PDDNEUTRAL

PDD Return on Equity (ROE) Analysis

25.4%

Higher than 78% of Consumer Cyclical sector peers

Updated 264h ago·SEC filings & market data

Key Takeaway

With a Return on Equity (ROE) of 25.4%, PDD generates $0.254 in profit for every dollar of shareholder equity—a measure of how efficiently the company uses its capital.

Sector Performance

78th percentile

PDD

25.4%

Sector Median

8.5%

Sector Avg

-20.0%

Prior Period

23.6%(May 2026)

↑ Improving

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Deep Analysis

With a Return on Equity (ROE) of 25.4%, PDD generates $0.254 in profit for every dollar of shareholder equity—a measure of how efficiently the company uses its capital.

This far exceeds the Consumer Cyclical sector median of 8.6% and places PDD in the 79th percentile among its peers, meaning it outperforms roughly four out of five companies in its industry. The trend over the last eight quarters is increasing, with a quarter-over-quarter rise of +7.6% from 23.6% to 25.4%; year-over-year data is not available. A high ROE that is also climbing upward typically signals strong profit-generation capability and improving efficiency, which can lower investment risk relative to peers. However, this positive metric alone does not override the overall NEUTRAL verdict, as other factors—such as valuation or growth concerns—may temper the stock’s appeal. In short, the ROE supports a favorable view of PDD’s profitability, but the neutral stance suggests balancing this strength against other risks.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about PDD?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does PDD's Return on Equity (ROE) compare to its sector?

PDD's Return on Equity (ROE) of 25.4% compares to a Consumer Cyclical sector median of 8.5%, placing it in the 78th percentile.

Who are PDD's closest peers by Return on Equity (ROE)?

The closest Consumer Cyclical peers by Return on Equity (ROE) include: PVH (3.3%), APTV (1.8%), LI (-2.5%), HMC (-3.8%), CROX (-6.1%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.