| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 5/6 |
| Past Performance | 0/6 |
| Financial Health | 5/6 |
| Dividends | 0/6 |
PDD Stock Overview
Pinduoduo Inc., through its subsidiaries, operates an e-commerce platform in the People's Republic of China.
Pinduoduo Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$62.41 |
| 52 Week High | US$212.60 |
| 52 Week Low | US$47.67 |
| Beta | 1.38 |
| 1 Month Change | 6.79% |
| 3 Month Change | -36.99% |
| 1 Year Change | -63.69% |
| 3 Year Change | 111.56% |
| 5 Year Change | n/a |
| Change since IPO | 133.75% |
Recent News & Updates
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.
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
| PDD | US Online Retail | US Market | |
|---|---|---|---|
| 7D | 3.3% | -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
| PDD volatility | |
|---|---|
| PDD Average Weekly Movement | 11.5% |
| Online Retail Industry Average Movement | 10.5% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.7% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2015 | 7,986 | Lei Chen | https://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
| PDD fundamental statistics | |
|---|---|
| Market Cap | CN¥495.82b |
| Earnings (TTM) | -CN¥227.23m |
| Revenue (TTM) | CN¥93.27b |
5.3x
P/S Ratio-2,182x
P/E RatioIs PDD overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| PDD income statement (TTM) | |
|---|---|
| Revenue | CN¥93.27b |
| Cost of Revenue | CN¥36.73b |
| Gross Profit | CN¥56.54b |
| Expenses | CN¥56.77b |
| Earnings | -CN¥227.23m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | -0.18 |
| Gross Margin | 60.62% |
| Net Profit Margin | -0.24% |
| Debt/Equity Ratio | 17.2% |
How did PDD perform over the long term?
See historical performance and comparisonValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/21 23:57 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.