PDD HOLDINGS INC (PDD)
US7223041028 - ADR
Overall PDD gets a fundamental rating of 7 out of 10. We evaluated PDD against 34 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 is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make PDD a good candidate for 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.
The reported net income has been mixed in the past 5 years: PDD reported negative net income in multiple years.
In the past 5 years PDD always reported a positive cash flow from operatings.
1.2 Ratios
PDD has a Return On Assets of 17.25%. This is amongst the best in the industry. PDD outperforms 96.97% of its industry peers.
With an excellent Return On Equity value of 32.06%, PDD belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.
The Return On Invested Capital of PDD (25.64%) is better than 96.97% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PDD is significantly above the industry average of 11.22%.
The last Return On Invested Capital (25.64%) for PDD is above the 3 year average (17.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.25% | ||
| ROE | 32.06% | ||
| ROIC | 25.64% |
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
Looking at the Profit Margin, with a value of 24.24%, PDD belongs to the top of the industry, outperforming 96.97% of the companies in the same industry.
PDD's Operating Margin of 23.70% is amongst the best of the industry. PDD outperforms 100.00% of its industry peers.
PDD has a Gross Margin of 62.96%. This is amongst the best in the industry. PDD outperforms 84.85% of its industry peers.
PDD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.7% | ||
| PM (TTM) | 24.24% | ||
| GM | 62.96% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PDD is creating value.
The number of shares outstanding for PDD has been increased compared to 1 year ago.
Compared to 5 years ago, PDD has more shares outstanding
PDD has a better debt/assets ratio than last year.
2.2 Solvency
PDD has an Altman-Z score of 6.64. This indicates that PDD is financially healthy and has little risk of bankruptcy at the moment.
PDD has a Altman-Z score of 6.64. This is amongst the best in the industry. PDD outperforms 87.88% of its industry peers.
The Debt to FCF ratio of PDD is 0.06, which is an excellent value as it means it would take PDD, only 0.06 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PDD (0.06) is better than 93.94% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that PDD is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.03, PDD is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.06 | ||
| Altman-Z | 6.64 |
ROIC/WACC3.47
WACC7.38%
2.3 Liquidity
PDD has a Current Ratio of 1.93. This is a normal value and indicates that PDD is financially healthy and should not expect problems in meeting its short term obligations.
PDD has a better Current ratio (1.93) than 66.67% of its industry peers.
A Quick Ratio of 1.93 indicates that PDD should not have too much problems paying its short term obligations.
PDD's Quick ratio of 1.93 is fine compared to the rest of the industry. PDD outperforms 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.93 |
3. Growth
3.1 Past
PDD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 68.74%, which is quite impressive.
Looking at the last year, PDD shows a very strong growth in Revenue. The Revenue has grown by 89.68%.
The Revenue has been growing by 79.96% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)68.74%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q107.67%
Revenue 1Y (TTM)89.68%
Revenue growth 3Y60.86%
Revenue growth 5Y79.96%
Revenue growth Q2Q123.21%
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 30.98% 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 24.65% on average per year.
EPS Next Y37.9%
EPS Next 2Y35.53%
EPS Next 3Y30.98%
EPS Next 5YN/A
Revenue Next Year58.61%
Revenue Next 2Y43.46%
Revenue Next 3Y35.53%
Revenue Next 5Y24.65%
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.69, which indicates a rather expensive current valuation of PDD.
Based on the Price/Earnings ratio, PDD is valued a bit cheaper than 69.70% of the companies in the same industry.
When comparing the Price/Earnings ratio of PDD to the average of the S&P500 Index (25.20), we can say PDD is valued slightly cheaper.
PDD is valuated correctly with a Price/Forward Earnings ratio of 14.27.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PDD indicates a somewhat cheap valuation: PDD is cheaper than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.63. PDD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.69 | ||
| Fwd PE | 14.27 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PDD indicates a somewhat cheap valuation: PDD is cheaper than 78.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.86 | ||
| EV/EBITDA | N/A |
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.
The excellent profitability rating of PDD may justify a higher PE ratio.
A more expensive valuation may be justified as PDD's earnings are expected to grow with 30.98% in the coming years.
PEG (NY)0.52
PEG (5Y)N/A
EPS Next 2Y35.53%
EPS Next 3Y30.98%
5. Dividend
5.1 Amount
PDD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PDD HOLDINGS INC
NASDAQ:PDD (4/25/2024, 5:01:54 PM)
After market: 125.56 -0.23 (-0.18%)125.79
-1.76 (-1.38%)
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 Cap167.12B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.69 | ||
| Fwd PE | 14.27 | ||
| 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)0.52
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.25% | ||
| ROE | 32.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.7% | ||
| PM (TTM) | 24.24% | ||
| GM | 62.96% | ||
| 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 Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.93 | ||
| 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)
Growth
EPS 1Y (TTM)68.74%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y37.9%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)89.68%
Revenue growth 3Y60.86%
Revenue growth 5Y
Revenue growth 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