PDD HOLDINGS INC (PDD) Stock Fundamental Analysis
NASDAQ:PDD - Nasdaq - US7223041028 - ADR - Currency: USD
Overall PDD gets a fundamental rating of 8 out of 10. We evaluated PDD against 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 both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! This makes PDD very considerable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
PDD had positive earnings in the past year.
In the past year PDD had a positive cash flow from operations.
Of the past 5 years PDD 4 years were profitable.
PDD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 18.69%, PDD belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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.
PDD's Return On Invested Capital of 24.85% is amongst the best of 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 11.59%.
| 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 better Profit Margin (24.63%) than 100.00% of its industry peers.
PDD's Profit Margin has improved in the last couple of years.
PDD has a Operating Margin of 24.47%. This is amongst the best in the industry. PDD outperforms 100.00% of its industry peers.
PDD's Operating Margin has improved in the last couple of years.
PDD has a better Gross Margin (59.73%) than 82.14% 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
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.
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
PDD has an Altman-Z score of 5.79. This indicates that PDD is financially healthy and has little risk of bankruptcy at the moment.
PDD has a Altman-Z score of 5.79. This is amongst the best in the industry. PDD outperforms 85.71% 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 | 5.79 |
ROIC/WACC3.35
WACC7.41%
2.3 Liquidity
A Current Ratio of 2.27 indicates that PDD has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.27, PDD is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
A Quick Ratio of 2.27 indicates that PDD has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.27, PDD belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
| 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.
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 35.67% in the past year. This is a very strong growth!
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 8.78% on average per year.
The Revenue is expected to grow by 11.05% on average over the next years. This is quite good.
EPS Next Y-27.13%
EPS Next 2Y-0.6%
EPS Next 3Y5.83%
EPS Next 5Y8.78%
Revenue Next Year7.63%
Revenue Next 2Y11.51%
Revenue Next 3Y12.18%
Revenue Next 5Y11.05%
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
With a Price/Earnings ratio of 10.67, the valuation of PDD can be described as very reasonable.
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.
Compared to an average S&P500 Price/Earnings ratio of 27.50, PDD is valued rather cheaply.
The Price/Forward Earnings ratio is 9.57, which indicates a very decent valuation of PDD.
Based on the Price/Forward Earnings ratio, PDD is valued a bit cheaper than 78.57% of the companies in the same industry.
PDD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.67 | ||
| Fwd PE | 9.57 |
4.2 Price Multiples
85.71% of the companies in the same industry are more expensive than PDD, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PDD is valued cheaper than 82.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.54 | ||
| EV/EBITDA | 4.52 |
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 2Y-0.6%
EPS Next 3Y5.83%
5. Dividend
5.1 Amount
PDD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
109
+1.05 (+0.97%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners32.25%
Inst Owner Change-0.07%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap154.74B
Analysts77.27
Price Target132.04 (21.14%)
Short Float %7.16%
Short Ratio3.28
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)-1.44%
PT rev (3m)-16.22%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-27.39%
EPS NY rev (1m)-2.28%
EPS NY rev (3m)-32.68%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-10.05%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-9.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.67 | ||
| Fwd PE | 9.57 | ||
| P/S | 2.76 | ||
| P/FCF | 9.54 | ||
| P/OCF | 9.54 | ||
| P/B | 3.37 | ||
| P/tB | 3.37 | ||
| EV/EBITDA | 4.52 |
EPS(TTM)10.22
EY9.38%
EPS(NY)11.38
Fwd EY10.44%
FCF(TTM)11.42
FCFY10.48%
OCF(TTM)11.42
OCFY10.48%
SpS39.52
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 | 5.79 |
F-Score5
WACC7.41%
ROIC/WACC3.35
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-27.13%
EPS Next 2Y-0.6%
EPS Next 3Y5.83%
EPS Next 5Y8.78%
Revenue 1Y (TTM)35.67%
Revenue growth 3Y61.24%
Revenue growth 5Y67.2%
Sales Q2Q%10.21%
Revenue Next Year7.63%
Revenue Next 2Y11.51%
Revenue Next 3Y12.18%
Revenue Next 5Y11.05%
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%