Recent News
On March 25, 2026 PDD announced a large initiative to build self‑operated brands with a planned 100 billion yuan investment over three years; media coverage the same week highlighted Temu’s commercial adjustments and market repositioning amid regulatory and tariff pressures, while reports noted pricing and marketing moves to rekindle U.S. growth.
Technical Analysis
ADX reads 8.26, indicating no persistent directional trend; this weak strength reduces conviction for breakout scenarios and favors range‑bound trading absent a trend pickup.
Directional indicators give conflicting near‑term signals: DI+ at 27.95 with a peak & reversal equates to a bearish signal (DI+ decreasing), while DI‑ at 25.63 with a peak & reversal equates to a bullish signal (DI‑ decreasing). That split suggests short‑term tug‑of‑war between buying interest and prior selling pressure, increasing the probability of choppy price action.
MACD sits negative at -0.83, with a peak & reversal and the MACD below its signal line (-0.67). That combination signals bearish momentum and implies momentum remains biased lower until MACD recovers above the signal line.
MRO registers -25.86 with a peak & reversal. The negative MRO indicates the price sits below the WMDST target, implying available upside pressure if fundamentals re‑accelerate or sentiment improves.
RSI at 45.4 with a peak & reversal shows failed bullish momentum and leaves the indicator in neutral‑to‑slightly‑bearish territory rather than oversold, so mean reversion may occur slowly unless volume spikes.
Price relationships increase downside vulnerability: the last close ($95.58) trades below the 12‑day and 26‑day EMAs (price12dayEMA $98.47, price26dayEMA $99.35) and sits beneath the 20/50/200 day averages (20d $98.56, 50d $100.36, 200d $114.25). Price also rests near the lower Bollinger band (lower 1σ $96.36), indicating proximity to short‑term support but continued negative breadth versus moving averages.
Volatility and volume context: 42‑day beta 1.44 vs 52‑week beta 1.06 suggests elevated short‑horizon sensitivity; average volume metrics show recent trade activity close to intermediate averages, so momentum shifts could amplify quickly if triggered.
Fundamental Analysis
Profitability and cash: EBIT $52,541,904,000 and EBITDA $52,541,904,000 produce an EBIT margin of 42.40%. That margin sits above the industry peer high of 34.102%, indicating substantially stronger margin conversion versus peer outcomes. Operating margin stands at 21.14% and return on equity equals 5.57% (also above the industry peer mean of 3.75%).
Revenue and earnings growth: revenue growth registers 14.44%, with reported revenue growth year‑over‑year at 510.87% (as provided); earnings growth shows -16.08% but quarter‑over‑quarter earnings growth accelerates (258.49% QoQ). Management reported EPS of $17.69 versus an estimate of $21.02, producing an EPS surprise of -15.84%.
Balance sheet and cash flow: cash and short‑term investments total $422,308,269,000 and free cash flow equals $22,974,469,000, yielding a free cash flow yield of 3.80%. The current ratio at 2.43 and cash ratio at 1.98 signal strong liquidity; debt measures remain minimal (total debt $5,378,795,000; debt‑to‑assets 0.85%).
Valuation and multiples: P/E equals 6.00x while forward P/E stands near 33.82x; price‑to‑book 1.46 and price‑to‑sales 4.88. Enterprise multiple measures 3.57x. WMDST values the stock as under‑valued given robust free cash conversion, outsized margins relative to peers, and a conservative enterprise multiple.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-03-25 |
| NEXT REPORT DATE: | 2026-06-24 |
| CASH FLOW | Begin Period Cash Flow | $ 163.4 B |
| Operating Cash Flow | $ 24.1 B | |
| Capital Expenditures | — | |
| Change In Working Capital | $ 1.1 B | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 19.3 B | |
| End Period Cash Flow | $ 182.7 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 123.9 B | |
| Forward Revenue | $ 27.1 B | |
| COSTS | ||
| Cost Of Revenue | $ 55.2 B | |
| Depreciation | — | |
| Depreciation and Amortization | — | |
| Research and Development | $ 5.0 B | |
| Total Operating Expenses | $ 97.7 B | |
| PROFITABILITY | ||
| Gross Profit | $ 68.8 B | |
| EBITDA | $ 52.5 B | |
| EBIT | $ 52.5 B | |
| Operating Income | $ 26.2 B | |
| Interest Income | $ 6.4 B | |
| Interest Expense | — | |
| Net Interest Income | $ 6.4 B | |
| Income Before Tax | $ 31.3 B | |
| Tax Provision | $ 8.4 B | |
| Tax Rate | 26.98 % | |
| Net Income | $ 23.0 B | |
| Net Income From Continuing Operations | $ 23.0 B | |
| EARNINGS | ||
| EPS Estimate | $ 21.02 | |
| EPS Actual | $ 17.69 | |
| EPS Difference | $ -3.33 | |
| EPS Surprise | -15.842 % | |
| Forward EPS | $ 3.54 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 630.0 B | |
| Intangible Assets | $ 15.4 M | |
| Net Tangible Assets | $ 413.4 B | |
| Total Current Assets | $ 519.0 B | |
| Cash and Short-Term Investments | $ 422.3 B | |
| Cash | $ 108.9 B | |
| Net Receivables | $ 5.1 B | |
| Inventory | — | |
| Long-Term Investments | $ 104.7 B | |
| LIABILITIES | ||
| Accounts Payable | $ 140.1 B | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 213.7 B | |
| Net Debt | — | |
| Total Debt | $ 5.4 B | |
| Total Liabilities | $ 216.7 B | |
| EQUITY | ||
| Total Equity | $ 413.4 B | |
| Retained Earnings | $ 284.2 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 72.61 | |
| Shares Outstanding | 5.694 B | |
| Revenue Per-Share | $ 21.76 | |
| VALUATION | Market Capitalization | $ 604.5 B |
| Enterprise Value | $ 187.5 B | |
| Enterprise Multiple | 3.569 | |
| Enterprise Multiple QoQ | -72.303 % | |
| Enterprise Multiple YoY | -64.04 % | |
| Enterprise Multiple IPRWA | high: 218.425 median: 102.75 mean: 80.381 PDD: 3.569 low: -170.05 |
|
| EV/R | 1.513 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.524 | |
| Asset To Liability | 2.908 | |
| Debt To Capital | 0.013 | |
| Debt To Assets | 0.009 | |
| Debt To Assets QoQ | -50.891 % | |
| Debt To Assets YoY | -59.333 % | |
| Debt To Assets IPRWA | high: 1.249 mean: 0.204 median: 0.164 PDD: 0.009 low: 0.007 |
|
| Debt To Equity | 0.013 | |
| Debt To Equity QoQ | -52.292 % | |
| Debt To Equity YoY | -61.566 % | |
| Debt To Equity IPRWA | high: 4.996 mean: 0.255 median: 0.241 PDD: 0.013 low: -3.459 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.462 | |
| Price To Book QoQ | -22.196 % | |
| Price To Book YoY | -28.714 % | |
| Price To Book IPRWA | high: 24.873 mean: 4.565 median: 2.768 PDD: 1.462 low: -14.242 |
|
| Price To Earnings (P/E) | 6.001 | |
| Price To Earnings QoQ | -2.079 % | |
| Price To Earnings YoY | 4.783 % | |
| Price To Earnings IPRWA | high: 224.995 mean: 66.812 median: 21.251 PDD: 6.001 low: -221.643 |
|
| PE/G Ratio | -0.373 | |
| Price To Sales (P/S) | 4.878 | |
| Price To Sales QoQ | -28.196 % | |
| Price To Sales YoY | -16.042 % | |
| Price To Sales IPRWA | high: 26.155 mean: 11.143 median: 10.103 PDD: 4.878 low: 0.013 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 33.819 | |
| Forward PE/G | -2.103 | |
| Forward P/S | 22.423 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 7.614 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.199 | |
| Asset Turnover Ratio QoQ | 8.654 % | |
| Asset Turnover Ratio YoY | -12.468 % | |
| Asset Turnover Ratio IPRWA | high: 1.018 mean: 0.23 median: 0.21 PDD: 0.199 low: 0.057 |
|
| Receivables Turnover | 22.311 | |
| Receivables Turnover Ratio QoQ | 23.696 % | |
| Receivables Turnover Ratio YoY | -16.159 % | |
| Receivables Turnover Ratio IPRWA | high: 55.301 PDD: 22.311 mean: 4.111 median: 3.311 low: 0.82 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 4.09 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 152.367 PDD: 0 mean: -38.943 median: -48.654 low: -234.398 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.406 | |
| CapEx To Revenue | — | |
| CapEx To Depreciation | — | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 413.4 B | |
| Net Invested Capital | $ 413.4 B | |
| Invested Capital | $ 413.4 B | |
| Net Tangible Assets | $ 413.4 B | |
| Net Working Capital | $ 305.2 B | |
| LIQUIDITY | ||
| Cash Ratio | 1.976 | |
| Current Ratio | 2.428 | |
| Current Ratio QoQ | 3.085 % | |
| Current Ratio YoY | 10.072 % | |
| Current Ratio IPRWA | high: 2.807 PDD: 2.428 median: 1.331 mean: 1.193 low: 0.114 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 0.102 | |
| Cost Of Debt | 0.0 % | |
| Interest Coverage Ratio | — | |
| Interest Coverage Ratio QoQ | — | |
| Interest Coverage Ratio YoY | — | |
| Interest Coverage Ratio IPRWA | — | |
| Operating Cash Flow Ratio | 0.297 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 234.405 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 2.659 % | |
| Revenue Growth | 14.441 % | |
| Revenue Growth QoQ | 249.915 % | |
| Revenue Growth YoY | 510.871 % | |
| Revenue Growth IPRWA | high: 67.766 % mean: 15.17 % median: 14.771 % PDD: 14.441 % low: -40.64 % |
|
| Earnings Growth | -16.082 % | |
| Earnings Growth QoQ | 258.493 % | |
| Earnings Growth YoY | -291.635 % | |
| Earnings Growth IPRWA | high: 309.709 % mean: 45.0 % median: 42.564 % PDD: -16.082 % low: -450.0 % |
|
| MARGINS | ||
| Gross Margin | 55.488 % | |
| Gross Margin QoQ | -2.207 % | |
| Gross Margin YoY | -2.287 % | |
| Gross Margin IPRWA | high: 90.408 % PDD: 55.488 % mean: 43.099 % median: 40.482 % low: 6.752 % |
|
| EBIT Margin | 42.403 % | |
| EBIT Margin QoQ | 83.46 % | |
| EBIT Margin YoY | 44.7 % | |
| EBIT Margin IPRWA | PDD: 42.403 % high: 34.102 % mean: 10.474 % median: 9.279 % low: -57.726 % |
|
| Return On Sales (ROS) | 21.142 % | |
| Return On Sales QoQ | -8.528 % | |
| Return On Sales YoY | -27.853 % | |
| Return On Sales IPRWA | high: 31.974 % PDD: 21.142 % mean: 9.285 % median: 7.078 % low: -34.176 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 23.0 B | |
| Free Cash Flow Yield | 3.801 % | |
| Free Cash Flow Yield QoQ | -38.763 % | |
| Free Cash Flow Yield YoY | -14.527 % | |
| Free Cash Flow Yield IPRWA | high: 18.013 % PDD: 3.801 % median: 1.252 % mean: 1.026 % low: -14.31 % |
|
| Free Cash Growth | -49.684 % | |
| Free Cash Growth QoQ | -144.766 % | |
| Free Cash Growth YoY | -1392.844 % | |
| Free Cash Growth IPRWA | high: 643.596 % median: 256.788 % mean: 203.931 % PDD: -49.684 % low: -396.502 % |
|
| Free Cash To Net Income | 0.998 | |
| Cash Flow Margin | 51.166 % | |
| Cash Flow To Earnings | 2.754 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 3.702 % | |
| Return On Assets QoQ | -25.468 % | |
| Return On Assets YoY | -34.455 % | |
| Return On Assets IPRWA | high: 8.14 % PDD: 3.702 % mean: 1.637 % median: 0.871 % low: -18.579 % |
|
| Return On Capital Employed (ROCE) | 12.621 % | |
| Return On Equity (ROE) | 0.056 | |
| Return On Equity QoQ | -25.691 % | |
| Return On Equity YoY | -36.438 % | |
| Return On Equity IPRWA | high: 0.379 PDD: 0.056 mean: 0.038 median: 0.016 low: -0.831 |
|
| DuPont ROE | 5.72 % | |
| Return On Invested Capital (ROIC) | 9.281 % | |
| Return On Invested Capital QoQ | 67.135 % | |
| Return On Invested Capital YoY | 8.195 % | |
| Return On Invested Capital IPRWA | high: 13.791 % PDD: 9.281 % mean: 2.859 % median: 1.31 % low: -45.037 % |
|