Dingdong (Cayman) Limited
Dingdong (Cayman) Limited Fundamental Analysis
Dingdong (Cayman) Limited (DDL) shows moderate financial fundamentals with a PE ratio of 15.70, profit margin of 1.16%, and ROE of 31.18%. The company generates $24.0B in annual revenue with strong year-over-year growth of 15.50%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DDL's fundamental strength across five key dimensions:
Efficiency Score
WeakDDL struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDDL trades at attractive valuation levels.
Growth Score
ModerateDDL shows steady but slowing expansion.
Financial Health Score
ModerateDDL shows balanced financial health with some risks.
Profitability Score
ModerateDDL maintains healthy but balanced margins.
Key Financial Metrics
Is DDL Expensive or Cheap?
P/E Ratio
DDL trades at 15.70 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, DDL's PEG of -0.08 indicates potential undervaluation.
Price to Book
The market values Dingdong (Cayman) Limited at 4.29 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.55 times EBITDA. This is generally considered low.
How Well Does DDL Make Money?
Net Profit Margin
For every $100 in sales, Dingdong (Cayman) Limited keeps $1.16 as profit after all expenses.
Operating Margin
Core operations generate 0.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $31.18 in profit for every $100 of shareholder equity.
ROA
Dingdong (Cayman) Limited generates $4.03 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Dingdong (Cayman) Limited generates limited operating cash flow of $775.13M, signaling weaker underlying cash strength.
Free Cash Flow
Dingdong (Cayman) Limited generates weak or negative free cash flow of $676.96M, restricting financial flexibility.
FCF Per Share
Each share generates $3.12 in free cash annually.
FCF Yield
DDL converts 15.38% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.29
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.18
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.31
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How DDL Stacks Against Its Sector Peers
| Metric | DDL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.70 | 23.01 | Better (Cheaper) |
| ROE | 31.18% | 1228.00% | Weak |
| Net Margin | 1.16% | -4010.00% (disorted) | Weak |
| Debt/Equity | 2.42 | 0.78 | Weak (High Leverage) |
| Current Ratio | 1.05 | 2.35 | Neutral |
| ROA | 4.03% | -157546.00% (disorted) | Weak |
DDL outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Dingdong (Cayman) Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
192.09%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
107.98%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
147.34%
Industry Style: Defensive, Dividend, Low Volatility
High Growth