PDD HOLDINGS INC (PDD) Stock Fundamental Analysis
NASDAQ:PDD - Nasdaq - US7223041028 - ADR - Currency: USD
Taking everything into account, PDD scores 8 out of 10 in our fundamental rating. 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. An interesting combination arises when we look at growth and value: PDD is growing strongly while it also seems undervalued. These ratings could make PDD a good candidate for value and growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year PDD was profitable.
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
PDD has a Return On Assets of 18.69%. This is amongst the best in the industry. PDD outperforms 100.00% of its industry peers.
With an excellent Return On Equity value of 30.08%, PDD belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
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 11.34%.
| Industry Rank | Sector 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
1.3 Margins
PDD has a Profit Margin of 24.63%. This is amongst the best in 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's Operating Margin of 24.47% is amongst the best of the industry. PDD outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of PDD has grown nicely.
PDD's Gross Margin of 59.73% is amongst the best of the industry. PDD outperforms 83.33% of its industry peers.
PDD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PDD is creating value.
Compared to 1 year ago, PDD has more shares outstanding
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
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 86.67% 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 | 0.05 | ||
| Altman-Z | 5.62 |
ROIC/WACC3.19
WACC7.79%
2.3 Liquidity
A Current Ratio of 2.27 indicates that PDD has no problem at all paying its short term obligations.
PDD has a better Current ratio (2.27) than 76.67% 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 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.07% over the past year.
Measured over the past years, PDD shows a very strong growth in Earnings Per Share. The EPS has been growing by 106.51% on average per year.
PDD shows a strong growth in Revenue. In the last year, the Revenue has grown by 35.67%.
PDD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 67.20% yearly.
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
Based on estimates for the next years, PDD will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.84% on average per year.
Based on estimates for the next years, PDD will show a quite strong growth in Revenue. The Revenue will grow by 11.12% on average per year.
EPS Next Y8.24%
EPS Next 2Y14.63%
EPS Next 3Y15.2%
EPS Next 5Y8.84%
Revenue Next Year9.24%
Revenue Next 2Y12.57%
Revenue Next 3Y12.52%
Revenue Next 5Y11.12%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.83, the valuation of PDD can be described as very reasonable.
Based on the Price/Earnings ratio, PDD is valued cheaper than 86.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. PDD is valued rather cheaply when compared to this.
PDD is valuated cheaply with a Price/Forward Earnings ratio of 6.64.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PDD indicates a rather cheap valuation: PDD is cheaper than 86.67% of the companies listed in the same industry.
PDD is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.83 | ||
| Fwd PE | 6.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PDD is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
PDD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PDD is cheaper than 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.8 | ||
| EV/EBITDA | 3.95 |
4.3 Compensation for Growth
PDD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 15.20% in the coming years.
PEG (NY)1.19
PEG (5Y)N/A
EPS Next 2Y14.63%
EPS Next 3Y15.2%
5. Dividend
5.1 Amount
No dividends for PDD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
100.58
-2.85 (-2.76%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners31.47%
Inst Owner Change20.3%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap142.79B
Analysts77.78
Price Target133.97 (33.2%)
Short Float %8.19%
Short Ratio2.56
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)-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)-15.19%
PT rev (3m)-13%
EPS NQ rev (1m)-27.26%
EPS NQ rev (3m)-29.04%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-3.97%
Revenue NQ rev (1m)-10.13%
Revenue NQ rev (3m)-17.44%
Revenue NY rev (1m)-8.06%
Revenue NY rev (3m)-12.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.83 | ||
| Fwd PE | 6.64 | ||
| P/S | 2.54 | ||
| P/FCF | 8.8 | ||
| P/OCF | 8.8 | ||
| P/B | 3.11 | ||
| P/tB | 3.11 | ||
| EV/EBITDA | 3.95 |
EPS(TTM)10.23
EY10.17%
EPS(NY)15.14
Fwd EY15.06%
FCF(TTM)11.42
FCFY11.36%
OCF(TTM)11.42
OCFY11.36%
SpS39.53
BVpS32.36
TBVpS32.36
PEG (NY)1.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 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 | 115.03% | ||
| Profit Quality | 117.34% | ||
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.27 | ||
| Altman-Z | 5.62 |
F-Score5
WACC7.79%
ROIC/WACC3.19
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 Y8.24%
EPS Next 2Y14.63%
EPS Next 3Y15.2%
EPS Next 5Y8.84%
Revenue 1Y (TTM)35.67%
Revenue growth 3Y61.24%
Revenue growth 5Y67.2%
Sales Q2Q%10.21%
Revenue Next Year9.24%
Revenue Next 2Y12.57%
Revenue Next 3Y12.52%
Revenue Next 5Y11.12%
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%