Pinduoduo
Market Cap
US$42.9b
Last Updated
2020/04/04 03:29 UTC
Data Sources
Company Financials +
Executive Summary
Pinduoduo Inc., through its subsidiaries, operates an e-commerce platform in the People's Republic of China.
Snowflake Analysis
Exceptional growth potential with excellent balance sheet.
Similar Companies
Share Price & News
How has Pinduoduo's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: PDD has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
4.5%
PDD
-0.08%
US Online Retail
-2.0%
US Market
1 Year Return
70.8%
PDD
-0.5%
US Online Retail
-15.1%
US Market
Return vs Industry: PDD exceeded the US Online Retail industry which returned -0.5% over the past year.
Return vs Market: PDD exceeded the US Market which returned -15.1% over the past year.
Shareholder returns
| PDD | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.5% | -0.08% | -2.0% |
| 30 Day | 2.2% | -7.1% | -19.7% |
| 90 Day | -9.8% | -7.3% | -23.2% |
| 1 Year | 70.8%70.8% | -0.5%-0.5% | -13.4%-15.1% |
| 3 Year | n/a | 70.6%70.4% | 10.9%3.7% |
| 5 Year | n/a | 167.9%156.4% | 28.4%14.4% |
Price Volatility Vs. Market
How volatile is Pinduoduo's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
Pinduoduo Inc. Consensus Forecasts Have Become A Little Darker Since Its Latest Report1 month ago | Simply Wall St
When Will Pinduoduo Inc. (NASDAQ:PDD) Breakeven?2 months ago | Simply Wall St
Update: Pinduoduo (NASDAQ:PDD) Stock Gained 21% In The Last YearValuation
Is Pinduoduo undervalued compared to its fair value and its price relative to the market?
14.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PDD ($36.9) is trading below our estimate of fair value ($43.26)
Significantly Below Fair Value: PDD is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: PDD is unprofitable, so we can't compare its PE Ratio to the 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 (12.3x) compared to the US Online Retail industry average (2x).
Next Steps
Future Growth
How is Pinduoduo forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?
91.6%
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 (1.7%).
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 (33.3% per year) is forecast to grow faster than the US market (7.1% per year).
High Growth Revenue: PDD's revenue (33.3% 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 high in 3 years time (33.2%)
Next Steps
Past Performance
How has Pinduoduo performed over the past 5 years?
32.3%
Last years 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: Insufficient data to determine if PDD's year-on-year earnings growth rate was positive over the past 5 years.
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 (18.4%).
Return on Equity
High ROE: PDD has a negative Return on Equity (-28.27%), as it is currently unprofitable.
Next Steps
Financial Health
How is Pinduoduo's financial position?
Financial Position Analysis
Short Term Liabilities: PDD's short term assets (CN¥73.0B) exceed its short term liabilities (CN¥45.8B).
Long Term Liabilities: PDD's short term assets (CN¥73.0B) exceed its long term liabilities (CN¥5.6B).
Debt to Equity History and Analysis
Debt Level: PDD's debt to equity ratio (24.8%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if PDD's debt to equity ratio has reduced over the past 5 years.
Balance Sheet
Inventory Level: PDD has a low level of unsold assets or inventory.
Debt Coverage by Assets: PDD's debt is covered by short term assets (assets are 12x debt).
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 34.8% per year.
Next Steps
Dividend
What is Pinduoduo's 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 payouts.
High Dividend: Unable to evaluate PDD's dividend yield against the top 25% of dividend payers, as the company has not reported any 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?
4.3yrs
Average management tenure
CEO
Zheng Huang (39yo)
5.25s
Tenure
Mr. Zheng Huang is a Founder of Pinduoduo Inc. and has been its Chairman of the Board of Directors and Chief Executive Officer since 2015. Mr. Huang employed at Ouku.com in the position of Chief Executive ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 5.25yrs | no data | 44.62% CN¥19.1b | |
| Senior Vice President of Operation | 4.25yrs | no data | no data | |
| Chief Technology Officer | 4.25yrs | no data | no data | |
| Investor Relations Officers | no data | no data | no data | |
| Senior Vice President of Product Development | 4.25yrs | no data | no data | |
| Vice President of Strategy | no data | no data | no data |
4.3yrs
Average Tenure
39yo
Average Age
Experienced Management: PDD's management team is considered experienced (4.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 5.25yrs | no data | 44.62% CN¥19.1b | |
| Independent Director | 2yrs | no data | no data | |
| Independent Director | 1.75yrs | no data | no data | |
| Independent Director | 1.75yrs | no data | no data | |
| Director | 2.83yrs | no data | no data | |
| Independent Director | 0.67yr | no data | no data |
1.9yrs
Average Tenure
52yo
Average Age
Experienced Board: PDD's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.
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 substantially diluted in the past year, with total shares outstanding growing by 55.9%.
Top Shareholders
Company Information
Pinduoduo Inc.'s company bio, 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
- Market Cap: US$42.891b
- Shares outstanding: 1.16b
- Website: https://www.pinduoduo.com
Number of Employees
Location
- Pinduoduo Inc.
- No. 533 Loushanguan Road
- 28th Floor
- Shanghai
- 200051
- China
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PDD | NasdaqGS (Nasdaq Global Select) | Yes | SPONSORED ADS | US | USD | Jul 2018 |
Biography
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 Inc. was founded in 2015 and is based in Shanghai, the People's Republic of China.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/04 03:29 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.