Recent News
On Dec. 19, 2025 Pinduoduo announced an upgraded governance structure and implementation of a joint-chairman system, including the appointment of a co‑chairman. On Jan. 21, 2026 Shanghai tax authorities fined the company’s operating entity CNY100,000 for failing to submit required tax information. In mid‑February 2026 reports described physical altercations at company premises with regulators that led to firings and heightened probes, and regulators in Europe and U.S. jurisdictions increased scrutiny including legal actions by state attorneys general.
Technical Analysis
ADX at 12.95 indicates no established trend; directional indicators show a bullish tilt as DI+ experienced a dip & reversal and DI- a peak & reversal, implying directional pressure has shifted toward buyers even while trend strength remains weak.
MACD reads -0.89 with an increasing trend and sits above its signal line (-1.18); that crossover signals a bullish momentum shift from recent negative momentum and supports near‑term upside potential.
MRO sits at -20.71 with a dip & reversal pattern, indicating the price currently sits below modeled target levels and that upward pressure has begun to emerge from momentum valuation dynamics.
RSI at 44.15 and increasing suggests improving momentum without overbought conditions, leaving room for a measured move higher before momentum extremes appear.
Price sits at $103.84, marginally above the 20‑day average ($103.00) but below the 50‑day ($106.30) and 200‑day ($115.39) averages; the 12‑day EMA shows a peak & reversal, which creates short‑term resistance even as other momentum indicators turn constructive. The Ichimoku cloud (Senkou A $109.20 / Senkou B $119.77) places broader resistance well above current price, so any sustained advance must clear those levels for trend confirmation.
Bollinger bands place the price comfortably inside the 1x band (lower $100.98 / upper $105.02), indicating the stock sits away from volatility extremes and may extend the recent consolidation into a measured directional move.
Fundamental Analysis
EPS came in at $21.08 versus an estimate of $16.57, a beat of $4.51 or 27.22%, a material positive that tightened near‑term valuation uncertainty and improved reported profitability metrics.
EBIT (operating income) stands at $25,025,924,000 and the EBIT margin reads 23.11%, above the industry peer mean of 12.88% and median of 10.67%; however, margin compression occurred QoQ (down 6.82%) and YoY (down 21.30%), indicating recent operating pressure despite a higher absolute margin level versus peers.
Revenue growth shows a strong YoY gain of 74.58% while QoQ revenue fell 52.50%; that pattern signals sizable year‑over‑year expansion tempered by sequential seasonality or transaction timing shifts this quarter. Asset turnover at 0.18338 sits slightly below the industry peer mean of 0.21015, pointing to lower sales per unit of asset base on a trailing basis.
Cash and liquidity remain robust: $423,769,287,000 in cash and short‑term investments, a current ratio of 2.36 and cash ratio of 1.93. Operating cash flow and free cash flow both approximate $45.66 billion, and cash conversion cycle at -190 days highlights substantial working‑capital efficiency—factors that support the WMDST valuation conclusion.
Balance‑sheet leverage remains minimal: total debt about $10.67 billion against total assets of $613.72 billion (debt‑to‑assets 1.74%, debt‑to‑equity 2.73%), supporting financial flexibility to absorb regulatory or competitive shocks. Return on equity registers 7.49%, above the industry peer mean of 2.85%, reflecting profitable capital deployment despite recent YoY declines in returns.
Valuation: trailing PE reads 6.13 while forward PE stands at 34.20 based on forward EPS of $3.11—the divergence reflects differences between reported historical metrics and forward projections embedded in consensus. The current valuation, as determined by WMDST, registers as under‑valued given strong cash flow generation and a conservative leverage profile.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-18 |
| NEXT REPORT DATE: | 2026-02-17 |
| CASH FLOW | Begin Period Cash Flow | $ 129.9 B |
| Operating Cash Flow | $ 45.7 B | |
| Capital Expenditures | — | |
| Change In Working Capital | $ 16.3 B | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 33.5 B | |
| End Period Cash Flow | $ 163.4 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 108.3 B | |
| Forward Revenue | — | |
| COSTS | ||
| Cost Of Revenue | $ 46.8 B | |
| Depreciation | — | |
| Depreciation and Amortization | — | |
| Research and Development | $ 4.3 B | |
| Total Operating Expenses | $ 83.3 B | |
| PROFITABILITY | ||
| Gross Profit | $ 61.4 B | |
| EBITDA | $ 25.0 B | |
| EBIT | $ 25.0 B | |
| Operating Income | $ 25.0 B | |
| Interest Income | $ 8.6 B | |
| Interest Expense | — | |
| Net Interest Income | $ 8.6 B | |
| Income Before Tax | $ 33.3 B | |
| Tax Provision | $ 4.0 B | |
| Tax Rate | 11.98 % | |
| Net Income | $ 29.3 B | |
| Net Income From Continuing Operations | $ 29.3 B | |
| EARNINGS | ||
| EPS Estimate | $ 16.57 | |
| EPS Actual | $ 21.08 | |
| EPS Difference | $ 4.51 | |
| EPS Surprise | 27.218 % | |
| Forward EPS | $ 3.11 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 613.7 B | |
| Intangible Assets | $ 16.3 M | |
| Net Tangible Assets | $ 391.4 B | |
| Total Current Assets | $ 516.4 B | |
| Cash and Short-Term Investments | $ 423.8 B | |
| Cash | $ 92.4 B | |
| Net Receivables | $ 6.0 B | |
| Inventory | — | |
| Long-Term Investments | $ 90.5 B | |
| LIABILITIES | ||
| Accounts Payable | $ 100.6 B | |
| Short-Term Debt | $ 5.2 B | |
| Total Current Liabilities | $ 219.2 B | |
| Net Debt | — | |
| Total Debt | $ 10.7 B | |
| Total Liabilities | $ 222.3 B | |
| EQUITY | ||
| Total Equity | $ 391.4 B | |
| Retained Earnings | $ 262.2 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | — | |
| Shares Outstanding | — | |
| Revenue Per-Share | — | |
| VALUATION | Market Capitalization | — |
| Enterprise Value | — | |
| Enterprise Multiple | — | |
| Enterprise Multiple QoQ | — | |
| Enterprise Multiple YoY | — | |
| Enterprise Multiple IPRWA | — | |
| EV/R | — | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.568 | |
| Asset To Liability | 2.761 | |
| Debt To Capital | 0.027 | |
| Debt To Assets | 0.017 | |
| Debt To Assets QoQ | -10.036 % | |
| Debt To Assets YoY | 302.546 % | |
| Debt To Assets IPRWA | high: 1.279 mean: 0.207 median: 0.173 PDD: 0.017 low: 0.001 |
|
| Debt To Equity | 0.027 | |
| Debt To Equity QoQ | -10.0 % | |
| Debt To Equity YoY | 276.657 % | |
| Debt To Equity IPRWA | high: 3.222 mean: 0.372 median: 0.231 PDD: 0.027 low: -2.764 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | — | |
| Price To Book QoQ | — | |
| Price To Book YoY | — | |
| Price To Book IPRWA | — | |
| Price To Earnings (P/E) | 6.129 | |
| Price To Earnings QoQ | 20.894 % | |
| Price To Earnings YoY | 7.038 % | |
| Price To Earnings IPRWA | high: 343.463 mean: 75.419 median: 27.997 PDD: 6.129 low: -249.146 |
|
| PE/G Ratio | -1.366 | |
| Price To Sales (P/S) | — | |
| Price To Sales QoQ | — | |
| Price To Sales YoY | — | |
| Price To Sales IPRWA | — | |
| FORWARD MULTIPLES | ||
| Forward P/E | 34.201 | |
| Forward PE/G | -7.624 | |
| Forward P/S | — | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -0.72 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.183 | |
| Asset Turnover Ratio QoQ | -3.209 % | |
| Asset Turnover Ratio YoY | -16.985 % | |
| Asset Turnover Ratio IPRWA | high: 1.225 mean: 0.21 median: 0.196 PDD: 0.183 low: -0.18 |
|
| Receivables Turnover | 18.037 | |
| Receivables Turnover Ratio QoQ | -0.412 % | |
| Receivables Turnover Ratio YoY | -8.095 % | |
| Receivables Turnover Ratio IPRWA | high: 56.385 PDD: 18.037 mean: 4.644 median: 2.884 low: 0.901 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 5.059 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -190.04 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 180.649 mean: -27.587 median: -38.849 low: -161.363 PDD: -190.04 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.364 | |
| CapEx To Revenue | — | |
| CapEx To Depreciation | — | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 391.4 B | |
| Net Invested Capital | $ 396.7 B | |
| Invested Capital | $ 396.7 B | |
| Net Tangible Assets | $ 391.4 B | |
| Net Working Capital | $ 297.1 B | |
| LIQUIDITY | ||
| Cash Ratio | 1.933 | |
| Current Ratio | 2.355 | |
| Current Ratio QoQ | -0.069 % | |
| Current Ratio YoY | 9.602 % | |
| Current Ratio IPRWA | high: 4.047 PDD: 2.355 median: 1.456 mean: 1.277 low: 0.178 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 0.426 | |
| Cost Of Debt | 0.0 % | |
| Interest Coverage Ratio | — | |
| Interest Coverage Ratio QoQ | — | |
| Interest Coverage Ratio YoY | — | |
| Interest Coverage Ratio IPRWA | — | |
| Operating Cash Flow Ratio | 0.208 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 195.099 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 8.211 % | |
| Revenue Growth | 4.127 % | |
| Revenue Growth QoQ | -52.503 % | |
| Revenue Growth YoY | 74.577 % | |
| Revenue Growth IPRWA | high: 33.577 % mean: 4.993 % PDD: 4.127 % median: 2.735 % low: -44.818 % |
|
| Earnings Growth | -4.486 % | |
| Earnings Growth QoQ | -104.802 % | |
| Earnings Growth YoY | -66.261 % | |
| Earnings Growth IPRWA | high: 282.778 % PDD: -4.486 % median: -24.95 % mean: -25.503 % low: -250.0 % |
|
| MARGINS | ||
| Gross Margin | 56.74 % | |
| Gross Margin QoQ | 1.506 % | |
| Gross Margin YoY | -5.485 % | |
| Gross Margin IPRWA | high: 91.478 % PDD: 56.74 % mean: 43.011 % median: 39.151 % low: 7.503 % |
|
| EBIT Margin | 23.113 % | |
| EBIT Margin QoQ | -6.817 % | |
| EBIT Margin YoY | -21.301 % | |
| EBIT Margin IPRWA | high: 41.852 % PDD: 23.113 % mean: 12.875 % median: 10.669 % low: -75.837 % |
|
| Return On Sales (ROS) | 23.113 % | |
| Return On Sales QoQ | -6.817 % | |
| Return On Sales YoY | -21.301 % | |
| Return On Sales IPRWA | high: 43.739 % PDD: 23.113 % mean: 6.508 % median: 2.165 % low: -50.686 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 45.7 B | |
| Free Cash Flow Yield | — | |
| Free Cash Flow Yield QoQ | — | |
| Free Cash Flow Yield YoY | — | |
| Free Cash Flow Yield IPRWA | — | |
| Free Cash Growth | 110.985 % | |
| Free Cash Growth QoQ | 181.181 % | |
| Free Cash Growth YoY | -398.724 % | |
| Free Cash Growth IPRWA | high: 303.385 % PDD: 110.985 % mean: -17.578 % median: -51.146 % low: -273.469 % |
|
| Free Cash To Net Income | 1.557 | |
| Cash Flow Margin | 31.765 % | |
| Cash Flow To Earnings | 1.557 | |
| VALUE & RETURNS | ||
| Economic Value Added | — | |
| Return On Assets (ROA) | 4.967 % | |
| Return On Assets QoQ | -11.351 % | |
| Return On Assets YoY | -10.569 % | |
| Return On Assets IPRWA | high: 9.247 % PDD: 4.967 % mean: 1.949 % median: 1.127 % low: -18.856 % |
|
| Return On Capital Employed (ROCE) | 6.344 % | |
| Return On Equity (ROE) | 0.075 | |
| Return On Equity QoQ | -11.837 % | |
| Return On Equity YoY | -16.466 % | |
| Return On Equity IPRWA | high: 0.31 PDD: 0.075 mean: 0.028 median: 0.02 low: -0.58 |
|
| DuPont ROE | 7.787 % | |
| Return On Invested Capital (ROIC) | 5.553 % | |
| Return On Invested Capital QoQ | -8.547 % | |
| Return On Invested Capital YoY | -168.127 % | |
| Return On Invested Capital IPRWA | high: 24.354 % PDD: 5.553 % mean: 3.798 % median: 2.077 % low: -29.346 % |
|