PDD Holdings (PDD) AI Stock Analysis

• Market Cap: $155.86B
• Dividend Yield: N/A
• Average Volume (3M): 7.38M
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.90
• Revenue Growth: 11.25%
• EPS Growth: -7.28%
• Country: US
• Employees: 23,465
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 2.98
• Shares Outstanding: 1,419,646,500
• 10 Day Avg. Volume: 6,710,825
• 30 Day Avg. Volume: 7,381,613
• PEG Ratio: 0.10
• Price to Book (P/B): 3.13
• Price to Sales (P/S): 2.49
• P/FCF Ratio: 8.10
• Enterprise Value/Market Cap: 7.92
• Enterprise Value/Revenue: 2.95
• Enterprise Value/Gross Profit: 5.21
• Enterprise Value/Ebitda: 12.02
• 1Y Price Target: $146.39
• Price Target Upside: 30.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 10.68
• Revenue Forecast (FY): $61.31B

• Rating: 70 Outperform
• Price Target: $124.00 ▲(10.75% Upside)

PDD Holdings' overall stock score reflects strong financial performance and a reasonable valuation, offset by bearish technical indicators and challenges highlighted in the earnings call. The company's strategic investments and global expansion efforts are promising for long-term growth, but short-term pressures from competition and regulatory challenges remain significant risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Global Business Expansion

Successful global expansion diversifies revenue streams and reduces dependency on domestic markets, enhancing resilience against local economic fluctuations.

Strong Cash Flow

Robust cash flow generation supports ongoing investments and provides financial flexibility for strategic initiatives and potential downturns.

Negative Factors

Operating Margin Decline

Declining margins suggest rising operational costs and competitive pressures, which could impact profitability and long-term financial health.

Regulatory Challenges

Regulatory challenges can lead to increased compliance costs and operational disruptions, affecting the company's ability to operate efficiently.

Fluctuating Financial Performance

Fluctuating financial performance can create uncertainty in earnings predictability, impacting investor confidence and strategic planning.

PDD Holdings Business Overview & Revenue Model

Company Description

PDD Holdings (PDD) is a leading Chinese e-commerce platform that operates primarily through its flagship platform, Pinduoduo. Founded in 2015, the company focuses on providing a unique shopping experience that combines social interaction and group buying, allowing users to purchase products at lower prices by teaming up with friends and family. PDD operates in various sectors, including consumer goods, electronics, and groceries, and has expanded its offerings to include a wide range of products from both domestic and international sellers.

How the Company Makes Money

PDD generates revenue primarily through its e-commerce platform by charging merchants for advertising services and transaction fees. Key revenue streams include the sale of ads on its platform, which allows sellers to promote their products more prominently, and commissions on sales made through its site. Additionally, PDD has invested in enhancing its logistics capabilities and supply chain management, which helps to streamline operations and reduce costs. The company's unique social commerce model encourages user engagement and repeat purchases, contributing to its earnings. Significant partnerships with manufacturers and brands also play a critical role in expanding its product offerings and attracting more consumers.

PDD Holdings Financial Statement Overview

Summary

PDD Holdings exhibits a robust financial position with strong growth and profitability metrics across its income statement, balance sheet, and cash flow. The company has effectively managed its leverage, maintained high returns on equity, and demonstrated efficient cash flow generation. While there are minor concerns regarding the slight decline in gross profit margins and operating cash flow, the overall financial health of the company remains strong, positioning it well for future growth.

Income Statement

PDD Holdings demonstrates strong revenue growth with a TTM increase of 2.18% and consistent profitability, evidenced by a high net profit margin of 24.43% and a solid EBIT margin of 24.43%. The company has maintained robust gross profit margins over the years, although there is a slight decline from previous periods. Overall, the income statement reflects a healthy financial performance with strong growth and profitability metrics.

Balance Sheet

The balance sheet of PDD Holdings is strong, with a low debt-to-equity ratio of 0.027, indicating minimal leverage and financial risk. The return on equity is impressive at 29.30%, showcasing efficient use of equity to generate profits. The equity ratio is solid, reflecting a stable financial structure. The company has improved its equity position over time, enhancing its financial stability.

Cash Flow

PDD Holdings shows a positive cash flow trajectory with a significant free cash flow growth rate of 19.45% in the TTM. The operating cash flow to net income ratio is healthy at 0.51, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is nearly 1, demonstrating strong cash conversion. However, the operating cash flow has slightly decreased compared to previous periods, which could be a point of concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	418.54B	393.84B	247.64B	130.56B	93.95B	59.49B
Gross Profit	237.10B	239.94B	155.92B	99.10B	62.23B	40.21B
EBITDA	102.77B	109.13B	59.48B	32.63B	8.39B	-8.73B
Net Income	102.27B	112.43B	60.03B	31.54B	7.77B	-7.18B
Balance Sheet
Total Assets	613.72B	505.03B	348.08B	237.12B	181.21B	158.91B
Cash, Cash Equivalents and Short-Term Investments	423.77B	331.56B	217.21B	149.44B	92.94B	86.97B
Total Debt	10.67B	10.61B	10.17B	16.93B	12.76B	16.97B
Total Liabilities	222.32B	191.72B	160.84B	119.35B	106.10B	98.73B
Stockholders Equity	391.40B	313.31B	187.24B	117.77B	75.11B	60.18B
Cash Flow
Free Cash Flow	111.40B	120.96B	93.58B	6.40B	25.50B	28.15B
Operating Cash Flow	112.37B	121.93B	94.16B	7.03B	28.78B	28.20B
Investing Cash Flow	-75.51B	-118.36B	-55.43B	-3.24B	-35.56B	-38.36B
Financing Cash Flow	1.40M	1.16M	-8.96B	10.08M	-1.88B	51.80B

PDD Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 111.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PDD, the sentiment is Negative. The current price of 111.96 is below the 20-day moving average (MA) of 116.27, below the 50-day MA of 126.38, and below the 200-day MA of 116.80, indicating a bearish trend. The MACD of -4.09 indicates Positive momentum. The RSI at 25.71 is Positive, neither overbought nor oversold. The STOCH value of 9.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PDD.

PDD Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MELI	77 Outperform	$102.20B	48.01	40.65%	―	38.01%	44.52%
PDD	70 Outperform	$155.86B	11.52	30.03%	―	11.25%	-7.28%
JD	70 Outperform	$43.14B	9.95	13.68%	3.40%	16.54%	-3.61%
SE	69 Neutral	$74.01B	51.99	15.66%	―	35.85%	1336.48%
BABA	68 Neutral	$377.92B	20.76	12.39%	1.27%	5.14%	50.76%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CPNG	60 Neutral	$46.82B	115.14	8.73%	―	16.63%	-62.54%

PDD Holdings Corporate Events

PDD Holdings Schedules Virtual Annual Meeting for December 2025

PDD Holdings Inc. has announced that its 2025 Annual General Meeting will be held virtually on December 19, 2025. The meeting will address the re-election of six directors and any other business matters. Shareholders are encouraged to vote, and the results will be disclosed shortly after the meeting. The company is also providing proxy materials online to reduce costs and environmental impact.

PDD Holdings Reports Q3 2025 Financial Results with Revenue Growth

PDD Holdings Inc. announced its unaudited financial results for the third quarter of 2025, reporting a 9% increase in total revenues to RMB108,276.5 million compared to the same quarter in 2024. The company’s net income attributable to ordinary shareholders rose by 17% to RMB29,328.2 million, driven by growth in online marketing and transaction services. Despite the competitive environment and external uncertainties, PDD Holdings continues to invest in merchant support initiatives and ecosystem development, which may lead to fluctuations in financial results. The company also marked its tenth anniversary, emphasizing its long-term focus and commitment to the public interest.