120.42 USD
-1.18 (-0.97%)
Overall PDD gets a fundamental rating of 7 out of 10. We evaluated PDD against 30 industry peers in the Broadline Retail industry. PDD scores excellent points on both the profitability and health parts. This is a solid base for a good stock. PDD is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make PDD a good candidate for value and quality investing.
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.
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
PDD has a Return On Assets of 16.66%. This is amongst the best in the industry. PDD outperforms 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 26.13%, PDD belongs to the top 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.
PDD had an Average Return On Invested Capital over the past 3 years of 25.13%. This is significantly above the industry average of 9.29%.
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 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
PDD has a Profit Margin of 24.43%. This is amongst the best in the industry. PDD outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of PDD has grown nicely.
Looking at the Operating Margin, with a value of 22.10%, PDD belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
PDD's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 56.65%, 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 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
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.
The number of shares outstanding for PDD has been increased compared to 5 years ago.
Compared to 1 year ago, PDD has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.61 indicates that PDD is not in any danger for bankruptcy at the moment.
The Altman-Z score of PDD (5.61) 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 | 5.61 |
ROIC/WACC2.32
WACC8.5%
2.3 Liquidity
A Current Ratio of 2.36 indicates that PDD has no problem at all paying its short term obligations.
PDD's Current ratio of 2.36 is fine compared to the rest 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.
Looking at the Quick ratio, with a value of 2.36, PDD belongs to the top 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
The earnings per share for PDD have decreased by -6.46% in the last year.
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%.
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)-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
Based on estimates for the next years, PDD will show a small growth in Earnings Per Share. The EPS will grow by 7.39% on average per year.
Based on estimates for the next years, PDD will show a quite strong growth in Revenue. The Revenue will grow by 10.45% on average per year.
EPS Next Y-7.99%
EPS Next 2Y2.98%
EPS Next 3Y8.12%
EPS Next 5Y7.39%
Revenue Next Year8.58%
Revenue Next 2Y11.71%
Revenue Next 3Y12.12%
Revenue Next 5Y10.45%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 11.25, which indicates a very decent valuation of PDD.
Based on the Price/Earnings ratio, PDD is valued cheaper than 90.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.00, PDD is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.59, the valuation of PDD can be described as very reasonable.
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.
PDD is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 9.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PDD indicates a rather cheap valuation: PDD is cheaper than 90.00% of the companies listed in the same industry.
PDD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PDD is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.62 | ||
| EV/EBITDA | 4.79 |
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 2Y2.98%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
PDD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:PDD (1/9/2026, 11:18:01 AM)
120.42
-1.18 (-0.97%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners32.47%
Inst Owner Change0%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap170.95B
Revenue(TTM)418.54B
Net Income(TTM)102.27B
Analysts78.7
Price Target147.4 (22.4%)
Short Float %8.07%
Short Ratio3.78
Dividend
| Industry Rank | Sector 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)-0.68%
PT rev (3m)0.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.93%
EPS NY rev (1m)0%
EPS NY rev (3m)10.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 9.59 | ||
| P/S | 2.85 | ||
| P/FCF | 10.62 | ||
| P/OCF | 10.62 | ||
| P/B | 3.05 | ||
| P/tB | 3.05 | ||
| EV/EBITDA | 4.79 |
EPS(TTM)10.7
EY8.89%
EPS(NY)12.56
Fwd EY10.43%
FCF(TTM)11.34
FCFY9.41%
OCF(TTM)11.34
OCFY9.41%
SpS42.23
BVpS39.49
TBVpS39.49
PEG (NY)N/A
PEG (5Y)N/A
Graham Number97.5
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 5.61 |
F-Score5
WACC8.5%
ROIC/WACC2.32
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-7.99%
EPS Next 2Y2.98%
EPS Next 3Y8.12%
EPS Next 5Y7.39%
Revenue 1Y (TTM)12.48%
Revenue growth 3Y61.24%
Revenue growth 5Y67.2%
Sales Q2Q%8.98%
Revenue Next Year8.58%
Revenue Next 2Y11.71%
Revenue Next 3Y12.12%
Revenue Next 5Y10.45%
EBIT growth 1Y-12.1%
EBIT growth 3Y150.51%
EBIT growth 5YN/A
EBIT Next Year-14.34%
EBIT Next 3Y9.45%
EBIT Next 5Y3.45%
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 11.25 and the Price/Book (PB) ratio is 3.05.
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 -7.99% in the next year.