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PDD HOLDINGS INC (PDD) Stock Fundamental Analysis

NASDAQ:PDD - Nasdaq - US7223041028 - ADR - Currency: USD

103.59  -0.38 (-0.37%)

After market: 103.55 -0.04 (-0.04%)

Fundamental Rating

8

PDD gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 28 industry peers in the Broadline Retail industry. Both the health and profitability get an excellent rating, making PDD a very profitable company, without any liquidiy or solvency issues. 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.


Dividend Valuation Growth Profitability Health

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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.
PDD had positive earnings in 4 of the past 5 years.
PDD had a positive operating cash flow in each of the past 5 years.
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

With an excellent Return On Assets value of 18.69%, PDD belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
PDD's Return On Equity of 30.08% is amongst the best of the industry. PDD outperforms 89.29% of its industry peers.
PDD's Return On Invested Capital of 24.85% is amongst the best of the industry. PDD outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PDD is significantly above the industry average of 11.59%.
Industry RankSector Rank
ROA 18.69%
ROE 30.08%
ROIC 24.85%
ROA(3y)17.6%
ROA(5y)10.52%
ROE(3y)31.57%
ROE(5y)18.63%
ROIC(3y)25.13%
ROIC(5y)N/A
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's Profit Margin of 24.63% 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.
With an excellent Operating Margin value of 24.47%, 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 Operating Margin of PDD has grown nicely.
The Gross Margin of PDD (59.73%) is better than 82.14% of its industry peers.
PDD's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 24.47%
PM (TTM) 24.63%
GM 59.73%
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. 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.
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 5.62 indicates that PDD is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.62, PDD belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
There is no outstanding debt for PDD. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.05
Altman-Z 5.62
ROIC/WACC3.14
WACC7.92%
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 2.27. This indicates that PDD is financially healthy and has no problem in meeting its short term obligations.
PDD's Current ratio of 2.27 is fine compared to the rest of the industry. PDD outperforms 78.57% of its industry peers.
A Quick Ratio of 2.27 indicates that PDD has no problem at all paying its short term obligations.
PDD has a better Quick ratio (2.27) than 89.29% of its industry peers.
Industry RankSector Rank
Current Ratio 2.27
Quick Ratio 2.27
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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8

3. Growth

3.1 Past

PDD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.07%, which is quite impressive.
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 very strong growth in Revenue. The Revenue has grown by 35.67%.
The Revenue has been growing by 67.20% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)22.07%
EPS 3Y106.51%
EPS 5YN/A
EPS Q2Q%-44.93%
Revenue 1Y (TTM)35.67%
Revenue growth 3Y61.24%
Revenue growth 5Y67.2%
Sales Q2Q%10.21%

3.2 Future

PDD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.78% yearly.
PDD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.05% yearly.
EPS Next Y-25.44%
EPS Next 2Y-0.7%
EPS Next 3Y5.8%
EPS Next 5Y8.78%
Revenue Next Year7.55%
Revenue Next 2Y11.42%
Revenue Next 3Y12.14%
Revenue Next 5Y11.05%

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 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 0 20 40 60 80 100

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 10.11, the valuation of PDD can be described as reasonable.
PDD's Price/Earnings ratio is rather cheap when compared to the industry. PDD is cheaper than 85.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, PDD is valued rather cheaply.
PDD is valuated reasonably with a Price/Forward Earnings ratio of 9.10.
82.14% 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 21.90. PDD is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 10.11
Fwd PE 9.1
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 cheaply inside the industry as 85.71% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PDD is valued cheaper than 85.71% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.05
EV/EBITDA 3.95
PDD Per share dataPDD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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 2Y-0.7%
EPS Next 3Y5.8%

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0

5. Dividend

5.1 Amount

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

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PDD HOLDINGS INC

NASDAQ:PDD (7/3/2025, 7:59:31 PM)

After market: 103.55 -0.04 (-0.04%)

103.59

-0.38 (-0.37%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)05-27 2025-05-27/bmo
Earnings (Next)08-25 2025-08-25/bmo
Inst Owners32.25%
Inst Owner Change20.3%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap147.06B
Analysts77.78
Price Target133.96 (29.32%)
Short Float %9.09%
Short Ratio3.86
Dividend
Industry RankSector 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)-19.14%
Min EPS beat(2)-38.98%
Max EPS beat(2)0.7%
EPS beat(4)2
Avg EPS beat(4)-6.76%
Min EPS beat(4)-38.98%
Max EPS beat(4)18.22%
EPS beat(8)6
Avg EPS beat(8)25.13%
EPS beat(12)9
Avg EPS beat(12)44.51%
EPS beat(16)13
Avg EPS beat(16)152.32%
Revenue beat(2)0
Avg Revenue beat(2)-6.34%
Min Revenue beat(2)-7.59%
Max Revenue beat(2)-5.08%
Revenue beat(4)0
Avg Revenue beat(4)-5.19%
Min Revenue beat(4)-7.59%
Max Revenue beat(4)-3.91%
Revenue beat(8)4
Avg Revenue beat(8)5.91%
Revenue beat(12)7
Avg Revenue beat(12)8.75%
Revenue beat(16)8
Avg Revenue beat(16)4.71%
PT rev (1m)-14.85%
PT rev (3m)-13%
EPS NQ rev (1m)-27.26%
EPS NQ rev (3m)-26.78%
EPS NY rev (1m)-31.11%
EPS NY rev (3m)-32.18%
Revenue NQ rev (1m)-10.13%
Revenue NQ rev (3m)-10.44%
Revenue NY rev (1m)-9.48%
Revenue NY rev (3m)-13.83%
Valuation
Industry RankSector Rank
PE 10.11
Fwd PE 9.1
P/S 2.62
P/FCF 9.05
P/OCF 9.05
P/B 3.19
P/tB 3.19
EV/EBITDA 3.95
EPS(TTM)10.25
EY9.89%
EPS(NY)11.39
Fwd EY10.99%
FCF(TTM)11.45
FCFY11.05%
OCF(TTM)11.45
OCFY11.05%
SpS39.61
BVpS32.43
TBVpS32.43
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 18.69%
ROE 30.08%
ROCE 29.55%
ROIC 24.85%
ROICexc N/A
ROICexgc N/A
OM 24.47%
PM (TTM) 24.63%
GM 59.73%
FCFM 28.9%
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-Score5
Asset Turnover0.76
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 115.03%
Profit Quality 117.34%
Current Ratio 2.27
Quick Ratio 2.27
Altman-Z 5.62
F-Score5
WACC7.92%
ROIC/WACC3.14
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)22.07%
EPS 3Y106.51%
EPS 5YN/A
EPS Q2Q%-44.93%
EPS Next Y-25.44%
EPS Next 2Y-0.7%
EPS Next 3Y5.8%
EPS Next 5Y8.78%
Revenue 1Y (TTM)35.67%
Revenue growth 3Y61.24%
Revenue growth 5Y67.2%
Sales Q2Q%10.21%
Revenue Next Year7.55%
Revenue Next 2Y11.42%
Revenue Next 3Y12.14%
Revenue Next 5Y11.05%
EBIT growth 1Y26.74%
EBIT growth 3Y150.51%
EBIT growth 5YN/A
EBIT Next Year8.47%
EBIT Next 3Y18.33%
EBIT Next 5Y4.33%
FCF growth 1Y97.54%
FCF growth 3Y68.03%
FCF growth 5Y52.23%
OCF growth 1Y97.54%
OCF growth 3Y61.8%
OCF growth 5Y52.42%