Operating Margin % is calculated as Operating Income divided by its Revenue. Youdao's Operating Income for the
three
months ended in Mar. 2026 was MXN150 Mil. Youdao's Revenue for the
three
months ended in Mar. 2026 was MXN3,527 Mil. Therefore, Youdao's Operating Margin % for the quarter that ended in Mar. 2026 was 4.27%.
The historical rank and industry rank for Youdao's Operating Margin % or its related term are showing as below:
MEX:DAON'
s Operating Margin % Range Over the Past 10 Years
Min: -36.59 Med: -21.16 Max: 3.75
Current: 2.95
MEX:DAON's Operating Margin % is ranked worse than 69.77% of 258
companies
in the Education industry
Industry Median: 9.46
vs MEX:DAON: 2.95
Youdao's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Youdao's Operating Income for the
three
months ended in Mar. 2026 was MXN150 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was MXN453 Mil.
Youdao (MEX:DAON) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Youdao Operating Margin % Related Terms
Youdao Operating Margin % Historical Data
* Premium members only.
The historical data trend for Youdao's Operating 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: Operating Margin % Comparison
For the Education & Training Services subindustry, Youdao's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Youdao's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Youdao's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Youdao's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 Operating Margin % of 4.27% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Youdao and its competitors. According to the industry distribution chart, Youdao ranks #180 out of 258 companies in the Education industry, placing it in the top 69.8%.
Is Youdao's Operating Margin % too high?
Youdao's current Operating Margin % is 4.27%. The Education industry median Operating Margin % is 9.46. Youdao's value of 4.27% is 54.9% below this industry median. Based on the distribution chart, Youdao ranks #180 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 Operating Margin % compare to LINC and COUR?
According to the Education industry distribution chart, Youdao ranks #180 out of 258 companies for Operating Margin %. This places Youdao in the lower half of its industry. The industry median Operating Margin % is 9.46. Youdao's value of 4.27% is 54.9% 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 Operating Margin % for an Education company?
The median Operating Margin % among Education companies is 9.46, based on 258 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Youdao's current Operating Margin % of 4.27% is 54.9% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Youdao and its competitors. For the Education industry, the median Operating Margin % is 9.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Youdao's current Operating Margin % is 4.27%. 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 Operating Margin % of 4.27%. 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 Operating Margin % is 4.27% and 54.9% below the Education industry median of 9.46. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Youdao (MEX:DAON), the current Operating Margin % is 4.27% 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:
Operating Margin %: 4.27%
GF Value™: MXN119.76 vs. price of MXN195.00 (62.8% above fair value)
Industry Position: 54.9% below the Education median (#180 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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