PDD HOLDINGS INC (PDD)
US7223041028 - ADR
PDD gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 32 industry peers in the Broadline Retail industry. PDD gets an excellent profitability rating and is at the same time showing great financial health properties. An interesting combination arises when we look at growth and value: PDD is growing strongly while it also seems undervalued. With these ratings, PDD could be worth investigating further for value and growth 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.
The reported net income has been mixed in the past 5 years: PDD reported negative net income in multiple years.
Each year in the past 5 years PDD had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PDD (23.19%) is better than 100.00% of its industry peers.
With an excellent Return On Equity value of 38.87%, PDD belongs to the best of the industry, outperforming 93.55% of the companies in the same industry.
With an excellent Return On Invested Capital value of 31.27%, PDD belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
PDD had an Average Return On Invested Capital over the past 3 years of 17.97%. This is significantly above the industry average of 11.65%.
The last Return On Invested Capital (31.27%) for PDD is above the 3 year average (17.97%), which is a sign of increasing profitability.
| Industry Rank | Sector 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
1.3 Margins
PDD's Profit Margin of 29.10% is amongst the best of the industry. PDD outperforms 100.00% of its industry peers.
With an excellent Operating Margin value of 28.28%, PDD belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
PDD has a better Gross Margin (62.06%) than 83.87% of its industry peers.
In the last couple of years the Gross Margin of PDD has declined.
| Industry Rank | Sector 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%
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.
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.
Compared to 1 year ago, PDD has an improved debt to assets ratio.
2.2 Solvency
PDD has an Altman-Z score of 5.69. This indicates that PDD is financially healthy and has little risk of bankruptcy at the moment.
PDD has a Altman-Z score of 5.69. This is amongst the best in the industry. PDD outperforms 80.65% of its industry peers.
The Debt to FCF ratio of PDD is 0.04, which is an excellent value as it means it would take PDD, only 0.04 years of fcf income to pay off all of its debts.
PDD has a Debt to FCF ratio of 0.04. This is amongst the best in the industry. PDD outperforms 93.55% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that PDD is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.02, PDD is in the better half of the industry, outperforming 77.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 5.69 |
ROIC/WACC4.33
WACC7.23%
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 70.97% 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 83.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 |
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%.
The Revenue has been growing by 79.96% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, PDD will show a very strong growth in Earnings Per Share. The EPS will grow by 23.38% on average per year.
The Revenue is expected to grow by 27.10% on average over the next years. This is a very strong growth
EPS Next Y79.07%
EPS Next 2Y42.8%
EPS Next 3Y35.68%
EPS Next 5Y23.38%
Revenue Next Year67.82%
Revenue Next 2Y44.82%
Revenue Next 3Y36.25%
Revenue Next 5Y27.1%
3.3 Evolution
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
With a Price/Earnings ratio of 8.87, the valuation of PDD can be described as very reasonable.
PDD's Price/Earnings ratio is rather cheap when compared to the industry. PDD is cheaper than 83.87% of the companies in the same industry.
PDD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.48.
PDD is valuated cheaply with a Price/Forward Earnings ratio of 7.50.
87.10% of the companies in the same industry are more expensive than PDD, based on the Price/Forward Earnings ratio.
PDD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.87 | ||
| Fwd PE | 7.5 |
4.2 Price Multiples
PDD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PDD is cheaper than 87.10% of the companies in the same industry.
83.87% 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 | 7.61 | ||
| EV/EBITDA | 4.13 |
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 35.68% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y42.8%
EPS Next 3Y35.68%
5. Dividend
5.1 Amount
PDD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PDD HOLDINGS INC
NASDAQ:PDD (1/3/2025, 8:00:01 PM)
After market: 97 +0.18 (+0.19%)96.82
-0.07 (-0.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners33.94%
Inst Owner Change-0.05%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap134.46B
Analysts83.33
Price Target154.1 (59.16%)
Short Float %2.07%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)-9.08%
PT rev (3m)-5.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.89%
EPS NY rev (1m)0.38%
EPS NY rev (3m)-4.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.59%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.87 | ||
| Fwd PE | 7.5 | ||
| P/S | 2.64 | ||
| P/FCF | 7.61 | ||
| P/OCF | 7.61 | ||
| P/B | 3.53 | ||
| P/tB | 3.53 | ||
| EV/EBITDA | 4.13 |
EPS(TTM)10.91
EY11.27%
EPS(NY)12.91
Fwd EY13.33%
FCF(TTM)12.72
FCFY13.14%
OCF(TTM)12.72
OCFY13.14%
SpS36.61
BVpS27.4
TBVpS27.4
PEG (NY)0.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 5.69 |
F-Score6
WACC7.23%
ROIC/WACC4.33
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 Y79.07%
EPS Next 2Y42.8%
EPS Next 3Y35.68%
EPS Next 5Y23.38%
Revenue 1Y (TTM)87.39%
Revenue growth 3Y60.86%
Revenue growth 5Y79.96%
Sales Q2Q%44.33%
Revenue Next Year67.82%
Revenue Next 2Y44.82%
Revenue Next 3Y36.25%
Revenue Next 5Y27.1%
EBIT growth 1Y131.69%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year100.73%
EBIT Next 3Y46%
EBIT Next 5Y18.17%
FCF growth 1Y237.02%
FCF growth 3Y49.24%
FCF growth 5Y64.62%
OCF growth 1Y237.02%
OCF growth 3Y49.47%
OCF growth 5Y64.71%