NasdaqGS:PDD

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Exceptional growth potential with flawless balance sheet.

Risks

  • Pinduoduo has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-0.3%

NasdaqGS:PDD

-0.1%

US Online Retail

1.1%

US Market


1 Year Return

53.4%

NasdaqGS:PDD

1.8%

US Online Retail

2.1%

US Market

PDD outperformed the Online Retail industry which returned 0.8% over the past year.

PDD outperformed the Market in United States of America which returned 2% over the past year.


Share holder returns

PDDIndustryMarket
7 Day-0.3%-0.1%1.1%
30 Day38.9%2.0%3.7%
90 Day65.7%0.04%2.3%
1 Year53.4%53.4%1.8%1.8%4.4%2.1%
3 Yearn/a89.8%89.5%47.0%37.4%
5 Yearn/a183.9%171.2%61.6%43.8%

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

Valuation

Is Pinduoduo undervalued based on future cash flows and its price relative to the stock market?

11.36x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Pinduoduo's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Pinduoduo's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Pinduoduo is loss making, we can't compare its value to the US Online Retail industry average.

Pinduoduo is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Pinduoduo, we can't assess if its growth is good value.


Price Based on Value of Assets

Pinduoduo is overvalued based on assets compared to the US Online Retail industry average.


Next Steps

Future Growth

How is Pinduoduo expected to perform in the next 1 to 3 years based on estimates from 22 analysts?

96.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Pinduoduo's revenue is expected to grow significantly at over 20% yearly.

Pinduoduo's earnings are expected to grow significantly at over 20% yearly.

Pinduoduo's revenue growth is expected to exceed the United States of America market average.

Pinduoduo's earnings growth is expected to exceed the United States of America market average.

Pinduoduo's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Pinduoduo is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Pinduoduo performed over the past 5 years?

8.3%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Pinduoduo does not make a profit and there is insufficient past data to establish if their 5 year on year earnings growth rate was positive.

Unable to compare Pinduoduo's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Pinduoduo's 1-year growth to the US Online Retail industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Pinduoduo has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Pinduoduo has efficiently used its assets last year compared to the US Online Retail industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Pinduoduo improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Pinduoduo's financial position?


Financial Position Analysis

Pinduoduo is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Pinduoduo's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Pinduoduo has no debt.

Pinduoduo has not taken on any debt in the past 5 years.


Balance Sheet

Low level of unsold assets.

Pinduoduo has no debt, it does not need to be covered by short term assets.


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.

Whilst loss making Pinduoduo has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Pinduoduo has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -38.3% per year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Pinduoduo's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Pinduoduo's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Pinduoduo has not reported any payouts.

Unable to verify if Pinduoduo's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Pinduoduo has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Pinduoduo's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Pinduoduo's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Zheng Huang (39yo)

4.7yrs

Tenure

0

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  ...


Management Age and Tenure

3.7yrs

Average Tenure

39yo

Average Age

The tenure for the Pinduoduo management team is about average.


Board Age and Tenure

1.3yrs

Average Tenure

52yo

Average Age

The average tenure for the Pinduoduo board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Zheng Huang (39yo)

    Founder

    • Tenure: 4.7yrs
  • Christian Arnell

    Investor Relations Officer

    • Tenure: 0yrs
  • Lei Chen (39yo)

    Chief Technology Officer

    • Tenure: 3.7yrs
  • Zhenwei Zheng (35yo)

    Senior Vice President of Product Development

    • Tenure: 3.7yrs
  • Junyun Xiao (39yo)

    Senior Vice President of Operation

    • Tenure: 3.7yrs
  • David Liu

    Vice President of Strategy

    • Tenure: 0yrs

Board Members

  • Neil Shen (52yo)

    Independent Director

    • Tenure: 1.4yrs
  • Lu Qi (57yo)

    Independent Director

    • Tenure: 1.2yrs
  • Zheng Huang (39yo)

    Founder

    • Tenure: 4.7yrs
  • George Yeo (65yo)

    Independent Director

    • Tenure: 1.2yrs
  • Haifeng Lin (42yo)

    Director

    • Tenure: 2.3yrs
  • Anthony Kam

    Independent Director

    • Tenure: 0.08yrs

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$40.082b
  • Shares outstanding: 1.15b
  • Website: https://www.pinduoduo.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PDDNasdaqGS (Nasdaq Global Select)YesSPONSORED ADSUSUSDJul 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, sho ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 00:42
End of Day Share Price2019/09/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.