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

Youdao, Inc.'s (DAO) compliance score is being calculated. Check HalalScreener.app for the latest AAOIFI screening results.

Does Youdao, Inc. pass AAOIFI screening?

Youdao, Inc. (DAO) does not pass 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: 107.4%), (3) interest-bearing deposits below 30% (DAO: 43.0%), and (4) prohibited income below 5% (DAO: 0.0%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

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

Youdao, Inc. (DAO) has a non-permissible income ratio of 0.04%. Muslim investors should purify this percentage of any dividends received and capital gains realized from DAO shares by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification automates this calculation 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 10,000+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows all financial ratios transparently. No credit card or signup required for basic screening. 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

$11.57

-5.40%

Market Cap: 1.4B

Compliance Status

Not Halal

Screened on Jul 20, 2026 · AAOIFI Standard 21

Non-Compliant

0Score

Is Youdao, Inc. (DAO) halal? Not Halal. Based on AAOIFI screening, Youdao, Inc. passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

AvoidBorderlineClean

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

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

107.4% of 30.0% limit

What this means for you

Most scholars advise not holding DAO

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

About Youdao, Inc.

Youdao, Inc., an internet technology company, provides online services in the field of content, community, communication, and commerce in China. It operates through three segments: Learning Services, Smart Devices, and Online Marketing Services. The company provides various learning content, applications, and solutions, which cover topics and target people from various age groups for their learning needs through its websites and mobile applications. It offers online knowledge tools, which include Youdao and other dictionaries and translation tools; learning services consisting of tutoring, fee-based premium, and other services; STEAM courses, adult and vocational courses, and other courses, such as China University MOOC; smart devices, such as Youdao Dictionary Pen, Youdao Listening Pod, Youdao Smart Lamp, Youdao Pocket Translator, and Youdao Super Dictionary; education digitalization solutions comprising technologies and solutions licensed to schools or enterprise customers, such as Youdao Smart Learning Terminal, and Youdao Smart Cloud; and online marketing services. In addition, the company provides online courses comprising Youdao Premium Courses and NetEase Cloud Classroom, as well as technical support to the variable interest entities (VIEs). Youdao, Inc. was founded in 2006 and is headquartered in Hangzhou, China. Youdao, Inc. is a subsidiary of NetEase, Inc.

Sector: Consumer Defensive · Industry: Education & Training Services

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 20, 2026

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

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

Fiscal: FY 2025Data source: FMP

Halal Alternatives in Consumer Defensive

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

JBSSA+

John B. Sanfilippo & Son, Inc.

$74.09

+0.32%

LWAYA+

Lifeway Foods, Inc.

$31.41

-2.85%

LINCA+

Lincoln Educational Services Corporation

$49.31

-1.16%

MAMAA+

Mama's Creations, Inc.

$17.77

+12.97%

MZTIA+

The Marzetti Company

$107.14

-2.47%

More Consumer Defensive Stocks

The Procter & Gamble Company

The Coca-Cola Company

B+

WMT

Walmart Inc.

PEP

PepsiCo, Inc.

B+

COST

Costco Wholesale Corporation

Philip Morris International Inc.

Free · No credit card required

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Frequently Asked Questions

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

Youdao, Inc. (DAO) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.

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

Youdao, Inc. (DAO) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 107.4% (limit 30%); interest-bearing deposits of 43.0% (limit 30%); prohibited income of 0.04% (limit 5%). 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: Jul 20, 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.