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Fangdd Network Group Ltd Sponsored ADR (DUO)
NASDAQ:DUO
US Market

Fangdd Network Group (DUO) AI Stock Analysis

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Fangdd Network Group

(NASDAQ:DUO)

37Underperform
Fangdd Network Group's overall stock score is at the low end of the range due to significant financial challenges, bearish technical indicators, and a negative valuation outlook. The absence of positive earnings and cash flow, coupled with a lack of guidance or strategic direction from the latest earnings call, contributes to a pessimistic view of the stock's near-term prospects.

Fangdd Network Group (DUO) vs. S&P 500 (SPY)

Fangdd Network Group Business Overview & Revenue Model

Company DescriptionFangdd Network Group (DUO) is a leading Chinese real estate technology company that provides an online platform facilitating real estate transactions. The company operates in the real estate and technology sectors, offering a suite of services that includes property listings, transaction services, and data analytics. Fangdd aims to enhance the efficiency and transparency of the real estate market by connecting buyers, sellers, and agents through its digital platform.
How the Company Makes MoneyFangdd Network Group makes money primarily through transaction commissions and service fees charged to real estate agents and brokers who use its platform to facilitate property sales. The company earns commissions from successful property transactions completed through its platform. Additionally, Fangdd generates revenue from subscription fees for premium services and tools offered to real estate agents that enhance their business operations, such as data analytics and customer management solutions. Strategic partnerships with financial institutions and real estate developers also contribute to its earnings by expanding its service offerings and client base.

Fangdd Network Group Financial Statement Overview

Summary
Fangdd Network Group is experiencing persistent financial difficulties, with declining revenues, negative profitability, and cash flow challenges across the board. Although leverage is low, the lack of positive earnings and cash flow raises concerns about sustainability and long-term viability. Strategic improvements are necessary to stabilize its financial position.
Income Statement
30
Negative
The company has faced significant revenue declines over the years, from 2019 to 2023. The gross profit margin has deteriorated, and net profit margins remain negative, indicating ongoing profitability challenges. Despite the revenue increase from 2022 to 2023, overall financial performance has been weak due to persistent losses and negative EBIT and EBITDA margins.
Balance Sheet
45
Neutral
The company's debt-to-equity ratio is low, suggesting manageable leverage, but the low equity ratio indicates potential solvency concerns. The return on equity remains negative due to consistent net losses. The shrinking asset base and declining stockholders' equity highlight ongoing financial strain.
Cash Flow
35
Negative
The company has negative operating and free cash flows, which have worsened from 2022 to 2023. The operating cash flow to net income ratio is unfavorable, reflecting inefficiencies in converting earnings into cash. The free cash flow growth rate is negative, indicating cash flow challenges despite some improvement in financing activities.
Breakdown
Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
284.96M245.95M942.38M2.45B3.60B
Gross Profit
41.19M24.73M106.51M414.47M757.04M
EBIT
-265.17M-249.39M-935.00M-226.02M-536.76M
EBITDA
-92.56M-223.62M-949.60M-189.94M-493.06M
Net Income Common Stockholders
-91.75M-226.75M-1.20B-221.38M-510.39M
Balance SheetCash, Cash Equivalents and Short-Term Investments
137.04M145.93M498.26M852.45M1.12B
Total Assets
769.90M1.08B1.91B4.05B4.37B
Total Debt
140.00K74.53M134.78M443.44M490.00M
Net Debt
-121.59M-69.40M-357.33M-400.00M-613.75M
Total Liabilities
578.40M1.08B1.61B4.05B2.78B
Stockholders Equity
195.84M100.12M313.26M1.47B1.59B
Cash FlowFree Cash Flow
-186.41M-127.18M-73.08M-335.24M116.82M
Operating Cash Flow
-186.12M-126.98M-60.62M-325.00M118.51M
Investing Cash Flow
31.43M-159.27M-43.73M5.85M-151.81M
Financing Cash Flow
119.83M-58.65M-307.13M-46.56M593.44M

Fangdd Network Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.43
Price Trends
50DMA
0.58
Negative
100DMA
0.72
Negative
200DMA
0.74
Negative
Market Momentum
MACD
-0.03
Positive
RSI
31.98
Neutral
STOCH
20.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DUO, the sentiment is Negative. The current price of 0.43 is below the 20-day moving average (MA) of 0.55, below the 50-day MA of 0.58, and below the 200-day MA of 0.74, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 31.98 is Neutral, neither overbought nor oversold. The STOCH value of 20.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DUO.

Fangdd Network Group Risk Analysis

Fangdd Network Group disclosed 88 risk factors in its most recent earnings report. Fangdd Network Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Fangdd Network Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$2.60B24.913.83%8.31%-49.90%
63
Neutral
$1.49B-7.50%2.02%6.69%-137.52%
61
Neutral
$4.74B19.16-3.00%7.93%6.45%-20.78%
ZGZG
60
Neutral
$17.41B-2.39%14.96%29.56%
58
Neutral
$1.23B199.35%-4.16%-17.19%
44
Neutral
$868.22M-46.67%-25.81%-34.43%
DUDUO
37
Underperform
$211.93M-35.80%2.56%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DUO
Fangdd Network Group
0.42
-0.32
-43.24%
ZG
Zillow Group Class A
68.42
13.58
24.76%
EXPI
eXp World Holdings
9.66
-2.48
-20.43%
RDFN
Redfin
9.76
2.68
37.85%
REZI
Resideo Technologies
17.76
-4.94
-21.76%
OPEN
Opendoor Technologies
1.11
-1.75
-61.19%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.