PDD HOLDINGS INC (PDD) Fundamental Analysis & Valuation

NASDAQ:PDD • US7223041028

Current stock price

100.87 USD
-0.91 (-0.89%)
At close:
100.75 USD
-0.12 (-0.12%)
After Hours:

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

  • In the past year PDD was profitable.
  • In the past 5 years PDD has always 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

  • With an excellent Return On Assets value of 15.77%, PDD belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
  • With an excellent Return On Equity value of 23.95%, PDD belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
  • PDD has a better Return On Invested Capital (18.88%) than 96.67% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for PDD is significantly above the industry average of 8.75%.
  • 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

  • With an excellent Profit Margin value of 23.01%, PDD belongs to the best 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's Operating Margin of 21.91% is amongst the best of the industry. PDD outperforms 96.67% of its industry peers.
  • In the last couple of years the Operating Margin of PDD has declined.
  • With an excellent Gross Margin value of 56.28%, PDD belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
  • 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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ROAROEROICOperating and Profit MarginShow most profitable peers

9

2. PDD Health Analysis

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 remains at a similar level compared to 1 year ago.
  • Compared to 5 years ago, PDD has more shares outstanding
  • 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

  • An Altman-Z score of 5.16 indicates that PDD is not in any danger for bankruptcy at the moment.
  • PDD has a Altman-Z score of 5.16. This is amongst the best in the industry. PDD outperforms 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 RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 5.16
ROIC/WACC2.33
WACC8.09%
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.
  • The Current ratio of PDD (2.45) is better than 83.33% of its industry peers.
  • A Quick Ratio of 2.45 indicates that PDD has no problem at all paying its short term obligations.
  • PDD's Quick ratio of 2.45 is amongst the best of the industry. PDD outperforms 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%.
  • Measured over the past years, PDD shows a very strong growth in Earnings Per Share. The EPS has been growing by 38.07% on average per year.
  • Looking at the last year, PDD shows a quite strong growth in Revenue. The Revenue has grown by 9.65% in the last year.
  • PDD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 48.65% yearly.
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

  • Based on estimates for the next years, PDD will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.06% on average per year.
  • The Revenue is expected to grow by 8.54% on average over the next years. This is quite good.
EPS Next Y22.72%
EPS Next 2Y19.39%
EPS Next 3Y15.39%
EPS Next 5Y11.06%
Revenue Next Year13.68%
Revenue Next 2Y13.18%
Revenue Next 3Y11.54%
Revenue Next 5Y8.54%

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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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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7

4. PDD Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 9.63, the valuation of PDD can be described as reasonable.
  • Based on the Price/Earnings ratio, PDD is valued cheaper than 86.67% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.17. PDD is valued rather cheaply when compared to this.
  • Based on the Price/Forward Earnings ratio of 7.85, the valuation of PDD can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, PDD is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
  • PDD is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.05, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 9.63
Fwd PE 7.85
PDD Price Earnings VS Forward Price EarningsPDD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 15.39% in the coming years.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y19.39%
EPS Next 3Y15.39%

More info and screens

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 (4/2/2026, 8:00:01 PM)

After market: 100.75 -0.12 (-0.12%)

100.87

-0.91 (-0.89%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)03-25
Earnings (Next)05-25
Inst Owners32.8%
Inst Owner Change0%
Ins Owners0%
Ins Owner Change-0.58%
Market Cap143.20B
Revenue(TTM)431.85B
Net Income(TTM)99.36B
Analysts78.6
Price Target149.43 (48.14%)
Short Float %6.46%
Short Ratio2.92
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)-1.28%
Revenue beat(12)5
Avg Revenue beat(12)5.06%
Revenue beat(16)8
Avg Revenue beat(16)7.26%
PT rev (1m)0%
PT rev (3m)1.38%
EPS NQ rev (1m)-7.43%
EPS NQ rev (3m)-7.43%
EPS NY rev (1m)0%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)-1.75%
Revenue NQ rev (3m)-2.28%
Revenue NY rev (1m)-0.99%
Revenue NY rev (3m)-0.52%
Valuation
Industry RankSector Rank
PE 9.63
Fwd PE 7.85
P/S 2.29
P/FCF N/A
P/OCF N/A
P/B 2.38
P/tB 2.38
EV/EBITDA N/A
EPS(TTM)10.47
EY10.38%
EPS(NY)12.85
Fwd EY12.74%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS44.1
BVpS42.37
TBVpS42.37
PEG (NY)0.42
PEG (5Y)N/A
Graham Number99.91
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 5.16
F-ScoreN/A
WACC8.09%
ROIC/WACC2.33
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 Y22.72%
EPS Next 2Y19.39%
EPS Next 3Y15.39%
EPS Next 5Y11.06%
Revenue 1Y (TTM)9.65%
Revenue growth 3Y49%
Revenue growth 5Y48.65%
Sales Q2Q%12.03%
Revenue Next Year13.68%
Revenue Next 2Y13.18%
Revenue Next 3Y11.54%
Revenue Next 5Y8.54%
EBIT growth 1Y-12.73%
EBIT growth 3Y46%
EBIT growth 5YN/A
EBIT Next Year22.95%
EBIT Next 3Y10.36%
EBIT Next 5Y6.7%
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 7 / 10 to PDD HOLDINGS INC (PDD). This can be considered as Undervalued.


Can you provide the profitability details for PDD HOLDINGS INC?

PDD HOLDINGS INC (PDD) has a profitability rating of 9 / 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 22.72% in the next year.