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Pinduoduo Profitability Rank

: 4 (As of Mar. 2022)
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Pinduoduo has the Profitability Rank of 4.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

Pinduoduo's Operating Margin % for the quarter that ended in Mar. 2022 was 9.05%. As of today, Pinduoduo's Piotroski F-Score is 7.


Competitive Comparison

For the Internet Retail subindustry, Pinduoduo's Profitability Rank, along with its competitors' market caps and Profitability Rank 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.

   

Pinduoduo Profitability Rank Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Pinduoduo's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Pinduoduo's Profitability Rank falls into.



Pinduoduo Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Pinduoduo has the Profitability Rank of 4.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Pinduoduo's Operating Margin % for the quarter that ended in Mar. 2022 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2022 ) / Revenue (Q: Mar. 2022 )
=339.56529962488 / 3750.2268070485
=9.05 %

* 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.

2. Piotroski F-Score

Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Pinduoduo has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

4. Consistency of the profitability

5. Predictability Rank


Pinduoduo Profitability Rank Related Terms

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Pinduoduo Business Description

Pinduoduo logo
Traded in Other Exchanges
Address
No. 533 Loushanguan Road, 28th Floor, Changning District, Shanghai, CHN, 200051
Pinduoduo is the third- largest e-commerce platform by gross merchandise volume and the largest platform by active buyer in China. In 2020, it achieved CNY 1,667.6 billion (USD 255.6 billion) of gross merchandise volume, and CNY 2,115.2 (USD 324.2) of annual spending per active buyer. It had 8.6 million active merchants in 2020 and 867 million active buyers in the year ended September 2021. It is one of the top two players in next-day grocery self-collect services (similar to community group purchasing), where groups of consumers place fresh food and grocery orders online and collect at designated self-collect points the next day with the help of "group leaders" in each community.

Pinduoduo Headlines

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