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Dingdong (DDL)
NYSE:DDL
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Dingdong
(NYSE:DDL)
64Neutral
Dingdong (DDL) vs. S&P 500 (SPY)
Market Cap
$498.57M
Dividend YieldN/A
Average Volume (3M)1.07M
Price to Earnings (P/E)12.6
Beta (1Y)0.97
Revenue Growth16.90%
EPS GrowthN/A
CountryUS
Employees3,120
SectorConsumer Cyclical
Sector Strength75
IndustryGrocery Stores
Share Statistics
EPS (TTM)<0.01
Shares Outstanding180,623,400
10 Day Avg. Volume1,036,013
30 Day Avg. Volume1,070,369
Financial Highlights & Ratios
PEG Ratio0.49
Price to Book (P/B)6.06
Price to Sales (P/S)0.00
P/FCF Ratio4.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Dingdong Business Overview & Revenue Model
Company DescriptionDingdong (Cayman) Limited, commonly known as Dingdong (DDL), is a prominent player in China's fresh grocery e-commerce sector. The company specializes in the delivery of fresh produce, including fruits, vegetables, meat, seafood, and other daily essentials. Dingdong operates primarily through its mobile application and website, offering consumers the convenience of online shopping combined with efficient, same-day delivery services. The company emphasizes the quality and freshness of its products, ensuring a seamless shopping experience for its users.
How the Company Makes MoneyDingdong (DDL) generates revenue primarily through the sale of fresh groceries and daily essentials via its e-commerce platform. Customers place orders through the Dingdong app or website, and the company fulfills these orders through its network of distribution centers and delivery personnel. The key revenue streams include the direct sale of food items and household goods, service fees associated with delivery, and potentially membership fees for premium services. Additionally, Dingdong may engage in partnerships with local farms and suppliers to secure favorable pricing and ensure a steady supply of quality products, which can enhance its profit margins. The company's earnings are significantly influenced by its operational efficiency, user base growth, and the ability to maintain competitive pricing in a rapidly evolving market.
Dingdong Financial Statement Overview
Summary
Dingdong has demonstrated significant improvements in profitability and cash flow, marking a turnaround from previous losses. Despite a high debt load, the company shows strong returns on equity. The cash flow position is robust, supporting future growth. However, the high leverage and relatively low equity buffer pose potential risks in a volatile market.Income Statement
Dingdong shows a positive turnaround with a TTM net profit margin of 0.90%, a significant improvement from previous losses. Revenue growth is positive at 10.92% TTM, with gross profit margin solid at 30.17%. EBIT and EBITDA margins have improved to 0.59% and 1.29% TTM, respectively, indicating better operational efficiency. However, past volatility in profitability remains a concern.72
Positive
Balance Sheet
The company has a high debt-to-equity ratio of 4.68 TTM, suggesting significant leverage. However, the return on equity is strong at 31.73% TTM, indicating efficient use of equity. The equity ratio of 9.14% reflects low equity compared to assets, which poses a financial risk.65
Positive
Cash Flow
Dingdong's cash flow has improved, with a strong free cash flow growth rate of 343.63% TTM. The operating cash flow to net income ratio is favorable at 4.31 TTM, indicating robust cash generation. The free cash flow to net income ratio is also strong at 3.89 TTM, highlighting effective cash management.78
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 22.15B | 19.97B | 24.22B | 20.12B | 11.34B | 3.88B | Gross Profit |
| 6.69B | 6.12B | 7.49B | 4.04B | 2.23B | 664.94M | EBIT |
| 131.15M | -130.12M | -708.85M | -6.33B | -3.16B | -1.74B | EBITDA |
| 285.12M | 182.10M | -528.46M | -6.12B | -3.02B | -1.78B | Net Income Common Stockholders |
| 199.28M | -99.88M | -806.88M | -6.43B | -3.21B | -1.93B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 4.51B | 5.31B | 6.49B | 5.23B | 2.38B | 1.18B | Total Assets |
| 6.75B | 7.70B | 9.38B | 9.42B | 4.92B | 2.11B | Total Debt |
| 3.55B | 4.52B | 5.61B | 5.39B | 2.85B | 1.09B | Net Debt |
| 2.42B | 3.31B | 3.75B | 4.73B | 1.47B | 153.05M | Total Liabilities |
| 6.21B | 7.20B | 8.96B | 8.66B | 5.67B | 2.82B | Stockholders Equity |
| 422.10M | 382.53M | 310.18M | 728.07M | -744.67M | -705.78M |
| Cash Flow | Free Cash Flow | ||||
| 774.66M | -317.93M | -19.75M | -6.12B | -2.30B | -1.09B | Operating Cash Flow |
| 857.99M | -234.61M | 107.14M | -5.67B | -2.06B | -964.27M | Investing Cash Flow |
| 821.11M | 519.33M | -66.90M | -4.07B | -1.02B | -185.63M | Financing Cash Flow |
| -2.07B | -934.42M | 1.11B | 9.04B | 3.66B | 1.68B |
Dingdong Technical Analysis
Negative
2.30
Price Trends
2.57
Negative
2.98
Negative
3.12
Negative
Market Momentum
-0.07
Positive
36.54
Neutral
19.01
Positive
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 2.3 is below the 20-day moving average (MA) of 2.47, below the 50-day MA of 2.57, and below the 200-day MA of 3.12, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 36.54 is Neutral, neither overbought nor oversold. The STOCH value of 19.01 is Positive, 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 0 New Risks
Dingdong Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.18B | 28.97 | 23.38% | 0.85% | 9.36% | 43.17% | |
74 Outperform | $491.98M | 9.95 | 11.59% | 2.69% | 3.96% | 3.39% | |
68 Neutral | $1.15B | 19.27 | 4.00% | 1.05% | -7.79% | -64.85% | |
64 Neutral | $498.57M | 12.63 | 47.00% | ― | 16.90% | ― | |
61 Neutral | $6.97B | 11.38 | 2.88% | 3.90% | 2.64% | -22.07% | |
61 Neutral | $2.04B | 19.08 | 7.54% | 1.79% | 1.76% | 6.01% | |
60 Neutral | $1.39B | 83.91 | 1.43% | ― | 10.37% | -73.84% |
* Consumer Cyclical Sector Average
Performance Comparison
DDL
Dingdong
2.30
0.38
19.79%
IMKTA
Ingles Markets
61.63
-11.46
-15.68%
VLGEA
Village Super Market
37.01
8.08
27.93%
WMK
Weis Markets
75.24
9.80
14.98%
NGVC
Natural Grocers
51.22
30.60
148.40%
GO
Grocery Outlet Holding
13.97
-9.03
-39.26%
Dingdong Earnings Call Summary
Earnings Call Date:May 16, 2025
(Q3-2024)
| % Change Since: -3.36%|
Next Earnings Date:Aug 27, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, with significant revenue and profit growth, expansion in user base, and strategic geographical market penetration. Although there were minor challenges in profit margins and certain regional markets, the overall sentiment was positive given the consistent profitability and strategic growth initiatives.Q3-2024 Updates
Positive Updates
Consistent Profitability Achieved
Dingdong achieved non-GAAP profitability for the eighth consecutive quarter and GAAP profitability for the third consecutive quarter.
Revenue and GMV Growth
Revenue increased by 27.2% year-over-year to CNY 6.54 billion and GMV grew by 28.3% to CNY 7.27 billion.
User Base Expansion
Average number of active transacting users rose to approximately 8.22 million, a 24.5% year-over-year increase.
Geographical Growth in Key Markets
Shanghai's GMV increased by 24.5% year-over-year, while Jiangsu and Zhejiang saw approximately 40% growth each.
Improved Cash Flow and Financial Position
Operating net cash inflow in Q3 reached CNY 400 million, marking the fifth consecutive quarter of net cash inflow from operating activities.
Strong Performance in Lower-Tier Cities
Excluding top cities, other cities across Jiangsu and Zhejiang regions increased GMV by over 40% year-over-year.
Expansion of Product Categories
Introduced an array of new products, contributing to the frequency of purchases and number of items per order.
Negative Updates
Decreased Gross Profit Margin
Gross profit margin decreased by 0.6 percentage points year-over-year due to strategic decisions to pass supply chain benefits to consumers.
Challenges in Beijing and Guangzhou-Shenzhen Regions
Despite improvements, the GMV growth in Beijing and Guangzhou-Shenzhen regions were relatively modest at 14.6% and 2.9%, respectively.
Company Guidance
During Dingdong Limited's Q3 2024 earnings call, management provided robust guidance highlighting significant growth across key financial metrics. The company reported a 28.3% year-over-year increase in GMV, reaching CNY 7.27 billion, while revenue rose by 27.2% to CNY 6.54 billion. Non-GAAP net profit surged over ninefold to CNY 160 million, with a profit margin of 2.5%, and GAAP net profit soared 62-fold to CNY 133 million, achieving a 2% margin. The average number of active transacting users climbed by 24.5% to approximately 8.22 million, with user stickiness mirrored in a 6.1% rise in average orders per month. The company also expanded its frontline fulfillment stations, enhancing geographical penetration in key regions like Jiangsu, Zhejiang, and Shanghai, which saw GMV growth of up to 40%. Improvements in the supply chain and operational efficiencies contributed to a gross profit margin of 29.8% and a fulfillment expense rate reduction to 21.4%. Looking ahead, Dingdong remains optimistic about continuing its trajectory of sustainable growth, raising targets for new fulfillment station openings and expecting further profitability increments in Q4 and the full year of 2024.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.