PDD HOLDINGS INC (PDD) Stock Fundamental Analysis
NASDAQ:PDD - Nasdaq - US7223041028 - ADR - Currency: USD
Taking everything into account, PDD scores 7 out of 10 in our fundamental rating. PDD was compared to 31 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 not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make PDD a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year PDD was profitable.
Of the past 5 years PDD 4 years were profitable.
Of the past 5 years PDD 4 years had a positive operating cash flow.
1.2 Ratios
PDD's Return On Assets of 22.26% is amongst the best of the industry. PDD outperforms 100.00% of its industry peers.
PDD has a better Return On Equity (35.89%) than 93.55% of its industry peers.
With an excellent Return On Invested Capital value of 28.81%, PDD belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
PDD had an Average Return On Invested Capital over the past 3 years of 25.13%. This is significantly above the industry average of 10.92%.
The last Return On Invested Capital (28.81%) for PDD is above the 3 year average (25.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.26% | ||
| ROE | 35.89% | ||
| ROIC | 28.81% |
ROA(3y)17.6%
ROA(5y)10.52%
ROE(3y)31.57%
ROE(5y)18.63%
ROIC(3y)25.13%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 28.55%, 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.
Looking at the Operating Margin, with a value of 27.53%, PDD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
PDD's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 60.92%, PDD belongs to the best of the industry, outperforming 83.87% of the companies in the same industry.
PDD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.53% | ||
| PM (TTM) | 28.55% | ||
| GM | 60.92% |
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%
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.
The number of shares outstanding for PDD has been increased compared to 1 year ago.
The number of shares outstanding for PDD has been increased compared to 5 years ago.
PDD has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.52 indicates that PDD is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.52, PDD belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.52 |
ROIC/WACC3.94
WACC7.32%
2.3 Liquidity
A Current Ratio of 2.21 indicates that PDD has no problem at all paying its short term obligations.
PDD has a better Current ratio (2.21) than 77.42% of its industry peers.
PDD has a Quick Ratio of 2.21. This indicates that PDD is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of PDD (2.21) is better than 93.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 2.21 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 78.54% over the past year.
The Earnings Per Share has been growing by 106.51% on average over the past years. This is a very strong growth
PDD shows a strong growth in Revenue. In the last year, the Revenue has grown by 59.04%.
Measured over the past years, PDD shows a very strong growth in Revenue. The Revenue has been growing by 67.20% on average per year.
EPS 1Y (TTM)78.54%
EPS 3Y106.51%
EPS 5YN/A
EPS Q2Q%16.34%
Revenue 1Y (TTM)59.04%
Revenue growth 3Y61.24%
Revenue growth 5Y67.2%
Sales Q2Q%24.45%
3.2 Future
PDD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.36% yearly.
The Revenue is expected to grow by 13.52% on average over the next years. This is quite good.
EPS Next Y9.94%
EPS Next 2Y14.98%
EPS Next 3Y15.52%
EPS Next 5Y5.36%
Revenue Next Year19.23%
Revenue Next 2Y19.08%
Revenue Next 3Y17.44%
Revenue Next 5Y13.52%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.27, the valuation of PDD can be described as reasonable.
PDD's Price/Earnings ratio is rather cheap when compared to the industry. PDD is cheaper than 80.65% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. PDD is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.52, which indicates a rather cheap valuation of PDD.
PDD's Price/Forward Earnings ratio is rather cheap when compared to the industry. PDD is cheaper than 87.10% of the companies in the same industry.
PDD is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.27 | ||
| Fwd PE | 7.52 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PDD's 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.
PDD's earnings are expected to grow with 15.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)N/A
EPS Next 2Y14.98%
EPS Next 3Y15.52%
5. Dividend
5.1 Amount
No dividends for PDD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
93.69
+1.34 (+1.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners31.47%
Inst Owner Change-0.03%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap130.11B
Analysts81.36
Price Target157.61 (68.22%)
Short Float %6.6%
Short Ratio2.67
Dividend
| Industry Rank | Sector 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)-3.14%
Min EPS beat(2)-6.97%
Max EPS beat(2)0.7%
EPS beat(4)3
Avg EPS beat(4)28.92%
Min EPS beat(4)-6.97%
Max EPS beat(4)103.72%
EPS beat(8)7
Avg EPS beat(8)40.12%
EPS beat(12)10
Avg EPS beat(12)53.94%
EPS beat(16)14
Avg EPS beat(16)157.46%
Revenue beat(2)0
Avg Revenue beat(2)-4.62%
Min Revenue beat(2)-5.08%
Max Revenue beat(2)-4.17%
Revenue beat(4)1
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-5.08%
Max Revenue beat(4)13.61%
Revenue beat(8)5
Avg Revenue beat(8)8.93%
Revenue beat(12)8
Avg Revenue beat(12)10.58%
Revenue beat(16)9
Avg Revenue beat(16)5.72%
PT rev (1m)2.36%
PT rev (3m)2.27%
EPS NQ rev (1m)-5.26%
EPS NQ rev (3m)-4.99%
EPS NY rev (1m)-2.46%
EPS NY rev (3m)-3.75%
Revenue NQ rev (1m)-10.97%
Revenue NQ rev (3m)-10.92%
Revenue NY rev (1m)-4.47%
Revenue NY rev (3m)-4.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.27 | ||
| Fwd PE | 7.52 | ||
| P/S | 2.41 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.03 | ||
| P/tB | 3.03 | ||
| EV/EBITDA | N/A |
EPS(TTM)11.33
EY12.09%
EPS(NY)12.46
Fwd EY13.3%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS38.86
BVpS30.92
TBVpS30.91
PEG (NY)0.83
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.26% | ||
| ROE | 35.89% | ||
| ROCE | 34.24% | ||
| ROIC | 28.81% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 27.53% | ||
| PM (TTM) | 28.55% | ||
| GM | 60.92% | ||
| FCFM | N/A |
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-ScoreN/A
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.21 | ||
| Quick Ratio | 2.21 | ||
| Altman-Z | 5.52 |
F-ScoreN/A
WACC7.32%
ROIC/WACC3.94
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)78.54%
EPS 3Y106.51%
EPS 5YN/A
EPS Q2Q%16.34%
EPS Next Y9.94%
EPS Next 2Y14.98%
EPS Next 3Y15.52%
EPS Next 5Y5.36%
Revenue 1Y (TTM)59.04%
Revenue growth 3Y61.24%
Revenue growth 5Y67.2%
Sales Q2Q%24.45%
Revenue Next Year19.23%
Revenue Next 2Y19.08%
Revenue Next 3Y17.44%
Revenue Next 5Y13.52%
EBIT growth 1Y84.71%
EBIT growth 3Y150.51%
EBIT growth 5YN/A
EBIT Next Year8.16%
EBIT Next 3Y17.79%
EBIT Next 5Y4.33%
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A