PDD Holdings (MEX:PDD) Beneish M-Score : -2.32 (As of Mar. 25, 2025)

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What is PDD Holdings Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.32 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for PDD Holdings's Beneish M-Score or its related term are showing as below:

MEX:PDD' s Beneish M-Score Range Over the Past 10 Years
Min: -2.85 Med: -2.36 Max: 2.1
Current: -2.32

During the past 9 years, the highest Beneish M-Score of PDD Holdings was 2.10. The lowest was -2.85. And the median was -2.36.

PDD Holdings Beneish M-Score Historical Data

The historical data trend for PDD Holdings's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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PDD Holdings Beneish M-Score Chart

PDD Holdings Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-2.33

-2.38

-2.78

-1.82

-2.32

PDD Holdings Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-1.82	-1.60	-1.79	-1.78	-2.32

Competitive Comparison of PDD Holdings's Beneish M-Score

For the Internet Retail subindustry, PDD Holdings's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

PDD Holdings's Beneish M-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, PDD Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where PDD Holdings's Beneish M-Score falls into.

PDD Holdings Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of PDD Holdings for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.6217

0.528 * 1.0387

0.404 * 1.1921

0.892 * 1.7331

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8648

4.679 * -0.025006

0.327 * 0.8214

-2.11

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was MXN32,222 Mil.
Revenue was 316844.697 + 276472.295 + 245101.879 + 200063.191 = MXN1,038,482 Mil.
Gross Profit was 179925.364 + 165973.944 + 160004.959 + 124716.479 = MXN630,621 Mil.
Total Current Assets was MXN1,190,632 Mil.
Total Assets was MXN1,446,680 Mil.
Property, Plant and Equipment(Net PPE) was MXN17,026 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN0 Mil.
Selling, General, & Admin. Expense(SGA) was MXN314,225 Mil.
Total Current Liabilities was MXN539,741 Mil.
Long-Term Debt & Capital Lease Obligation was MXN9,142 Mil.
Net Income was 78621.4 + 69513.476 + 80832.382 + 64522.538 = MXN293,490 Mil.
Non Operating Income was 4546.739 + -1471.31 + 1397.545 + 4829.809 = MXN9,303 Mil.
Cash Flow from Operations was 84638.387 + 76586.009 + 110588.401 + 48550.479 = MXN320,363 Mil.

Total Receivables was MXN29,908 Mil.
Revenue was 211295.026 + 164310.738 + 125156.522 + 98449.814 = MXN599,212 Mil.
Gross Profit was 127904.185 + 100271.347 + 80414.455 + 69348.643 = MXN377,939 Mil.
Total Current Assets was MXN700,704 Mil.
Total Assets was MXN827,479 Mil.
Property, Plant and Equipment(Net PPE) was MXN12,087 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN0 Mil.
Selling, General, & Admin. Expense(SGA) was MXN209,664 Mil.
Total Current Liabilities was MXN363,488 Mil.
Long-Term Debt & Capital Lease Obligation was MXN18,723 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(32221.505 / 1038482.062)	/	(29908.027 / 599212.1)
	=	0.031028	/	0.049912
	=	0.6217

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(377938.63 / 599212.1)	/	(630620.746 / 1038482.062)
	=	0.630726	/	0.607252
	=	1.0387

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (1190632.059 + 17025.776) / 1446680.152)	/	(1 - (700704.127 + 12087.242) / 827478.829)
	=	0.165221	/	0.138599
	=	1.1921

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	1038482.062	/	599212.1
	=	1.7331

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(0 / (0 + 12087.242))	/	(0 / (0 + 17025.776))
	=	0	/	0
	=	1

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(314224.873 / 1038482.062)	/	(209664.399 / 599212.1)
	=	0.302581	/	0.3499
	=	0.8648

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((9142.297 + 539740.752) / 1446680.152)	/	((18722.934 + 363488.111) / 827478.829)
	=	0.379409	/	0.461898
	=	0.8214

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(293489.796 - 9302.783	-	320363.276)	/	1446680.152
	=	-0.025006

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

PDD Holdings has a M-score of -2.11 suggests that the company is unlikely to be a manipulator.

PDD Holdings Beneish M-Score Related Terms

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PDD Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » PDD Holdings Inc (MEX:PDD) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

PDD:USA 0A2S:UK 9PDA:Germany P1DD34:Brazil

Address

First Floor, 25 St Stephen’s Green, Dublin 2,, Dublin 2, IRL, D02 XF99

Website

https://www.pddholdings.com

PDD Holdings is a multinational commerce group that owns and operates a portfolio of businesses. 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. PDD has built a network of sourcing, logistics, and fulfillment capabilities that support its underlying businesses.