PDD · Verdict

A summary of rules, not a profit forecast — don’t buy just because of a green verdict.

• ▲ P/E 8.8 vs peer median 19.4 — cheaper than peers
• ▲ P/S 1.7 vs peer median 3.8 — cheaper than peers
• ▲ FCF yield 14.2% vs peer median 8.2% — cheaper than peers
• ▲ Forward P/E 6.4 is below the current one — earnings growth expected

• ▲ ROE 23% — high return on equity
• ▼ Net margin fell: 24.2% → 22.7%
• ▲ Debt / equity 0.01 — moderate debt
• ▲ Free cash flow positive every year

• ▲ Revenue grows 49.0% per year (3 y)
• ▲ Earnings per share grows 45.2% per year (3 y)

• ▼ Over 6 mo weaker than its sector (XLY) by 19%
• ▼ Price below SMA200 — long-term downtrend
• ▼ SMA50 below SMA200 — trend down
• ▼ Over a year -42% vs S&P 500 +11% — weaker than the market

• ▼ Risk/reward 1:0.9 — the target is closer than the stop
• ▼ Volatility 33% per year — much higher than the market (13%)
• ▼ Max drawdown in the period -73% — deep

• ▲ Consensus of 33 analysts — buy
• ▲ Mean analyst target +47% from the current price
• ▲ Insiders buying over 6 mo

• ▲ S&P 500 above SMA200 — the market is in an uptrend
• ▼ Sector (XLY) below SMA200 — in a downtrend