ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Youdao's annualizedNet Income for the quarter that ended in Mar. 2026 was MXN404 Mil.
Youdao's average Total Assets over the quarter that ended in Mar. 2026 was MXN4,713 Mil. Therefore, Youdao's annualized ROA % for the quarter that ended in Mar. 2026 was 8.57%.
The historical rank and industry rank for Youdao's ROA % or its related term are showing as below:
MEX:DAON'
s ROA % Range Over the Past 10 Years
Min: -87.3 Med: -42.82 Max: 5.76
Current: 4.04
During the past 9 years, Youdao's highest ROA % was 5.76%. The lowest was -87.30%. And the median was -42.82%.
MEX:DAON's ROA % is ranked better than 51.5% of 266
companies
in the Education industry
Industry Median: 3.825
vs MEX:DAON: 4.04
Youdao (MEX:DAON) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Youdao ROA % Related Terms
Youdao ROA % Historical Data
* Premium members only.
The historical data trend for Youdao's ROA % 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.
For the Education & Training Services subindustry, Youdao's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Education Industry
For the Education industry and Consumer Defensive sector, Youdao's ROA % distribution charts can be found below:
* The bar in red indicates where Youdao's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Youdao (MEX:DAON) has a ROA % of 8.57% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Youdao and its competitors. According to the industry distribution chart, Youdao ranks #129 out of 266 companies in the Education industry, placing it in the top 48.5%.
Is Youdao's ROA % too high?
Youdao's current ROA % is 8.57%. The Education industry median ROA % is 3.83. Youdao's value of 8.57% is 124.1% above this industry median. Based on the distribution chart, Youdao ranks #129 out of 266 companies in the Education industry, which is above 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 ROA % compare to LINC and COUR?
According to the Education industry distribution chart, Youdao ranks #129 out of 266 companies for ROA %. This puts Youdao in the upper half of its industry. The industry median ROA % is 3.83. Youdao's value of 8.57% is 124.1% 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 ROA % for an Education company?
The median ROA % among Education companies is 3.83, based on 266 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Youdao's current ROA % of 8.57% is 124.1% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Youdao and its competitors. For the Education industry, the median ROA % is 3.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Youdao's current ROA % is 8.57%. 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 ROA % of 8.57%. 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 ROA % is 8.57% and 124.1% above the Education industry median of 3.83. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Youdao (MEX:DAON), the current ROA % is 8.57% 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:
ROA %: 8.57%
GF Value™: MXN119.76 vs. price of MXN195.00 (62.8% above fair value)
Industry Position: 124.1% above the Education median (#129 of 266)
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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