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Investors seeking growth at a reasonable cost should explore NASDAQ:PDD.

By Mill Chart

Last update: Jul 4, 2024

Uncover the potential of PDD HOLDINGS INC (NASDAQ:PDD), a growth stock that our stock screener found to be reasonably priced. NASDAQ:PDD is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.


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Growth Examination for NASDAQ:PDD

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:PDD was assigned a score of 8 for growth:

  • The Earnings Per Share has grown by an impressive 91.34% over the past year.
  • PDD shows a strong growth in Revenue. In the last year, the Revenue has grown by 105.55%.
  • The Revenue has been growing by 79.96% on average over the past years. This is a very strong growth!
  • PDD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.86% yearly.
  • 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.

Exploring NASDAQ:PDD's Valuation

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:PDD scores a 8 out of 10:

  • Based on the Price/Earnings ratio, PDD is valued a bit cheaper than 63.64% of the companies in the same industry.
  • PDD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
  • Based on the Price/Forward Earnings ratio of 8.72, the valuation of PDD can be described as reasonable.
  • Based on the Price/Forward Earnings ratio, PDD is valued a bit cheaper than the industry average as 78.79% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 20.15, PDD is valued rather cheaply.
  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PDD indicates a somewhat cheap valuation: PDD is cheaper than 63.64% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, PDD is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
  • PDD's 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 44.53% in the coming years. This may justify a more expensive valuation.

Unpacking NASDAQ:PDD's Health Rating

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 9 out of 10:

  • An Altman-Z score of 7.60 indicates that PDD is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 7.60, PDD belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
  • PDD has a debt to FCF ratio of 0.05. This is a very positive value and a sign of high solvency as it would only need 0.05 years to pay back of all of its debts.
  • With an excellent Debt to FCF ratio value of 0.05, PDD belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
  • A Debt/Equity ratio of 0.02 indicates that PDD is not too dependend on debt financing.
  • The Debt to Equity ratio of PDD (0.02) is better than 81.82% of its industry peers.
  • A Current Ratio of 2.09 indicates that PDD has no problem at all paying its short term obligations.
  • The Current ratio of PDD (2.09) is better than 75.76% of its industry peers.
  • A Quick Ratio of 2.09 indicates that PDD has no problem at all paying its short term obligations.
  • PDD's Quick ratio of 2.09 is amongst the best of the industry. PDD outperforms 84.85% of its industry peers.

Evaluating Profitability: NASDAQ:PDD

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:PDD has achieved a 8:

  • PDD has a Return On Assets of 21.15%. This is amongst the best in the industry. PDD outperforms 100.00% of its industry peers.
  • PDD's Return On Equity of 36.54% is amongst the best of the industry. PDD outperforms 93.94% of its industry peers.
  • With an excellent Return On Invested Capital value of 29.27%, 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 11.29%.
  • The last Return On Invested Capital (29.27%) for PDD is above the 3 year average (17.97%), which is a sign of increasing profitability.
  • Looking at the Profit Margin, with a value of 26.93%, PDD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • PDD's Operating Margin of 26.19% is amongst the best of the industry. PDD outperforms 100.00% of its industry peers.
  • With an excellent Gross Margin value of 61.83%, PDD belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Check the latest full fundamental report of PDD for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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PDD HOLDINGS INC

NASDAQ:PDD (7/9/2024, 8:32:10 PM)

Premarket: 137.88 +0.16 (+0.12%)

137.72

+3.04 (+2.26%)

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