Net margin is calculated as Net Income divided by its Revenue. Youdao's Net Income for the
three
months ended in Mar. 2026 was MXN101 Mil. Youdao's Revenue for the
three
months ended in Mar. 2026 was MXN3,527 Mil. Therefore, Youdao's net margin for the quarter that ended in Mar. 2026 was 2.86%.
The historical rank and industry rank for Youdao's Net Margin % or its related term are showing as below:
MEX:DAON'
s Net Margin % Range Over the Past 10 Years
Min: -69.37 Med: -24.79 Max: 1.82
Current: 1.18
MEX:DAON's Net Margin % is ranked worse than 68.22% of 258
companies
in the Education industry
Industry Median: 5.72
vs MEX:DAON: 1.18
Youdao (MEX:DAON) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Youdao Net Margin % Related Terms
Youdao Net Margin % Historical Data
* Premium members only.
The historical data trend for Youdao's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:DAON vs LINC, COUR, AFYA: Net Margin % Comparison
For the Education & Training Services subindustry, Youdao's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Youdao Net Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Youdao's Net Margin % distribution charts can be found below:
* The bar in red indicates where Youdao's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Youdao (MEX:DAON) has a Net Margin % of 2.86% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Youdao and its competitors. According to the industry distribution chart, Youdao ranks #176 out of 258 companies in the Education industry, placing it in the top 68.2%.
Is Youdao's Net Margin % too high?
Youdao's current Net Margin % is 2.86%. The Education industry median Net Margin % is 5.72. Youdao's value of 2.86% is 50% below this industry median. Based on the distribution chart, Youdao ranks #176 out of 258 companies in the Education industry, which is below the industry midpoint. Overall, Youdao has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does Youdao's Net Margin % compare to LINC and COUR?
According to the Education industry distribution chart, Youdao ranks #176 out of 258 companies for Net Margin %. This places Youdao in the lower half of its industry. The industry median Net Margin % is 5.72. Youdao's value of 2.86% is 50% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for an Education company?
The median Net Margin % among Education companies is 5.72, based on 258 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Youdao's current Net Margin % of 2.86% is 50% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Youdao and its competitors. For the Education industry, the median Net Margin % is 5.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Youdao's current Net Margin % is 2.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Youdao stock overvalued right now?
Youdao (MEX:DAON) has a current Net Margin % of 2.86%. The stock's GF Value™ is MXN119.76, compared to a current price of MXN195.00 — trading 62.8% above its estimated fair value. The current Net Margin % is 2.86% and 50% below the Education industry median of 5.72. Youdao's overall GF Score™ is 73/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Youdao (MEX:DAON), the current Net Margin % is 2.86% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Youdao (MEX:DAON) Overvalued in 2026?
Based on GuruFocus' analysis, Youdao stock appears to be overvalued.
The current stock price of MXN195.00 is trading 62.8% above its estimated GF Value™ of MXN119.76.
Key valuation signals for MEX:DAON:
Net Margin %: 2.86%
GF Value™: MXN119.76 vs. price of MXN195.00 (62.8% above fair value)
Industry Position: 50% below the Education median (#176 of 258)
No single metric tells the full story. See the MEX:DAON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Youdao Inc develops and markets software applications. It engages in developing technologies to provide learning content, applications, and solutions. The firm operates in three segments: Learning services, Smart devices, and Online marketing services. The majority of its revenue comes from the Learning services segment, which generates revenues from online courses, mainly including Youdao Premium Courses, NetEase Cloud Classroom, and China University MOOC. The learning products segment includes sales of smart devices such as the Youdao Dictionary Pen and the Youdao Pocket Translator. Geographically, all of its revenue is generated from the People's Republic of China.
73GF Score
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Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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