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PDD HOLDINGS INC (PDD) Stock Fundamental Analysis

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

119.92  +0.1 (+0.08%)

After market: 120.1 +0.18 (+0.15%)

Fundamental Rating

8

We assign a fundamental rating of 8 out of 10 to PDD. PDD was compared to 32 industry peers in the Broadline Retail industry. PDD has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. PDD is evaluated to be cheap and growing strongly. This does not happen too often! This makes PDD very considerable for value and growth and quality investing!


Dividend Valuation Growth Profitability Health

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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.
The reported net income has been mixed in the past 5 years: PDD reported negative net income in multiple years.
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 0 20B 40B 60B 80B

1.2 Ratios

PDD's Return On Assets of 23.19% 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 38.87%, PDD belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
PDD has a better Return On Invested Capital (31.27%) than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PDD is significantly above the industry average of 11.74%.
The 3 year average ROIC (17.97%) for PDD is below the current ROIC(31.27%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 23.19%
ROE 38.87%
ROIC 31.27%
ROA(3y)11.61%
ROA(5y)4.23%
ROE(3y)23.06%
ROE(5y)5.8%
ROIC(3y)17.97%
ROIC(5y)N/A
PDD Yearly ROA, ROE, ROICPDD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 -40 -60 -80

1.3 Margins

PDD has a Profit Margin of 29.10%. This is amongst the best in the industry. PDD outperforms 100.00% of its industry peers.
Looking at the Operating Margin, with a value of 28.28%, PDD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
PDD's Gross Margin of 62.06% is amongst the best of the industry. PDD outperforms 84.38% of its industry peers.
In the last couple of years the Gross Margin of PDD has declined.
Industry RankSector Rank
OM 28.28%
PM (TTM) 29.1%
GM 62.06%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.34%
GM growth 5Y-4.16%
PDD Yearly Profit, Operating, Gross MarginsPDD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50

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9

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PDD is creating value.
PDD has more shares outstanding than it did 1 year ago.
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 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 100B 200B 300B

2.2 Solvency

PDD has an Altman-Z score of 6.39. This indicates that PDD is financially healthy and has little risk of bankruptcy at the moment.
PDD's Altman-Z score of 6.39 is amongst the best of the industry. PDD outperforms 87.50% of its industry peers.
PDD has a debt to FCF ratio of 0.04. This is a very positive value and a sign of high solvency as it would only need 0.04 years to pay back of all of its debts.
PDD's Debt to FCF ratio of 0.04 is amongst the best of the industry. PDD outperforms 93.75% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that PDD is not too dependend on debt financing.
PDD has a better Debt to Equity ratio (0.02) than 78.13% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.02
Debt/FCF 0.04
Altman-Z 6.39
ROIC/WACC4.06
WACC7.7%
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 50B 100B 150B

2.3 Liquidity

A Current Ratio of 2.15 indicates that PDD has no problem at all paying its short term obligations.
PDD's Current ratio of 2.15 is fine compared to the rest of the industry. PDD outperforms 78.13% of its industry peers.
A Quick Ratio of 2.15 indicates that PDD has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.15, PDD belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.15
Quick Ratio 2.15
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 50B 100B 150B 200B 250B

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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 113.90%, which is quite impressive.
Looking at the last year, PDD shows a very strong growth in Revenue. The Revenue has grown by 87.39%.
Measured over the past years, PDD shows a very strong growth in Revenue. The Revenue has been growing by 79.96% on average per year.
EPS 1Y (TTM)113.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%60.12%
Revenue 1Y (TTM)87.39%
Revenue growth 3Y60.86%
Revenue growth 5Y79.96%
Sales Q2Q%44.33%

3.2 Future

The Earnings Per Share is expected to grow by 23.38% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 26.33% on average over the next years. This is a very strong growth
EPS Next Y78.75%
EPS Next 2Y41.86%
EPS Next 3Y34.87%
EPS Next 5Y23.38%
Revenue Next Year67.63%
Revenue Next 2Y44.64%
Revenue Next 3Y35.84%
Revenue Next 5Y26.33%

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in 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 800B
PDD Yearly EPS VS EstimatesPDD Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 20 40 60 80 100

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8

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 10.86 indicates a reasonable valuation of PDD.
PDD's Price/Earnings ratio is a bit cheaper when compared to the industry. PDD is cheaper than 78.13% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, PDD is valued rather cheaply.
PDD is valuated reasonably with a Price/Forward Earnings ratio of 9.31.
Based on the Price/Forward Earnings ratio, PDD is valued cheaper than 87.50% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PDD to the average of the S&P500 Index (22.10), we can say PDD is valued rather cheaply.
Industry RankSector Rank
PE 10.86
Fwd PE 9.31
PDD Price Earnings VS Forward Price EarningsPDD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

78.13% of the companies in the same industry are more expensive than PDD, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PDD indicates a somewhat cheap valuation: PDD is cheaper than 78.13% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 9.32
EV/EBITDA 6.21
PDD Per share dataPDD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

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.
PDD's earnings are expected to grow with 34.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y41.86%
EPS Next 3Y34.87%

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0

5. Dividend

5.1 Amount

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

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PDD HOLDINGS INC

NASDAQ:PDD (3/7/2025, 8:00:01 PM)

After market: 120.1 +0.18 (+0.15%)

119.92

+0.1 (+0.08%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)11-21 2024-11-21/bmo
Earnings (Next)03-18 2025-03-18/amc
Inst Owners31.47%
Inst Owner Change-6.99%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap166.54B
Analysts81.67
Price Target153.98 (28.4%)
Short Float %6.89%
Short Ratio2.67
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)5.62%
Min EPS beat(2)-6.97%
Max EPS beat(2)18.22%
EPS beat(4)3
Avg EPS beat(4)41.19%
Min EPS beat(4)-6.97%
Max EPS beat(4)103.72%
EPS beat(8)6
Avg EPS beat(8)39.96%
EPS beat(12)10
Avg EPS beat(12)67.48%
EPS beat(16)13
Avg EPS beat(16)139.85%
Revenue beat(2)0
Avg Revenue beat(2)-4.04%
Min Revenue beat(2)-4.17%
Max Revenue beat(2)-3.91%
Revenue beat(4)2
Avg Revenue beat(4)4.15%
Min Revenue beat(4)-4.17%
Max Revenue beat(4)13.61%
Revenue beat(8)5
Avg Revenue beat(8)9.08%
Revenue beat(12)8
Avg Revenue beat(12)10.13%
Revenue beat(16)10
Avg Revenue beat(16)8.34%
PT rev (1m)0%
PT rev (3m)-0.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.03%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.43%
Valuation
Industry RankSector Rank
PE 10.86
Fwd PE 9.31
P/S 3.24
P/FCF 9.32
P/OCF 9.32
P/B 4.33
P/tB 4.33
EV/EBITDA 6.21
EPS(TTM)11.04
EY9.21%
EPS(NY)12.88
Fwd EY10.74%
FCF(TTM)12.86
FCFY10.73%
OCF(TTM)12.86
OCFY10.73%
SpS37.03
BVpS27.71
TBVpS27.71
PEG (NY)0.14
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 23.19%
ROE 38.87%
ROCE 36.69%
ROIC 31.27%
ROICexc N/A
ROICexgc N/A
OM 28.28%
PM (TTM) 29.1%
GM 62.06%
FCFM 34.74%
ROA(3y)11.61%
ROA(5y)4.23%
ROE(3y)23.06%
ROE(5y)5.8%
ROIC(3y)17.97%
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)21.08%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.34%
GM growth 5Y-4.16%
F-Score6
Asset Turnover0.8
Health
Industry RankSector Rank
Debt/Equity 0.02
Debt/FCF 0.04
Debt/EBITDA 0.05
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 250
Cash Conversion 121.94%
Profit Quality 119.4%
Current Ratio 2.15
Quick Ratio 2.15
Altman-Z 6.39
F-Score6
WACC7.7%
ROIC/WACC4.06
Cap/Depr(3y)107.58%
Cap/Depr(5y)66.71%
Cap/Sales(3y)1.41%
Cap/Sales(5y)0.88%
Profit Quality(3y)211.95%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)113.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%60.12%
EPS Next Y78.75%
EPS Next 2Y41.86%
EPS Next 3Y34.87%
EPS Next 5Y23.38%
Revenue 1Y (TTM)87.39%
Revenue growth 3Y60.86%
Revenue growth 5Y79.96%
Sales Q2Q%44.33%
Revenue Next Year67.63%
Revenue Next 2Y44.64%
Revenue Next 3Y35.84%
Revenue Next 5Y26.33%
EBIT growth 1Y131.69%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year102.32%
EBIT Next 3Y45.14%
EBIT Next 5Y18.09%
FCF growth 1Y237.02%
FCF growth 3Y49.24%
FCF growth 5Y64.62%
OCF growth 1Y237.02%
OCF growth 3Y49.47%
OCF growth 5Y64.71%