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YoudaoMEX:DAON 16 Return-on-Tangible-Asset is 17.19% as of Jun. 2026. GuruFocus rates MEX:DAON with a GF Score™ of 16/100 and a GF Value™ of MXN110.06 (Significantly Overvalued). Among 265 Education companies, Youdao ranks better than 71.32% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Youdao's annualizedNet Income for the quarter that ended in Jun. 2026 was MXN760 Mil. Youdao's average total tangible assets for the quarter that ended in Jun. 2026 was MXN4,423 Mil. Therefore, Youdao's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 17.19%.
The historical rank and industry rank for Youdao's Return-on-Tangible-Asset or its related term are showing as below:
MEX:DAON'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -87.45 Med: -43.92 Max: 9.47
Current: 9.47
During the past 9 years, Youdao's highest Return-on-Tangible-Asset was 9.47%. The lowest was -87.45%. And the median was -43.92%.
MEX:DAON's Return-on-Tangible-Asset is ranked better than 71.32% of 265
companies
in the Education industry
Industry Median: 4.39
vs MEX:DAON: 9.47
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Youdao Return-on-Tangible-Asset Related Terms
Youdao Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Youdao's Return-on-Tangible-Asset 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 PRDO, STRA, COUR: Return-on-Tangible-Asset Comparison
For the Education & Training Services subindustry, Youdao's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Education Industry
For the Education industry and Consumer Defensive sector, Youdao's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Youdao's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Jun. 2026) net income data.
What does a Return-on-Tangible-Asset of 17.19% mean?
Youdao (MEX:DAON) has a Return-on-Tangible-Asset of 17.19% as of Jun. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Youdao and its competitors. According to the industry distribution chart, Youdao ranks #76 out of 265 companies in the Education industry, placing it in the top 28.7%.
Is Youdao's Return-on-Tangible-Asset too high?
Youdao's current Return-on-Tangible-Asset is 17.19%. The Education industry median Return-on-Tangible-Asset is 4.39. Youdao's value of 17.19% is 291.6% above this industry median. Based on the distribution chart, Youdao ranks #76 out of 265 companies in the Education industry, which is above the industry midpoint. Overall, Youdao has a GF Score™ of 16/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Youdao's Return-on-Tangible-Asset compare to PRDO and STRA?
According to the Education industry distribution chart, Youdao ranks #76 out of 265 companies for Return-on-Tangible-Asset. This puts Youdao in the upper half of its industry. The industry median Return-on-Tangible-Asset is 4.39. Youdao's value of 17.19% is 291.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for an Education company?
The median Return-on-Tangible-Asset among Education companies is 4.39, based on 265 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Youdao's current Return-on-Tangible-Asset of 17.19% is 291.6% above 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Youdao and its competitors. For the Education industry, the median Return-on-Tangible-Asset is 4.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Youdao's current Return-on-Tangible-Asset is 17.19%. 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?
Based on GuruFocus' analysis, Youdao (MEX:DAON) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN110.06, compared to a current price of MXN210.00 — trading 90.8% above its estimated fair value. The current Return-on-Tangible-Asset is 17.19% and 291.6% above the Education industry median of 4.39. Youdao's overall GF Score™ is 16/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Youdao (MEX:DAON), the current Return-on-Tangible-Asset is 17.19% as of Jun. 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 MXN210.00 is trading 90.8% above its estimated GF Value™ of MXN110.06.
GuruFocus considers Youdao to be Significantly Overvalued.
Key valuation signals for MEX:DAON:
Return-on-Tangible-Asset: 17.19%
GF Value™: MXN110.06 vs. price of MXN210.00 (90.8% above fair value)
Industry Position: 291.6% above the Education median (#76 of 265)
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.
16GF Score
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