Pinduoduo logged a 1.6% change during today's morning session, and is now trading at a price of $104.08 per share.
Pinduoduo returned losses of -24.6% last year, with its stock price reaching a high of $155.67 and a low of $87.11. Over the same period, the stock underperformed the S&P 500 index by -35.2%. AThe company's 50-day average price was $106.66. PDD Holdings Inc., a multinational commerce group that owns and operates a portfolio of businesses. Based in Dublin, Ireland, the Large-Cap Consumer Discretionary company has 23,465 full time employees. Pinduoduo has not offered a dividend during the last year.
Wider Gross Margins Than the Industry Average of 45.36%:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $1,908 | $4,330 | $9,118 | $14,743 | $18,929 | $34,879 |
| Gross Margins | 78% | 79% | 68% | 66% | 76% | 63% |
| Net Margins | -78% | -23% | -12% | 8% | 24% | 24% |
| Net Income (M) | -$1,486 | -$1,001 | -$1,100 | $1,219 | $4,573 | $8,455 |
| Net Interest Expense (M) | $11 | $21 | $116 | $193 | $7 | $6 |
| Depreciation & Amort. (M) | $72 | $92 | $100 | $235 | $322 | $111 |
| Diluted Shares (M) | 2,968 | 4,627 | 4,768 | 5,714 | 5,761 | 5,840 |
| Earnings Per Share | -$0.5 | -$0.22 | -$0.23 | $0.21 | $0.79 | $1.45 |
| EPS Growth | n/a | 56.0% | -4.55% | 191.3% | 276.19% | 83.54% |
| Free Cash Flow (M) | $1,126 | $2,125 | $4,315 | $4,486 | $7,013 | $13,226 |
| CAPEX (M) | $4 | $4 | $7 | $31 | $20 | $36 |
| Current Ratio | 1.66 | 1.6 | 1.78 | 1.72 | 1.85 | 1.93 |
Pinduoduo benefits from rapidly growing revenues and increasing reinvestment in the business, exceptional EPS growth, and generally positive cash flows. The company's financial statements show wider gross margins than its peer group and a decent current ratio of 1.93.
an Exceptionally Low P/B Ratio but Its Shares Are Expensive:
Pinduoduo has a trailing twelve month P/E ratio of 11.4, compared to an average of 20.93 for the Consumer Discretionary sector. Based on its EPS guidance of $14.09, the company has a forward P/E ratio of 7.6. According to the 61.9% compound average growth rate of Pinduoduo's historical and projected earnings per share, the company's PEG ratio is 0.18. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 23.4%. On this basis, the company's PEG ratio is 0.49. This suggests that its shares are undervalued. Additionally, the market is possibly undervaluing Pinduoduo in terms of its equity because its P/B ratio is 0.44 whereas the sector average is 2.93. The company's shares are currently trading 757.4% below their Graham number.
Pinduoduo Has an Average Rating of Buy:
The 36 analysts following Pinduoduo have set target prices ranging from $87.187965 to $181.03645 per share, for an average of $126.79 with a buy rating. The company is trading -17.9% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Pinduoduo has an average amount of shares sold short because 3.8% of the company's shares are sold short. Institutions own 32.5% of the company's shares, and the insider ownership rate stands at 0.0%, suggesting a small amount of insider investors. The largest shareholder is BAILLIE GIFFORD & CO, whose 3% stake in the company is worth $4,168,320,893.
