Why is Duolingo, Inc. ?
1
With a growth in Net Profit of 83.9%, the company declared Outstanding results in Jun 25
- The company has declared positive results for the last 11 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 335.92 MM
- ROCE(HY) Highest at 13.44%
- NET SALES(Q) Highest at USD 252.26 MM
2
With ROE of 10.93%, it has a expensive valuation with a 26.09 Price to Book Value
- Over the past year, while the stock has generated a return of -49.49%, its profits have risen by 113.1% ; the PEG ratio of the company is 2.4
How much should you buy?
- Overall Portfolio exposure to Duolingo, Inc. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Duolingo, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Duolingo, Inc.
-47.81%
-0.16
68.02%
S&P 500
13.22%
0.61
20.17%
Quality key factors
Factor
Value
Sales Growth (5y)
51.54%
EBIT Growth (5y)
63.54%
EBIT to Interest (avg)
-11.95
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-1.12
Sales to Capital Employed (avg)
0.82
Tax Ratio
13.20%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
0
ROE (avg)
3.47%
Valuation Key Factors 
Factor
Value
P/E Ratio
239
Industry P/E
Price to Book Value
26.09
EV to EBIT
315.11
EV to EBITDA
268.26
EV to Capital Employed
-211.63
EV to Sales
27.51
PEG Ratio
2.36
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
10.93%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Movement
26What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 335.92 MM
ROCE(HY)
Highest at 13.44%
NET SALES(Q)
Highest at USD 252.26 MM
RAW MATERIAL COST(Y)
Fallen by 1.3% (YoY
OPERATING PROFIT(Q)
Highest at USD 37.49 MM
OPERATING PROFIT MARGIN(Q)
Highest at 14.86 %
PRE-TAX PROFIT(Q)
Highest at USD 47.14 MM
NET PROFIT(Q)
Highest at USD 45.45 MM
EPS(Q)
Highest at USD 0.91
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Duolingo, Inc.
Operating Cash Flow
Highest at USD 335.92 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 252.26 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Net Sales
At USD 252.26 MM has Grown at 41.46%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 37.49 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 14.86 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 47.14 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Pre-Tax Profit
At USD 47.14 MM has Grown at 62.27%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 45.45 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Net Profit
At USD 45.45 MM has Grown at 84.46%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.91
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Raw Material Cost
Fallen by 1.3% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales






