PDD HOLDINGS INC (PDD) Fundamental Analysis & Valuation

NASDAQ:PDD • US7223041028

Current stock price

102.61 USD
+4.52 (+4.61%)
At close:
103.03 USD
+0.42 (+0.41%)
After Hours:

This PDD fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. PDD Profitability Analysis

1.1 Basic Checks

  • In the past year PDD was profitable.
  • PDD had a positive operating cash flow in the past year.
  • Of the past 5 years PDD 4 years were profitable.
  • Each year in the past 5 years PDD had a positive operating cash flow.
PDD Yearly Net Income VS EBIT VS OCF VS FCFPDD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20B 40B 60B 80B 100B

1.2 Ratios

  • PDD's Return On Assets of 16.66% is amongst the best of the industry. PDD outperforms 100.00% of its industry peers.
  • The Return On Equity of PDD (26.13%) is better than 90.00% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 19.72%, PDD belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
  • PDD had an Average Return On Invested Capital over the past 3 years of 25.13%. This is significantly above the industry average of 8.76%.
  • The 3 year average ROIC (25.13%) for PDD is well above the current ROIC(19.72%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 16.66%
ROE 26.13%
ROIC 19.72%
ROA(3y)17.6%
ROA(5y)10.52%
ROE(3y)31.57%
ROE(5y)18.63%
ROIC(3y)25.13%
ROIC(5y)N/A
PDD Yearly ROA, ROE, ROICPDD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40 -60 -80

1.3 Margins

  • PDD has a better Profit Margin (24.43%) than 100.00% of its industry peers.
  • PDD's Profit Margin has improved in the last couple of years.
  • The Operating Margin of PDD (22.10%) is better than 96.67% 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 56.65%, PDD belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
  • In the last couple of years the Gross Margin of PDD has declined.
Industry RankSector Rank
OM 22.1%
PM (TTM) 24.43%
GM 56.65%
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%
PDD Yearly Profit, Operating, Gross MarginsPDD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50

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9

2. PDD Health Analysis

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.
  • The number of shares outstanding for PDD has been increased compared to 5 years ago.
  • Compared to 1 year ago, PDD has an improved debt to assets ratio.
PDD Yearly Shares OutstandingPDD Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
PDD Yearly Total Debt VS Total AssetsPDD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 100B 200B 300B 400B 500B

2.2 Solvency

  • An Altman-Z score of 4.95 indicates that PDD is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of PDD (4.95) is better than 83.33% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0.05
Altman-Z 4.95
ROIC/WACC2.58
WACC7.63%
PDD Yearly LT Debt VS Equity VS FCFPDD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 100B 200B 300B

2.3 Liquidity

  • PDD has a Current Ratio of 2.36. This indicates that PDD is financially healthy and has no problem in meeting its short term obligations.
  • With a decent Current ratio value of 2.36, PDD is doing good in the industry, outperforming 80.00% of the companies in the same industry.
  • A Quick Ratio of 2.36 indicates that PDD has no problem at all paying its short term obligations.
  • PDD's Quick ratio of 2.36 is amongst the best of the industry. PDD outperforms 93.33% of its industry peers.
Industry RankSector Rank
Current Ratio 2.36
Quick Ratio 2.36
PDD Yearly Current Assets VS Current LiabilitesPDD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 100B 200B 300B 400B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. PDD Growth Analysis

3.1 Past

  • PDD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.46%.
  • PDD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 106.51% yearly.
  • Looking at the last year, PDD shows a quite strong growth in Revenue. The Revenue has grown by 12.48% in the last year.
  • PDD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 67.20% yearly.
EPS 1Y (TTM)-6.46%
EPS 3Y106.51%
EPS 5YN/A
EPS Q2Q%13.39%
Revenue 1Y (TTM)12.48%
Revenue growth 3Y61.24%
Revenue growth 5Y67.2%
Sales Q2Q%8.98%

3.2 Future

  • PDD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.24% yearly.
  • PDD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.29% yearly.
EPS Next Y-6.6%
EPS Next 2Y3.55%
EPS Next 3Y7.59%
EPS Next 5Y7.24%
Revenue Next Year9.17%
Revenue Next 2Y11.96%
Revenue Next 3Y12.04%
Revenue Next 5Y10.29%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • 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.
PDD Yearly Revenue VS EstimatesPDD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 200B 400B 600B
PDD Yearly EPS VS EstimatesPDD Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 0 50 100

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7

4. PDD Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 9.47, which indicates a very decent valuation of PDD.
  • Based on the Price/Earnings ratio, PDD is valued cheaper than 90.00% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of PDD to the average of the S&P500 Index (25.61), we can say PDD is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 7.98, the valuation of PDD can be described as very cheap.
  • 86.67% of the companies in the same industry are more expensive than PDD, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 22.79. PDD is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 9.47
Fwd PE 7.98
PDD Price Earnings VS Forward Price EarningsPDD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, PDD is valued cheaper than 100.00% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, PDD is valued a bit cheaper than the industry average as 76.67% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 8.94
EV/EBITDA 2.21
PDD Per share dataPDD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • PDD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.55%
EPS Next 3Y7.59%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. PDD Dividend Analysis

5.1 Amount

  • No dividends for PDD!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

PDD Fundamentals: All Metrics, Ratios and Statistics

PDD HOLDINGS INC

NASDAQ:PDD (3/25/2026, 8:00:01 PM)

After market: 103.03 +0.42 (+0.41%)

102.61

+4.52 (+4.61%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)03-18
Earnings (Next)05-25
Inst Owners32.8%
Inst Owner Change-1.43%
Ins Owners0%
Ins Owner Change0%
Market Cap145.67B
Revenue(TTM)418.54B
Net Income(TTM)102.27B
Analysts78.14
Price Target149.43 (45.63%)
Short Float %7.14%
Short Ratio3.14
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)2
Avg EPS beat(2)31.39%
Min EPS beat(2)23.91%
Max EPS beat(2)38.87%
EPS beat(4)3
Avg EPS beat(4)6.13%
Min EPS beat(4)-38.98%
Max EPS beat(4)38.87%
EPS beat(8)6
Avg EPS beat(8)23.66%
EPS beat(12)9
Avg EPS beat(12)28.68%
EPS beat(16)13
Avg EPS beat(16)52.14%
Revenue beat(2)0
Avg Revenue beat(2)-0.74%
Min Revenue beat(2)-1.11%
Max Revenue beat(2)-0.37%
Revenue beat(4)0
Avg Revenue beat(4)-3.6%
Min Revenue beat(4)-7.59%
Max Revenue beat(4)-0.37%
Revenue beat(8)2
Avg Revenue beat(8)0.27%
Revenue beat(12)5
Avg Revenue beat(12)4.85%
Revenue beat(16)8
Avg Revenue beat(16)6.7%
PT rev (1m)0.09%
PT rev (3m)1.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.39%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.58%
Valuation
Industry RankSector Rank
PE 9.47
Fwd PE 7.98
P/S 2.4
P/FCF 8.94
P/OCF 8.94
P/B 2.57
P/tB 2.57
EV/EBITDA 2.21
EPS(TTM)10.84
EY10.56%
EPS(NY)12.86
Fwd EY12.54%
FCF(TTM)11.48
FCFY11.19%
OCF(TTM)11.48
OCFY11.19%
SpS42.77
BVpS40
TBVpS39.99
PEG (NY)N/A
PEG (5Y)N/A
Graham Number98.77
Profitability
Industry RankSector Rank
ROA 16.66%
ROE 26.13%
ROCE 23.45%
ROIC 19.72%
ROICexc N/A
ROICexgc N/A
OM 22.1%
PM (TTM) 24.43%
GM 56.65%
FCFM 26.85%
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
ROICexgc growth 3YN/A
ROICexgc 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-Score5
Asset Turnover0.68
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.05
Debt/EBITDA 0
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 250
Cash Conversion 118.11%
Profit Quality 109.87%
Current Ratio 2.36
Quick Ratio 2.36
Altman-Z 4.95
F-Score5
WACC7.63%
ROIC/WACC2.58
Cap/Depr(3y)30.26%
Cap/Depr(5y)54.88%
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)-6.46%
EPS 3Y106.51%
EPS 5YN/A
EPS Q2Q%13.39%
EPS Next Y-6.6%
EPS Next 2Y3.55%
EPS Next 3Y7.59%
EPS Next 5Y7.24%
Revenue 1Y (TTM)12.48%
Revenue growth 3Y61.24%
Revenue growth 5Y67.2%
Sales Q2Q%8.98%
Revenue Next Year9.17%
Revenue Next 2Y11.96%
Revenue Next 3Y12.04%
Revenue Next 5Y10.29%
EBIT growth 1Y-12.1%
EBIT growth 3Y150.51%
EBIT growth 5YN/A
EBIT Next Year-14.95%
EBIT Next 3Y8.85%
EBIT Next 5Y3.32%
FCF growth 1Y34.05%
FCF growth 3Y68.03%
FCF growth 5Y52.24%
OCF growth 1Y34.05%
OCF growth 3Y61.8%
OCF growth 5Y52.42%

PDD HOLDINGS INC / PDD Fundamental Analysis FAQ

What is the ChartMill fundamental rating of PDD HOLDINGS INC (PDD) stock?

ChartMill assigns a fundamental rating of 7 / 10 to PDD.


What is the valuation status of PDD HOLDINGS INC (PDD) stock?

ChartMill assigns a valuation rating of 7 / 10 to PDD HOLDINGS INC (PDD). This can be considered as Undervalued.


How profitable is PDD HOLDINGS INC (PDD) stock?

PDD HOLDINGS INC (PDD) has a profitability rating of 9 / 10.


What are the PE and PB ratios of PDD HOLDINGS INC (PDD) stock?

The Price/Earnings (PE) ratio for PDD HOLDINGS INC (PDD) is 9.47 and the Price/Book (PB) ratio is 2.57.


What is the expected EPS growth for PDD HOLDINGS INC (PDD) stock?

The Earnings per Share (EPS) of PDD HOLDINGS INC (PDD) is expected to decline by -6.6% in the next year.