PDD HOLDINGS INC (PDD) Fundamental Analysis & Valuation

NASDAQ:PDD • US7223041028

Current stock price

99.85 USD
+2.18 (+2.23%)
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

  • Looking at the Return On Assets, with a value of 15.77%, PDD belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
  • PDD's Return On Equity of 23.95% is amongst the best of the industry. PDD outperforms 86.67% of its industry peers.
  • PDD has a better Return On Invested Capital (18.88%) than 96.67% of its industry peers.
  • PDD had an Average Return On Invested Capital over the past 3 years of 24.17%. This is significantly above the industry average of 8.83%.
  • 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

  • Looking at the Profit Margin, with a value of 23.01%, 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 declined.
  • PDD has a better Operating Margin (21.91%) than 96.67% of its industry peers.
  • In the last couple of years the Operating Margin of PDD has declined.
  • The Gross Margin of PDD (56.28%) is better than 83.33% of its industry peers.
  • PDD's Gross Margin has declined in the last couple of years.
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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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.
  • The number of shares outstanding for PDD remains at a similar level compared to 1 year ago.
  • PDD has more shares outstanding than it did 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 5.05. This indicates that PDD is financially healthy and has little risk of bankruptcy at the moment.
  • PDD's Altman-Z score of 5.05 is fine compared to the rest of the industry. PDD outperforms 76.67% 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 5.05
ROIC/WACC2.38
WACC7.95%
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

  • PDD has a Current Ratio of 2.45. This indicates that PDD is financially healthy and has no problem in meeting its short term obligations.
  • PDD has a better Current ratio (2.45) than 83.33% of its industry peers.
  • PDD has a Quick Ratio of 2.45. This indicates that PDD is financially healthy and has no problem in meeting its short term obligations.
  • PDD has a better Quick ratio (2.45) than 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%.
  • PDD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.07% yearly.
  • 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

  • PDD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.10% yearly.
  • Based on estimates for the next years, PDD will show a quite strong growth in Revenue. The Revenue will grow by 8.73% on average per year.
EPS Next Y14.72%
EPS Next 2Y16.19%
EPS Next 3Y14.43%
EPS Next 5Y11.1%
Revenue Next Year13.58%
Revenue Next 2Y13.1%
Revenue Next 3Y11.51%
Revenue Next 5Y8.73%

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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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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6

4. PDD Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 9.45, 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 86.67% of the companies in the same industry.
  • PDD is valuated cheaply when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 8.23, 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.
  • When comparing the Price/Forward Earnings ratio of PDD to the average of the S&P500 Index (21.68), we can say PDD is valued rather cheaply.
Industry RankSector Rank
PE 9.45
Fwd PE 8.23
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.
  • The excellent profitability rating of PDD may justify a higher PE ratio.
  • A more expensive valuation may be justified as PDD's earnings are expected to grow with 14.43% in the coming years.
PEG (NY)0.64
PEG (5Y)N/A
EPS Next 2Y16.19%
EPS Next 3Y14.43%

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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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PDD Fundamentals: All Metrics, Ratios and Statistics

PDD HOLDINGS INC

NASDAQ:PDD (4/30/2026, 1:04:00 PM)

99.85

+2.18 (+2.23%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Industry Strength100
Industry Growth88.67
Earnings (Last)03-25
Earnings (Next)05-25
Inst Owners32.27%
Inst Owner Change0.12%
Ins Owners0%
Ins Owner Change-0.58%
Market Cap141.75B
Revenue(TTM)431.85B
Net Income(TTM)99.36B
Analysts78.6
Price Target145.65 (45.87%)
Short Float %7.63%
Short Ratio3.74
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)-1.3%
Revenue beat(12)5
Avg Revenue beat(12)5.04%
Revenue beat(16)8
Avg Revenue beat(16)7.25%
PT rev (1m)-2.53%
PT rev (3m)-2.93%
EPS NQ rev (1m)-7.43%
EPS NQ rev (3m)-7.43%
EPS NY rev (1m)-6.52%
EPS NY rev (3m)-7.35%
Revenue NQ rev (1m)-1.75%
Revenue NQ rev (3m)-1.75%
Revenue NY rev (1m)-1.09%
Revenue NY rev (3m)-1.2%
Valuation
Industry RankSector Rank
PE 9.45
Fwd PE 8.23
P/S 2.24
P/FCF N/A
P/OCF N/A
P/B 2.33
P/tB 2.33
EV/EBITDA N/A
EPS(TTM)10.57
EY10.59%
EPS(NY)12.13
Fwd EY12.15%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS44.51
BVpS42.77
TBVpS42.77
PEG (NY)0.64
PEG (5Y)N/A
Graham Number100.854 (1.01%)
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 5.05
F-ScoreN/A
WACC7.95%
ROIC/WACC2.38
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 Y14.72%
EPS Next 2Y16.19%
EPS Next 3Y14.43%
EPS Next 5Y11.1%
Revenue 1Y (TTM)9.65%
Revenue growth 3Y49%
Revenue growth 5Y48.65%
Sales Q2Q%12.03%
Revenue Next Year13.58%
Revenue Next 2Y13.1%
Revenue Next 3Y11.51%
Revenue Next 5Y8.73%
EBIT growth 1Y-12.73%
EBIT growth 3Y46%
EBIT growth 5YN/A
EBIT Next Year19.01%
EBIT Next 3Y16.11%
EBIT Next 5Y8.03%
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 6 / 10 to PDD HOLDINGS INC (PDD). This can be considered as Fairly Valued.


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 14.72% in the next year.