For those who appreciate growth without the sticker shock, NASDAQ:PDD is worth considering.

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.

How do we evaluate the Growth for NASDAQ:PDD?

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:PDD was assigned a score of 8 for growth:

• The Earnings Per Share has grown by an impressive 68.74% over the past year.
• Looking at the last year, PDD shows a very strong growth in Revenue. The Revenue has grown by 89.68%.
• PDD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 79.96% yearly.
• The Earnings Per Share is expected to grow by 30.98% on average over the next years. This is a very strong growth
• PDD is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.61% yearly.

Valuation Examination for NASDAQ:PDD

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:PDD, the assigned 6 reflects its valuation:

• 69.70% of the companies in the same industry are more expensive than PDD, based on the Price/Earnings ratio.
• PDD is valuated rather cheaply when we compare the Price/Earnings ratio to 24.67, which is the current average of the S&P500 Index.
• Based on the Price/Forward Earnings ratio, PDD is valued a bit cheaper than 66.67% of the companies in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 21.02. PDD is valued slightly cheaper when compared to this.
• 75.76% of the companies in the same industry are more expensive than PDD, based on the Price/Free Cash Flow ratio.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• PDD has an outstanding profitability rating, which may justify a higher PE ratio.
• PDD's earnings are expected to grow with 30.98% in the coming years. This may justify a more expensive valuation.

Exploring NASDAQ:PDD's Health

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 6.55 indicates that PDD is not in any danger for bankruptcy at the moment.
• The Altman-Z score of PDD (6.55) is better than 84.85% of its industry peers.
• The Debt to FCF ratio of PDD is 0.06, which is an excellent value as it means it would take PDD, only 0.06 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 0.06, PDD belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
• A Debt/Equity ratio of 0.03 indicates that PDD is not too dependend on debt financing.
• PDD has a better Debt to Equity ratio (0.03) than 78.79% of its industry peers.
• PDD has a Current ratio of 1.93. This is in the better half of the industry: PDD outperforms 66.67% of its industry peers.
• The Quick ratio of PDD (1.93) is better than 78.79% of its industry peers.

Profitability Analysis for NASDAQ:PDD

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:PDD has earned a 8 out of 10:

• PDD's Return On Assets of 17.25% is amongst the best of the industry. PDD outperforms 96.97% of its industry peers.
• The Return On Equity of PDD (32.06%) is better than 87.88% of its industry peers.
• With an excellent Return On Invested Capital value of 25.64%, PDD belongs to the best of the industry, outperforming 96.97% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for PDD is significantly above the industry average of 11.30%.
• The 3 year average ROIC (17.97%) for PDD is below the current ROIC(25.64%), indicating increased profibility in the last year.
• PDD has a Profit Margin of 24.24%. This is amongst the best in the industry. PDD outperforms 96.97% of its industry peers.
• The Operating Margin of PDD (23.70%) is better than 96.97% of its industry peers.
• Looking at the Gross Margin, with a value of 62.96%, PDD belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.

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

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

Disclaimer

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.