Looking for growth without the hefty price tag? Consider NASDAQ:PDD.

Last update: Sep 27, 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.

A Closer Look at Growth for NASDAQ:PDD

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:PDD, the assigned 8 reflects its growth potential:

PDD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 112.20%, which is quite impressive.
PDD shows a strong growth in Revenue. In the last year, the Revenue has grown by 106.72%.
PDD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 79.96% yearly.
Based on estimates for the next years, PDD will show a very strong growth in Earnings Per Share. The EPS will grow by 30.86% on average per year.
The Revenue is expected to grow by 26.32% on average over the next years. This is a very strong growth

Deciphering NASDAQ:PDD's Valuation Rating

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 8 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 62.50% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PDD to the average of the S&P500 Index (30.91), we can say PDD is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.75, the valuation of PDD can be described as very reasonable.
81.25% of the companies in the same industry are more expensive than PDD, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.30, PDD is valued rather cheaply.
PDD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PDD is cheaper than 68.75% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PDD is valued a bit cheaper than 78.13% 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 excellent profitability rating of PDD may justify a higher PE ratio.
A more expensive valuation may be justified as PDD's earnings are expected to grow with 38.66% in the coming years.

Health Examination for NASDAQ:PDD

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:PDD has earned a 9 out of 10:

An Altman-Z score of 6.72 indicates that PDD is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.72, PDD belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
The Debt to FCF ratio of PDD is 0.04, which is an excellent value as it means it would take PDD, only 0.04 years of fcf income to pay off all of its debts.
PDD has a better Debt to FCF ratio (0.04) than 93.75% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that PDD is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.02, PDD is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
PDD has a Current Ratio of 2.11. This indicates that PDD is financially healthy and has no problem in meeting its short term obligations.
PDD has a better Current ratio (2.11) than 71.88% of its industry peers.
A Quick Ratio of 2.11 indicates that PDD has no problem at all paying its short term obligations.
PDD has a Quick ratio of 2.11. This is amongst the best in the industry. PDD outperforms 81.25% of its industry peers.

Profitability Assessment of NASDAQ:PDD

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:PDD, the assigned 8 is a significant indicator of profitability:

Looking at the Return On Assets, with a value of 22.84%, PDD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 38.91%, PDD belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
With an excellent Return On Invested Capital value of 31.76%, PDD belongs to the best of the industry, outperforming 100.00% 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 11.61%.
The 3 year average ROIC (17.97%) for PDD is below the current ROIC(31.76%), indicating increased profibility in the last year.
PDD has a Profit Margin of 28.93%. This is amongst the best in the industry. PDD outperforms 100.00% of its industry peers.
PDD's Operating Margin of 28.57% is amongst the best of the industry. PDD outperforms 100.00% of its industry peers.
With an excellent Gross Margin value of 62.44%, PDD belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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

Keep in mind

This article should in no way be interpreted as advice. 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.