PDD Holdings Inc (PDD, Financial), a multinational commerce group operating in the Retail - Cyclical industry, has seen a significant surge in its stock price over the past three months. The company's stock price has increased by 37.15%, despite a slight decrease of 1.07% over the past week. The current market cap of PDD Holdings Inc stands at $146.11 billion, with a stock price of $109.97. 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 PDD Holdings Inc is currently at $123.38, indicating that the stock is modestly undervalued. This is a significant improvement from three months ago when the GF Value was $119.76, suggesting that the stock was significantly undervalued.
Profitability Analysis of PDD Holdings Inc
PDD Holdings Inc has a Profitability Rank of 4/10, indicating moderate profitability. The company's Operating Margin is 23.69%, which is better than 96.58% of 1112 companies in the same industry. The ROE is 34.78%, the ROA is 17.72%, and the ROIC is 68.44%, all of which are higher than the majority of companies in the same industry. Over the past 10 years, the company has been profitable for 2 years, which is better than 8.69% of 1047 companies.
Growth Potential of PDD Holdings Inc
The company has a Growth Rank of 7/10, indicating strong growth potential. The 3-Year Revenue Growth Rate per Share is 51.80%, and the 5-Year Revenue Growth Rate per Share is 96.40%, both of which are higher than the majority of companies in the same industry. The company's future revenue and EPS growth rates are also promising, with a Total Revenue Growth Rate (Future 3Y To 5Y Est) of 38.99% and an EPS without NRI Growth Rate (Future 3Y To 5Y Est) of 21.35%.
Top Holders of PDD Holdings Inc
The top three holders of PDD Holdings Inc'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, representing 2.35% of the company's stock. Ray Dalio (Trades, Portfolio) holds 2,731,512 shares, representing 0.21% of the company's stock. Ken Fisher (Trades, Portfolio) holds 1,834,029 shares, representing 0.14% of the company's stock.
Competitive Landscape
PDD Holdings Inc operates in a competitive industry with major players like Sea Ltd (SE, Financial), MercadoLibre Inc (MELI, Financial), and eBay Inc (EBAY, Financial). Sea Ltd has a market cap of $25.91 billion, MercadoLibre Inc has a market cap of $60.23 billion, and eBay Inc has a market cap of $21.65 billion. Despite the competition, PDD Holdings Inc has managed to maintain a strong market position with a market cap of $146.11 billion.
Conclusion
In conclusion, PDD Holdings Inc has shown impressive performance over the past three months, with a significant increase in its stock price. The company's profitability and growth potential are promising, and it has a strong market position in the Retail - Cyclical industry. Based on the analysis, PDD Holdings Inc presents a compelling investment opportunity for value investors.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
