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 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. PDD is growing strongly while it also seems undervalued. This is an interesting combination With these ratings, PDD could be worth investigating further for value and growth and quality investing!.
1. Profitability
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.
In the past 5 years PDD always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 18.69%, PDD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Equity of PDD (30.08%) is better than 89.29% of its industry peers.
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 11.38%.
| 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
With an excellent Profit Margin value of 24.63%, PDD belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of PDD has grown nicely.
Looking at the Operating Margin, with a value of 24.47%, PDD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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.
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.
Compared to 1 year ago, PDD has more shares outstanding
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 5.84. This indicates that PDD is financially healthy and has little risk of bankruptcy at the moment.
PDD has a better Altman-Z score (5.84) than 89.29% 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 | 5.84 |
ROIC/WACC3.08
WACC8.06%
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 Current ratio of 2.27. This is in the better half of the industry: PDD outperforms 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.
PDD shows a strong growth in Revenue. In the last year, 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
The Earnings Per Share is expected to grow by 8.78% on average over the next years. This is quite good.
PDD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.05% yearly.
EPS Next Y-27.13%
EPS Next 2Y-0.6%
EPS Next 3Y5.83%
EPS Next 5Y8.78%
Revenue Next Year7.74%
Revenue Next 2Y11.53%
Revenue Next 3Y12.23%
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.
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
A Price/Earnings ratio of 10.81 indicates a reasonable valuation of PDD.
PDD's Price/Earnings ratio is rather cheap when compared to the industry. PDD is cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.82. PDD is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.71, which indicates a very decent 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, PDD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.81 | ||
| Fwd PE | 9.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PDD is valued cheaper than 85.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PDD is valued cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.68 | ||
| EV/EBITDA | 4.68 |
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
No dividends for PDD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
110.06
-3.39 (-2.99%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners32.25%
Inst Owner Change-11.11%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap156.25B
Analysts77.27
Price Target132.04 (19.97%)
Short Float %6.71%
Short Ratio3
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)-1.43%
PT rev (3m)-16.41%
EPS NQ rev (1m)-0.78%
EPS NQ rev (3m)-27.82%
EPS NY rev (1m)-2.28%
EPS NY rev (3m)-32.68%
Revenue NQ rev (1m)0.44%
Revenue NQ rev (3m)-9.73%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)-9.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.81 | ||
| Fwd PE | 9.71 | ||
| P/S | 2.8 | ||
| P/FCF | 9.68 | ||
| P/OCF | 9.68 | ||
| P/B | 3.42 | ||
| P/tB | 3.42 | ||
| EV/EBITDA | 4.68 |
EPS(TTM)10.18
EY9.25%
EPS(NY)11.33
Fwd EY10.29%
FCF(TTM)11.37
FCFY10.33%
OCF(TTM)11.37
OCFY10.33%
SpS39.33
BVpS32.2
TBVpS32.2
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 | 5.84 |
F-Score5
WACC8.06%
ROIC/WACC3.08
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 Year7.74%
Revenue Next 2Y11.53%
Revenue Next 3Y12.23%
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%