PDD HOLDINGS INC (PDD) Stock Fundamental Analysis
NASDAQ:PDD - Nasdaq - US7223041028 - ADR - Currency: USD
We assign a fundamental rating of 8 out of 10 to PDD. PDD was compared to 32 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. 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.
In multiple years PDD reported negative net income over the last 5 years.
In the past 5 years PDD always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 23.19%, PDD belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 38.87%, PDD belongs to the best of the industry, outperforming 96.77% of the companies in the same industry.
The Return On Invested Capital of PDD (31.27%) is better than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PDD is significantly above the industry average of 11.22%.
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 has a Profit Margin of 29.10%. This is amongst the best in the industry. PDD outperforms 100.00% of its industry peers.
PDD has a Operating Margin of 28.28%. This is amongst the best in the industry. PDD outperforms 100.00% of its industry peers.
With an excellent Gross Margin value of 62.06%, PDD belongs to the best of the industry, outperforming 83.87% of the companies in the same industry.
PDD's Gross Margin has declined in the last couple of years.
| 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
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 has been increased compared to 1 year ago.
PDD has more shares outstanding than it did 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 6.21. This indicates that PDD is financially healthy and has little risk of bankruptcy at the moment.
PDD's Altman-Z score of 6.21 is amongst the best of 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 better Debt to FCF ratio (0.04) than 93.55% of its industry peers.
PDD has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
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 | 6.21 |
ROIC/WACC4.4
WACC7.1%
2.3 Liquidity
A Current Ratio of 2.15 indicates that PDD has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.15, PDD is in the better half of the industry, outperforming 70.97% of the companies in the same industry.
PDD has a Quick Ratio of 2.15. This indicates that PDD is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.15, PDD belongs to the best 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
The Earnings Per Share has grown by an impressive 113.90% over the past year.
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
PDD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.38% yearly.
Based on estimates for the next years, PDD will show a very strong growth in Revenue. The Revenue will grow by 26.33% on average per year.
EPS Next Y79.31%
EPS Next 2Y42.48%
EPS Next 3Y35.55%
EPS Next 5Y23.38%
Revenue Next Year67.68%
Revenue Next 2Y44.72%
Revenue Next 3Y36.02%
Revenue Next 5Y26.33%
3.3 Evolution
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
The Price/Earnings ratio is 10.36, which indicates a very decent valuation of PDD.
77.42% of the companies in the same industry are more expensive than PDD, based on the Price/Earnings ratio.
PDD is valuated cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.79, 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 87.10% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PDD to the average of the S&P500 Index (92.74), we can say PDD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.36 | ||
| Fwd PE | 8.79 |
4.2 Price Multiples
PDD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PDD is cheaper than 80.65% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PDD indicates a rather cheap valuation: PDD is cheaper than 80.65% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.88 | ||
| EV/EBITDA | 5.68 |
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.
PDD's earnings are expected to grow with 35.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.13
PEG (5Y)N/A
EPS Next 2Y42.48%
EPS Next 3Y35.55%
5. Dividend
5.1 Amount
PDD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PDD HOLDINGS INC
NASDAQ:PDD (2/4/2025, 8:00:32 PM)
Premarket: 106.25 -7.8 (-6.84%)114.05
+8.81 (+8.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners33.94%
Inst Owner Change-0.94%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap158.39B
Analysts83.33
Price Target153.98 (35.01%)
Short Float %7.39%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)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)-0.08%
PT rev (3m)-9.92%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-22.91%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-2.99%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-10.67%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-2.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.36 | ||
| Fwd PE | 8.79 | ||
| P/S | 3.09 | ||
| P/FCF | 8.88 | ||
| P/OCF | 8.88 | ||
| P/B | 4.12 | ||
| P/tB | 4.12 | ||
| EV/EBITDA | 5.68 |
EPS(TTM)11.01
EY9.65%
EPS(NY)12.97
Fwd EY11.37%
FCF(TTM)12.84
FCFY11.26%
OCF(TTM)12.84
OCFY11.26%
SpS36.95
BVpS27.66
TBVpS27.65
PEG (NY)0.13
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 | 6.21 |
F-Score6
WACC7.1%
ROIC/WACC4.4
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 Y79.31%
EPS Next 2Y42.48%
EPS Next 3Y35.55%
EPS Next 5Y23.38%
Revenue 1Y (TTM)87.39%
Revenue growth 3Y60.86%
Revenue growth 5Y79.96%
Sales Q2Q%44.33%
Revenue Next Year67.68%
Revenue Next 2Y44.72%
Revenue Next 3Y36.02%
Revenue Next 5Y26.33%
EBIT growth 1Y131.69%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year100.73%
EBIT Next 3Y46%
EBIT Next 5Y18.09%
FCF growth 1Y237.02%
FCF growth 3Y49.24%
FCF growth 5Y64.62%
OCF growth 1Y237.02%
OCF growth 3Y49.47%
OCF growth 5Y64.71%