PDD HOLDINGS INC (PDD)
US7223041028 - ADR
Overall PDD gets a fundamental rating of 8 out of 10. We evaluated PDD against 32 industry peers in the Broadline Retail industry. PDD gets an excellent profitability rating and is at the same time showing great financial health properties. PDD is growing strongly while it also seems undervalued. This is an interesting combination This makes PDD very considerable for value and growth 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.
The reported net income has been mixed in the past 5 years: PDD reported negative net income in multiple years.
PDD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PDD has a Return On Assets of 22.84%. This is amongst the best in the industry. PDD outperforms 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 38.91%, PDD belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
With an excellent Return On Invested Capital value of 31.76%, PDD belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PDD is significantly above the industry average of 11.61%.
The last Return On Invested Capital (31.76%) for PDD is above the 3 year average (17.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.84% | ||
| ROE | 38.91% | ||
| ROIC | 31.76% |
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's Profit Margin of 28.93% is amongst the best of the industry. PDD outperforms 100.00% of its industry peers.
Looking at the Operating Margin, with a value of 28.57%, PDD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
PDD has a Gross Margin of 62.44%. This is amongst the best in 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 | 28.57% | ||
| PM (TTM) | 28.93% | ||
| GM | 62.44% |
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
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 has been increased compared to 1 year ago.
Compared to 5 years ago, PDD has more shares outstanding
PDD has a better debt/assets ratio than last year.
2.2 Solvency
PDD has an Altman-Z score of 6.23. This indicates that PDD is financially healthy and has little risk of bankruptcy at the moment.
PDD has a Altman-Z score of 6.23. This is amongst the best in the industry. PDD outperforms 87.50% 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 93.75% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that PDD is not too dependend on debt financing.
PDD has a better Debt to Equity ratio (0.02) than 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 6.23 |
ROIC/WACC4.22
WACC7.53%
2.3 Liquidity
A Current Ratio of 2.11 indicates that PDD has no problem at all paying its short term obligations.
PDD has a Current ratio of 2.11. This is in the better half of the industry: PDD outperforms 71.88% of its industry peers.
PDD has a Quick Ratio of 2.11. This indicates that PDD is financially healthy and has no problem in meeting its short term obligations.
PDD has a Quick ratio of 2.11. This is amongst the best in the industry. PDD outperforms 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 2.11 |
3. Growth
3.1 Past
PDD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 112.20%, which is quite impressive.
PDD shows a strong growth in Revenue. In the last year, the Revenue has grown by 106.72%.
The Revenue has been growing by 79.96% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)112.2%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%121.97%
Revenue 1Y (TTM)106.72%
Revenue growth 3Y60.86%
Revenue growth 5Y79.96%
Sales Q2Q%85.65%
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 Y86.66%
EPS Next 2Y49.66%
EPS Next 3Y38.66%
EPS Next 5Y30.86%
Revenue Next Year70.89%
Revenue Next 2Y48%
Revenue Next 3Y37.93%
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
A Price/Earnings ratio of 12.48 indicates a correct valuation of PDD.
65.63% of the companies in the same industry are more expensive than PDD, based on the Price/Earnings ratio.
PDD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 30.91.
The Price/Forward Earnings ratio is 8.77, which indicates a very decent valuation of PDD.
PDD's Price/Forward Earnings ratio is rather cheap when compared to the industry. PDD is cheaper than 81.25% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.30, PDD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.48 | ||
| Fwd PE | 8.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PDD is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PDD indicates a rather cheap valuation: PDD is cheaper than 81.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.41 | ||
| EV/EBITDA | 6.15 |
4.3 Compensation for Growth
PDD's 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 38.66% in the coming years.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y49.66%
EPS Next 3Y38.66%
5. Dividend
5.1 Amount
PDD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PDD HOLDINGS INC
NASDAQ:PDD (9/26/2024, 5:44:41 PM)
After market: 129.25 -0.15 (-0.12%)129.4
+15.46 (+13.57%)
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 Cap179.71B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.48 | ||
| Fwd PE | 8.77 | ||
| 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)0.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.84% | ||
| ROE | 38.91% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.57% | ||
| PM (TTM) | 28.93% | ||
| GM | 62.44% | ||
| 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 Turnover0.79
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 | 2.11 | ||
| Quick Ratio | 2.11 | ||
| 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)112.2%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y86.66%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)106.72%
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