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. 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.
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
PDD has a better Return On Assets (23.19%) 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 93.75% 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.
The Average Return On Invested Capital over the past 3 years for PDD is significantly above the industry average of 11.71%.
The 3 year average ROIC (17.97%) for PDD is below the current ROIC(31.27%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 29.10%, PDD belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
PDD has a better Operating Margin (28.28%) than 100.00% of its industry peers.
PDD's Gross Margin of 62.06% is amongst the best of the industry. PDD outperforms 84.38% 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
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.
The number of shares outstanding for PDD has been increased compared to 5 years ago.
PDD has a better debt/assets ratio than last year.
2.2 Solvency
PDD has an Altman-Z score of 5.74. This indicates that PDD is financially healthy and has little risk of bankruptcy at the moment.
PDD has a Altman-Z score of 5.74. This is amongst the best in the industry. PDD outperforms 81.25% of its industry peers.
PDD has a debt to FCF ratio of 0.04. This is a very positive value and a sign of high solvency as it would only need 0.04 years to pay back of all of its debts.
The Debt to FCF ratio of PDD (0.04) is better than 93.75% 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.
The Debt to Equity ratio of PDD (0.02) is better than 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 5.74 |
ROIC/WACC4.34
WACC7.2%
2.3 Liquidity
PDD has a Current Ratio of 2.15. This indicates that PDD is financially healthy and has no problem in meeting its short term obligations.
PDD's Current ratio of 2.15 is fine compared to the rest of the industry. PDD outperforms 68.75% of its industry peers.
A Quick Ratio of 2.15 indicates that PDD has no problem at all paying its short term obligations.
The Quick ratio of PDD (2.15) is better than 81.25% of its industry peers.
| 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.
PDD shows a strong growth in Revenue. In the last year, the Revenue has grown by 87.39%.
PDD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 79.96% yearly.
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
The Earnings Per Share is expected to grow by 30.86% on average over the next years. This is a very strong growth
Based on estimates for the next years, PDD will show a very strong growth in Revenue. The Revenue will grow by 26.32% on average per year.
EPS Next Y78.39%
EPS Next 2Y43.33%
EPS Next 3Y35.67%
EPS Next 5Y30.86%
Revenue Next Year68.37%
Revenue Next 2Y45.68%
Revenue Next 3Y36.79%
Revenue Next 5Y26.32%
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
Based on the Price/Earnings ratio of 9.01, the valuation of PDD can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of PDD indicates a rather cheap valuation: PDD is cheaper than 81.25% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PDD to the average of the S&P500 Index (29.70), we can say PDD is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.57, 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 84.38% of the companies are valued more expensively.
PDD is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.16, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.01 | ||
| Fwd PE | 7.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PDD indicates a rather cheap valuation: PDD is cheaper than 87.50% of the companies listed in the same industry.
87.50% 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 | 7.73 | ||
| EV/EBITDA | 4.28 |
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.
PDD's earnings are expected to grow with 35.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y43.33%
EPS Next 3Y35.67%
5. Dividend
5.1 Amount
PDD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PDD HOLDINGS INC
NASDAQ:PDD (12/2/2024, 10:08:07 PM)
Premarket: 99.99 +1.01 (+1.02%)98.98
+2.42 (+2.51%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap137.46B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.01 | ||
| Fwd PE | 7.57 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.19% | ||
| ROE | 38.87% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.28% | ||
| PM (TTM) | 29.1% | ||
| GM | 62.06% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)113.9%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y78.39%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)87.39%
Revenue growth 3Y60.86%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y