PDD Holdings Inc (PDD, Financial), a multinational commerce group, has seen a significant surge in its stock price over the past three months. The company's market cap stands at a whopping $137.23 billion, with its stock price currently at $103.29. Over the past week, the stock has gained 29.26%, and over the past three months, it has seen a remarkable increase of 49.50%. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. The GF Value of the stock is currently at $118.59, compared to its past GF Value of $136.13. This indicates that the stock is modestly undervalued currently, compared to being significantly undervalued three months ago.
Company Overview
PDD Holdings Inc operates in the Retail - Cyclical industry. The company 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 Holdings has built a network of sourcing, logistics, and fulfilment capabilities, that support its underlying businesses.
Profitability Analysis
The company's Profitability Rank is 4/10, indicating its profitability in comparison to other companies. The company's Operating Margin is 23.69%, better than 96.43% of 1093 companies. Its ROE is 34.78%, better than 92.21% of 1065 companies. The ROA is 17.72%, better than 96.28% of 1102 companies. The ROIC is 68.44%, better than 99.46% of 1101 companies. The company has been profitable for 2 years over the past 10 years, which is better than 9% of 1045 companies.
Growth Prospects
The company's Growth Rank is 7/10, indicating its growth in terms of revenue and profitability. The company's 3-Year Revenue Growth Rate per Share is 51.80%, better than 95.4% of 1043 companies. Its 5-Year Revenue Growth Rate per Share is 96.40%, better than 98.8% of 917 companies. The company's future Total Revenue Growth Rate is estimated to be 39.95%, better than 98.75% of 240 companies. The EPS without NRI Growth Rate is estimated to be 21.35%, better than 81.97% of 61 companies.
Top Holders
The top three holders of the company's stock are Baillie Gifford (Trades, Portfolio), Ray Dalio (Trades, Portfolio), and Ken Fisher (Trades, Portfolio). Baillie Gifford (Trades, Portfolio) holds 31,167,044 shares, accounting for 2.35% of the company's stock. Ray Dalio (Trades, Portfolio) holds 2,731,512 shares, accounting for 0.21% of the company's stock. Ken Fisher (Trades, Portfolio) holds 1,834,029 shares, accounting for 0.14% of the company's stock.
Competitors
The company's main competitors are Sea Ltd (SE, Financial) with a market cap of $21.91 billion, MercadoLibre Inc (MELI, Financial) with a market cap of $71.21 billion, and eBay Inc (EBAY, Financial) with a market cap of $24 billion.
Conclusion
In conclusion, PDD Holdings Inc's stock performance, profitability, and growth prospects are impressive. The company's stock has seen a significant surge over the past three months, and it is currently modestly undervalued. The company's profitability and growth ranks are commendable, and it has a strong network of sourcing, logistics, and fulfilment capabilities. The company's stock is held by top investors, and it competes with major companies in the industry. Therefore, PDD Holdings Inc presents a promising investment opportunity.
