PDD HOLDINGS INC (PDD) Stock Fundamental Analysis

NASDAQ:PDD • US7223041028

103.73 USD
-1.66 (-1.58%)
At close: Feb 27, 2026
103.69 USD
-0.04 (-0.04%)
After Hours: 2/27/2026, 5:43:14 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to PDD. PDD was compared to 30 industry peers in the Broadline Retail industry. Both the health and profitability get an excellent rating, making PDD a very profitable company, without any liquidiy or solvency issues. PDD is valued quite cheap, while showing a decent growth score. This is a good combination! This makes PDD very considerable for value and quality investing!


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • PDD had positive earnings in the past year.
  • PDD had a positive operating cash flow in the past year.
  • Of the past 5 years PDD 4 years were profitable.
  • Each year in the past 5 years PDD had a positive operating cash flow.
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

  • With an excellent Return On Assets value of 16.66%, PDD belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • With an excellent Return On Equity value of 26.13%, PDD belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 19.72%, PDD belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for PDD is significantly above the industry average of 9.32%.
  • The last Return On Invested Capital (19.72%) for PDD is well below the 3 year average (25.13%), which needs to be investigated, but indicates that PDD had better years and this may not be a problem.
Industry RankSector Rank
ROA 16.66%
ROE 26.13%
ROIC 19.72%
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

  • Looking at the Profit Margin, with a value of 24.43%, PDD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • In the last couple of years the Profit Margin of PDD has grown nicely.
  • The Operating Margin of PDD (22.10%) is better than 96.67% of its industry peers.
  • In the last couple of years the Operating Margin of PDD has grown nicely.
  • PDD has a Gross Margin of 56.65%. This is amongst the best in the industry. PDD outperforms 83.33% of its industry peers.
  • PDD's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 22.1%
PM (TTM) 24.43%
GM 56.65%
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

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ROAROEROICOperating and Profit MarginShow most profitable peers

9

2. Health

2.1 Basic Checks

  • PDD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • The number of shares outstanding for PDD has been increased compared to 1 year ago.
  • Compared to 5 years ago, PDD has more shares outstanding
  • 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

  • PDD has an Altman-Z score of 5.12. This indicates that PDD is financially healthy and has little risk of bankruptcy at the moment.
  • PDD has a Altman-Z score of 5.12. This is amongst the best in the industry. PDD outperforms 83.33% of its industry peers.
  • There is no outstanding debt for PDD. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.05
Altman-Z 5.12
ROIC/WACC2.42
WACC8.16%
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

  • A Current Ratio of 2.36 indicates that PDD has no problem at all paying its short term obligations.
  • PDD has a better Current ratio (2.36) than 80.00% of its industry peers.
  • A Quick Ratio of 2.36 indicates that PDD has no problem at all paying its short term obligations.
  • With an excellent Quick ratio value of 2.36, PDD belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.36
Quick Ratio 2.36
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

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

3.1 Past

  • The earnings per share for PDD have decreased by -6.46% in the last year.
  • The Earnings Per Share has been growing by 106.51% on average over the past years. This is a very strong growth
  • Looking at the last year, PDD shows a quite strong growth in Revenue. The Revenue has grown by 12.48% in the last year.
  • The Revenue has been growing by 67.20% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-6.46%
EPS 3Y106.51%
EPS 5YN/A
EPS Q2Q%13.39%
Revenue 1Y (TTM)12.48%
Revenue growth 3Y61.24%
Revenue growth 5Y67.2%
Sales Q2Q%8.98%

3.2 Future

  • PDD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.30% yearly.
  • The Revenue is expected to grow by 10.35% on average over the next years. This is quite good.
EPS Next Y-6.67%
EPS Next 2Y3.51%
EPS Next 3Y7.59%
EPS Next 5Y7.3%
Revenue Next Year9.17%
Revenue Next 2Y11.96%
Revenue Next 3Y12.04%
Revenue Next 5Y10.35%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • 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 2033 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 2033 0 50 100

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Find the best growth stocksShow best growing peers

7

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 9.50, the valuation of PDD can be described as reasonable.
  • Based on the Price/Earnings ratio, PDD is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of PDD to the average of the S&P500 Index (27.10), we can say PDD is valued rather cheaply.
  • A Price/Forward Earnings ratio of 8.01 indicates a reasonable valuation of PDD.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of PDD indicates a rather cheap valuation: PDD is cheaper than 86.67% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of PDD to the average of the S&P500 Index (28.06), we can say PDD is valued rather cheaply.
Industry RankSector Rank
PE 9.5
Fwd PE 8.01
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

  • 93.33% of the companies in the same industry are more expensive than PDD, based on the Enterprise Value to EBITDA ratio.
  • 73.33% of the companies in the same industry are more expensive than PDD, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 8.97
EV/EBITDA 2.88
PDD Per share dataPDD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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 2Y3.51%
EPS Next 3Y7.59%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • No dividends for PDD!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

PDD HOLDINGS INC

NASDAQ:PDD (2/27/2026, 5:43:14 PM)

After market: 103.69 -0.04 (-0.04%)

103.73

-1.66 (-1.58%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)11-18
Earnings (Next)03-18
Inst Owners32.47%
Inst Owner Change-0.62%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap147.26B
Revenue(TTM)418.54B
Net Income(TTM)102.27B
Analysts77.67
Price Target149.29 (43.92%)
Short Float %7.36%
Short Ratio3.02
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)2
Avg EPS beat(2)31.39%
Min EPS beat(2)23.91%
Max EPS beat(2)38.87%
EPS beat(4)3
Avg EPS beat(4)6.13%
Min EPS beat(4)-38.98%
Max EPS beat(4)38.87%
EPS beat(8)6
Avg EPS beat(8)23.66%
EPS beat(12)9
Avg EPS beat(12)28.68%
EPS beat(16)13
Avg EPS beat(16)52.14%
Revenue beat(2)0
Avg Revenue beat(2)-0.74%
Min Revenue beat(2)-1.11%
Max Revenue beat(2)-0.37%
Revenue beat(4)0
Avg Revenue beat(4)-3.6%
Min Revenue beat(4)-7.59%
Max Revenue beat(4)-0.37%
Revenue beat(8)2
Avg Revenue beat(8)0.27%
Revenue beat(12)5
Avg Revenue beat(12)4.85%
Revenue beat(16)8
Avg Revenue beat(16)6.7%
PT rev (1m)-0.51%
PT rev (3m)0.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)10.01%
EPS NY rev (1m)0.01%
EPS NY rev (3m)11.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.51%
Valuation
Industry RankSector Rank
PE 9.5
Fwd PE 8.01
P/S 2.41
P/FCF 8.97
P/OCF 8.97
P/B 2.57
P/tB 2.57
EV/EBITDA 2.88
EPS(TTM)10.92
EY10.53%
EPS(NY)12.95
Fwd EY12.49%
FCF(TTM)11.57
FCFY11.15%
OCF(TTM)11.57
OCFY11.15%
SpS43.09
BVpS40.3
TBVpS40.3
PEG (NY)N/A
PEG (5Y)N/A
Graham Number99.51
Profitability
Industry RankSector Rank
ROA 16.66%
ROE 26.13%
ROCE 23.45%
ROIC 19.72%
ROICexc N/A
ROICexgc N/A
OM 22.1%
PM (TTM) 24.43%
GM 56.65%
FCFM 26.85%
ROA(3y)17.6%
ROA(5y)10.52%
ROE(3y)31.57%
ROE(5y)18.63%
ROIC(3y)25.13%
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)29.87%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.68
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 118.11%
Profit Quality 109.87%
Current Ratio 2.36
Quick Ratio 2.36
Altman-Z 5.12
F-Score5
WACC8.16%
ROIC/WACC2.42
Cap/Depr(3y)30.26%
Cap/Depr(5y)54.88%
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)-6.46%
EPS 3Y106.51%
EPS 5YN/A
EPS Q2Q%13.39%
EPS Next Y-6.67%
EPS Next 2Y3.51%
EPS Next 3Y7.59%
EPS Next 5Y7.3%
Revenue 1Y (TTM)12.48%
Revenue growth 3Y61.24%
Revenue growth 5Y67.2%
Sales Q2Q%8.98%
Revenue Next Year9.17%
Revenue Next 2Y11.96%
Revenue Next 3Y12.04%
Revenue Next 5Y10.35%
EBIT growth 1Y-12.1%
EBIT growth 3Y150.51%
EBIT growth 5YN/A
EBIT Next Year-14.82%
EBIT Next 3Y9.31%
EBIT Next 5Y3.37%
FCF growth 1Y34.05%
FCF growth 3Y68.03%
FCF growth 5Y52.24%
OCF growth 1Y34.05%
OCF growth 3Y61.8%
OCF growth 5Y52.42%

PDD HOLDINGS INC / PDD FAQ

What is the ChartMill fundamental rating of PDD HOLDINGS INC (PDD) stock?

ChartMill assigns a fundamental rating of 7 / 10 to PDD.


What is the valuation status of PDD HOLDINGS INC (PDD) stock?

ChartMill assigns a valuation rating of 7 / 10 to PDD HOLDINGS INC (PDD). This can be considered as Undervalued.


How profitable is PDD HOLDINGS INC (PDD) stock?

PDD HOLDINGS INC (PDD) has a profitability rating of 9 / 10.


What are the PE and PB ratios of PDD HOLDINGS INC (PDD) stock?

The Price/Earnings (PE) ratio for PDD HOLDINGS INC (PDD) is 9.5 and the Price/Book (PB) ratio is 2.57.


What is the expected EPS growth for PDD HOLDINGS INC (PDD) stock?

The Earnings per Share (EPS) of PDD HOLDINGS INC (PDD) is expected to decline by -6.67% in the next year.