104.46 USD
-2.3 (-2.15%)
104.6 USD
+0.14 (+0.13%)
Overall PDD gets a fundamental rating of 8 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 may be a bit undervalued, certainly considering the very reasonable score on growth This makes PDD very considerable for value and quality investing!
1. Profitability
1.1 Basic Checks
- PDD had positive earnings in the past year.
- In the past year PDD had a positive cash flow from operations.
- PDD had positive earnings in 4 of the past 5 years.
- PDD had a positive operating cash flow in each of the past 5 years.
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's Return On Equity of 26.13% is amongst the best of the industry. PDD outperforms 90.00% of its industry peers.
- The Return On Invested Capital of PDD (19.72%) is better 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
- The Profit Margin of PDD (24.43%) is better than 100.00% of its industry peers.
- In the last couple of years the Profit Margin of PDD has grown nicely.
- 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.
- With an excellent Gross Margin value of 56.65%, PDD belongs to the best 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PDD is creating value.
- PDD has more shares outstanding than it did 1 year ago.
- PDD has more shares outstanding than it did 5 years ago.
- PDD has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.21 indicates that PDD is not in any danger for bankruptcy at the moment.
- PDD has a Altman-Z score of 5.21. This is amongst the best in the industry. PDD outperforms 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 5.21 |
ROIC/WACC2.29
WACC8.61%
2.3 Liquidity
- A Current Ratio of 2.36 indicates that PDD has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.36, PDD is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
- 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.
- PDD has a Quick ratio of 2.36. This is amongst the best in the industry. PDD outperforms 86.67% of its industry peers.
| 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%.
- The Revenue has been growing by 67.20% on average over the past years. This is a very strong growth!
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
- The Earnings Per Share is expected to grow by 7.01% on average over the next years.
- Based on estimates for the next years, PDD will show a quite strong growth in Revenue. The Revenue will grow by 10.05% on average per year.
EPS Next Y-7.99%
EPS Next 2Y2.98%
EPS Next 3Y8.12%
EPS Next 5Y7.01%
Revenue Next Year9.21%
Revenue Next 2Y12.06%
Revenue Next 3Y12.1%
Revenue Next 5Y10.05%
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
- PDD is valuated reasonably with a Price/Earnings ratio of 9.74.
- PDD's Price/Earnings ratio is rather cheap when compared to the industry. PDD is cheaper than 90.00% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.38. PDD is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 8.29 indicates a reasonable valuation of PDD.
- Based on the Price/Forward Earnings ratio, PDD is valued cheaper than 86.67% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. PDD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.74 | ||
| Fwd PE | 8.29 |
4.2 Price Multiples
- 96.67% of the companies in the same industry are more expensive than PDD, based on the Enterprise Value to EBITDA ratio.
- 83.33% 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 | 9.19 | ||
| EV/EBITDA | 3.21 |
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% |
104.46
-2.3 (-2.15%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)11-18 2025-11-18/bmo
Earnings (Next)03-18 2026-03-18/amc
Inst Owners32.47%
Inst Owner Change1.98%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap148.30B
Revenue(TTM)418.54B
Net Income(TTM)102.27B
Analysts78.18
Price Target150.06 (43.65%)
Short Float %7.71%
Short Ratio3.19
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)1.81%
PT rev (3m)2.46%
EPS NQ rev (1m)-0.66%
EPS NQ rev (3m)8.94%
EPS NY rev (1m)0%
EPS NY rev (3m)10.82%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)1.73%
Revenue NY rev (1m)0.61%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.74 | ||
| Fwd PE | 8.29 | ||
| P/S | 2.47 | ||
| P/FCF | 9.19 | ||
| P/OCF | 9.19 | ||
| P/B | 2.64 | ||
| P/tB | 2.64 | ||
| EV/EBITDA | 3.21 |
EPS(TTM)10.73
EY10.27%
EPS(NY)12.59
Fwd EY12.06%
FCF(TTM)11.37
FCFY10.88%
OCF(TTM)11.37
OCFY10.88%
SpS42.34
BVpS39.59
TBVpS39.59
PEG (NY)N/A
PEG (5Y)N/A
Graham Number97.77
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 | 5.21 |
F-Score5
WACC8.61%
ROIC/WACC2.29
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 5Y7.01%
Revenue 1Y (TTM)12.48%
Revenue growth 3Y61.24%
Revenue growth 5Y67.2%
Sales Q2Q%8.98%
Revenue Next Year9.21%
Revenue Next 2Y12.06%
Revenue Next 3Y12.1%
Revenue Next 5Y10.05%
EBIT growth 1Y-12.1%
EBIT growth 3Y150.51%
EBIT growth 5YN/A
EBIT Next Year-14.34%
EBIT Next 3Y9.45%
EBIT Next 5Y3.08%
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 8 / 10 to PDD.
What is the valuation status of PDD HOLDINGS INC (PDD) stock?
ChartMill assigns a valuation rating of 8 / 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 9.74 and the Price/Book (PB) ratio is 2.64.
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.