Investors should take note of NASDAQ:PDD, a growth stock that remains attractively priced.

Our stock screener has singled out PDD HOLDINGS INC (NASDAQ:PDD) as an attractive growth opportunity. NASDAQ:PDD is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Growth Assessment of NASDAQ:PDD

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:PDD has earned a 8 for growth:

• The Earnings Per Share has grown by an impressive 49.42% over the past year.
• PDD shows a strong growth in Revenue. In the last year, the Revenue has grown by 68.33%.
• PDD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 137.06% yearly.
• The Earnings Per Share is expected to grow by 19.97% on average over the next years. This is quite good.
• PDD is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 36.34% yearly.

Analyzing Valuation Metrics

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:PDD scores a 5 out of 10:

• Compared to the rest of the industry, the Price/Earnings ratio of PDD indicates a somewhat cheap valuation: PDD is cheaper than 71.88% of the companies listed in the same industry.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of PDD indicates a somewhat cheap valuation: PDD is cheaper than 62.50% of the companies listed in the same industry.
• PDD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PDD is cheaper than 62.50% of the companies in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• PDD has a very decent profitability rating, which may justify a higher PE ratio.
• PDD's earnings are expected to grow with 34.41% in the coming years. This may justify a more expensive valuation.

Health Assessment of NASDAQ:PDD

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:PDD, the assigned 7 reflects its health status:

• PDD has an Altman-Z score of 7.39. This indicates that PDD is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 7.39, PDD belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
• The Debt to FCF ratio of PDD is 0.19, which is an excellent value as it means it would take PDD, only 0.19 years of fcf income to pay off all of its debts.
• PDD's Debt to FCF ratio of 0.19 is amongst the best of the industry. PDD outperforms 93.75% of its industry peers.
• A Debt/Equity ratio of 0.01 indicates that PDD is not too dependend on debt financing.
• With a decent Debt to Equity ratio value of 0.01, PDD is doing good in the industry, outperforming 78.13% of the companies in the same industry.
• PDD's Quick ratio of 1.83 is fine compared to the rest of the industry. PDD outperforms 68.75% of its industry peers.

What does the Profitability looks like for NASDAQ:PDD

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:PDD, the assigned 7 is noteworthy for profitability:

• PDD has a better Return On Assets (14.70%) than 96.88% of its industry peers.
• Looking at the Return On Equity, with a value of 28.51%, PDD belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
• PDD's Return On Invested Capital of 22.83% is amongst the best of the industry. PDD outperforms 93.75% of its industry peers.
• The Profit Margin of PDD (23.27%) is better than 96.88% of its industry peers.
• PDD has a Operating Margin of 22.87%. This is amongst the best in the industry. PDD outperforms 96.88% of its industry peers.
• PDD has a Gross Margin of 66.98%. This is amongst the best in the industry. PDD outperforms 84.38% of its industry peers.
• PDD's Gross Margin has improved in the last couple of years.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Check the latest full fundamental report of PDD for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.