PDD HOLDINGS INC (PDD) Stock Fundamental Analysis
USA - NASDAQ:PDD - US7223041028 - ADR
127.6 USD
+0.5 (+0.39%)
Taking everything into account, PDD scores 7 out of 10 in our fundamental rating. PDD was compared to 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 a correct valuation and a medium growth rate. This makes PDD very considerable for 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.
Of the past 5 years PDD 4 years were profitable.
In the past 5 years PDD always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 17.27%, PDD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
PDD has a Return On Equity of 27.06%. This is amongst the best in the industry. PDD outperforms 89.29% of its industry peers.
PDD has a Return On Invested Capital of 21.14%. This is amongst the best in the industry. PDD outperforms 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 10.41%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.27% | ||
| ROE | 27.06% | ||
| ROIC | 21.14% |
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
PDD's Profit Margin of 23.91% 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.
Looking at the Operating Margin, with a value of 22.40%, PDD belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
PDD's Operating Margin has improved in the last couple of years.
PDD's Gross Margin of 57.45% is amongst the best of the industry. PDD outperforms 82.14% of its industry peers.
In the last couple of years the Gross Margin of PDD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.4% | ||
| PM (TTM) | 23.91% | ||
| GM | 57.45% |
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.
PDD has more shares outstanding than it did 1 year ago.
PDD has more shares outstanding than it did 5 years ago.
PDD has a better debt/assets ratio than last year.
2.2 Solvency
PDD has an Altman-Z score of 6.18. 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 6.18, PDD belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
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 | 0.06 | ||
| Altman-Z | 6.18 |
ROIC/WACC2.8
WACC7.54%
2.3 Liquidity
PDD has a Current Ratio of 2.36. This indicates that PDD is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.36, PDD is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 2.36 indicates that PDD has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.36, PDD belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
| 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 -0.92% in the last year.
The Earnings Per Share has been growing by 106.51% on average over the past years. This is a very strong growth
The Revenue has grown by 19.92% in the past year. This is quite good.
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)-0.92%
EPS 3Y106.51%
EPS 5YN/A
EPS Q2Q%-5.03%
Revenue 1Y (TTM)19.92%
Revenue growth 3Y61.24%
Revenue growth 5Y67.2%
Sales Q2Q%7.14%
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 8.71% yearly.
PDD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.73% yearly.
EPS Next Y-16.97%
EPS Next 2Y1.12%
EPS Next 3Y7.07%
EPS Next 5Y8.71%
Revenue Next Year7.58%
Revenue Next 2Y11.33%
Revenue Next 3Y12%
Revenue Next 5Y7.73%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.62, the valuation of PDD can be described as correct.
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.
PDD is valuated cheaply when we compare the Price/Earnings ratio to 27.49, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.77 indicates a reasonable valuation of PDD.
85.71% 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 22.99. PDD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.62 | ||
| Fwd PE | 10.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PDD is valued a bit cheaper than 78.57% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PDD is valued a bit cheaper than the industry average as 67.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.73 | ||
| EV/EBITDA | 6.17 |
4.3 Compensation for Growth
The excellent profitability rating of PDD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.12%
EPS Next 3Y7.07%
5. Dividend
5.1 Amount
PDD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:PDD (10/15/2025, 3:03:59 PM)
127.6
+0.5 (+0.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners31.53%
Inst Owner Change-1.37%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap181.15B
Analysts77.78
Price Target146.45 (14.77%)
Short Float %6.77%
Short Ratio2.7
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)-0.05%
Min EPS beat(2)-38.98%
Max EPS beat(2)38.87%
EPS beat(4)2
Avg EPS beat(4)-1.6%
Min EPS beat(4)-38.98%
Max EPS beat(4)38.87%
EPS beat(8)6
Avg EPS beat(8)24.68%
EPS beat(12)9
Avg EPS beat(12)33.52%
EPS beat(16)13
Avg EPS beat(16)135.09%
Revenue beat(2)0
Avg Revenue beat(2)-3.98%
Min Revenue beat(2)-7.59%
Max Revenue beat(2)-0.37%
Revenue beat(4)0
Avg Revenue beat(4)-4.3%
Min Revenue beat(4)-7.59%
Max Revenue beat(4)-0.37%
Revenue beat(8)3
Avg Revenue beat(8)3.55%
Revenue beat(12)6
Avg Revenue beat(12)6.1%
Revenue beat(16)8
Avg Revenue beat(16)5.54%
PT rev (1m)0.73%
PT rev (3m)9.32%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)9.11%
EPS NY rev (1m)11.31%
EPS NY rev (3m)13.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.62 | ||
| Fwd PE | 10.77 | ||
| P/S | 3.16 | ||
| P/FCF | 13.73 | ||
| P/OCF | 13.73 | ||
| P/B | 3.57 | ||
| P/tB | 3.57 | ||
| EV/EBITDA | 6.17 |
EPS(TTM)10.11
EY7.92%
EPS(NY)11.84
Fwd EY9.28%
FCF(TTM)9.3
FCFY7.29%
OCF(TTM)9.3
OCFY7.29%
SpS40.41
BVpS35.7
TBVpS35.7
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.27% | ||
| ROE | 27.06% | ||
| ROCE | 25.13% | ||
| ROIC | 21.14% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 22.4% | ||
| PM (TTM) | 23.91% | ||
| GM | 57.45% | ||
| FCFM | 23% |
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-Score4
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.06 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.81% | ||
| Profit Quality | 96.23% | ||
| Current Ratio | 2.36 | ||
| Quick Ratio | 2.36 | ||
| Altman-Z | 6.18 |
F-Score4
WACC7.54%
ROIC/WACC2.8
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)-0.92%
EPS 3Y106.51%
EPS 5YN/A
EPS Q2Q%-5.03%
EPS Next Y-16.97%
EPS Next 2Y1.12%
EPS Next 3Y7.07%
EPS Next 5Y8.71%
Revenue 1Y (TTM)19.92%
Revenue growth 3Y61.24%
Revenue growth 5Y67.2%
Sales Q2Q%7.14%
Revenue Next Year7.58%
Revenue Next 2Y11.33%
Revenue Next 3Y12%
Revenue Next 5Y7.73%
EBIT growth 1Y-5.97%
EBIT growth 3Y150.51%
EBIT growth 5YN/A
EBIT Next Year-20.02%
EBIT Next 3Y9.06%
EBIT Next 5Y1.82%
FCF growth 1Y49.72%
FCF growth 3Y68.03%
FCF growth 5Y52.23%
OCF growth 1Y49.72%
OCF growth 3Y61.8%
OCF growth 5Y52.42%