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Dingdong (Cayman) Ltd. (DDL)
:DDL
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Dingdong
(NYSE:DDL)
Select Model
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Rating:61Neutral
Price Target:
$2.00
▲(2.04% Upside)
Dingdong's overall stock score reflects a combination of strong earnings call performance and undervaluation, offset by technical weakness and financial risks. The company's strategic initiatives and consistent profitability are significant positives, but high leverage and declining cash flow growth require attention.
Dingdong (DDL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$375.01M
Dividend YieldN/A
Average Volume (3M)701.51K
Price to Earnings (P/E)10.0
Beta (1Y)1.03
Revenue Growth8.54%
EPS Growth40.44%
CountryUS
Employees3,120
SectorConsumer Defensive
Sector Strength42
IndustryGrocery Stores
Share Statistics
EPS (TTM)0.03
Shares Outstanding180,407,230
10 Day Avg. Volume562,955
30 Day Avg. Volume701,509
Financial Highlights & Ratios
PEG Ratio-0.06
Price to Book (P/B)6.49
Price to Sales (P/S)0.22
P/FCF Ratio6.23
Enterprise Value/Market Cap0.76
Enterprise Value/Revenue0.01
Enterprise Value/Gross Profit0.04
Enterprise Value/Ebitda0.75
Forecast
1Y Price Target
$1.60Price Target Upside-18.37% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)0.19
Revenue Forecast (FY)$3.45B
Dingdong Business Overview & Revenue Model
Company DescriptionDingdong (DDL) is a leading online grocery delivery service based in China, specializing in providing a wide range of fresh produce, pantry staples, and household essentials directly to consumers. The company operates through a technology-driven platform that connects customers with local suppliers, ensuring quick and efficient delivery. By focusing on urban areas, Dingdong aims to meet the growing demand for convenient and reliable grocery shopping solutions.
How the Company Makes MoneyDingdong generates revenue primarily through its online grocery sales, where customers place orders on its platform for home delivery. The company earns a margin on the products sold, which includes fresh produce, packaged goods, and household items. Additionally, Dingdong may have partnerships with various suppliers and manufacturers, allowing for better pricing and exclusive product offerings. The company may also explore subscription models or delivery fees for expedited services, contributing to its overall revenue. Key factors influencing its earnings include the expansion of its delivery network, customer acquisition strategies, and overall market demand for online grocery services.
Dingdong Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 17, 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.Q3-2025 Updates
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.
Consistent Profitability
Dingdong has maintained non-GAAP profitability for 12 consecutive quarters and GAAP profitability for 7 consecutive quarters, demonstrating strong financial health.
Growth in Good Product System
Good products comprised 37.2% of SKUs, generating 44.7% of total GMV, up significantly from January figures. This strategy boosted user retention and repurchase rates.
Strong Regional Performance
Jiangsu and Chongqing regions experienced a GMV increase of 1.4% year-over-year, with Guangzhou seeing growth exceeding 60%.
Successful Launch of One Big, One Small, One World Strategy
Dingdong introduced a new strategic development framework focusing on top-selling products, expansion into smaller cities, and international market entry.
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.
Increased Market Competition
Industry-wide competition in the instant retail sector is intensifying, with significant investments from competitors like Alibaba and Meituan, leading to heightened market challenges.
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
Dingdong shows a mixed financial performance with revenue growth and improved profitability metrics. However, high leverage and declining cash flow growth pose significant risks. The income statement is positive, but the balance sheet and cash flow statements highlight areas needing careful management.Income Statement
Dingdong's income statement shows a positive trajectory with a consistent increase in revenue over the years, highlighted by a 1.6% growth in TTM. The gross profit margin remains strong at around 30%, indicating efficient cost management. However, the net profit margin is relatively low at 1.38% in TTM, suggesting limited profitability. The company has improved its EBIT and EBITDA margins, but they remain modest, reflecting ongoing challenges in operational efficiency.65
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 2.69 in TTM, indicating significant leverage and potential financial risk. Despite this, the return on equity has improved to 41.41%, showing effective use of equity to generate profits. The equity ratio is low, suggesting a heavy reliance on debt financing, which could pose risks if not managed carefully.50
Neutral
Cash Flow
Cash flow analysis shows a decline in free cash flow growth by 17.57% in TTM, raising concerns about cash generation capabilities. The operating cash flow to net income ratio is 0.16, indicating moderate cash conversion efficiency. The free cash flow to net income ratio is strong at 0.87, suggesting that a significant portion of net income is being converted into free cash flow, which is a positive sign.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.90B | 23.07B | 19.97B | 24.22B | 20.12B | 11.34B |
| Gross Profit | 7.09B | 6.95B | 6.12B | 7.49B | 4.04B | 2.23B |
| EBITDA | 379.75M | 482.31M | 182.10M | -462.22M | -6.12B | -3.02B |
| Net Income | 330.55M | 295.08M | -99.88M | -814.37M | -6.43B | -3.18B |
Balance Sheet | ||||||
| Total Assets | 6.76B | 7.12B | 7.70B | 9.38B | 9.42B | 4.92B |
| Cash, Cash Equivalents and Short-Term Investments | 3.97B | 4.45B | 5.31B | 6.49B | 5.23B | 2.38B |
| Total Debt | 2.54B | 3.03B | 4.52B | 5.61B | 5.39B | 2.85B |
| Total Liabilities | 5.69B | 6.19B | 7.20B | 8.96B | 8.66B | 5.67B |
| Stockholders Equity | 942.76M | 798.61M | 382.53M | 310.18M | 728.07M | -744.67M |
Cash Flow | ||||||
| Free Cash Flow | 676.97M | 830.85M | -317.93M | -19.75M | -6.12B | -2.30B |
| Operating Cash Flow | 775.15M | 929.03M | -234.61M | 107.14M | -5.67B | -2.06B |
| Investing Cash Flow | -115.68M | 475.50M | 519.33M | -66.90M | -4.07B | -1.02B |
| Financing Cash Flow | -794.09M | -1.72B | -934.42M | 1.11B | 9.04B | 3.66B |
Dingdong Technical Analysis
Negative
1.96
Price Trends
1.91
Negative
2.05
Negative
2.33
Negative
Market Momentum
-0.06
Negative
42.12
Neutral
29.10
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 1.96 is above the 20-day moving average (MA) of 1.77, above the 50-day MA of 1.91, and below the 200-day MA of 2.33, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 42.12 is Neutral, neither overbought nor oversold. The STOCH value of 29.10 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $446.88M | 8.88 | 11.60% | 2.97% | 3.76% | 12.17% | |
67 Neutral | $1.62B | 17.26 | 7.22% | 2.08% | 3.11% | 6.54% | |
66 Neutral | $1.37B | 24.95 | 3.58% | 0.89% | -7.96% | -64.67% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $375.01M | 9.99 | 33.36% | ― | 8.54% | 40.44% | |
58 Neutral | $719.84M | 16.51 | 23.58% | 1.53% | 8.51% | 40.83% | |
45 Neutral | $1.02B | ― | -0.37% | ― | 7.22% | -108.99% |
* Consumer Defensive Sector Average
DDL
Dingdong
1.72
-2.21
-56.23%
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Dingdong Corporate Events
Dingdong Reports Strong Q2 2025 Financial Results with Continued Profitability
Aug 22, 2025
Dingdong (Cayman) Limited announced its financial results for the second quarter of 2025, showing significant growth and profitability. The company reported a 4.5% increase in GMV and a 5.5% rise in the total number of orders year over year. Net income increased by 59.7% to RMB107.2 million, marking the sixth consecutive quarter of profitability. The company’s 4G strategy, focusing on good users, products, services, and mindshare, has begun to show results, contributing to steady growth. The company remains committed to its ‘narrow and deep’ value proposition, focusing on the fresh grocery vertical despite external changes.
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.