Is Youdao, Inc. (DAO) Halal?

NYSE Consumer Defensive China $1.2B
✗ NOT HALAL
Confidence: 90/100
Youdao, Inc. (DAO) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 153.6% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Youdao, Inc. operates in the Consumer Defensive sector.

Shariah Screening — 5 Standards

Based on financial data from December 2024

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 153.6%
/ 30%
54.3%
/ 30%
41.7%
/ 30%
0.07%
/ 5%
✗ NOT HALAL
DJIM 153.6%
/ 33%
54.3%
/ 33%
41.7%
/ 33%
0.07%
/ 5%
✗ NOT HALAL
MSCI 102.2%
/ 33%
36.1%
/ 33%
27.7%
/ 33%
0.07%
/ 5%
✗ NOT HALAL
S&P 153.6%
/ 33%
54.3%
/ 33%
41.7%
/ 33%
0.07%
/ 5%
✗ NOT HALAL
FTSE 102.2%
/ 33%
36.1%
/ 33%
27.7%
/ 50%
0.07%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
58.5
Forward: 25.6
EPS
$0.17
P/B Ratio
-4.1
EV/EBITDA
9.2
EV: $2.3B
Revenue
$5.6B
Growth: 16.8%
Beta
0.4
Low volatility
Current Ratio
0.6

Profitability

Gross Margin 44.3%
Operating Margin 3.8%
Net Margin 1.8%
Return on Assets (ROA) 7.3%

Cash Flow & Balance Sheet

Operating Cash Flow-$68M
Free Cash Flow-$80M
Total Debt$1.9B
Current Ratio0.6
Total Assets$1.8B

Price & Trading

Last Close$10.12
50-Day MA$10.26
200-Day MA$9.71
Avg Volume103K
Beta0.4
52-Week Range
$6.30
$12.96

About Youdao, Inc. (DAO)

CEO
Mr. Feng Zhou
Sector
Consumer Defensive
Industry
Education & Training Services
Country
China
Exchange
NYSE
Market Cap
$1.2B
Currency
USD

Youdao, Inc., an internet technology company, provides online services in the fields of content, community, communication, and commerce in China. It operates through three segments: Learning Services, Smart Devices, and Online Marketing Services. The learning services mainly include tutoring services and fee-based premium services. The company provides various learning content, applications, and solutions, which cover topics and target people from various age groups for their learning needs through its websites and mobile applications. It also offers online knowledge tools, which include Youdao and other dictionaries and translation tools, as well as AI-based learning tools; STEAM courses through Youdao Premium Courses; adult courses through NetEase Cloud Classroom, such as foreign language, preparing for an exam, and picking up a new skill; and other courses consisting of China University MOOC courses. In addition, the company provides smart devices comprising Youdao Dictionary Pen, and Youdao Listening Pod, and Youdao Smart Learning Pad; education digitalization solutions, such as technologies and solutions licensed to schools or enterprise customers, including Youdao Smart Learning Terminal, Youdao Sports, and Youdao Smart Cloud; and online marketing services consisting of performance-based and brand advertising services. Further, it offers technical support to the variable interest entities (VIEs). The company was founded in 2006 and is headquartered in Hangzhou, China. Youdao, Inc. is a subsidiary of NetEase, Inc.

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Frequently Asked Questions

Is Youdao, Inc. (DAO) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Youdao, Inc. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Youdao, Inc.'s debt ratio?

Youdao, Inc.'s debt ratio is 153.6% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 102.2%.

What are Youdao, Inc.'s key financial metrics?

Youdao, Inc. has a market capitalization of $1.2B, trailing P/E ratio of 58.5, and revenue of $5.6B. The company maintains a gross margin of 44.3% and a net margin of 1.8%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.