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NASDAQ:PDD stands out as a growth opportunity that won't break the bank.

By Mill Chart

Last update: Dec 1, 2023

Our stock screener has singled out PDD HOLDINGS INC (NASDAQ:PDD) as an attractive growth opportunity. NASDAQ:PDD is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

A Closer Look at Growth for NASDAQ:PDD

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:PDD boasts a 8 out of 10:

  • The Earnings Per Share has grown by an impressive 49.42% over the past year.
  • PDD shows a strong growth in Revenue. In the last year, the Revenue has grown by 68.33%.
  • Measured over the past years, PDD shows a very strong growth in Revenue. The Revenue has been growing by 137.06% on average per year.
  • Based on estimates for the next years, PDD will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.06% on average per year.
  • Based on estimates for the next years, PDD will show a very strong growth in Revenue. The Revenue will grow by 20.30% on average per year.

Understanding NASDAQ:PDD's Valuation

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:PDD, the assigned 4 reflects its valuation:

  • PDD's Price/Earnings ratio is a bit cheaper when compared to the industry. PDD is cheaper than 76.47% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, PDD is valued a bit cheaper than 64.71% of the companies in the same industry.
  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent 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 26.40% in the coming years.

What does the Health looks like for NASDAQ:PDD

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:PDD scores a 7 out of 10:

  • PDD has an Altman-Z score of 7.32. This indicates that PDD is financially healthy and has little risk of bankruptcy at the moment.
  • PDD's Altman-Z score of 7.32 is amongst the best of the industry. PDD outperforms 94.12% of its industry peers.
  • The Debt to FCF ratio of PDD is 0.19, which is an excellent value as it means it would take PDD, only 0.19 years of fcf income to pay off all of its debts.
  • PDD's Debt to FCF ratio of 0.19 is amongst the best of the industry. PDD outperforms 94.12% of its industry peers.
  • PDD has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
  • With a decent Debt to Equity ratio value of 0.01, PDD is doing good in the industry, outperforming 79.41% of the companies in the same industry.
  • PDD has a better Quick ratio (1.83) than 70.59% of its industry peers.

Profitability Assessment of NASDAQ:PDD

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:PDD has earned a 7 out of 10:

  • The Return On Assets of PDD (14.70%) is better than 97.06% of its industry peers.
  • The Return On Equity of PDD (28.51%) is better than 91.18% of its industry peers.
  • PDD has a better Return On Invested Capital (22.83%) than 94.12% of its industry peers.
  • PDD has a better Profit Margin (23.27%) than 97.06% of its industry peers.
  • PDD has a Operating Margin of 22.87%. This is amongst the best in the industry. PDD outperforms 97.06% of its industry peers.
  • Looking at the Gross Margin, with a value of 66.98%, PDD belongs to the top of the industry, outperforming 85.29% of the companies in the same industry.
  • PDD's Gross Margin has improved in the last couple of years.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of PDD

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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PDD HOLDINGS INC

NASDAQ:PDD (2/26/2024, 7:00:01 PM)

Premarket: 128.66 +2.18 (+1.72%)

126.48

-1.21 (-0.95%)

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