120.97 USD
-1.69 (-1.38%)
120.7 USD
-0.27 (-0.22%)
We assign a fundamental rating of 7 out of 10 to PDD. PDD was compared to 30 industry peers in the Broadline Retail industry. Both the health and profitability get an excellent rating, making PDD a very profitable company, without any liquidiy or solvency issues. PDD may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make PDD a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
In the past year PDD was profitable.
In the past year PDD had a positive cash flow from operations.
Of the past 5 years PDD 4 years were profitable.
Each year in the past 5 years PDD had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 16.66%, PDD belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
PDD has a better Return On Equity (26.13%) than 90.00% of its industry peers.
PDD has a better Return On Invested Capital (19.72%) than 96.67% of its industry peers.
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
With an excellent Profit Margin value of 24.43%, PDD belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
PDD's Profit Margin has improved in the last couple of years.
The Operating Margin of PDD (22.10%) is better than 96.67% of its industry peers.
In the last couple of years the Operating Margin of PDD has grown nicely.
The Gross Margin of PDD (56.65%) is better than 83.33% of its industry peers.
PDD's Gross Margin has declined in the last couple of years.
| 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
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 more shares outstanding
Compared to 5 years ago, PDD has more shares outstanding
Compared to 1 year ago, PDD has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.60 indicates that PDD is not in any danger for bankruptcy at the moment.
PDD has a better Altman-Z score (5.60) 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 | 5.6 |
ROIC/WACC2.33
WACC8.48%
2.3 Liquidity
PDD has a Current Ratio of 2.36. This indicates that PDD is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.36, PDD is doing good in the industry, outperforming 73.33% of the companies in the same industry.
A Quick Ratio of 2.36 indicates that PDD has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.36, PDD belongs to the best 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.
Measured over the past years, PDD shows a very strong growth in Earnings Per Share. The EPS has been growing by 106.51% on average per year.
The Revenue has grown by 12.48% in the past year. This is quite good.
PDD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 67.20% yearly.
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.
PDD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.45% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.32 indicates a reasonable valuation of PDD.
Based on the Price/Earnings ratio, PDD is valued cheaper than 90.00% of the companies in the same industry.
PDD is valuated cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.64, the valuation of PDD can be described as very reasonable.
Based on the Price/Forward Earnings ratio, PDD is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
PDD is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.32 | ||
| Fwd PE | 9.64 |
4.2 Price Multiples
90.00% of the companies in the same industry are more expensive than PDD, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PDD is valued a bit cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.68 | ||
| EV/EBITDA | 4.74 |
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% |
120.97
-1.69 (-1.38%)
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 Cap171.73B
Revenue(TTM)418.54B
Net Income(TTM)102.27B
Analysts78.7
Price Target147.4 (21.85%)
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 | 11.32 | ||
| Fwd PE | 9.64 | ||
| P/S | 2.87 | ||
| P/FCF | 10.68 | ||
| P/OCF | 10.68 | ||
| P/B | 3.07 | ||
| P/tB | 3.07 | ||
| EV/EBITDA | 4.74 |
EPS(TTM)10.69
EY8.84%
EPS(NY)12.54
Fwd EY10.37%
FCF(TTM)11.32
FCFY9.36%
OCF(TTM)11.32
OCFY9.36%
SpS42.17
BVpS39.44
TBVpS39.43
PEG (NY)N/A
PEG (5Y)N/A
Graham Number97.39
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 | 5.6 |
F-Score5
WACC8.48%
ROIC/WACC2.33
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 11.32 and the Price/Book (PB) ratio is 3.07.
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.