PDD Holdings Inc (PDD, Financial), a multinational commerce group operating in the Retail - Cyclical industry, has seen a significant surge in its stock price over the past three months. With a current market cap of $139.17 billion and a price of $104.75, the company's stock has gained 6.90% over the past week and a whopping 54.88% over the past three months. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. Currently, the GF Value of PDD Holdings is $121.3, compared to its past GF Value of $119.76 three months ago. This indicates that the stock is modestly undervalued, a significant improvement from being significantly undervalued three months ago.
Company Overview
PDD Holdings (Nasdaq: PDD) aims to bring more businesses and people into the digital economy so that local communities and small businesses can benefit from the increased productivity and new opportunities. The company has built a network of sourcing, logistics, and fulfillment capabilities, that support its underlying businesses.
Profitability Analysis
As of June 30, 2023, PDD Holdings has a Profitability Rank of 4/10. The company's Operating Margin of 23.69% is better than 96.4% of 1111 companies in the same industry. Furthermore, the company's ROE of 34.78%, ROA of 17.72%, and ROIC of 68.44% are all better than the majority of companies in the industry. Over the past 10 years, the company has had 2 years of profitability, which is better than 8.9% of 1045 companies.
Growth Prospects
As of today, PDD Holdings has a Growth Rank of 7/10. The company's 3-year and 5-year revenue growth rates per share are 51.80% and 96.40% respectively, which are better than 95.7% and 98.81% of companies in the same industry. The company's future total revenue growth rate estimate is 38.95%, and its EPS without NRI growth rate estimate is 21.35%, both of which are better than the majority of companies in the industry.
Top Holders
The top three holders of PDD Holdings' stock are Baillie Gifford (Trades, Portfolio) with a 2.35% share, Ray Dalio (Trades, Portfolio) with a 0.21% share, and Ken Fisher (Trades, Portfolio) with a 0.14% share.
Competitors
PDD Holdings faces competition from other companies in the Retail - Cyclical industry. Its main competitors are Sea Ltd with a market cap of $24.51 billion, MercadoLibre Inc with a market cap of $60.96 billion, and eBay Inc with a market cap of $22.76 billion.
Conclusion
In conclusion, PDD Holdings Inc has shown impressive stock performance, profitability, and growth over the past three months. With a modestly undervalued GF Valuation and strong financial indicators, the company is well-positioned for future growth. However, it faces stiff competition from other companies in the Retail - Cyclical industry. Investors should keep a close eye on this stock and consider its potential for their portfolios.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
