PDD HoldingsFRA:9PDA 71 Net Margin % is 11.81% as of Mar. 2026. GuruFocus rates FRA:9PDA with a GF Score™ of 71/100 and a GF Value™ of €130.45 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,128 Retail - Cyclical companies, PDD Holdings ranks better than 96.54% on this metric.
Net margin is calculated as Net Income divided by its Revenue. PDD Holdings's Net Income for the
three
months ended in Mar. 2026 was €1,575 Mil. PDD Holdings's Revenue for the
three
months ended in Mar. 2026 was €13,332 Mil. Therefore, PDD Holdings's net margin for the quarter that ended in Mar. 2026 was 11.81%.
The historical rank and industry rank for PDD Holdings's Net Margin % or its related term are showing as below:
FRA:9PDA'
s Net Margin % Range Over the Past 10 Years
Min: -77.87 Med: -1.9 Max: 28.55
Current: 21.52
FRA:9PDA's Net Margin % is ranked better than 96.54% of 1128
companies
in the Retail - Cyclical industry
Industry Median: 2.33
vs FRA:9PDA: 21.52
PDD Holdings (FRA:9PDA) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
PDD Holdings Net Margin % Related Terms
PDD Holdings Net Margin % Historical Data
* Premium members only.
The historical data trend for PDD Holdings's Net Margin % 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.
FRA:9PDA vs MELI, DASH, SE: Net Margin % Comparison
For the Internet Retail subindustry, PDD Holdings's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, PDD Holdings's Net Margin % distribution charts can be found below:
* The bar in red indicates where PDD Holdings's Net Margin % falls into.
* 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.
PDD Holdings (FRA:9PDA) has a Net Margin % of 11.81% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on PDD Holdings and its competitors. According to the industry distribution chart, PDD Holdings ranks #39 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 3.5%.
Is PDD Holdings' Net Margin % too high?
PDD Holdings' current Net Margin % is 11.81%. The Retail - Cyclical industry median Net Margin % is 2.33. PDD Holdings' value of 11.81% is 406.9% above this industry median. Based on the distribution chart, PDD Holdings ranks #39 out of 1128 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, PDD Holdings has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PDD Holdings' Net Margin % compare to MELI and DASH?
According to the Retail - Cyclical industry distribution chart, PDD Holdings ranks #39 out of 1128 companies for Net Margin %. This places PDD Holdings in the top 4% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.33. PDD Holdings' value of 11.81% is 406.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Retail - Cyclical company?
The median Net Margin % among Retail - Cyclical companies is 2.33, based on 1,128 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PDD Holdings's current Net Margin % of 11.81% is 406.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on PDD Holdings and its competitors. For the Retail - Cyclical industry, the median Net Margin % is 2.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PDD Holdings's current Net Margin % is 11.81%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PDD Holdings stock overvalued right now?
Based on GuruFocus' analysis, PDD Holdings (FRA:9PDA) is currently considered Significantly Undervalued. The stock's GF Value™ is €130.45, compared to a current price of €65.00 — trading 50.2% below its estimated fair value. The current Net Margin % is 11.81% and 406.9% above the Retail - Cyclical industry median of 2.33. PDD Holdings' overall GF Score™ is 71/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For PDD Holdings (FRA:9PDA), the current Net Margin % is 11.81% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is PDD Holdings (FRA:9PDA) Overvalued in 2026?
Based on GuruFocus' analysis, PDD Holdings stock appears to be undervalued.
The current stock price of €65.00 is trading 50.2% below its estimated GF Value™ of €130.45.
GuruFocus considers PDD Holdings to be Significantly Undervalued.
Key valuation signals for FRA:9PDA:
Net Margin %: 11.81%
GF Value™: €130.45 vs. price of €65.00 (50.2% below fair value)
Industry Position: 406.9% above the Retail - Cyclical median (#39 of 1128)
No single metric tells the full story. See the FRA:9PDA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PDD Holdings operates commerce businesses globally. Its main operations are Pinduoduo, a social commerce platform in China, and Temu, a global e-commerce marketplace. PDD also has a community group purchase business in China. PDD has built a network of sourcing, logistics, and fulfillment capabilities that support its underlying businesses. PDD has also started its first-party brand business for global markets.
71GF Score
Get the complete analysis for FRA:9PDA
Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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