116.08 USD
+0.28 (+0.24%)
116.34 USD
+0.26 (+0.22%)
We assign a fundamental rating of 7 out of 10 to PDD. PDD was compared to 30 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 may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make PDD a good candidate for value 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.
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.
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.
PDD's Return On Equity of 26.13% is amongst the best of the industry. PDD outperforms 90.00% of its industry peers.
The Return On Invested Capital of PDD (19.72%) is better than 96.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PDD is significantly above the industry average of 9.35%.
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 Rank | Sector 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
1.3 Margins
Looking at the Profit Margin, with a value of 24.43%, PDD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
PDD's Profit Margin has improved in the last couple of years.
PDD's Operating Margin of 22.10% is amongst the best of the industry. PDD outperforms 96.67% of its industry peers.
In the last couple of years the Operating Margin of PDD has grown nicely.
PDD has a Gross Margin of 56.65%. This is amongst the best in the industry. PDD outperforms 83.33% of its industry peers.
In the last couple of years the Gross Margin of PDD has declined.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PDD is creating value.
PDD has more shares outstanding than it did 1 year ago.
The number of shares outstanding for PDD has been increased compared to 5 years ago.
The debt/assets ratio for PDD has been reduced compared to a year ago.
2.2 Solvency
PDD has an Altman-Z score of 5.50. This indicates that PDD is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.50, PDD belongs to the top of the industry, outperforming 83.33% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 5.5 |
ROIC/WACC2.35
WACC8.38%
2.3 Liquidity
A Current Ratio of 2.36 indicates that PDD has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.36, PDD is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
PDD has a Quick Ratio of 2.36. This indicates that PDD is financially healthy and has no problem in meeting its short term obligations.
PDD has a better Quick ratio (2.36) than 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 2.36 |
3. Growth
3.1 Past
The earnings per share for PDD have decreased by -6.46% in the last year.
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.
The Revenue has been growing by 67.20% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 7.39% 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 10.45% on average per year.
EPS Next Y-16.22%
EPS Next 2Y1.29%
EPS Next 3Y7.16%
EPS Next 5Y7.39%
Revenue Next Year7.58%
Revenue Next 2Y11.33%
Revenue Next 3Y12%
Revenue Next 5Y10.45%
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.
4. Valuation
4.1 Price/Earnings Ratio
PDD is valuated reasonably with a Price/Earnings ratio of 11.00.
Based on the Price/Earnings ratio, PDD is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
PDD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.31.
The Price/Forward Earnings ratio is 9.69, which indicates a very decent valuation of PDD.
86.67% of the companies in the same industry are more expensive than PDD, based on the Price/Forward Earnings ratio.
PDD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11 | ||
| Fwd PE | 9.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PDD indicates a rather cheap valuation: PDD is cheaper than 93.33% of the companies listed in the same industry.
PDD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PDD is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.39 | ||
| EV/EBITDA | 4.36 |
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 2Y1.29%
EPS Next 3Y7.16%
5. Dividend
5.1 Amount
PDD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
116.08
+0.28 (+0.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners31.53%
Inst Owner Change2.16%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap164.79B
Revenue(TTM)418.54B
Net Income(TTM)102.27B
Analysts77.78
Price Target148.41 (27.85%)
Short Float %5.86%
Short Ratio2.58
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)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)-3.54%
Min Revenue beat(4)-7.59%
Max Revenue beat(4)-0.37%
Revenue beat(8)2
Avg Revenue beat(8)0.31%
Revenue beat(12)5
Avg Revenue beat(12)4.87%
Revenue beat(16)8
Avg Revenue beat(16)6.71%
PT rev (1m)1.33%
PT rev (3m)12.35%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)0.65%
EPS NY rev (1m)0%
EPS NY rev (3m)12.32%
Revenue NQ rev (1m)1.29%
Revenue NQ rev (3m)4.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11 | ||
| Fwd PE | 9.69 | ||
| P/S | 2.79 | ||
| P/FCF | 10.39 | ||
| P/OCF | 10.39 | ||
| P/B | 2.98 | ||
| P/tB | 2.98 | ||
| EV/EBITDA | 4.36 |
EPS(TTM)10.55
EY9.09%
EPS(NY)11.98
Fwd EY10.32%
FCF(TTM)11.17
FCFY9.63%
OCF(TTM)11.17
OCFY9.63%
SpS41.62
BVpS38.92
TBVpS38.92
PEG (NY)N/A
PEG (5Y)N/A
Graham Number96.12
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 5.5 |
F-Score5
WACC8.38%
ROIC/WACC2.35
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-16.22%
EPS Next 2Y1.29%
EPS Next 3Y7.16%
EPS Next 5Y7.39%
Revenue 1Y (TTM)12.48%
Revenue growth 3Y61.24%
Revenue growth 5Y67.2%
Sales Q2Q%8.98%
Revenue Next Year7.58%
Revenue Next 2Y11.33%
Revenue Next 3Y12%
Revenue Next 5Y10.45%
EBIT growth 1Y-12.1%
EBIT growth 3Y150.51%
EBIT growth 5YN/A
EBIT Next Year-20.02%
EBIT Next 3Y9.06%
EBIT Next 5Y3.45%
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 FAQ
What is the ChartMill fundamental rating of PDD HOLDINGS INC (PDD) stock?
ChartMill assigns a fundamental rating of 7 / 10 to PDD.
Can you provide the valuation status for PDD HOLDINGS INC?
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.
Can you provide the expected EPS growth for PDD stock?
The Earnings per Share (EPS) of PDD HOLDINGS INC (PDD) is expected to decline by -16.22% in the next year.