PDD HOLDINGS INC (PDD) Fundamental Analysis & Valuation

NASDAQ:PDD • US7223041028

Current stock price

99.15 USD
-1.76 (-1.74%)
Last:

This PDD fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. PDD Profitability Analysis

1.1 Basic Checks

  • PDD had positive earnings in the past year.
  • Each year in the past 5 years PDD has been profitable.
  • Of the past 5 years PDD 4 years 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 2025 0 20B 40B 60B 80B 100B

1.2 Ratios

  • PDD's Return On Assets of 15.77% is amongst the best of the industry. PDD outperforms 96.67% of its industry peers.
  • PDD has a Return On Equity of 23.95%. This is amongst the best in the industry. PDD outperforms 86.67% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 18.88%, PDD belongs to the top of the industry, outperforming 96.67% 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 8.75%.
  • The last Return On Invested Capital (18.88%) for PDD is well below the 3 year average (24.17%), which needs to be investigated, but indicates that PDD had better years and this may not be a problem.
Industry RankSector Rank
ROA 15.77%
ROE 23.95%
ROIC 18.88%
ROA(3y)18.43%
ROA(5y)14.57%
ROE(3y)30.63%
ROE(5y)25.8%
ROIC(3y)24.17%
ROIC(5y)20.03%
PDD Yearly ROA, ROE, ROICPDD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 -40 -60 -80

1.3 Margins

  • The Profit Margin of PDD (23.01%) is better than 100.00% of its industry peers.
  • In the last couple of years the Profit Margin of PDD has declined.
  • With an excellent Operating Margin value of 21.91%, PDD belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
  • PDD's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 56.28%, PDD belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
  • In the last couple of years the Gross Margin of PDD has declined.
Industry RankSector Rank
OM 21.91%
PM (TTM) 23.01%
GM 56.28%
OM growth 3Y-2.01%
OM growth 5YN/A
PM growth 3Y-1.61%
PM growth 5YN/A
GM growth 3Y-9.49%
GM growth 5Y-3.6%
PDD Yearly Profit, Operating, Gross MarginsPDD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50

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ROAROEROICOperating and Profit MarginShow most profitable peers

9

2. PDD Health Analysis

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 about the same amount of shares outstanding.
  • The number of shares outstanding for PDD has been increased compared to 5 years ago.
  • 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.
PDD Yearly Shares OutstandingPDD Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 200B 400B 600B

2.2 Solvency

  • PDD has an Altman-Z score of 5.16. This indicates that PDD is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of PDD (5.16) is better than 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 N/A
Altman-Z 5.16
ROIC/WACC2.2
WACC8.58%
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 2025 100B 200B 300B 400B

2.3 Liquidity

  • A Current Ratio of 2.45 indicates that PDD has no problem at all paying its short term obligations.
  • PDD's Current ratio of 2.45 is amongst the best of the industry. PDD outperforms 83.33% of its industry peers.
  • A Quick Ratio of 2.45 indicates that PDD has no problem at all paying its short term obligations.
  • PDD's Quick ratio of 2.45 is amongst the best of the industry. PDD outperforms 93.33% of its industry peers.
Industry RankSector Rank
Current Ratio 2.45
Quick Ratio 2.45
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 2025 100B 200B 300B 400B 500B

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

6

3. PDD Growth Analysis

3.1 Past

  • PDD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.64%.
  • Measured over the past years, PDD shows a very strong growth in Earnings Per Share. The EPS has been growing by 38.07% on average per year.
  • The Revenue has grown by 9.65% in the past year. This is quite good.
  • The Revenue has been growing by 48.65% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-12.64%
EPS 3Y38.07%
EPS 5YN/A
EPS Q2Q%-12.21%
Revenue 1Y (TTM)9.65%
Revenue growth 3Y49%
Revenue growth 5Y48.65%
Sales Q2Q%12.03%

3.2 Future

  • The Earnings Per Share is expected to grow by 11.06% on average over the next years. This is quite good.
  • PDD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.54% yearly.
EPS Next Y22.72%
EPS Next 2Y19.39%
EPS Next 3Y15.39%
EPS Next 5Y11.06%
Revenue Next Year13.68%
Revenue Next 2Y13.18%
Revenue Next 3Y11.54%
Revenue Next 5Y8.54%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last 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. PDD Valuation Analysis

4.1 Price/Earnings Ratio

  • PDD is valuated reasonably with a Price/Earnings ratio of 9.47.
  • Compared to the rest of the industry, the Price/Earnings ratio of PDD indicates a rather cheap valuation: PDD is cheaper than 86.67% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.21, PDD is valued rather cheaply.
  • The Price/Forward Earnings ratio is 7.71, 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 86.67% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of PDD to the average of the S&P500 Index (23.13), we can say PDD is valued rather cheaply.
Industry RankSector Rank
PE 9.47
Fwd PE 7.71
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

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
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 low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • PDD has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as PDD's earnings are expected to grow with 15.39% in the coming years.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y19.39%
EPS Next 3Y15.39%

More info and screens

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

0

5. PDD Dividend Analysis

5.1 Amount

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

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Find the best dividend stocksShow peers with best dividend

PDD Fundamentals: All Metrics, Ratios and Statistics

PDD HOLDINGS INC

NASDAQ:PDD (4/7/2026, 2:22:43 PM)

99.15

-1.76 (-1.74%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)03-25
Earnings (Next)05-25
Inst Owners32.8%
Inst Owner Change0%
Ins Owners0%
Ins Owner Change-0.58%
Market Cap140.76B
Revenue(TTM)431.85B
Net Income(TTM)99.36B
Analysts78.6
Price Target149.43 (50.71%)
Short Float %6.46%
Short Ratio2.92
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)1
Avg EPS beat(2)4.13%
Min EPS beat(2)-15.64%
Max EPS beat(2)23.91%
EPS beat(4)2
Avg EPS beat(4)2.04%
Min EPS beat(4)-38.98%
Max EPS beat(4)38.87%
EPS beat(8)5
Avg EPS beat(8)15.48%
EPS beat(12)9
Avg EPS beat(12)27.42%
EPS beat(16)12
Avg EPS beat(16)40.97%
Revenue beat(2)0
Avg Revenue beat(2)-1.25%
Min Revenue beat(2)-1.4%
Max Revenue beat(2)-1.11%
Revenue beat(4)0
Avg Revenue beat(4)-2.62%
Min Revenue beat(4)-7.59%
Max Revenue beat(4)-0.37%
Revenue beat(8)1
Avg Revenue beat(8)-1.28%
Revenue beat(12)5
Avg Revenue beat(12)5.06%
Revenue beat(16)8
Avg Revenue beat(16)7.26%
PT rev (1m)0%
PT rev (3m)1.38%
EPS NQ rev (1m)-7.43%
EPS NQ rev (3m)-7.43%
EPS NY rev (1m)0%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)-1.75%
Revenue NQ rev (3m)-2.28%
Revenue NY rev (1m)-0.99%
Revenue NY rev (3m)-0.52%
Valuation
Industry RankSector Rank
PE 9.47
Fwd PE 7.71
P/S 2.25
P/FCF N/A
P/OCF N/A
P/B 2.34
P/tB 2.34
EV/EBITDA N/A
EPS(TTM)10.47
EY10.56%
EPS(NY)12.85
Fwd EY12.97%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS44.1
BVpS42.37
TBVpS42.37
PEG (NY)0.42
PEG (5Y)N/A
Graham Number99.91
Profitability
Industry RankSector Rank
ROA 15.77%
ROE 23.95%
ROCE 22.65%
ROIC 18.88%
ROICexc N/A
ROICexgc N/A
OM 21.91%
PM (TTM) 23.01%
GM 56.28%
FCFM N/A
ROA(3y)18.43%
ROA(5y)14.57%
ROE(3y)30.63%
ROE(5y)25.8%
ROIC(3y)24.17%
ROIC(5y)20.03%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)28.99%
ROCE(5y)24.03%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-2.01%
OM growth 5YN/A
PM growth 3Y-1.61%
PM growth 5YN/A
GM growth 3Y-9.49%
GM growth 5Y-3.6%
F-ScoreN/A
Asset Turnover0.69
Health
Industry RankSector 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 2.45
Quick Ratio 2.45
Altman-Z 5.16
F-ScoreN/A
WACC8.58%
ROIC/WACC2.2
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)-12.64%
EPS 3Y38.07%
EPS 5YN/A
EPS Q2Q%-12.21%
EPS Next Y22.72%
EPS Next 2Y19.39%
EPS Next 3Y15.39%
EPS Next 5Y11.06%
Revenue 1Y (TTM)9.65%
Revenue growth 3Y49%
Revenue growth 5Y48.65%
Sales Q2Q%12.03%
Revenue Next Year13.68%
Revenue Next 2Y13.18%
Revenue Next 3Y11.54%
Revenue Next 5Y8.54%
EBIT growth 1Y-12.73%
EBIT growth 3Y46%
EBIT growth 5YN/A
EBIT Next Year22.95%
EBIT Next 3Y10.36%
EBIT Next 5Y6.7%
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A

PDD HOLDINGS INC / PDD Fundamental Analysis 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.


Can you provide the profitability details for PDD HOLDINGS INC?

PDD HOLDINGS INC (PDD) has a profitability rating of 8 / 10.


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 grow by 22.72% in the next year.