PDD HOLDINGS INC (PDD)

US7223041028 - ADR

148.98  -2.09 (-1.38%)

After market: 148.75 -0.23 (-0.15%)

Fundamental Rating

8

Overall PDD gets a fundamental rating of 8 out of 10. We evaluated PDD against 33 industry peers in the Broadline Retail industry. PDD gets an excellent profitability rating and is at the same time showing great financial health properties. PDD has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! These ratings could make PDD a good candidate for value and growth and quality investing.



8

1. Profitability

1.1 Basic Checks

PDD had positive earnings in the past year.
In the past year PDD had a positive cash flow from operations.
In multiple years PDD reported negative net income over the last 5 years.
In the past 5 years PDD always reported a positive cash flow from operatings.

1.2 Ratios

With an excellent Return On Assets value of 21.15%, PDD belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
PDD has a better Return On Equity (36.54%) than 93.75% 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 3 year average ROIC (17.97%) for PDD is below the current ROIC(29.27%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 21.15%
ROE 36.54%
ROIC 29.27%
ROA(3y)11.61%
ROA(5y)4.23%
ROE(3y)23.06%
ROE(5y)5.8%
ROIC(3y)17.97%
ROIC(5y)N/A

1.3 Margins

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.
Looking at the Operating Margin, with a value of 26.19%, PDD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Gross Margin, with a value of 61.83%, PDD belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
In the last couple of years the Gross Margin of PDD has declined.
Industry RankSector Rank
OM 26.19%
PM (TTM) 26.93%
GM 61.83%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.34%
GM growth 5Y-4.16%

9

2. Health

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.
Compared to 5 years ago, PDD has more shares outstanding
Compared to 1 year ago, PDD has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 8.03 indicates that PDD is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 8.03, PDD belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
The Debt to FCF ratio of PDD is 0.05, which is an excellent value as it means it would take PDD, only 0.05 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PDD (0.05) is better than 93.75% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that PDD is not too dependend on debt financing.
PDD has a better Debt to Equity ratio (0.02) than 81.25% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.02
Debt/FCF 0.05
Altman-Z 8.03
ROIC/WACC3.97
WACC7.37%

2.3 Liquidity

PDD has a Current Ratio of 2.09. This indicates that PDD is financially healthy and has no problem in meeting its short term obligations.
PDD's Current ratio of 2.09 is fine compared to the rest of the industry. PDD outperforms 75.00% of its industry peers.
PDD has a Quick Ratio of 2.09. This indicates that PDD is financially healthy and has no problem in meeting its short term obligations.
PDD has a better Quick ratio (2.09) than 84.38% of its industry peers.
Industry RankSector Rank
Current Ratio 2.09
Quick Ratio 2.09

8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 91.34% over the past year.
Looking at the last year, PDD shows a very strong growth in Revenue. The Revenue has grown by 105.55%.
PDD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 79.96% yearly.
EPS 1Y (TTM)91.34%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%199.42%
Revenue 1Y (TTM)105.55%
Revenue growth 3Y60.86%
Revenue growth 5Y79.96%
Sales Q2Q%130.66%

3.2 Future

Based on estimates for the next years, PDD will show a very strong growth in Earnings Per Share. The EPS will grow by 44.53% on average per year.
The Revenue is expected to grow by 22.61% on average over the next years. This is a very strong growth
EPS Next Y90.66%
EPS Next 2Y57.22%
EPS Next 3Y44.53%
EPS Next 5YN/A
Revenue Next Year76.31%
Revenue Next 2Y52.33%
Revenue Next 3Y40.94%
Revenue Next 5Y22.61%

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

7

4. Valuation

4.1 Price/Earnings Ratio

PDD is valuated rather expensively with a Price/Earnings ratio of 17.97.
Based on the Price/Earnings ratio, PDD is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
PDD is valuated rather cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.44, the valuation of PDD can be described as very reasonable.
Based on the Price/Forward Earnings ratio, PDD is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
PDD is valuated cheaply when we compare the Price/Forward Earnings ratio to 19.91, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 17.97
Fwd PE 9.44

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as PDD.
Based on the Price/Free Cash Flow ratio, PDD is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 13.18
EV/EBITDA 13.72

4.3 Compensation for Growth

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.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y57.22%
EPS Next 3Y44.53%

0

5. Dividend

5.1 Amount

PDD does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

PDD HOLDINGS INC

NASDAQ:PDD (6/14/2024, 7:00:00 PM)

After market: 148.75 -0.23 (-0.15%)

148.98

-2.09 (-1.38%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap206.90B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 17.97
Fwd PE 9.44
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.2
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 21.15%
ROE 36.54%
ROCE
ROIC
ROICexc
ROICexgc
OM 26.19%
PM (TTM) 26.93%
GM 61.83%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.79
Health
Industry RankSector Rank
Debt/Equity 0.02
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.09
Quick Ratio 2.09
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)91.34%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y90.66%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)105.55%
Revenue growth 3Y60.86%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y