PDD HOLDINGS INC (PDD) Stock Fundamental Analysis
NASDAQ:PDD - US7223041028 - ADR
127.11 USD
+4.15 (+3.38%)
127.83 USD
+0.72 (+0.57%)
Overall PDD gets a fundamental rating of 8 out of 10. We evaluated PDD against 28 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 would make PDD suitable 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.
Each year in the past 5 years PDD had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PDD (18.69%) is better than 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 89.29% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 24.85%, PDD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
PDD had an Average Return On Invested Capital over the past 3 years of 25.13%. This is significantly above the industry average of 11.20%.
| 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's Profit Margin of 24.63% is amongst the best of the industry. PDD outperforms 100.00% of its industry peers.
PDD's Profit Margin has improved in the last couple of years.
PDD's Operating Margin of 24.47% is amongst the best of the industry. PDD outperforms 100.00% of its industry peers.
PDD's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 59.73%, PDD belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
In the last couple of years the Gross Margin of PDD has declined.
| 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
PDD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for PDD has been increased compared to 1 year ago.
The number of shares outstanding for PDD has been increased compared to 5 years ago.
Compared to 1 year ago, PDD has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.34 indicates that PDD is not in any danger for bankruptcy at the moment.
The Altman-Z score of PDD (6.34) is better than 82.14% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 6.34 |
ROIC/WACC3.16
WACC7.87%
2.3 Liquidity
PDD has a Current Ratio of 2.27. This indicates that PDD is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of PDD (2.27) is better than 75.00% of its industry peers.
PDD has a Quick Ratio of 2.27. This indicates that PDD is financially healthy and has no problem in meeting its short term obligations.
PDD has a Quick ratio of 2.27. This is amongst the best in the industry. PDD outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.27 |
3. Growth
3.1 Past
PDD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.07%, which is quite impressive.
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.
Looking at the last year, PDD shows a very strong growth in Revenue. The Revenue has grown by 35.67%.
The Revenue has been growing by 67.20% on average over the past years. This is a very strong growth!
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
PDD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.81% yearly.
PDD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.09% yearly.
EPS Next Y-25.41%
EPS Next 2Y-0.61%
EPS Next 3Y5.88%
EPS Next 5Y8.81%
Revenue Next Year7.79%
Revenue Next 2Y11.64%
Revenue Next 3Y12.35%
Revenue Next 5Y11.09%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 12.44, which indicates a correct valuation of PDD.
Compared to the rest of the industry, the Price/Earnings ratio of PDD indicates a rather cheap valuation: PDD is cheaper than 85.71% of the companies listed in the same industry.
PDD is valuated cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.17 indicates a reasonable valuation of PDD.
Based on the Price/Forward Earnings ratio, PDD is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
PDD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.44 | ||
| Fwd PE | 11.17 |
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 cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.13 | ||
| EV/EBITDA | 6.34 |
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 2Y-0.61%
EPS Next 3Y5.88%
5. Dividend
5.1 Amount
No dividends for PDD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
127.11
+4.15 (+3.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners32.28%
Inst Owner Change-14.72%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap180.45B
Analysts77.27
Price Target132.1 (3.93%)
Short Float %6.46%
Short Ratio3.71
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)0.04%
PT rev (3m)-16.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-27.82%
EPS NY rev (1m)2.37%
EPS NY rev (3m)-31.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.73%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-9.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.44 | ||
| Fwd PE | 11.17 | ||
| P/S | 3.22 | ||
| P/FCF | 11.13 | ||
| P/OCF | 11.13 | ||
| P/B | 3.93 | ||
| P/tB | 3.93 | ||
| EV/EBITDA | 6.34 |
EPS(TTM)10.22
EY8.04%
EPS(NY)11.38
Fwd EY8.95%
FCF(TTM)11.42
FCFY8.98%
OCF(TTM)11.42
OCFY8.98%
SpS39.51
BVpS32.35
TBVpS32.35
PEG (NY)N/A
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 | 6.34 |
F-Score5
WACC7.87%
ROIC/WACC3.16
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 Y-25.41%
EPS Next 2Y-0.61%
EPS Next 3Y5.88%
EPS Next 5Y8.81%
Revenue 1Y (TTM)35.67%
Revenue growth 3Y61.24%
Revenue growth 5Y67.2%
Sales Q2Q%10.21%
Revenue Next Year7.79%
Revenue Next 2Y11.64%
Revenue Next 3Y12.35%
Revenue Next 5Y11.09%
EBIT growth 1Y26.74%
EBIT growth 3Y150.51%
EBIT growth 5YN/A
EBIT Next Year-21.35%
EBIT Next 3Y8.98%
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%