What is Youdao, Inc.'s Shariah compliance score?

Youdao, Inc. (DAO) has a Shariah compliance score of 82/100 (Grade: A, Very Good) based on AAOIFI screening standards. Scores above 70 typically indicate strong compliance. The score factors in business activity screening and financial ratio analysis including debt levels, interest-bearing deposits, and prohibited income percentages. View the full breakdown at HalalScreener.app.

Does Youdao, Inc. pass AAOIFI screening?

Youdao, Inc. (DAO) passes AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (DAO: 15.6%), (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%. HalalScreener provides free AAOIFI screening for 6,200+ stocks at halalscreener.app.

How much purification is needed for Youdao, Inc. stock?

Muslim investors purify the portion of dividends and realized gains that comes from non-permissible income by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification computes the exact percentage and amount for Youdao, Inc. (DAO) using the latest financial data.

Where can I screen Youdao, Inc. for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Youdao, Inc. (DAO) and 5,100+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows the verdict, compliance grade, score, and debt ratio free. No credit card or signup required for basic screening; the full ratio breakdown is part of Pro. HalalScreener also includes an AI Islamic Scholar for follow-up questions about DAO's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

DAO: Is Youdao, Inc. Halal?

Youdao, Inc.

NYSEConsumer DefensiveCN

$14.89

-9.15%

Market Cap: 1.8B

Compliance Status

Halal

Screened on Sep 3, 2026 · AAOIFI Standard 21

Very Good

82Score

Is Youdao, Inc. (DAO) halal? Halal. Based on AAOIFI screening, Youdao, Inc. passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 82/100 (Grade: A).

Quote this verdict

HalalScreener rates Youdao, Inc. (DAO) Halal, 82/100, grade A under AAOIFI Standard 21, screened Sep 3, 2026. Source: https://halalscreener.app/en/stock/DAO

AvoidBorderlineClean

Business activity

What the company sells is permissible.

Passed

Company debt

Within the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

15.6% of 30.0% limit

What this means for you

You can own DAO

It passes both the business activity and financial ratio screens under AAOIFI Standard 21.

Purification amount is Pro

We have screened DAO's prohibited income, but the exact share you would need to purify is part of Pro.

About Youdao, Inc.

Youdao, Inc. is a Chinese internet technology company that delivers online services focused on content, community engagement, communication platforms, and e-commerce. Its operations are structured into three core divisions: Learning Services, Smart Devices, and Online Marketing Services. The company offers a wide array of learning content, software applications, and comprehensive solutions designed to meet the educational needs of various age groups and topics, accessible through its websites and mobile apps. Its diverse offerings include digital knowledge tools such as Youdao dictionaries and advanced translation utilities, alongside a range of learning services like tutoring and premium subscription content. It also provides specialized courses, including STEAM subjects, adult education, vocational training, and collaborative programs such as China University MOOC. Furthermore, Youdao develops smart hardware devices like the Youdao Dictionary Pen, Listening Pod, Smart Lamp, Pocket Translator, and Super Dictionary. For schools and enterprises, it licenses educational digitalization solutions, exemplified by the Youdao Smart Learning Terminal and Youdao Smart Cloud. The company also provides online advertising and promotional services. Its online course portfolio notably includes Youdao Premium Courses and content from NetEase Cloud Classroom, and it offers essential technical assistance to its variable interest entities. Established in 2006, Youdao, Inc. maintains its primary offices in Hangzhou, China, operating as a subsidiary of NetEase, Inc.

Sector: Consumer Defensive · Industry: Education & Training Services

Shariah Compliance Status

AAOIFI Standard 21Updated Sep 3, 2026

Compliance History

Halalnow
since Sep 2026
Not Halal
until the change above
Halal
until the change above
Under Review
until the change above
Not Halal
until the change above

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: FY 2025Data source: FMP

More Consumer Defensive Stocks

The Procter & Gamble Company

A+

The Coca-Cola Company

WMT

Walmart Inc.

PEP

PepsiCo, Inc.

B+

COST

Costco Wholesale Corporation

Philip Morris International Inc.

Free · No credit card required

Track DAO and 6,200+ stocks with AI insights

Create your free account to unlock AI-powered compliance analysis, track your portfolio, calculate purification, and get unlimited AAOIFI screening.

Get Started Free Browse Screener

6,200+ assets AAOIFI standards Free watchlist

Frequently Asked Questions

Is Youdao, Inc. (DAO) halal to invest in?

Based on AAOIFI Standard 21 screening, Youdao, Inc. (DAO) is rated Halal with a compliance grade of A (Very Good). It passes both the business activity screen (no primary involvement in prohibited sectors) and the quantitative financial ratio screen (debt, interest deposits, and prohibited income all below AAOIFI thresholds).

Why did Youdao, Inc. get a A compliance rating?

Youdao, Inc. (DAO) received a grade of A (Very Good) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 15.6% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Youdao, Inc.'s Shariah verdict?

Youdao, Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is Youdao, Inc. re-screened for Shariah compliance?

Youdao, Inc. (DAO) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Sep 3, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.