Positioning no disclosures inside 60 days, left as found
Options put/call open interest 0.23, read 2026-10-25
Ethical does not pass the values gate
Price19.00 USD
Fair value14.88
RatingAVOID
Our investment reviews on this name
2026-10-11Read Accumulation14.56+30.5% to today ✓Markdown gives way to Accumulation with volume flow in agreement
2026-10-02Read Markdown14.56+30.5% to today Markup gives way to Markdown after a 25% rise in 13 weeks
2026-07-02Read Markup11.66+63.0% to today ✓First review on file: Markup
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Youdao, Inc. holds its Accumulation at $19.00. The statistical read favours the sellers, held for 47 days.
As held on the ledger · 2026-10-27
Phase
Accumulation
Quantitative state
The statistical read favours the sellers, held for 47 days
Price at the screen
$19.00
Valuation
100.00 trailing · 43.44 forward price to earnings
Values screen
FAIL
Beta
0.52
The Workings
Five Screens, Shown in Full
Does not pass. Debt ratio
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
129.12%
Below 33%
Interest-bearing debt is 129.1% of its assets, above the one-third ceiling the screen allows.
Fail
Interest-bearing cash
51.63%
Below 33%
Interest-bearing cash and securities are 51.6% of assets, above the one-third limit.
Fail
Receivables
0.00%
Below 49%
Money owed to the company is 0.0% of assets, under the 49% limit.
Pass
Revenue purity
0.04%
Below 5%
Only 0.0% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Falls Short, in Plain English
Youdao,'s business is in a permissible area, but its interest-bearing debt is about 129% of the company, well over the ~33% line, so it does not pass on the financial screens.
Read as at 2026-10-27. It updates when the underlying figures move, and past reads are kept below.
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What the Numbers Say It Is Worth
The Fair Value Range
Our analysis reads AVOID: it trades above our $14.88 fair value estimate, weak competitive moat, 3.50% revenue growth.
Fair value range in USD, drawn from the 2026-10-27 screen. The gold marker is the market price at the same screen. The price runs 21.7% above the base estimate.
Third-party analyst targets: 6 covering, consensus None. The average target sits +11% from the screen price.
Reading the gap · Our more conservative model reads it as fully-to-richly valued here, while the Street is more bullish: a quality-at-a-fair-price name rather than a deep-value one.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-10-27 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Edtech Platform Carries Heavy Debt And Thin Returns
Every student tapping a Chinese learning app expects quick results, yet Youdao shows revenue growing just 4% with profit margins stuck at 1%. The business trades at 34.5 times forward earnings while our fair value sits 23% below the current price, so the numbers point to an overpriced name with a weak moat. We pass because the setup fails both valuation discipline and the ethical screen on debt.
The market already prices in modest improvement, but low growth and slim margins leave little room for error when competition intensifies. A single analyst target near the current level does not change the fact that earnings power looks limited for the multiple paid.
Debt levels trip the ethical screen outright, adding balance-sheet fragility on top of already thin returns. This combination of stretched valuation and governance concerns makes the risk profile unattractive. Analysis, not advice.
The risks · The main risks here are ordinary market swings and the chance our fair-value read proves too optimistic.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
DAO trades on the NYSE. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-10-25Accumulation$18.51+0.0%Entry 9
The analysis reads accumulation. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B. Technically it is holding around 52% above its long-term trend line with momentum reading overbought. Over the past year the shares are up 34%. Our forward projection puts the odds of a 10% gain over the next month near 41%. The street (7 analysts) rates it strong buy, with a mean price target of $13.
2026-10-18Accumulation$18.51+27.1%Entry 8
The analysis reads accumulation. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved up 27.1% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B. Technically it is holding around 10% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 34%. Our forward projection puts the odds of a 10% gain over the next month near 41%. The street (7 analysts) rates it strong buy, with a mean price target of $13.
The framework has shifted from markdown to accumulation since the last review. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B. Technically it is holding around 10% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 34%. Our forward projection puts the odds of a 10% gain over the next month near 41%. The street (7 analysts) rates it strong buy, with a mean price target of $13.
2026-10-02Markdown · changed$14.56-12.6%Entry 6
The framework has shifted from markup to markdown since the last review. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 12.6% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it C. Technically it is holding around 10% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 34%. Our forward projection puts the odds of a 10% gain over the next month near 41%. The street (7 analysts) rates it strong buy, with a mean price target of $13.
2026-08-26Markup$16.65+14.4%Entry 5
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 14.4% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it C. Technically it is holding around 10% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 34%. Our forward projection puts the odds of a 10% gain over the next month near 41%. The street (7 analysts) rates it strong buy, with a mean price target of $13.
2026-07-26Markup$14.55+24.8%Entry 4
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 24.8% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it C. Technically it is holding around 10% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 34%. Our forward projection puts the odds of a 10% gain over the next month near 41%. The street (7 analysts) rates it strong buy, with a mean price target of $13.
2026-07-18Markup$11.66+0.0%Entry 3
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it C. Technically it is holding around 10% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 34%. Our forward projection puts the odds of a 10% gain over the next month near 41%. The street (7 analysts) rates it strong buy, with a mean price target of $13.
2026-07-03Markup$11.66+0.0%Entry 2
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns.
2026-07-02Markup$11.66Entry 1
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
