PDD HOLDINGS INC (PDD)
US7223041028 - ADR
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 is evaluated to be cheap and growing strongly. This does not happen too often! This makes PDD very considerable for value and growth 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.
In multiple years PDD reported negative net income over the last 5 years.
PDD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PDD has a Return On Assets of 21.15%. This is amongst the best in the industry. PDD outperforms 100.00% of its industry peers.
PDD has a Return On Equity of 36.54%. This is amongst the best in the industry. PDD outperforms 93.94% of its industry peers.
The Return On Invested Capital of PDD (29.27%) is better than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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 Rank | Sector 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
With an excellent Profit Margin value of 26.93%, PDD belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Operating Margin value of 26.19%, PDD belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Gross Margin of PDD (61.83%) is better than 84.85% of its industry peers.
In the last couple of years the Gross Margin of PDD has declined.
| Industry Rank | Sector 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%
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.
PDD has more shares outstanding than it did 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
PDD has an Altman-Z score of 7.28. 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 7.28, PDD belongs to the top of the industry, outperforming 90.91% 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.
PDD has a Debt to FCF ratio of 0.05. This is amongst the best in the industry. PDD outperforms 93.94% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that PDD is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.02, PDD belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 7.28 |
ROIC/WACC3.88
WACC7.54%
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 has a Current ratio of 2.09. This is in the better half of the industry: PDD outperforms 75.76% 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 Quick ratio of 2.09. This is amongst the best in the industry. PDD outperforms 84.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 2.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 91.34% over the past year.
PDD shows a strong growth in Revenue. In the last year, the Revenue has grown by 105.55%.
Measured over the past years, PDD shows a very strong growth in Revenue. The Revenue has been growing by 79.96% on average per year.
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 30.86% on average per year.
Based on estimates for the next years, PDD will show a very strong growth in Revenue. The Revenue will grow by 26.32% on average per year.
EPS Next Y90.66%
EPS Next 2Y57.22%
EPS Next 3Y44.53%
EPS Next 5Y30.86%
Revenue Next Year76.31%
Revenue Next 2Y52.33%
Revenue Next 3Y40.94%
Revenue Next 5Y26.32%
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.
4. Valuation
4.1 Price/Earnings Ratio
PDD is valuated correctly with a Price/Earnings ratio of 15.70.
Based on the Price/Earnings ratio, PDD is valued a bit cheaper than 63.64% of the companies in the same industry.
PDD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.41.
A Price/Forward Earnings ratio of 8.25 indicates a reasonable valuation of PDD.
Based on the Price/Forward Earnings ratio, PDD is valued a bit cheaper than 78.79% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, PDD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.7 | ||
| Fwd PE | 8.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PDD indicates a somewhat cheap valuation: PDD is cheaper than 63.64% 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 69.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.51 | ||
| EV/EBITDA | 11.17 |
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.
A more expensive valuation may be justified as PDD's earnings are expected to grow with 44.53% in the coming years.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2Y57.22%
EPS Next 3Y44.53%
5. Dividend
5.1 Amount
PDD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PDD HOLDINGS INC
NASDAQ:PDD (7/26/2024, 7:00:00 PM)
After market: 130.6 -0.2 (-0.15%)130.8
+1.06 (+0.82%)
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 Cap181.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector 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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.7 | ||
| Fwd PE | 8.25 | ||
| 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)0.17
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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