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 31 industry peers in the Broadline Retail industry. PDD scores excellent points on both the profitability and health parts. This is a solid base for a good stock. PDD is evaluated to be cheap and growing strongly. This does not happen too often! With these ratings, PDD could be worth investigating further for value and growth and quality investing!.
1. Profitability
1.1 Basic Checks
PDD had positive earnings in the past year.
PDD had a positive operating cash flow in the past year.
Of the past 5 years PDD 4 years were profitable.
PDD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PDD (22.26%) is better than 100.00% of its industry peers.
PDD has a better Return On Equity (35.89%) than 93.55% of its industry peers.
Looking at the Return On Invested Capital, with a value of 28.81%, PDD belongs to the top 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 11.52%.
The last Return On Invested Capital (28.81%) for PDD is above the 3 year average (25.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.26% | ||
| ROE | 35.89% | ||
| ROIC | 28.81% |
ROA(3y)17.6%
ROA(5y)10.52%
ROE(3y)31.57%
ROE(5y)18.63%
ROIC(3y)25.13%
ROIC(5y)N/A
1.3 Margins
PDD's Profit Margin of 28.55% is amongst the best of the industry. PDD outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of PDD has grown nicely.
The Operating Margin of PDD (27.53%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of PDD has grown nicely.
Looking at the Gross Margin, with a value of 60.92%, PDD belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
In the last couple of years the Gross Margin of PDD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.53% | ||
| PM (TTM) | 28.55% | ||
| GM | 60.92% |
OM growth 3Y55.36%
OM growth 5YN/A
PM growth 3Y51.14%
PM growth 5YN/A
GM growth 3Y-2.75%
GM growth 5Y-5.06%
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.
Compared to 1 year ago, PDD has more shares outstanding
PDD has more shares outstanding than it did 5 years ago.
PDD has a better debt/assets ratio than last year.
2.2 Solvency
PDD has an Altman-Z score of 6.38. This indicates that PDD is financially healthy and has little risk of bankruptcy at the moment.
PDD's Altman-Z score of 6.38 is amongst the best of the industry. PDD outperforms 90.32% of its industry peers.
PDD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 6.38 |
ROIC/WACC3.7
WACC7.79%
2.3 Liquidity
A Current Ratio of 2.21 indicates that PDD has no problem at all paying its short term obligations.
PDD has a Current ratio of 2.21. This is amongst the best in the industry. PDD outperforms 80.65% of its industry peers.
A Quick Ratio of 2.21 indicates that PDD has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.21, PDD belongs to the top of the industry, outperforming 90.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 2.21 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 78.54% over the past year.
Measured over the past years, PDD shows a very strong growth in Earnings Per Share. The EPS has been growing by 106.51% on average per year.
Looking at the last year, PDD shows a very strong growth in Revenue. The Revenue has grown by 59.04%.
Measured over the past years, PDD shows a very strong growth in Revenue. The Revenue has been growing by 67.20% on average per year.
EPS 1Y (TTM)78.54%
EPS 3Y106.51%
EPS 5YN/A
EPS Q2Q%16.34%
Revenue 1Y (TTM)59.04%
Revenue growth 3Y61.24%
Revenue growth 5Y67.2%
Sales Q2Q%24.45%
3.2 Future
The Earnings Per Share is expected to grow by 5.36% on average over the next years.
The Revenue is expected to grow by 13.52% on average over the next years. This is quite good.
EPS Next Y8.24%
EPS Next 2Y14.63%
EPS Next 3Y15.2%
EPS Next 5Y5.36%
Revenue Next Year18.82%
Revenue Next 2Y18.57%
Revenue Next 3Y16.95%
Revenue Next 5Y13.52%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 10.39, the valuation of PDD can be described as very reasonable.
87.10% of the companies in the same industry are more expensive than PDD, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PDD to the average of the S&P500 Index (25.82), we can say PDD is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.60, the valuation of PDD can be described as very reasonable.
PDD's Price/Forward Earnings ratio is rather cheap when compared to the industry. PDD is cheaper than 83.87% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. PDD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.39 | ||
| Fwd PE | 9.6 |
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.
Based on the Price/Free Cash Flow ratio, PDD is valued a bit cheaper than 70.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.08 | ||
| EV/EBITDA | 5.63 |
4.3 Compensation for Growth
PDD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 15.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.26
PEG (5Y)N/A
EPS Next 2Y14.63%
EPS Next 3Y15.2%
5. Dividend
5.1 Amount
No dividends for PDD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
119.24
-0.56 (-0.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners31.47%
Inst Owner Change18.3%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap169.28B
Analysts80.91
Price Target157.33 (31.94%)
Short Float %7.58%
Short Ratio2.52
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)-3.14%
Min EPS beat(2)-6.97%
Max EPS beat(2)0.7%
EPS beat(4)3
Avg EPS beat(4)28.92%
Min EPS beat(4)-6.97%
Max EPS beat(4)103.72%
EPS beat(8)7
Avg EPS beat(8)40.12%
EPS beat(12)10
Avg EPS beat(12)53.94%
EPS beat(16)14
Avg EPS beat(16)157.46%
Revenue beat(2)0
Avg Revenue beat(2)-4.62%
Min Revenue beat(2)-5.08%
Max Revenue beat(2)-4.17%
Revenue beat(4)1
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-5.08%
Max Revenue beat(4)13.61%
Revenue beat(8)5
Avg Revenue beat(8)8.93%
Revenue beat(12)8
Avg Revenue beat(12)10.58%
Revenue beat(16)9
Avg Revenue beat(16)5.72%
PT rev (1m)-0.17%
PT rev (3m)2.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.26%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-3.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.97%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-4.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.39 | ||
| Fwd PE | 9.6 | ||
| P/S | 3.1 | ||
| P/FCF | 10.08 | ||
| P/OCF | 10 | ||
| P/B | 3.89 | ||
| P/tB | 3.89 | ||
| EV/EBITDA | 5.63 |
EPS(TTM)11.48
EY9.63%
EPS(NY)12.42
Fwd EY10.42%
FCF(TTM)11.83
FCFY9.92%
OCF(TTM)11.92
OCFY10%
SpS38.51
BVpS30.63
TBVpS30.63
PEG (NY)1.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.26% | ||
| ROE | 35.89% | ||
| ROCE | 34.24% | ||
| ROIC | 28.81% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 27.53% | ||
| PM (TTM) | 28.55% | ||
| GM | 60.92% | ||
| FCFM | 30.71% |
ROA(3y)17.6%
ROA(5y)10.52%
ROE(3y)31.57%
ROE(5y)18.63%
ROIC(3y)25.13%
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)29.87%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y55.36%
OM growth 5YN/A
PM growth 3Y51.14%
PM growth 5YN/A
GM growth 3Y-2.75%
GM growth 5Y-5.06%
F-Score7
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.04 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 36.62% | ||
| Cap/Sales | 0.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.78% | ||
| Profit Quality | 107.59% | ||
| Current Ratio | 2.21 | ||
| Quick Ratio | 2.21 | ||
| Altman-Z | 6.38 |
F-Score7
WACC7.79%
ROIC/WACC3.7
Cap/Depr(3y)32.05%
Cap/Depr(5y)64.52%
Cap/Sales(3y)0.32%
Cap/Sales(5y)0.91%
Profit Quality(3y)138.42%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)78.54%
EPS 3Y106.51%
EPS 5YN/A
EPS Q2Q%16.34%
EPS Next Y8.24%
EPS Next 2Y14.63%
EPS Next 3Y15.2%
EPS Next 5Y5.36%
Revenue 1Y (TTM)59.04%
Revenue growth 3Y61.24%
Revenue growth 5Y67.2%
Sales Q2Q%24.45%
Revenue Next Year18.82%
Revenue Next 2Y18.57%
Revenue Next 3Y16.95%
Revenue Next 5Y13.52%
EBIT growth 1Y84.71%
EBIT growth 3Y150.51%
EBIT growth 5YN/A
EBIT Next Year8.16%
EBIT Next 3Y17.79%
EBIT Next 5Y4.33%
FCF growth 1Y29.26%
FCF growth 3Y68.03%
FCF growth 5Y52.23%
OCF growth 1Y29.49%
OCF growth 3Y61.8%
OCF growth 5Y52.42%