Dingdong (DDL) AI Stock Analysis

• Market Cap: $455.22M
• Dividend Yield: N/A
• Average Volume (3M): 628.28K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.95
• Revenue Growth: 9.00%
• EPS Growth: 41.14%
• Country: US
• Employees: 3,120
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 0.03
• Shares Outstanding: 180,407,230
• 10 Day Avg. Volume: 750,217
• 30 Day Avg. Volume: 628,278
• PEG Ratio: -0.06
• Price to Book (P/B): 6.49
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 6.23
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 0.01
• Enterprise Value/Gross Profit: 0.04
• Enterprise Value/Ebitda: 0.75
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.18
• Revenue Forecast (FY): $3.44B

• Rating: 61 Neutral
• 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.

Positive Factors

Consistent Profitability

Sustained profitability over multiple quarters indicates strong financial health and effective management, providing a stable foundation for future growth.

Strategic Initiatives

The strategy focuses on product development, regional expansion, and international markets, potentially enhancing competitive positioning and growth.

Revenue Growth

Consistent revenue growth reflects strong market demand and effective business operations, supporting long-term business sustainability.

Negative Factors

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities.

Declining Cash Flow

Decreasing cash flow growth can strain liquidity and limit the company's ability to fund operations and strategic initiatives, affecting long-term viability.

Increased Market Competition

Rising competition from major players like Alibaba and Meituan could pressure margins and market share, challenging Dingdong's growth prospects.

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 self-operated online retail business primarily through Dingdong Fresh. The company was founded in 2017 and is headquartered in Shanghai, China.

How the Company Makes Money

Dingdong 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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 1.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DDL, the sentiment is Positive. The current price of 1.96 is above the 20-day moving average (MA) of 1.83, above the 50-day MA of 1.85, and below the 200-day MA of 2.22, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 61.65 is Neutral, neither overbought nor oversold. The STOCH value of 65.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DDL.

Dingdong Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMKTA	72 Outperform	$1.38B	16.83	5.29%	0.93%	-5.42%	-20.80%
VLGEA	71 Outperform	$477.32M	9.35	11.22%	2.65%	3.88%	7.71%
NGVC	70 Neutral	$572.02M	12.46	24.02%	1.95%	7.19%	35.90%
WMK	67 Neutral	$1.65B	17.58	7.22%	2.04%	3.11%	6.54%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DDL	61 Neutral	$455.22M	11.78	33.53%	―	9.00%	41.14%
GO	52 Neutral	$1.12B	―	-0.37%	―	7.22%	-108.99%

Dingdong Corporate Events

Dingdong Reports Continued Growth and Profitability in Q3 2025

Dingdong (Cayman) Limited announced its financial results for the third quarter of 2025, showing a continued trend of growth and profitability. The company reported a 1.9% year-over-year increase in revenue, reaching RMB6,662.4 million, and maintained profitability for the seventh consecutive quarter under GAAP standards. Despite challenges such as price declines in certain categories and operational suspensions in 2024, Dingdong’s strategic resilience and execution excellence have enabled it to sustain growth and profitability. The company has also seen a rise in the number of orders and improved market penetration in East China, supported by its ‘One Big, One Small, One World’ framework and strong cash reserves.