Why is Duolingo, Inc. ?
1
Low Debt Company with Strong Long Term Fundamental Strength
- Healthy long term growth as Net Sales has grown by an annual rate of 45.03%
- The company is Net-Debt Free
2
With a growth in Operating Profit of 55.27%, the company declared Outstanding results in Mar 26
- The company has declared positive results for the last 15 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 432.97 MM
- NET PROFIT(HY) At USD 86 MM has Grown at 74.69%
- ROCE(HY) Highest at 36.96%
3
With ROE of 31.15%, it has a attractive valuation with a 3.32 Price to Book Value
- Over the past year, while the stock has generated a return of -73.77%, its profits have risen by 369.4% ; the PEG ratio of the company is 0
4
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
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.
-73.02%
-0.58
63.33%
S&P 500
25.22%
1.92
13.25%
Quality key factors
Factor
Value
Sales Growth (5y)
45.03%
EBIT Growth (5y)
61.48%
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)
0.83
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
11
Industry P/E
Price to Book Value
3.32
EV to EBIT
23.67
EV to EBITDA
21.48
EV to Capital Employed
15.64
EV to Sales
3.22
PEG Ratio
0.03
Dividend Yield
NA
ROCE (Latest)
66.08%
ROE (Latest)
31.15%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Movement
25What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 432.97 MM
NET PROFIT(HY)
At USD 86 MM has Grown at 74.69%
ROCE(HY)
Highest at 36.96%
NET SALES(Q)
Highest at USD 291.97 MM
OPERATING PROFIT(Q)
Highest at USD 49.06 MM
PRE-TAX PROFIT(Q)
Highest at USD 55.9 MM
RAW MATERIAL COST(Y)
Fallen by -2.85% (YoY
CASH AND EQV(HY)
Highest at USD 2,392.08 MM
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 432.97 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 291.97 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Operating Profit
Highest at USD 49.06 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (USD MM)
Pre-Tax Profit
Highest at USD 55.9 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 86 MM has Grown at 74.69%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Pre-Tax Profit
At USD 55.9 MM has Grown at 59.21%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Cash and Eqv
Highest at USD 2,392.08 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -2.85% (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
Depreciation
Highest at USD 4.19 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)






