Management Effectiveness
Return on Assets (TTM) 9.19% | Return on Equity (TTM) - |
Valuation
Trailing PE 50.65 | Forward PE - | Enterprise Value 1225395818 | Price to Sales(TTM) 0.19 |
Enterprise Value 1225395818 | Price to Sales(TTM) 0.19 | ||
Enterprise Value to Revenue 1.59 | Enterprise Value to EBITDA 39.22 | Shares Outstanding 31280900 | Shares Floating 26196633 |
Shares Outstanding 31280900 | Shares Floating 26196633 | ||
Percent Insiders 4.35 | Percent Institutions 44.96 |
Upturn AI SWOT
Youdao Inc
Company Overview
History and Background
Youdao, Inc. (NYSE: DAO) was founded in 2006 as part of NetEase. It initially started as a search engine and has evolved into an intelligent learning company providing online courses, smart devices, and interactive learning applications. It was listed on the New York Stock Exchange in 2019.
Core Business Areas
- Learning Services: Offers a variety of online courses covering subjects from K-12 to professional skills, including premium courses with personalized tutoring and live interactive classes.
- Learning Products: Develops and sells smart devices like Youdao Dictionary Pen, smart learning pads, and other educational gadgets that integrate AI-powered functionalities.
- Other Services: Provides other products and services related to education, such as advertising and online games.
Leadership and Structure
The CEO of Youdao is Zhou Feng. It operates under the umbrella of NetEase, benefiting from NetEase's technological infrastructure and brand recognition. The organizational structure consists of teams focused on different product lines and services, reporting to the executive management team.
Top Products and Market Share
Key Offerings
- Youdao Dictionary Pen: A smart device for quick word look-up and translation, capturing a significant share in the e-dictionary pen market in China. Competitors include companies like iFLYTEK and Baidu.
- Youdao Premium Courses: Online courses in various subjects, including English, math, and programming. The company offers live interactive classes and personalized tutoring. Competitors include TAL Education Group and New Oriental Education & Technology Group, though these have been affected by Chinese regulations impacting the after-school tutoring sector.
- Youdao Smart Learning Pad: An AI powered tool for children offering personalized learning and study tools. Its competitors include companies like Baidu and ByteDance.
Market Dynamics
Industry Overview
The online education market in China is dynamic and rapidly evolving. Regulatory changes have impacted the after-school tutoring sector, leading companies to pivot towards vocational skills training and STEAM education. Demand for smart learning devices remains strong.
Positioning
Youdao is positioned as an intelligent learning company leveraging AI technology to enhance education. Its competitive advantages lie in its technology-driven approach and integration of hardware and software. Focus is on premium content and STEAM education.
Total Addressable Market (TAM)
The online education TAM in China is estimated to be substantial, potentially reaching hundreds of billions of USD. Youdao is positioned to capture a portion of this TAM through its diverse product offerings and technology-driven approach.
Upturn SWOT Analysis
Strengths
- Strong technology platform and AI capabilities
- Integration of hardware and software
- Parent company NetEase's support and brand reputation
- Diversified product offerings across different educational segments
Weaknesses
- Regulatory risks in the Chinese education sector
- High marketing expenses
- Dependence on content licensing agreements
- Competition from larger, established players
Opportunities
- Expansion into vocational skills training and STEAM education
- Growth in demand for smart learning devices
- Partnerships with educational institutions
- International expansion
Threats
- Further regulatory changes
- Intense competition
- Economic slowdown in China
- Rapid technological advancements
Competitors and Market Share
Key Competitors
- TAL (TAL)
- New Oriental (EDU)
- GSX Techedu (GOTU)
Competitive Landscape
Youdao competes with a mix of established players and emerging startups in the online education and smart device markets. Its advantages include its technology platform and NetEase's backing. Disadvantages include regulatory risks and intense competition.
Growth Trajectory and Initiatives
Historical Growth: Youdao has experienced rapid growth in revenue driven by its online courses and smart devices. Growth rates have fluctuated due to regulatory changes and market competition.
Future Projections: Future growth is expected to be driven by vocational skills training, STEAM education, and smart learning devices. Analyst estimates may vary widely due to regulatory uncertainties.
Recent Initiatives: Recent initiatives include expanding its vocational skills training programs and enhancing the AI capabilities of its smart learning devices. Shifting to STEAM focus.
Summary
Youdao Inc. is an intelligent learning company leveraging AI to enhance its educational products and services. The company is facing regulatory risks in the Chinese education sector, but the pivot to vocational training provides an opportunity. While the company's technology-driven approach provides a competitive edge, intense competition remains a key challenge. Monitoring regulatory changes and maintaining technological innovation will be crucial for its growth trajectory.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings
- Industry reports
- Analyst estimates
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market conditions and company performance can change rapidly.
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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