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PDD

PinduoduoNasdaqGS:PDD Stock Report

Last Price

US$62.41

Market Cap

US$78.2b

7D

3.3%

1Y

-63.7%

Updated

21 Jan, 2022

Data

Company Financials +
PDD fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance0/6
Financial Health5/6
Dividends0/6

PDD Stock Overview

Pinduoduo Inc., through its subsidiaries, operates an e-commerce platform in the People's Republic of China.

Pinduoduo Competitors

Amazon.com

NasdaqGS:AMZN

US$1.5t

Alibaba Group Holding

NYSE:BABA

US$355.2b

JD.com

NasdaqGS:JD

US$118.9b

Vipshop Holdings

NYSE:VIPS

US$6.0b

Price History & Performance

Summary of all time highs, changes and price drops for Pinduoduo
Historical stock prices
Current Share PriceUS$62.41
52 Week HighUS$212.60
52 Week LowUS$47.67
Beta1.38
1 Month Change6.79%
3 Month Change-36.99%
1 Year Change-63.69%
3 Year Change111.56%
5 Year Changen/a
Change since IPO133.75%

Recent News & Updates

Dec 29

Pinduoduo: Attractive If Growth Would Be Able To Sustain After Cutting Marketing Expenses

Pinduoduo has at least 50-100% upside in the next two years. A Key question is whether customer will leave the platform after Pinduoduo cutting marketing expenses. Pinduoduo is trying to differentiate itself by focusing on agriculture. “Common Prosperity” fear is overblowing.

Nov 30

Pinduoduo: An Alternative To Search-Based Commerce

Pinduoduo gives customers a fun, social and entertaining setting. The team purchase model aggregates demand for each SKU into larger volumes. Increasing efficiency in the supply chain, Pinduoduo allows manufacturers to become brands.

Shareholder Returns

PDDUS Online RetailUS Market
7D3.3%-4.0%-4.0%
1Y-63.7%-25.9%6.6%

Return vs Industry: PDD underperformed the US Online Retail industry which returned -25.9% over the past year.

Return vs Market: PDD underperformed the US Market which returned 6.6% over the past year.

Price Volatility

Is PDD's price volatile compared to industry and market?
PDD volatility
PDD Average Weekly Movement11.5%
Online Retail Industry Average Movement10.5%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: PDD is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: PDD's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
20157,986Lei Chenhttps://www.pinduoduo.com

Pinduoduo Inc., through its subsidiaries, operates an e-commerce platform in the People's Republic of China. It operates Pinduoduo, a mobile platform that offers a range of products, including apparel, shoes, bags, mother and childcare products, food and beverage, fresh produce, electronic appliances, furniture and household goods, cosmetics and other personal care items, sports and fitness items, and auto accessories. The company was formerly known as Walnut Street Group Holding Limited and changed its name to Pinduoduo Inc. in July 2018.

Pinduoduo Fundamentals Summary

How do Pinduoduo's earnings and revenue compare to its market cap?
PDD fundamental statistics
Market CapCN¥495.82b
Earnings (TTM)-CN¥227.23m
Revenue (TTM)CN¥93.27b

5.3x

P/S Ratio

-2,182x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PDD income statement (TTM)
RevenueCN¥93.27b
Cost of RevenueCN¥36.73b
Gross ProfitCN¥56.54b
ExpensesCN¥56.77b
Earnings-CN¥227.23m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.18
Gross Margin60.62%
Net Profit Margin-0.24%
Debt/Equity Ratio17.2%

How did PDD perform over the long term?

See historical performance and comparison

Valuation

Is Pinduoduo undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PDD ($66.12) is trading below our estimate of fair value ($367.54)

Significantly Below Fair Value: PDD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PDD is unprofitable, so we can't compare its PE Ratio to the US Online Retail industry average.

PE vs Market: PDD is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PDD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PDD is overvalued based on its PB Ratio (7.7x) compared to the US Online Retail industry average (2.7x).


Future Growth

How is Pinduoduo forecast to perform in the next 1 to 3 years based on estimates from 37 analysts?

47.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PDD is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: PDD is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PDD's is expected to become profitable in the next 3 years.

Revenue vs Market: PDD's revenue (21.3% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: PDD's revenue (21.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PDD's Return on Equity is forecast to be low in 3 years time (16.5%).


Past Performance

How has Pinduoduo performed over the past 5 years?

-7.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PDD is currently unprofitable.

Growing Profit Margin: PDD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PDD is unprofitable, and losses have increased over the past 5 years at a rate of 7.9% per year.

Accelerating Growth: Unable to compare PDD's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PDD is unprofitable, making it difficult to compare its past year earnings growth to the Online Retail industry (78.8%).


Return on Equity

High ROE: PDD has a negative Return on Equity (-0.33%), as it is currently unprofitable.


Financial Health

How is Pinduoduo's financial position?


Financial Position Analysis

Short Term Liabilities: PDD's short term assets (CN¥157.1B) exceed its short term liabilities (CN¥86.3B).

Long Term Liabilities: PDD's short term assets (CN¥157.1B) exceed its long term liabilities (CN¥12.1B).


Debt to Equity History and Analysis

Debt Level: PDD has more cash than its total debt.

Reducing Debt: Insufficient data to determine if PDD's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable PDD has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PDD is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 39% per year.


Dividend

What is Pinduoduo current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PDD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PDD's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PDD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PDD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PDD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Lei Chen (41 yo)

1.5yrs

Tenure

Mr. Lei Chen has been Chief Executive Officer of Pinduoduo Inc. since July 1, 2020. Mr. Chen has been a Director of Pinduoduo Inc. since 2020 and serves as its Chairman of the Board since March 17, 2021. H...


Leadership Team

Experienced Management: PDD's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: PDD's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.


Top Shareholders

Company Information

Pinduoduo Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Pinduoduo Inc.
  • Ticker: PDD
  • Exchange: NasdaqGS
  • Founded: 2015
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Implied Market Cap: US$78.218b
  • Shares outstanding: 1.25b
  • Website: https://www.pinduoduo.com

Number of Employees


Location

  • Pinduoduo Inc.
  • No. 533 Loushanguan Road
  • 28th Floor
  • Shanghai
  • 200051
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:57
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.