Duolingo Inc Receives Mixed Ratings from Growth Strategies

Duolingo Inc (DUOL) demonstrates solid profit margins and cash flow while facing challenges in sales and relative strength. The stock rates 68% under the Small-Cap Growth Investor model, indicative of moderate investor interest.

Date: 09-09-2024

AI Rating: 6

Earnings Per Share (EPS): The report does not provide specific information about DUOL's EPS.

Revenue Growth: The stock has passed the test of comparing sales growth to the same period last year, indicating positive revenue trends.

Net Income: No specific details about net income are mentioned.

Profit Margins: Duolingo has strong profit margins, which is a positive indicator for investors.

Free Cash Flow (FCF): The text indicates that cash flow from operations has passed, suggesting that the company has a healthy cash flow.

Return on Equity (ROE): There is no mention of ROE in the provided text.

The ratings summary shows mixed results for Duolingo Inc when evaluated against the Small-Cap Growth Investor model:

Profit Margin: PASS
Relative Strength: FAIL
Compare Sales and EPS Growth to the Same Period Last Year: PASS
Insider Holdings: FAIL
Cash Flow from Operations: PASS
Profit Margin Consistency: PASS
Cash and Cash Equivalents: PASS
Accounts Receivable to Sales: PASS
Long Term Debt/Equity Ratio: PASS
The Fool Ratio (P/E to Growth): FAIL
Average Shares Outstanding: PASS
Sales: FAIL
Daily Dollar Volume: FAIL
Price: PASS
Income Tax Percentage: FAIL

Overall, Duolingo has a 68% rating, with several strong points in profit margins and cash flow, but it has weaknesses in relative strength, sales, and insider holdings that could deter investor confidence. The rating shows moderate interest, but potential investors may need to consider the mixed signals from these evaluations.

Stocks: DUOL