# PDD Holdings (PDD.US)

Canonical: https://gigainvestors.com/s/PDD

Analysis as of: 2026-10-16T07:31:06.242Z. Financial observations: FY2016–FY2026.

Listing currency: USD. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $82.42 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 4

- Operating margin variation: 9.81×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.34×

- FY2018: -0.82×

- FY2019: -0.28×

- FY2020: -0.16×

- FY2021: 0.07×

- FY2022: 0.23×

- FY2023: 0.24×

- FY2024: 0.28×

- FY2025: 0.22×

- LTM to Jun 2026: 0.22×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 8.3pp below the typical margin (limit 4pp)

- ROIC, median of available years: -1.7%

- ROIC, second-lowest year: -44.3%

- Typical minus recent gross margin: 8.3 pp

- Typical gross margin (annual median): 64.6%

- Recent gross margin (lower of latest and 3-year median): 56.3%

- Years with nonpositive capital: 10

- Capital spending / revenue: 0.2%

- ROIC including acquisitions, ten-year median: >100%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -55.1%

- FY2017: -28.7%

- FY2018: -44.3%

- FY2019: -21.6%

- FY2020: -9.6%

- FY2021: 6.3%

- FY2022: 19.6%

- FY2023: 24.8%

- FY2024: 28.4%

- FY2025: 18.2%

### economics: na

### management: pass

- Historical market-dollar context (not the management verdict): 2018 to 2025 (7 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -44.3% vs 24.8%

- Per-share earnings: -0.76 to 65.81 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 8.9%

- Market cap gain: CNY 994B

- Cumulative retained earnings: CNY 297B

- Diluted shares, 5-year annual growth: 8.9%

- $1 test, starting fiscal year: FY2018

- $1 test, ending fiscal year: FY2025

- Per-share value change: CNY 66.57

- Per-share value, starting three-year median: CNY -0.76

- Per-share value, ending three-year median: CNY 65.81

- Buyback history: 0 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: CNY 284B

- ROIC, first three-year median: -44.3%

- ROIC, last three-year median: 24.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY -0.42

- FY2017: CNY -0.76

- FY2018: CNY -11.47

- FY2019: CNY -7.49

- FY2020: CNY -7.39

- FY2021: CNY 6.83

- FY2022: CNY 26.95

- FY2023: CNY 50.81

- FY2024: CNY 75.90

- FY2025: CNY 65.81

### accounting: pass

- Sloan accruals: -1.4%

- Receivables to sales index (DSRI): 1.24×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 7.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.09×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -66.2%

- FY2017: -6.3%

- FY2018: -41.6%

- FY2019: -28.6%

- FY2020: -22.3%

- FY2021: -11.6%

- FY2023: -9.8%

- FY2024: -1.9%

- FY2025: -1.4%

## Holders

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Li Lu](https://gigainvestors.com/HC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Duan Yongping](https://gigainvestors.com/HH): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Norbert Lou](https://gigainvestors.com/PC): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 45% since May 2024 · "U.S. Tariffs, Competition in China Hit Temu Owner PDD" (finance.yahoo.com, May 2025) · sales +4%

Story as of 2026-10-16T09:59:22.750Z; price observation 2026-10-15.

- 2025-05-27: Temu Owner PDD’s Profit Nearly Halves as Revenue Growth Slows to Three-Year Low ([finance.yahoo.com](https://finance.yahoo.com/m/a4d42399-7b8b-30e1-8c77-44a2cfa81c85/temu-owner-pdd%E2%80%99s-profit.html))

- 2025-06-20: PDD slips on report that Temu U.S. sales plunged 25% ([finance.yahoo.com](https://finance.yahoo.com/news/pdd-slips-report-temu-u-101533409.html))

- 2025-08-25: PDD Holdings Inc (NASDAQ:PDD) Surpasses Q2 Earnings Estimates, Shares Jump 10.5% ([chartmill.com](https://www.chartmill.com/news/PDD/Chartmill-33584-PDD-Holdings-Inc-NASDAQPDD-Surpasses-Q2-Earnings-Estimates-Shares-Jump-105))

- 2025-11-20: PDD Holdings Stock Falls After Mixed Q3 -- EPS Beats but Revenue Misses ([finance.yahoo.com](https://finance.yahoo.com/news/pdd-holdings-stock-falls-mixed-144715050.html))

- 2026-04-07: PDD Weighs Lower 2025 Earnings Against Long Term Supply Chain Push ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/pdd-weighs-lower-2025-earnings-030809208.html))

- 2026-05-27: PDD stock down after Q1 miss as supply-chain investments weigh on margins ([seekingalpha.com](https://seekingalpha.com/news/4597500-pdd-stock-down-after-q1-miss-as-supply-chain-investments-weigh-on-margins?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2025–2026

sales +4%; source https://www.sec.gov/Archives/edgar/data/1737806/000110465926050727/pdd-20251231x20f.htm; observed 2026-04-29.

- FY2017: CNY 1.7B 

- FY2018: CNY 13B 

- FY2019: CNY 30B 

- FY2020: CNY 59B 

- FY2021: CNY 94B 

- FY2022: CNY 131B 

- FY2023: CNY 248B 

- FY2024: CNY 394B 

- FY2025: CNY 432B 

- FY2026: CNY 449B 

### Gross margin · FY2025

gross margin 56.3%; source https://www.sec.gov/Archives/edgar/data/1737806/000110465926050727/pdd-20251231x20f.htm; observed 2026-04-29.

- FY2017: 58.6% 

- FY2018: 77.9% 

- FY2019: 79.0% 

- FY2020: 67.6% 

- FY2021: 66.2% 

- FY2022: 75.9% 

- FY2023: 63.0% 

- FY2024: 60.9% 

- FY2025: 56.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in internet retail; annual sales are CNY 431.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1737806/000110465926050727/pdd-20251231x20f.htm (filed 2026-04-29); FY2025: revenue 431845713000; grossProfit 243043960000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 56.3% to 63% during 2023–25; it lost 1.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2023: grossProfit / revenue = 63%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2024: grossProfit / revenue = 60.9%.

- Source: https://www.sec.gov/Archives/edgar/data/1737806/000110465926050727/pdd-20251231x20f.htm (filed 2026-04-29); FY2025: grossProfit / revenue = 56.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); 10-year return on capital observations [[2016,-0.5507041327306028],[2017,-0.2872441473531559],[2018,-0.4430009846260122],[2019,-0.21552442543082045],[2020,-0.09606133460947466],[2021,0.06284264823372977],[2022,0.19628137620068598],[2023,0.2483258944358238],[2024,0.2836006579335374],[2025,0.18191689467083866]]; median -0.016609343187872445. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 1 of 9 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2021: growth capex 506550963.39157486; upkeep 2780681036.608425; owner earnings 6832231963.391575. Growth capex / owner earnings = 0.07414135909111008.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2023: growth capex 0; upkeep 583879000; owner earnings 61330870000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2024: growth capex 180902000; upkeep 786235000; owner earnings 112434512000. Growth capex / owner earnings = 0.0016089543751477305.

- Source: https://www.sec.gov/Archives/edgar/data/1737806/000110465926050727/pdd-20251231x20f.htm (filed 2026-04-29); FY2025: growth capex 0; upkeep 1145077000; owner earnings 99697826000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); Dividend observations: [[2016,18326000],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PDD.US SharesStats.PercentInsiders = 0.729 percentage points; cache date 2026-10-16.

### What the price says

The price is 1.9 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); Closing price 82.42 USD; reporting-to-trading FX 0.14944; FY2025 annual sales per share 290.4732915279027; price multiple 1.8987139679191412. FY2025 cash earnings/share 67.05995869500762. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2018-07: $22.59 per share

- 2018-08: $19.35 per share

- 2018-09: $26.29 per share

- 2018-10: $17.65 per share

- 2018-11: $22.96 per share

- 2018-12: $22.44 per share

- 2019-01: $29.21 per share

- 2019-02: $29.94 per share

- 2019-03: $24.80 per share

- 2019-04: $22.23 per share

- 2019-05: $19.42 per share

- 2019-06: $20.63 per share

- 2019-07: $22.27 per share

- 2019-08: $32.77 per share

- 2019-09: $32.22 per share

- 2019-10: $40.88 per share

- 2019-11: $35.95 per share

- 2019-12: $37.82 per share

- 2020-01: $35.22 per share

- 2020-02: $35.78 per share

- 2020-03: $36.03 per share

- 2020-04: $47.44 per share

- 2020-05: $66.87 per share

- 2020-06: $85.84 per share

- 2020-07: $91.80 per share

- 2020-08: $88.94 per share

- 2020-09: $74.15 per share

- 2020-10: $89.98 per share

- 2020-11: $138.81 per share

- 2020-12: $177.67 per share

- 2021-01: $165.71 per share

- 2021-02: $171.16 per share

- 2021-03: $133.88 per share

- 2021-04: $133.93 per share

- 2021-05: $124.88 per share

- 2021-06: $127.02 per share

- 2021-07: $91.61 per share

- 2021-08: $100.02 per share

- 2021-09: $90.67 per share

- 2021-10: $88.92 per share

- 2021-11: $66.50 per share

- 2021-12: $58.30 per share

- 2022-01: $59.84 per share

- 2022-02: $51.86 per share

- 2022-03: $40.11 per share

- 2022-04: $43.09 per share

- 2022-05: $50.35 per share

- 2022-06: $61.80 per share

- 2022-07: $49.01 per share

- 2022-08: $71.30 per share

- 2022-09: $62.58 per share

- 2022-10: $54.83 per share

- 2022-11: $82.04 per share

- 2022-12: $81.55 per share

- 2023-01: $97.98 per share

- 2023-02: $87.73 per share

- 2023-03: $75.90 per share

- 2023-04: $68.15 per share

- 2023-05: $65.32 per share

- 2023-06: $69.14 per share

- 2023-07: $89.82 per share

- 2023-08: $98.97 per share

- 2023-09: $98.07 per share

- 2023-10: $101.42 per share

- 2023-11: $147.44 per share

- 2023-12: $146.31 per share

- 2024-01: $126.87 per share

- 2024-02: $124.54 per share

- 2024-03: $116.25 per share

- 2024-04: $125.18 per share

- 2024-05: $149.78 per share

- 2024-06: $132.95 per share

- 2024-07: $128.89 per share

- 2024-08: $96.11 per share

- 2024-09: $134.81 per share

- 2024-10: $120.59 per share

- 2024-11: $96.56 per share

- 2024-12: $96.99 per share

- 2025-01: $111.91 per share

- 2025-02: $113.69 per share

- 2025-03: $118.35 per share

- 2025-04: $105.57 per share

- 2025-05: $96.51 per share

- 2025-06: $104.66 per share

- 2025-07: $113.45 per share

- 2025-08: $120.22 per share

- 2025-09: $132.17 per share

- 2025-10: $134.87 per share

- 2025-11: $116.08 per share

- 2025-12: $113.39 per share

- 2026-01: $101.05 per share

- 2026-02: $103.73 per share

- 2026-03: $102.18 per share

- 2026-04: $99.88 per share

- 2026-05: $84.44 per share

- 2026-06: $76.28 per share

- 2026-07: $88.56 per share

- 2026-08: $84.00 per share

- 2026-09: $77.94 per share

- 2026-10: $81.96 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 20-F filing](https://www.sec.gov/Archives/edgar/data/1737806/000110465926050727/pdd-20251231x20f.htm); period 2025-12-31, filed 2026-04-29.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.