PDD HOLDINGS INC (PDD) Fundamental Analysis & Valuation

NASDAQ:PDD • US7223041028

Current stock price

105.15 USD
+1.31 (+1.26%)
Last:

This PDD fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. PDD Profitability Analysis

1.1 Basic Checks

  • In the past year PDD was profitable.
  • In the past year PDD had a positive cash flow from operations.
  • Of the past 5 years PDD 4 years were profitable.
  • Each year in the past 5 years PDD had a positive operating cash flow.
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

  • Looking at the Return On Assets, with a value of 16.66%, PDD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • PDD has a better Return On Equity (26.13%) than 90.00% of its industry peers.
  • PDD's Return On Invested Capital of 19.72% is amongst the best of the industry. PDD outperforms 96.67% of its industry peers.
  • PDD had an Average Return On Invested Capital over the past 3 years of 25.13%. This is significantly above the industry average of 9.15%.
  • 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 RankSector 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
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 24.43% 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.
  • PDD has a better Operating Margin (22.10%) than 96.67% of its industry peers.
  • PDD's Operating Margin has improved in the last couple of years.
  • 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 RankSector 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%
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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8

2. PDD Health Analysis

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.
  • PDD has more shares outstanding than it did 5 years ago.
  • PDD has a better debt/assets ratio than last year.
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 5.10 indicates that PDD is not in any danger for bankruptcy at the moment.
  • PDD's Altman-Z score of 5.10 is fine compared to the rest of the industry. PDD outperforms 80.00% of its industry peers.
  • PDD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.05
Altman-Z 5.1
ROIC/WACC2.34
WACC8.44%
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

  • 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 80.00% 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.
  • PDD's Quick ratio of 2.36 is amongst the best of the industry. PDD outperforms 93.33% of its industry peers.
Industry RankSector Rank
Current Ratio 2.36
Quick Ratio 2.36
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. PDD Growth Analysis

3.1 Past

  • PDD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.46%.
  • PDD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 106.51% yearly.
  • PDD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.48%.
  • 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)-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 7.24% on average over the next years.
  • The Revenue is expected to grow by 10.29% on average over the next years. This is quite good.
EPS Next Y-6.6%
EPS Next 2Y3.55%
EPS Next 3Y7.59%
EPS Next 5Y7.24%
Revenue Next Year9.17%
Revenue Next 2Y11.96%
Revenue Next 3Y12.04%
Revenue Next 5Y10.29%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in 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 2033 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 2033 0 50 100

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7

4. PDD Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 9.71, the valuation of PDD can be described as very reasonable.
  • 86.67% of the companies in the same industry are more expensive than PDD, based on the Price/Earnings ratio.
  • PDD is valuated cheaply when we compare the Price/Earnings ratio to 25.96, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 8.18, the valuation of PDD can be described as reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of PDD indicates a rather cheap valuation: PDD is cheaper than 83.33% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of PDD to the average of the S&P500 Index (24.04), we can say PDD is valued rather cheaply.
Industry RankSector Rank
PE 9.71
Fwd PE 8.18
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

  • PDD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PDD is cheaper than 100.00% of the companies in the same industry.
  • 73.33% of the companies in the same industry are more expensive than PDD, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 9.16
EV/EBITDA 2.8
PDD Per share dataPDD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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 2Y3.55%
EPS Next 3Y7.59%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. PDD Dividend Analysis

5.1 Amount

  • No dividends for PDD!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

PDD Fundamentals: All Metrics, Ratios and Statistics

PDD HOLDINGS INC

NASDAQ:PDD (3/17/2026, 11:11:03 AM)

105.15

+1.31 (+1.26%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)11-18
Earnings (Next)03-18
Inst Owners32.8%
Inst Owner Change-1.43%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap149.28B
Revenue(TTM)418.54B
Net Income(TTM)102.27B
Analysts78.14
Price Target149.43 (42.11%)
Short Float %7.14%
Short Ratio3.14
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)-3.6%
Min Revenue beat(4)-7.59%
Max Revenue beat(4)-0.37%
Revenue beat(8)2
Avg Revenue beat(8)0.27%
Revenue beat(12)5
Avg Revenue beat(12)4.85%
Revenue beat(16)8
Avg Revenue beat(16)6.7%
PT rev (1m)0.09%
PT rev (3m)1.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.39%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.58%
Valuation
Industry RankSector Rank
PE 9.71
Fwd PE 8.18
P/S 2.46
P/FCF 9.16
P/OCF 9.16
P/B 2.63
P/tB 2.63
EV/EBITDA 2.8
EPS(TTM)10.83
EY10.3%
EPS(NY)12.86
Fwd EY12.23%
FCF(TTM)11.48
FCFY10.92%
OCF(TTM)11.48
OCFY10.92%
SpS42.75
BVpS39.98
TBVpS39.98
PEG (NY)N/A
PEG (5Y)N/A
Graham Number98.7
Profitability
Industry RankSector 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 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 118.11%
Profit Quality 109.87%
Current Ratio 2.36
Quick Ratio 2.36
Altman-Z 5.1
F-Score5
WACC8.44%
ROIC/WACC2.34
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-6.6%
EPS Next 2Y3.55%
EPS Next 3Y7.59%
EPS Next 5Y7.24%
Revenue 1Y (TTM)12.48%
Revenue growth 3Y61.24%
Revenue growth 5Y67.2%
Sales Q2Q%8.98%
Revenue Next Year9.17%
Revenue Next 2Y11.96%
Revenue Next 3Y12.04%
Revenue Next 5Y10.29%
EBIT growth 1Y-12.1%
EBIT growth 3Y150.51%
EBIT growth 5YN/A
EBIT Next Year-14.95%
EBIT Next 3Y8.85%
EBIT Next 5Y3.32%
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 Fundamental Analysis FAQ

What is the ChartMill fundamental rating of PDD HOLDINGS INC (PDD) stock?

ChartMill assigns a fundamental rating of 7 / 10 to PDD.


What is the valuation status of PDD HOLDINGS INC (PDD) stock?

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.


What are the PE and PB ratios of PDD HOLDINGS INC (PDD) stock?

The Price/Earnings (PE) ratio for PDD HOLDINGS INC (PDD) is 9.71 and the Price/Book (PB) ratio is 2.63.


What is the expected EPS growth for PDD HOLDINGS INC (PDD) stock?

The Earnings per Share (EPS) of PDD HOLDINGS INC (PDD) is expected to decline by -6.6% in the next year.