Dingdong (DDL) AI Stock Analysis

• Market Cap: $643.81M
• Dividend Yield: N/A
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): 17.5
• Beta (1Y): 1.10
• Revenue Growth: 8.34%
• EPS Growth: 40.20%
• 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: 1,881,915
• 30 Day Avg. Volume: 1,056,850
• 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: 0.44
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $3.00 ▼(-0.99% Downside)

The score is led by strong technical momentum (price above major moving averages with positive MACD) and a favorable earnings-call read highlighting record results and sustained profitability. This is tempered by mixed financial quality—high leverage, thin net margins, and declining free cash flow growth—while valuation appears reasonable but lacks dividend support.

Positive Factors

Sustained profitability streak

Maintaining consecutive quarters of GAAP and non-GAAP profitability signals durable operational control and unit economics in a low-margin grocery model. This consistency supports reinvestment, reduces near-term external funding needs, and strengthens credibility with suppliers and partners over the medium term.

Robust gross margin (~30%)

A near-30% gross margin in grocery delivery indicates structural supply-chain efficiency and purchasing/fulfillment advantages. Remaining above peers' commodity pressure enables the company to cover distribution and tech costs while preserving scope for promotions and investment in growth initiatives across cities.

Healthy cash reserve

A nearly RMB 4.0 billion cash buffer provides meaningful liquidity to fund geographic expansion, product development, and temporary operating losses. This cushioning lowers refinancing risk, enables strategic flexibility into smaller cities and international pilots, and supports competitive responses over the coming quarters.

Negative Factors

Elevated financial leverage

High debt relative to equity increases interest obligations and reduces balance-sheet flexibility. In a capital-intensive instant-retail market, leverage limits capacity for downside protection, raises refinancing vulnerability, and can constrain strategic spending if margins or cash flow deteriorate.

Thin net profitability

Very low net margins leave little room for shocks and make long-term profitability sensitive to small cost or price swings. A recent YOY gross-margin decline signals pressure on core economics, which could compress operating leverage and slow reinvestment or margin recovery if competitive pricing intensifies.

Weakening free cash flow growth

Declining free cash flow growth and low operating-cash-to-net-income conversion indicate pressure on actual cash generation despite accounting profits. This limits capacity for capex, marketing, or M&A without external financing and elevates risk if margins or demand soften over the medium term.

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: 3.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 3.03 is above the 20-day moving average (MA) of 2.70, above the 50-day MA of 2.17, and above the 200-day MA of 2.17, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 61.26 is Neutral, neither overbought nor oversold. The STOCH value of 81.58 is Negative, 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	$1.29B	15.79	5.29%	0.93%	-5.42%	-20.80%
VLGEA	70 Outperform	$454.57M	8.91	11.22%	2.63%	3.88%	7.71%
NGVC	70 Neutral	$576.75M	12.54	24.02%	1.99%	7.19%	35.90%
DDL	67 Neutral	$643.81M	17.53	33.30%	―	8.34%	40.20%
WMK	67 Neutral	$1.61B	17.19	7.22%	2.06%	3.11%	6.54%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GO	52 Neutral	$937.21M	-202.52	-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.

The most recent analyst rating on (DDL) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Dingdong stock, see the DDL Stock Forecast page.