Dingdong (Cayman) Ltd. (DDL)
NYSE:DDL
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Dingdong
(NYSE:DDL)
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Rating:49Neutral
Price Target:
$2.50
▼(-17.49% Downside)
Action:Reiterated
Date:04/28/26
The score is primarily weighed down by deteriorating 2025 operating performance (steep revenue drop and major gross margin compression) and still-elevated leverage for a low-margin grocery business. Technical indicators also reflect weak momentum. Valuation is neutral-to-slightly supportive with a mid-range P/E, but lacks dividend support.
Positive Factors
Sustained profitability and cash flow
Consistent GAAP profits and a multi-quarter streak of positive operating cash flow indicate the core on-demand grocery operations can generate cash and sustain operations without constant external financing. This durable improvement supports reinvestment, working-capital needs, and shareholder returns over the next several months.
Negative Factors
Severe 2025 revenue and margin decline
A dramatic revenue collapse and sharp gross margin compression in 2025 materially weaken unit economics in a low‑margin grocery business. Such structural deterioration reduces operating leverage, makes sustaining profitability harder, and increases sensitivity to cost or demand shocks over the next several months.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained profitability and cash flow
Consistent GAAP profits and a multi-quarter streak of positive operating cash flow indicate the core on-demand grocery operations can generate cash and sustain operations without constant external financing. This durable improvement supports reinvestment, working-capital needs, and shareholder returns over the next several months.
Read all positive factors
Dingdong (DDL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$551.02M
Dividend YieldN/A
Average Volume (3M)3.17M
Price to Earnings (P/E)9.8
Beta (1Y)1.08
Revenue Growth-18.47%
EPS Growth32.49%
CountryUS
Employees3,120
SectorConsumer Defensive
Sector Strength42
IndustryGrocery Stores
Share Statistics
EPS (TTM)0.65
Shares Outstanding180,407,230
10 Day Avg. Volume1,014,721
30 Day Avg. Volume3,172,332
Financial Highlights & Ratios
PEG Ratio-0.60
Price to Book (P/B)3.63
Price to Sales (P/S)0.15
P/FCF Ratio10.85
Enterprise Value/Market Cap6.32
Enterprise Value/Revenue0.20
Enterprise Value/Gross Profit0.67
Enterprise Value/Ebitda20.51
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.95
Revenue Forecast (FY)$26.35B
Dingdong Business Overview & Revenue Model
Company Description
Dingdong (Cayman) Limited operates an e-commerce company in China. The company offers fresh produce, meat, seafood, prepared food, and other food products, such as dairy and bakery products, snacks, oil, seasonings, and beverages. It operates as a...
How the Company Makes Money
Dingdong primarily makes money by selling groceries and related products directly to consumers through its Dingdong Maicai platform. Its core revenue stream is product sales revenue from customer orders (including fresh foods and other consumer st...
Dingdong Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance with record-breaking revenue and consistent profitability. Despite challenges like declining gross profit margins and increased market competition, the company's strategic initiatives such as the 'One Big, One Small, One World' strategy and growth in the good product system show promise for continued success. The overall sentiment is positive due to the outweighing highlights.Positive Updates
Record-Breaking Revenue and GMV
Dingdong reported a GMV of RMB 7.27 billion and a revenue of RMB 6.66 billion, both achieving slight year-over-year growth and marking the highest ever quarterly GMV and revenue.
Negative Updates
Decline in Gross Profit Margin
Gross profit margin was 28.9%, down 0.9 percentage points year-over-year. The decline has narrowed on a quarter-over-quarter basis, but remains a concern.
Read all updates
Q3-2025 Updates
Positive
Negative
Record-Breaking Revenue and GMV
Dingdong reported a GMV of RMB 7.27 billion and a revenue of RMB 6.66 billion, both achieving slight year-over-year growth and marking the highest ever quarterly GMV and revenue.
Read all positive updates
Company Guidance
During the Dingdong Limited Third Quarter 2025 Earnings Call, the company provided guidance highlighting its strong financial performance and strategic initiatives. Dingdong has achieved profitability under non-GAAP standards for 12 consecutive quarters and under GAAP standards for 7 consecutive quarters. In Q3 2025, the company reported its highest ever quarterly GMV of RMB 7.27 billion and revenue of RMB 6.66 billion, with year-over-year increases in both metrics. The non-GAAP net profit was RMB 0.1 billion with a profit margin of 1.5%, while the GAAP net profit was RMB 0.08 billion with a margin of 1.2%. The company emphasized its "One Big, One Small, One World" strategy, focusing on developing top-selling products, expanding into smaller cities, and exploring international markets. The strategy aims to leverage its strong supply chain and product development capabilities to sustain growth and compete effectively in the highly competitive instant retail market. Despite the competitive pressures, Dingdong remains confident in maintaining its scale and profitability, bolstered by a robust cash position of RMB 3.94 billion by the end of Q3.Dingdong Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
44
Neutral
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 24.36B | 23.07B | 19.97B | 24.22B | 20.12B |
| Gross Profit | 7.11B | 6.95B | 6.12B | 7.49B | 4.04B |
| EBITDA | 355.19M | 482.31M | 182.10M | -462.22M | -6.12B |
| Net Income | 221.67M | 295.08M | -99.88M | -814.37M | -6.43B |
Balance Sheet | |||||
| Total Assets | 7.02B | 7.12B | 7.70B | 9.38B | 9.42B |
| Cash, Cash Equivalents and Short-Term Investments | 3.98B | 4.45B | 5.31B | 6.49B | 5.23B |
| Total Debt | 2.44B | 3.03B | 4.52B | 5.61B | 5.39B |
| Total Liabilities | 5.84B | 6.19B | 7.20B | 8.96B | 8.66B |
| Stockholders Equity | 1.04B | 798.61M | 382.53M | 310.18M | 728.07M |
Cash Flow | |||||
| Free Cash Flow | 348.00M | 830.85M | -317.93M | -19.75M | -6.12B |
| Operating Cash Flow | 520.92M | 929.03M | -234.61M | 107.14M | -5.67B |
| Investing Cash Flow | 417.90M | 475.50M | 519.33M | -66.90M | -4.07B |
| Financing Cash Flow | -723.09M | -1.72B | -934.42M | 1.11B | 9.04B |
Dingdong Technical Analysis
Negative
3.03
Price Trends
2.59
Negative
2.70
Negative
2.39
Positive
Market Momentum
-0.01
Negative
44.44
Neutral
32.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DDL, the sentiment is Negative. The current price of 3.03 is above the 20-day moving average (MA) of 2.56, above the 50-day MA of 2.59, and above the 200-day MA of 2.39, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 44.44 is Neutral, neither overbought nor oversold. The STOCH value of 32.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DDL.
Dingdong Risk Analysis
Dingdong disclosed 79 risk factors in its most recent earnings report. Dingdong reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Implementation of the Law of the PRC on Safeguarding National Security in Hong Kong involves uncertainty, and the recent policy pronouncements by the PRC government regarding business activities of U.S.-listed PRC businesses may negatively impact our business. Q4, 2023
Dingdong Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $618.17M | 12.16 | 11.37% | 2.63% | 4.60% | 4.65% | |
67 Neutral | $1.81B | 18.19 | 7.49% | 2.06% | 4.14% | -0.27% | |
66 Neutral | $676.48M | 13.75 | 22.26% | 1.99% | 3.09% | 16.13% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
56 Neutral | $1.64B | 16.17 | 6.41% | 0.93% | -0.28% | 68.37% | |
49 Neutral | $551.02M | 9.77 | 36.14% | ― | -18.47% | 32.49% | |
48 Neutral | $841.83M | -2.11 | -36.58% | ― | 6.04% | -2370.84% |
* Consumer Defensive Sector Average
DDL
Dingdong
2.52
0.43
20.57%
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45.44%
VLGEA
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46.62
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23.83%
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74.30
0.50
0.68%
NGVC
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28.67
-18.58
-39.33%
GO
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8.19
-5.43
-39.87%
Dingdong Corporate Events
Dingdong Shareholders Approve All Resolutions at 2026 Annual General Meeting
Mar 27, 2026
Dingdong (Cayman) Limited, a leading fresh grocery e‑commerce operator in China, reported on March 27, 2026 that all resolutions proposed in its March 10, 2026 notice of annual general meeting were adopted at its 2026 AGM held the same day i...
Dingdong Sets March 27 AGM to Seek Shareholder Approval for Sale of China Operations to Meituan Unit
Mar 10, 2026
Dingdong (Cayman) Limited, the Chinese fresh grocery e‑commerce platform listed on the NYSE, plans to sell all the shares of its wholly owned subsidiary Dingdong Fresh Holding Limited, which controls substantially all of its China operations...
Dingdong Extends Profit Streak With Q4 2025 Revenue Growth but Faces Margin Pressure
Mar 5, 2026
On March 4, 2026, Dingdong reported unaudited results for the fourth quarter ended December 31, 2025, highlighting its eighth straight quarter of GAAP profitability and thirteenth of non-GAAP profitability. Gross merchandise value rose 2.4% year o...
Dingdong Founder Hands CEO Role to Song Wang as CTO Also Steps Down
Mar 5, 2026
On March 4, 2026, Dingdong announced a leadership shake‑up, with founder Changlin Liang resigning as chief executive officer while retaining his role as chairman, and Song Wang stepping up from chief financial officer to CEO the same day. Th...
Dingdong Sets Record Dates for 2026 Shareholder Meeting and ADS Voting
Feb 27, 2026
On February 25, 2026, Shanghai-based Dingdong (Cayman) Limited announced the key record dates governing shareholder eligibility to attend and vote at its forthcoming 2026 annual general meeting. Holders of Class A and Class B ordinary shares must ...
Dingdong Plans Major Capital Return After Agreed Sale of China Operations to Meituan Unit
Feb 10, 2026
On February 10, 2026, Shanghai-based Dingdong announced it has agreed to sell all shares of its British Virgin Islands subsidiary, which holds substantially all of its China operations, to Meituan unit Two Hearts Investments for cash consideration...
Dingdong to Sell China Fresh Grocery Operations to Meituan Subsidiary for US$717 Million
Feb 5, 2026
On February 5, 2026, Dingdong (Cayman) Limited announced it has signed a definitive share purchase agreement to sell its China business to Two Hearts Investments Limited, a wholly owned subsidiary of Meituan, for a headline cash consideration of U...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.