PDD HOLDINGS INC (PDD) Stock Fundamental Analysis
NASDAQ:PDD - Nasdaq - US7223041028 - ADR - Currency: USD
We assign a fundamental rating of 7 out of 10 to PDD. PDD was compared to 31 industry peers in the Broadline Retail industry. PDD has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. PDD is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, PDD could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
PDD had positive earnings in the past year.
PDD had positive earnings in 4 of the past 5 years.
Of the past 5 years PDD 4 years had a positive operating cash flow.
1.2 Ratios
PDD has a Return On Assets of 22.26%. This is amongst the best in the industry. PDD outperforms 96.77% of its industry peers.
With an excellent Return On Equity value of 35.89%, PDD belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
With an excellent Return On Invested Capital value of 28.81%, PDD belongs to the best of the industry, outperforming 96.77% 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 11.80%.
The 3 year average ROIC (25.13%) for PDD is below the current ROIC(28.81%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 28.55%, PDD belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of PDD has grown nicely.
Looking at the Operating Margin, with a value of 27.53%, PDD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
PDD's Operating Margin has improved in the last couple of years.
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.
PDD's Gross Margin has declined in the last couple of years.
| 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.
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
The debt/assets ratio for PDD has been reduced compared to a year ago.
2.2 Solvency
PDD has an Altman-Z score of 6.13. This indicates that PDD is financially healthy and has little risk of bankruptcy at the moment.
PDD's Altman-Z score of 6.13 is amongst the best of the industry. PDD outperforms 87.10% 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 | N/A | ||
| Altman-Z | 6.13 |
ROIC/WACC3.76
WACC7.66%
2.3 Liquidity
A Current Ratio of 2.21 indicates that PDD has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.21, PDD belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
PDD has a Quick Ratio of 2.21. This indicates that PDD is financially healthy and has no problem in meeting its short term obligations.
PDD has a better Quick ratio (2.21) than 93.55% of its industry peers.
| 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.
PDD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 106.51% yearly.
The Revenue has grown by 59.04% in the past year. This is a very strong growth!
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.
Based on estimates for the next years, PDD will show a quite strong growth in Revenue. The Revenue will grow by 13.52% on average per year.
EPS Next Y8.25%
EPS Next 2Y14.69%
EPS Next 3Y15.35%
EPS Next 5Y5.36%
Revenue Next Year19.16%
Revenue Next 2Y18.96%
Revenue Next 3Y17.3%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.76, the valuation of PDD can be described as very reasonable.
83.87% of the companies in the same industry are more expensive than PDD, based on the Price/Earnings ratio.
PDD is valuated cheaply when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.01, the valuation of PDD can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PDD indicates a rather cheap valuation: PDD is cheaper than 83.87% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.86. PDD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.76 | ||
| Fwd PE | 9.01 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
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 15.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.18
PEG (5Y)N/A
EPS Next 2Y14.69%
EPS Next 3Y15.35%
5. Dividend
5.1 Amount
PDD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
110.92
+4.95 (+4.67%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners31.47%
Inst Owner Change14.08%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap157.47B
Analysts80.91
Price Target157.97 (42.42%)
Short Float %7.04%
Short Ratio2.07
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)2.59%
PT rev (3m)2.59%
EPS NQ rev (1m)0.91%
EPS NQ rev (3m)-5.26%
EPS NY rev (1m)-1.54%
EPS NY rev (3m)-4.8%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-10.97%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-4.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.76 | ||
| Fwd PE | 9.01 | ||
| P/S | 2.91 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.65 | ||
| P/tB | 3.65 | ||
| EV/EBITDA | N/A |
EPS(TTM)11.37
EY10.25%
EPS(NY)12.31
Fwd EY11.1%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS38.15
BVpS30.35
TBVpS30.35
PEG (NY)1.18
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 | N/A |
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-ScoreN/A
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.21 | ||
| Quick Ratio | 2.21 | ||
| Altman-Z | 6.13 |
F-ScoreN/A
WACC7.66%
ROIC/WACC3.76
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
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 Y8.25%
EPS Next 2Y14.69%
EPS Next 3Y15.35%
EPS Next 5Y5.36%
Revenue 1Y (TTM)59.04%
Revenue growth 3Y61.24%
Revenue growth 5Y67.2%
Sales Q2Q%24.45%
Revenue Next Year19.16%
Revenue Next 2Y18.96%
Revenue Next 3Y17.3%
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 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A