AMAL

Amalgamated Financial

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Financial Services

industry

Banks - Regional

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

04/23/26

Business Summary

Duolingo operates a software-based language learning platform monetized primarily through subscriptions and premium features layered on top of a massive global user base. Its moat is built on scale, engagement loops, and data-driven personalization that improves learning outcomes over time, reinforcing user retention. High operating margins indicate that incremental users cost little to serve, allowing revenue growth to translate efficiently into operating income. The combination of brand recognition, gamified design, and recurring digital revenue creates a cash-generating engine with strong capital efficiency.

VALUATION

P/E

12.4

Market Cap ($M USD)

$1,256

Forward P/E

9.3

PEG

0.8

PRICE TO SALES

3.9

PRICE TO BOOK

1.6

EV / EBITDA

-

5-Year Average P/E

DIVIDEND

Yield

1.40%

Annual Payout

$0.59

Payout Ratio

16.30%

Consecutive Years of Dividend Growth

4

5-Year Dividend Growth Rate

16.30%

Financial Health & Profitability

Earnings Per Share

$3.44

Next Year EPS Growth Estimate

$4.53

Next Year Revenue Growth Estimate

6.50%

Return on Equity (ROE)

13.20%

Operating Margin

47.90%

Debt-to-Equity

0.1

Piotroski F-Score

5

Altman Z-Score

0.3

Return on Invested Capital (ROIC)

26.10%%

Current Ratio

-

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 10.5x earnings and 11.1x forward earnings, DUOL is priced like a slow-growth utility, not a 30.70% operating margin software platform generating 32.60% ROIC. The 5.4 Altman Z-Score signals extremely low bankruptcy risk, while a 2.6 current ratio reinforces balance sheet stability. Despite a Piotroski F-Score of 4 indicating only middling fundamental momentum, the combination of high ROIC and modest valuation multiples suggests the market is not pricing in sustained capital efficiency. This looks less like a speculative tech multiple and more like a mispriced cash-generating compounder hiding in plain sight.

AI Exposure / Tech Reliance

As a Software - Application company in the Technology sector, DUOL sits directly in the path of AI-driven personalization and automation trends. Software platforms that leverage adaptive algorithms can scale learning efficiency without proportional cost increases, reinforcing already strong 30.70% operating margins. In a Nasdaq-listed tech ecosystem, digital-native infrastructure gives it structural resilience compared to legacy education models.

The Bull Case

A GARP investor buys this because 32.60% ROIC paired with a 14.50% ROE signals genuine capital productivity, not accounting distortion. Operating margins at 30.70% demonstrate scalable economics, and a Debt/Equity ratio of 13.10% keeps financial leverage contained. The 5.4 Altman Z-Score and 2.6 current ratio reduce solvency risk, while a 10.5 P/E and 11.1 forward P/E fail to reflect a business generating elite returns on invested capital. Even with a Piotroski F-Score of 4, the core profitability metrics and balance sheet strength create a classic quality-at-a-reasonable-price setup.

The Bear Case

The Piotroski F-Score of 4 is a warning that fundamental momentum is not robust, and the absence of a reported PEG Forward ratio removes visibility into growth-adjusted valuation. Debt/Equity at 13.10% is manageable but not trivial for a company in a competitive software niche, and the lack of short interest data obscures sentiment risk. EPS is listed at 21.2 while next year’s estimate is $9.05, implying potential earnings compression that could justify the muted multiple. Institutional Ownership reported at $103.73 raises data consistency concerns, which alone should force deeper diligence before capital deployment.

Market Sentiment & Smart Money

Short Interest %

6.90%

Analyst Consensus

2.67

Average Analyst Price Target

$42.00

Institutional Ownership %

62.00%

1-Year Beta

1.05

Insider Buying % (6 Mo)

25.60%%

Distance to 52-Week High

98.80%%

Distance to 52-Week Low

167.70%%