Why is Udemy, Inc. ?
1
Poor long term growth as Operating profit has grown by an annual rate 18.41% of over the last 5 years
2
The company has declared Positive results for the last 3 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 86.22 MM
- NET PROFIT(HY) Higher at USD -0.69 MM
- ROCE(HY) Highest at 1.87%
3
With ROE of 2.55%, it has a expensive valuation with a 3.31 Price to Book Value
- Over the past year, while the stock has generated a return of -47.28%, its profits have risen by 109.2% ; the PEG ratio of the company is 1.2
4
Reducing Promoter Confidence
- Promoters have decreased their stake in the company by -6.26% over the previous quarter and currently hold 34.06% of the company
- Promoters decreasing their stake may signify reduced confidence in the future of the business
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -47.28% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
How much should you hold?
- Overall Portfolio exposure to Udemy, 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 Udemy, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Udemy, Inc.
-41.17%
-0.94
53.56%
S&P 500
16.08%
0.62
19.30%
Quality key factors
Factor
Value
Sales Growth (5y)
11.11%
EBIT Growth (5y)
18.41%
EBIT to Interest (avg)
-99.21
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-1.69
Sales to Capital Employed (avg)
3.16
Tax Ratio
6.61%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
96.88%
ROCE (avg)
0
ROE (avg)
0
Valuation Key Factors 
Factor
Value
P/E Ratio
130
Industry P/E
Price to Book Value
3.31
EV to EBIT
-132.91
EV to EBITDA
3.88
EV to Capital Employed
-2.38
EV to Sales
0.43
PEG Ratio
1.19
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
2.55%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
16What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 86.22 MM
NET PROFIT(HY)
Higher at USD -0.69 MM
ROCE(HY)
Highest at 1.87%
RAW MATERIAL COST(Y)
Fallen by -18.64% (YoY
PRE-TAX PROFIT(Q)
At USD -0.98 MM has Grown at 65.09%
-11What is not working for the Company
INTEREST(HY)
At USD 0.25 MM has Grown at 453.33%
INTEREST COVERAGE RATIO(Q)
Lowest at 7,948.59
NET SALES(Q)
Lowest at USD 193.99 MM
Here's what is working for Udemy, Inc.
Net Profit
At USD -0.69 MM has Grown at 96.28%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Operating Cash Flow
Highest at USD 86.22 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 Profit
Higher at USD -0.69 MM
than preceding 12 month period ended Dec 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (USD MM)
Pre-Tax Profit
At USD -0.98 MM has Grown at 65.09%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Raw Material Cost
Fallen by -18.64% (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 23.22 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Udemy, Inc.
Interest
At USD 0.25 MM has Grown at 453.33%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 7,948.59
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Sales
Lowest at USD 193.99 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (USD MM)






