Youdao Inc Stock Buy Hold or Sell Recommendation
| DAO Stock | USD 3.81 0.18 4.51% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Youdao Inc is 'Sell'. Macroaxis provides Youdao buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Youdao positions. The advice algorithm takes into account all of Youdao's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Youdao's buy or sell advice are summarized below:
Real Value 4.41 | Target Price 6.79 | Hype Value 3.75 | Market Value 3.81 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Youdao Inc given historical horizon and risk tolerance towards Youdao. When Macroaxis issues a 'buy' or 'sell' recommendation for Youdao Inc, the advice is generated through an automated system that utilizes algorithms and statistical models.
Youdao |
Execute Youdao Buy or Sell Advice
The Youdao recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Youdao Inc. Macroaxis does not own or have any residual interests in Youdao Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Youdao's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Sell
Market Performance | Insignificant | Details | |
Volatility | Unstable | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Quite High | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Youdao Trading Alerts and Improvement Suggestions
| Youdao Inc had very high historical volatility over the last 90 days | |
| Youdao Inc has high likelihood to experience some financial distress in the next 2 years | |
| The company has 1.44 B in debt with debt to equity (D/E) ratio of 5.71, demonstrating that the company may be unable to create cash to meet all of its financial commitments. Youdao Inc has a current ratio of 0.63, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist Youdao until it has trouble settling it off, either with new capital or with free cash flow. So, Youdao's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Youdao Inc sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Youdao to invest in growth at high rates of return. When we think about Youdao's use of debt, we should always consider it together with cash and equity. | |
| The entity reported the last year's revenue of 5.36 B. Reported Net Loss for the year was (594.12 M) with profit before taxes, overhead, and interest of 2.59 B. | |
| Youdao Inc has about 783.61 M in cash with (603.12 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 5.73, which can makes it an attractive takeover target, given it will continue generating positive cash flow. | |
| Youdao Inc has a frail financial position based on the latest SEC disclosures | |
| Latest headline from finance.yahoo.com: Blizzard Entertainment and NetEase Renew Agreement to Bring Beloved Titles Back to China Microsoft Gaming, NetEase Enter Broader Collaboration |
Youdao current analysts advice
We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Youdao analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Youdao analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Average Consensus Strong Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.
Youdao Returns Distribution Density
The distribution of Youdao's historical returns is an attempt to chart the uncertainty of Youdao's future price movements. The chart of the probability distribution of Youdao daily returns describes the distribution of returns around its average expected value. We use Youdao Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Youdao returns is essential to provide solid investment advice for Youdao.
| Mean Return | 0.20 | Value At Risk | -6.03 | Potential Upside | 10.95 | Standard Deviation | 4.48 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Youdao historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Youdao Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Youdao is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Youdao Inc backward and forwards among themselves. Youdao's institutional investor refers to the entity that pools money to purchase Youdao's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Connor Clark & Lunn Inv Mgmt Ltd | 2023-12-31 | 78.5 K | Morgan Stanley - Brokerage Accounts | 2023-12-31 | 62.8 K | California Public Employees Retrmnt Sys | 2023-12-31 | 57.6 K | Citadel Advisors Llc | 2023-09-30 | 49 K | Renaissance Technologies Corp | 2023-12-31 | 48.3 K | Northern Trust Corp | 2023-12-31 | 31.7 K | Amvescap Plc. | 2023-12-31 | 31.7 K | Old Mission Capital Llc | 2023-12-31 | 27.7 K | Nuveen Asset Management, Llc | 2023-12-31 | 22.6 K | Orbis Allan Gray Ltd | 2023-12-31 | 10.4 M | Netease, Inc. | 2023-12-31 | 2.9 M |
Youdao Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | (52.6M) | (72.3M) | (146.7M) | 20.0M | 18.0M | 18.9M | |
| Investments | (1.1B) | 803.3M | 63.0M | 125.8M | 144.7M | 151.9M | |
| Change In Cash | 131.6M | 435.9M | 463.3M | (288.1M) | (331.3M) | (314.7M) | |
| Free Cash Flow | (390.4M) | (358.4M) | (1.4B) | (672.9M) | (605.6M) | (635.9M) | |
| Depreciation | 10.6M | 16.1M | 30.1M | 42.2M | 48.5M | 51.0M | |
| Other Non Cash Items | 2.6M | 879K | (545.6M) | (40.6M) | (36.6M) | (38.4M) | |
| Capital Expenditures | 14.0M | 18.2M | 36.9M | 64.1M | 69.8M | 0.0 | |
| Net Income | (601.5M) | (1.8B) | (1.0B) | (745.9M) | (594.1M) | (623.8M) | |
| End Period Cash Flow | 173.3M | 609.2M | 1.1B | 784.5M | 902.2M | 498.9M | |
| Change To Netincome | 9.2M | 63.6M | 66.2M | (513.0M) | (461.7M) | (438.7M) |
Youdao Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Youdao or Diversified Consumer Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Youdao's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Youdao stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | 0.08 | |
β | Beta against NYSE Composite | 2.18 | |
σ | Overall volatility | 4.52 | |
Ir | Information ratio | 0.03 |
Youdao Volatility Alert
Youdao Inc shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Youdao's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Youdao's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Youdao Fundamentals Vs Peers
Comparing Youdao's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Youdao's direct or indirect competition across all of the common fundamentals between Youdao and the related equities. This way, we can detect undervalued stocks with similar characteristics as Youdao or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Youdao's fundamental indicators could also be used in its relative valuation, which is a method of valuing Youdao by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Youdao to competition |
| Fundamentals | Youdao | Peer Average |
| Return On Asset | -0.15 | -0.14 |
| Profit Margin | (0.10) % | (1.27) % |
| Operating Margin | 0.05 % | (5.51) % |
| Current Valuation | 1.57 B | 16.62 B |
| Shares Outstanding | 124.21 M | 571.82 M |
| Shares Owned By Insiders | 3.78 % | 10.09 % |
| Shares Owned By Institutions | 47.54 % | 39.21 % |
| Number Of Shares Shorted | 413.85 K | 4.71 M |
| Price To Earning | (14.33) X | 28.72 X |
| Price To Book | 60.14 X | 9.51 X |
| Price To Sales | 0.09 X | 11.42 X |
| Revenue | 5.36 B | 9.43 B |
| Gross Profit | 2.59 B | 27.38 B |
| EBITDA | (424.11 M) | 3.9 B |
| Net Income | (594.12 M) | 570.98 M |
| Cash And Equivalents | 783.61 M | 2.7 B |
| Cash Per Share | 5.73 X | 5.01 X |
| Total Debt | 1.44 B | 5.32 B |
| Debt To Equity | 5.71 % | 48.70 % |
| Current Ratio | 0.64 X | 2.16 X |
| Book Value Per Share | (18.26) X | 1.93 K |
| Cash Flow From Operations | (603.12 M) | 971.22 M |
| Short Ratio | 2.10 X | 4.00 X |
| Earnings Per Share | (0.63) X | 3.12 X |
| Target Price | 6.2 | |
| Beta | -0.12 | -0.15 |
| Market Capitalization | 495.61 M | 19.03 B |
| Total Asset | 2.28 B | 29.47 B |
| Retained Earnings | (5.4 B) | 9.33 B |
| Working Capital | (1.31 B) | 1.48 B |
| Current Asset | 1.83 B | 9.34 B |
| Current Liabilities | 1.65 B | 7.9 B |
| Net Asset | 2.28 B |
Youdao Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Youdao . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Youdao Buy or Sell Advice
When is the right time to buy or sell Youdao Inc? Buying financial instruments such as Youdao Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 1.2B | 1.4B | 1.7B | 1.1B | Total Assets | 2.6B | 2.3B | 2.6B | 1.8B |
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In addition to having Youdao in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Youdao Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Youdao Inc information on this page should be used as a complementary analysis to other Youdao's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Complementary Tools for Youdao Stock analysis
When running Youdao's price analysis, check to measure Youdao's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Youdao is operating at the current time. Most of Youdao's value examination focuses on studying past and present price action to predict the probability of Youdao's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Youdao's price. Additionally, you may evaluate how the addition of Youdao to your portfolios can decrease your overall portfolio volatility.
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Is Youdao's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Youdao. If investors know Youdao will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Youdao listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 3.723 | Earnings Share (0.63) | Revenue Per Share 44.399 | Quarterly Revenue Growth 0.018 | Return On Assets (0.15) |
The market value of Youdao Inc is measured differently than its book value, which is the value of Youdao that is recorded on the company's balance sheet. Investors also form their own opinion of Youdao's value that differs from its market value or its book value, called intrinsic value, which is Youdao's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Youdao's market value can be influenced by many factors that don't directly affect Youdao's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Youdao's value and its price as these two are different measures arrived at by different means. Investors typically determine if Youdao is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Youdao's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.