Duolingo Inc Shows Strength in Guru Fundamental Report

Positive indicators in Duolingo Inc's report highlight its growth potential. The stock scores 75%, signaling strong interest despite some weaknesses.

Date: 25-02-2025

AI Rating: 6

Analysis of Duolingo Inc's Performance

The report reveals several strengths related to Duolingo Inc (DUOL), particularly in Profit Margins, which is marked as a 'PASS'. This indicates effective cost management, which is vital for maintaining profitability.

Cash Flow from Operations also scores a 'PASS', indicating the company generates sufficient cash from its operations, crucial for funding investment and growth without compromising financial stability.

The report also shows that Duolingo has successfully passed other key tests, including Relative Strength, Profit Margin Consistency, and Long-term Debt/Equity Ratio, which enhances its attractiveness to investors.

On the downside, Sales and 'The Fool Ratio' (P/E to Growth) are flagged as 'FAIL'. Weak sales growth can negatively impact stock price performance as it reflects the company's ability to expand its market presence. The FCF metrics also suggest possible valuation concerns that could deter investors.

Overall, while there are notable weaknesses regarding sales and P/E growth, the company's strong profit margins and cash flow generation present a more favorable picture. As such, investors may view DUOL as a stock worth considering, albeit with caution regarding its sales performance for future price appreciation.

Stocks: DUOL