107.02 USD
+0.11 (+0.1%)
Taking everything into account, PDD scores 7 out of 10 in our fundamental rating. PDD was compared to 30 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make PDD a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
- In the past year PDD was profitable.
- PDD had a positive operating cash flow in the past year.
- PDD had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years PDD had a positive operating cash flow.
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.
- PDD has a Return On Equity of 26.13%. This is amongst the best in the industry. PDD outperforms 90.00% of its industry peers.
- PDD's Return On Invested Capital of 19.72% is amongst the best of the industry. PDD outperforms 96.67% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for PDD is significantly above the industry average of 9.28%.
- The 3 year average ROIC (25.13%) for PDD is well above the current ROIC(19.72%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector 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
1.3 Margins
- With an excellent Profit Margin value of 24.43%, PDD belongs to the best 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.
- PDD's Operating Margin has improved in the last couple of years.
- PDD's Gross Margin of 56.65% is amongst the best of the industry. PDD outperforms 83.33% of its industry peers.
- PDD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
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.
- PDD has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, PDD has more shares outstanding
- Compared to 1 year ago, PDD has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 5.21 indicates that PDD is not in any danger for bankruptcy at the moment.
- The Altman-Z score of PDD (5.21) is better than 83.33% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 5.21 |
ROIC/WACC2.36
WACC8.36%
2.3 Liquidity
- PDD has a Current Ratio of 2.36. This indicates that PDD is financially healthy and has no problem in meeting its short term obligations.
- PDD has a Current ratio of 2.36. This is in the better half of the industry: PDD outperforms 73.33% of its industry peers.
- PDD has a Quick Ratio of 2.36. This indicates that PDD is financially healthy and has no problem in meeting its short term obligations.
- With an excellent Quick ratio value of 2.36, PDD belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 2.36 |
3. Growth
3.1 Past
- PDD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.46%.
- PDD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 106.51% yearly.
- PDD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.48%.
- 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 7.01% yearly.
- PDD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.05% yearly.
EPS Next Y-6.68%
EPS Next 2Y4.01%
EPS Next 3Y8.03%
EPS Next 5Y7.01%
Revenue Next Year9.19%
Revenue Next 2Y12.03%
Revenue Next 3Y12.05%
Revenue Next 5Y10.05%
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.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 9.96, which indicates a very decent valuation of PDD.
- PDD's Price/Earnings ratio is rather cheap when compared to the industry. PDD is cheaper than 90.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of PDD to the average of the S&P500 Index (28.82), we can say PDD is valued rather cheaply.
- With a Price/Forward Earnings ratio of 8.32, the valuation of PDD can be described as very reasonable.
- 86.67% of the companies in the same industry are more expensive than PDD, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. PDD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.96 | ||
| Fwd PE | 8.32 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PDD is valued cheaply inside the industry as 96.67% of the companies are valued more expensively.
- 80.00% of the companies in the same industry are more expensive than PDD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.4 | ||
| EV/EBITDA | 3.21 |
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 2Y4.01%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
- No dividends for PDD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 9.96 and the Price/Book (PB) ratio is 2.7.
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 -6.68% in the next year.