In the world of growth stocks, NASDAQ:PDD shines as a value proposition.

Last update: Feb 5, 2024

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.

Evaluating Growth: NASDAQ:PDD

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:PDD scores a 8 out of 10:

PDD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 49.42%, which is quite impressive.
Looking at the last year, PDD shows a very strong growth in Revenue. The Revenue has grown by 68.33%.
Measured over the past years, PDD shows a very strong growth in Revenue. The Revenue has been growing by 137.06% on average per year.
Based on estimates for the next years, PDD will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.97% on average per year.
PDD is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 102.80% yearly.

Valuation Assessment of NASDAQ:PDD

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:PDD boasts a 6 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.
The average S&P500 Price/Forward Earnings ratio is at 21.44. PDD is valued slightly cheaper when compared to this.
PDD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PDD is cheaper than 65.63% 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.
The decent profitability rating of PDD may justify a higher PE ratio.
PDD's earnings are expected to grow with 36.78% in the coming years. This may justify a more expensive valuation.

Health Assessment of NASDAQ:PDD

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:PDD, the assigned 7 for health provides valuable insights:

An Altman-Z score of 6.50 indicates that PDD is not in any danger for bankruptcy at the moment.
PDD's Altman-Z score of 6.50 is amongst the best of the industry. PDD outperforms 93.75% of its industry peers.
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.
PDD has a better Debt to Equity ratio (0.01) than 78.13% of its industry peers.
With a decent Quick ratio value of 1.83, PDD is doing good in the industry, outperforming 68.75% of the companies in the same industry.

Profitability Insights: 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:

With an excellent Return On Assets value of 14.70%, PDD belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
PDD has a better Return On Equity (28.51%) than 90.63% of its industry peers.
PDD has a better Return On Invested Capital (22.83%) than 93.75% of its industry peers.
PDD's Profit Margin of 23.27% is amongst the best of the industry. PDD outperforms 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's Gross Margin of 66.98% is amongst the best of the industry. PDD outperforms 84.38% of its industry peers.
In the last couple of years the Gross Margin of PDD has grown nicely.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of PDD

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.