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PDD HOLDINGS INC (PDD) Stock Fundamental Analysis

NASDAQ:PDD - Nasdaq - US7223041028 - ADR - Currency: USD

103.59  -0.38 (-0.37%)

After market: 103.55 -0.04 (-0.04%)

Fundamental Rating

8

Overall PDD gets a fundamental rating of 8 out of 10. We evaluated PDD against 28 industry peers in the Broadline Retail industry. PDD gets an excellent profitability rating and is at the same time showing great financial health properties. PDD is growing strongly while it also seems undervalued. This is an interesting combination These ratings would make PDD suitable for value and growth and quality investing!


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

PDD had positive earnings in the past year.
In the past year PDD had a positive cash flow from operations.
Of the past 5 years PDD 4 years were profitable.
In the past 5 years PDD always reported a positive cash flow from operatings.
PDD Yearly Net Income VS EBIT VS OCF VS FCFPDD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20B 40B 60B 80B 100B

1.2 Ratios

PDD's Return On Assets of 18.69% is amongst the best of the industry. PDD outperforms 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 30.08%, PDD belongs to the top of the industry, outperforming 89.29% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 24.85%, PDD belongs to the top 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 11.59%.
Industry RankSector Rank
ROA 18.69%
ROE 30.08%
ROIC 24.85%
ROA(3y)17.6%
ROA(5y)10.52%
ROE(3y)31.57%
ROE(5y)18.63%
ROIC(3y)25.13%
ROIC(5y)N/A
PDD Yearly ROA, ROE, ROICPDD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40 -60 -80

1.3 Margins

PDD's Profit Margin of 24.63% is amongst the best of the industry. PDD outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of PDD has grown nicely.
PDD has a better Operating Margin (24.47%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of PDD has grown nicely.
With an excellent Gross Margin value of 59.73%, PDD belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
PDD's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 24.47%
PM (TTM) 24.63%
GM 59.73%
OM growth 3Y55.36%
OM growth 5YN/A
PM growth 3Y51.14%
PM growth 5YN/A
GM growth 3Y-2.75%
GM growth 5Y-5.06%
PDD Yearly Profit, Operating, Gross MarginsPDD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50

9

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PDD is creating value.
Compared to 1 year ago, PDD has more shares outstanding
The number of shares outstanding for PDD has been increased compared to 5 years ago.
The debt/assets ratio for PDD has been reduced compared to a year ago.
PDD Yearly Shares OutstandingPDD Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
PDD Yearly Total Debt VS Total AssetsPDD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 100B 200B 300B 400B 500B

2.2 Solvency

An Altman-Z score of 5.62 indicates that PDD is not in any danger for bankruptcy at the moment.
PDD has a better Altman-Z score (5.62) than 85.71% of its industry peers.
PDD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.05
Altman-Z 5.62
ROIC/WACC3.14
WACC7.92%
PDD Yearly LT Debt VS Equity VS FCFPDD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 100B 200B 300B

2.3 Liquidity

PDD has a Current Ratio of 2.27. This indicates that PDD is financially healthy and has no problem in meeting its short term obligations.
PDD has a better Current ratio (2.27) than 78.57% of its industry peers.
PDD has a Quick Ratio of 2.27. This indicates that PDD is financially healthy and has no problem in meeting its short term obligations.
PDD's Quick ratio of 2.27 is amongst the best of the industry. PDD outperforms 89.29% of its industry peers.
Industry RankSector Rank
Current Ratio 2.27
Quick Ratio 2.27
PDD Yearly Current Assets VS Current LiabilitesPDD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 100B 200B 300B 400B

8

3. Growth

3.1 Past

PDD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.07%, which is quite impressive.
PDD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 106.51% yearly.
The Revenue has grown by 35.67% in the past year. This is a very strong growth!
PDD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 67.20% yearly.
EPS 1Y (TTM)22.07%
EPS 3Y106.51%
EPS 5YN/A
EPS Q2Q%-44.93%
Revenue 1Y (TTM)35.67%
Revenue growth 3Y61.24%
Revenue growth 5Y67.2%
Sales Q2Q%10.21%

3.2 Future

Based on estimates for the next years, PDD will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.78% on average per year.
PDD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.05% yearly.
EPS Next Y-25.44%
EPS Next 2Y-0.7%
EPS Next 3Y5.8%
EPS Next 5Y8.78%
Revenue Next Year7.55%
Revenue Next 2Y11.42%
Revenue Next 3Y12.14%
Revenue Next 5Y11.05%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
PDD Yearly Revenue VS EstimatesPDD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 200B 400B 600B
PDD Yearly EPS VS EstimatesPDD Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 20 40 60 80 100

8

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 10.11, which indicates a very decent valuation of PDD.
Compared to the rest of the industry, the Price/Earnings ratio of PDD indicates a rather cheap valuation: PDD is cheaper than 85.71% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. PDD is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.10, the valuation of PDD can be described as very reasonable.
Based on the Price/Forward Earnings ratio, PDD is valued cheaper than 82.14% of the companies in the same industry.
PDD is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.11
Fwd PE 9.1
PDD Price Earnings VS Forward Price EarningsPDD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, PDD is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PDD is valued cheaper than 85.71% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.05
EV/EBITDA 3.95
PDD Per share dataPDD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

The excellent profitability rating of PDD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.7%
EPS Next 3Y5.8%

0

5. Dividend

5.1 Amount

No dividends for PDD!.
Industry RankSector Rank
Dividend Yield N/A

PDD HOLDINGS INC

NASDAQ:PDD (7/3/2025, 7:59:31 PM)

After market: 103.55 -0.04 (-0.04%)

103.59

-0.38 (-0.37%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)05-27 2025-05-27/bmo
Earnings (Next)08-25 2025-08-25/bmo
Inst Owners32.25%
Inst Owner Change20.3%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap147.06B
Analysts77.78
Price Target133.96 (29.32%)
Short Float %9.09%
Short Ratio3.86
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-19.14%
Min EPS beat(2)-38.98%
Max EPS beat(2)0.7%
EPS beat(4)2
Avg EPS beat(4)-6.76%
Min EPS beat(4)-38.98%
Max EPS beat(4)18.22%
EPS beat(8)6
Avg EPS beat(8)25.13%
EPS beat(12)9
Avg EPS beat(12)44.51%
EPS beat(16)13
Avg EPS beat(16)152.32%
Revenue beat(2)0
Avg Revenue beat(2)-6.34%
Min Revenue beat(2)-7.59%
Max Revenue beat(2)-5.08%
Revenue beat(4)0
Avg Revenue beat(4)-5.19%
Min Revenue beat(4)-7.59%
Max Revenue beat(4)-3.91%
Revenue beat(8)4
Avg Revenue beat(8)5.91%
Revenue beat(12)7
Avg Revenue beat(12)8.75%
Revenue beat(16)8
Avg Revenue beat(16)4.71%
PT rev (1m)-14.85%
PT rev (3m)-13%
EPS NQ rev (1m)-27.26%
EPS NQ rev (3m)-26.78%
EPS NY rev (1m)-31.11%
EPS NY rev (3m)-32.18%
Revenue NQ rev (1m)-10.13%
Revenue NQ rev (3m)-10.44%
Revenue NY rev (1m)-9.48%
Revenue NY rev (3m)-13.83%
Valuation
Industry RankSector Rank
PE 10.11
Fwd PE 9.1
P/S 2.62
P/FCF 9.05
P/OCF 9.05
P/B 3.19
P/tB 3.19
EV/EBITDA 3.95
EPS(TTM)10.25
EY9.89%
EPS(NY)11.39
Fwd EY10.99%
FCF(TTM)11.45
FCFY11.05%
OCF(TTM)11.45
OCFY11.05%
SpS39.61
BVpS32.43
TBVpS32.43
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 18.69%
ROE 30.08%
ROCE 29.55%
ROIC 24.85%
ROICexc N/A
ROICexgc N/A
OM 24.47%
PM (TTM) 24.63%
GM 59.73%
FCFM 28.9%
ROA(3y)17.6%
ROA(5y)10.52%
ROE(3y)31.57%
ROE(5y)18.63%
ROIC(3y)25.13%
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)29.87%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y55.36%
OM growth 5YN/A
PM growth 3Y51.14%
PM growth 5YN/A
GM growth 3Y-2.75%
GM growth 5Y-5.06%
F-Score5
Asset Turnover0.76
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.05
Debt/EBITDA 0
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 250
Cash Conversion 115.03%
Profit Quality 117.34%
Current Ratio 2.27
Quick Ratio 2.27
Altman-Z 5.62
F-Score5
WACC7.92%
ROIC/WACC3.14
Cap/Depr(3y)32.05%
Cap/Depr(5y)64.52%
Cap/Sales(3y)0.32%
Cap/Sales(5y)0.91%
Profit Quality(3y)138.42%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.07%
EPS 3Y106.51%
EPS 5YN/A
EPS Q2Q%-44.93%
EPS Next Y-25.44%
EPS Next 2Y-0.7%
EPS Next 3Y5.8%
EPS Next 5Y8.78%
Revenue 1Y (TTM)35.67%
Revenue growth 3Y61.24%
Revenue growth 5Y67.2%
Sales Q2Q%10.21%
Revenue Next Year7.55%
Revenue Next 2Y11.42%
Revenue Next 3Y12.14%
Revenue Next 5Y11.05%
EBIT growth 1Y26.74%
EBIT growth 3Y150.51%
EBIT growth 5YN/A
EBIT Next Year8.47%
EBIT Next 3Y18.33%
EBIT Next 5Y4.33%
FCF growth 1Y97.54%
FCF growth 3Y68.03%
FCF growth 5Y52.23%
OCF growth 1Y97.54%
OCF growth 3Y61.8%
OCF growth 5Y52.42%