PDD Holdings Inc. (PDD) stock analysis

PDDNasdaqServices-Business Services, NECFiscal year ends December 31

Financials through fiscal 2025, year ended Dec 31, 2025Last filing: 20-F on Apr 29, 2026Score 11/30

$79.01−0.39 (-0.49%)

Close on Nov 11, 2026Market cap $112.46BP/E 8.0Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Mixed11 of 30 checks passed

PDD passes 11 of the 30 checks behind our score; 16 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation: 0/6
Growth: 2/6
Past performance: 4/6
Financial health: 5/6
Dividend: 0/6

What stands out

Return on equity over 15%
Return on equity was 26.9% over the last twelve months and averaged 31.1% over five years.
No debt
PDD has no borrowings on its latest balance sheet.
Revenue growing 10%+ a year
Revenue grew 49.0% a year over the last three fiscal years.
EPS growing 10%+ a year
Diluted EPS grew 44.4% a year over the last three fiscal years.

What to watch

Growing slower than the industry
Revenue grew 9.7% over the last twelve months; the Miscellaneous Business Services median is 9.9%.
Gross margin slipping
Gross margin was 56.3% over the last twelve months, against 60.9% a year earlier.
No dividend
PDD has not paid a dividend in the last twelve months.

Valuation0/6

P/E against its history
Not enough price and earnings history to compare.
P/E against the industry
Needs positive earnings and enough profitable companies in the industry.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B against the industry
Needs positive book value.
Price against fair value
We could not estimate a fair value: it needs at least two valuation methods with positive inputs.
Margin of safety
Depends on the fair value estimate.

Growth2/6

Revenue growing 10%+ a year
Revenue grew 49.0% a year over the last three fiscal years.
EPS growing 10%+ a year
Diluted EPS grew 44.4% a year over the last three fiscal years.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing slower than the industry
Revenue grew 9.7% over the last twelve months; the Miscellaneous Business Services median is 9.9%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin slipping
Gross margin was 56.3% over the last twelve months, against 60.9% a year earlier.

Past performance4/6

Return on equity over 15%
Return on equity was 26.9% over the last twelve months and averaged 31.1% over five years.
Return on invested capital
Needs operating income and invested capital.
Return on equity above the industry
PDD's return on equity of 26.9% is above the Miscellaneous Business Services median of 6.8%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 22.7% over the last twelve months, against a 5-year average of 21.6%.
Net margin above the industry
PDD's net margin of 22.7% is above the Miscellaneous Business Services median of 3.8%.

Financial health5/6

No debt
PDD has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
No meaningful interest expense to cover.
Short-term assets cover short-term debts
Current assets are 2.43 times current liabilities.
Bankruptcy risk (Altman Z)
Needs market value, working capital and retained earnings.

Dividend0/6

No dividend
PDD has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.

Scores of similar companies

Fair value

How we estimate it

We don't publish a fair value for PDD. It needs a US-dollar share price, at least two valuation methods with positive inputs (earnings, EBITDA, book value or sales) and, for companies with several share classes, classes that trade at the same price.

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day: $446.66M
Value traded per 1% price move: $357.87M

Downside

Medium risk

Typical loss in a bad month: 18.2%
Volatility (annualized): 34%
Sharpe ratio, 1 year: -1.40
Beta to the S&P 500 (5Y): 0.84

Typical bad-month loss, week by week

Margins

Share of revenue, fiscal years 2015 to 2025

Gross margin

56.3%−11.3 pts over 5 years

Operating margin

21.6%+37.3 pts over 5 years

Net margin

22.7%+34.7 pts over 5 years

Growth rates

Compound annual growth to fiscal 2025

Per year	1 year	3 years	5 years	10 years
Revenue	+9.7%	+49.0%	+48.7%	–
Gross profit	+1.3%	+34.9%	+43.3%	–
Operating income	-14.1%	+45.2%	–	–
Net income	-13.0%	+45.8%	–	–
EPS, diluted	-13.2%	+44.4%	–	–

Returns and balance sheet

10 fiscal years. Hover a measure to see how it is calculated.

Measure	FY2016	FY2020	FY2025
Return on equity	105.4%	-16.9%	26.9%
Return on assets	–	-6.1%	17.2%
Current ratio	–	1.78	2.43
Interest coverage	–	-12.4×	–
Capex to revenue	0.5%	0.1%	–
Diluted shares	1.82B	4.77B	5.93B

DuPont analysis

Return on equity split into margin, efficiency and leverage

Net margin22.7%

Asset turnover0.76×

Equity multiplier1.56×

Return on equity, FY202526.9%

Fiscal year	Net margin	Asset turnover	Equity multiplier	Return on equity
FY2025	22.7%	0.76×	1.56×	26.9%
FY2024	28.5%	0.92×	1.70×	44.9%
FY2023	24.2%	0.85×	1.92×	39.4%
FY2022	24.2%	0.62×	2.17×	32.7%
FY2021	8.3%	0.55×	2.51×	11.5%
FY2020	-12.1%	0.51×	2.77×	-16.9%
FY2019	-23.1%	0.51×	2.74×	-32.1%
FY2018	-77.9%	0.46×	3.17×	-114.6%