PDDPDD Holdings Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (1.4×) and elite returns on assets.
Operating profit is fully backed by cash.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 24% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is PDD?
PDD Holdings Inc. keeps 22% of every revenue dollar as operating profit, against 6.0% for the median Internet Retail name.
Operating margin · Internet Retail median 6.0% · fiscal year to FY2025
- Cash conversion
- 1.40×
Cash conversion · 1.33× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.22%
Share count, year on year · flat: no meaningful dilution
- R&D as % of revenue
- 3.8%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | −16% |
| FY2021 | 7.3% |
| FY2022 | 23% |
| FY2023 | 24% |
| FY2024 | 28% |
| FY2025 | 22% |
Details›
- Gross marginfiscal year to FY2025
- 56%
- Operating marginfiscal year to FY2025
- 22%
- Net marginfiscal year to FY2025
- 23%
- R&D as % of revenue
- 3.8%
- Revenue, trailing twelve months
- $431.8B
- Net income, trailing twelve months
- $97.8B
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Internet Retail
Ranks #1 of 14 by RyuScore