$76.50−1.44 (−1.85%)
At close: Oct 1, 2026, 4:00 PM ET
$75.70−0.80 (−1.05%)
Pre-market: Oct 2, 2026, 7:49 AM ET· last 1-minute bar
PDD Holdings Inc · Tenets
How PDD measures up against value, income, timing, and long-hold tenets. Every criterion shows the live number and the pass rule. Always free.
The tenets below and the 0-100 Tenet Score on this report are two separate computations: each tenet runs its own criteria and its own pass rule, while the score is a percentile composite reported as one of four verdict words (Strong, Solid, Mixed or Weak).
4 / 17 qualify todayas of 2026-10-02 · computed nightly from our fundamentals DB; point-in-time auditable.
QUALIFIES
4
meet every gate today
BORDERLINE
3
within one input of the gate
FAILS
6
miss at least one gate
UNKNOWN
4
insufficient data to judge
passesfailsborderlineunknown
Value — six classic philosophies
Buffett Qualitydurable moat
✓ QualifiesPassesROE ≥ 15%(fiscal 2025: files no quarterly statements)27.4% · ≥ 15.0%
PassesGross margin ≥ 40%(fiscal 2025: files no quarterly statements)56.3% · ≥ 40.0%
PassesNet margin ≥ 15%(fiscal 2025: files no quarterly statements)22.7% · ≥ 15.0%
PassesDebt/equity ≤ 0.5(fiscal 2025: files no quarterly statements)0.00 · ≤ 0.50
PassesGrowing FCF (multi-yr)(fiscal 2020 to 2025)28.4% per year · > 0
Decided by the pass rule for Buffett Quality.The pass rule for Buffett Quality is what decides that verdict, and it is not restated here.Buffett Quality under The screens ›
Piotroski F-Scorefinancial strength
✕ 5 / 9PassesReturn on assets positive(fiscal 2025)15.5% · > 0
PassesOperating cash flow positive(fiscal 2025)$15.3B · > 0
FailsReturn on assets improving(fiscal 2025)22.3% → 15.5%
PassesEarnings backed by cash (CFO > net income)(fiscal 2025)$15.3B vs $14.0B
FailsLeverage falling (long-term debt / assets)(fiscal 2025)We hold no record of long-term debt as a share of assets for both years for this company, so this signal could not be measured. It still scores 0 under this module's conservative rule (a point is never awarded without evidence), and it is not counted as one of the signals we were able to measure.no
PassesCurrent ratio improving(fiscal 2025)2.21 → 2.43
PassesNo share dilution (≤ +2%)(fiscal 2025)+0.2%
FailsGross margin expanding(fiscal 2025)60.9% → 56.3%
FailsAsset turnover improving(fiscal 2025)0.78 → 0.69
Decided by the pass rule for Piotroski F-Score.The pass rule for Piotroski F-Score is what decides that verdict, and it is not restated here. These checks score 5 of 9. 1 of 9 carry no data.Piotroski F-Score under The screens ›
Munger Compoundershigh-ROIC quality
✓ QualifiesPassesROIC ≥ 15%(fiscal 2025: files no quarterly statements)18.4% · ≥ 15.0%
PassesNet debt/EBITDA ≤ 3×(fiscal 2025: files no quarterly statements)−4.4× · ≤ 3.0×
PassesAltman Z ≥ 3 (safe zone)(fiscal 2025: files no quarterly statements)5.45 · ≥ 3.00
Decided by the pass rule for Munger Compounders.The pass rule for Munger Compounders is what decides that verdict, and it is not restated here.Munger Compounders under The screens ›
Magic FormulaROC + earnings yield (threshold check; full rank needs universe)
✓ QualifiesPassesEBIT > 0(fiscal 2025: files no quarterly statements)$13.3B · > 0
Unknown — no dataEarnings yield EBIT/EV ≥ 6%— · ≥ 6.0%
PassesReturn on capital ≥ 25%(fiscal 2025: files no quarterly statements)30.4% · ≥ 25.0%
Decided by the pass rule for Magic Formula.The pass rule for Magic Formula is what decides that verdict, and it is not published separately on the methodology page. 1 of 3 carry no data.About this screen ›
Graham Defensivemargin of safety
— Insufficient inputs (3 of 7 known)PassesSize: market cap ≥ $2B$108.9B · ≥ $2.0B
PassesCurrent ratio ≥ 2(fiscal 2025: files no quarterly statements)2.43 · ≥ 2.00
FailsPositive EPS 10yWe hold no record of earnings per share for fiscal 2016 to 2024, so those years are judged on the sign of net income to common shareholders, or of net income where we hold no figure for common shareholders.5y
Unknown — no dataPays a dividend— · > 0
Unknown — no dataEPS growth ≥ 3%/yr— · ≥ 3.0%
Unknown — no dataP/E ≤ 15— · ≤ 15.00
Unknown — no dataP/E × P/B ≤ 22.5— · ≤ 22.50
Verdict Unknown for this set.Verdict Unknown for this set. 3 of 7 checks below carry data.Graham Defensive under The screens ›
Lynch GARPgrowth at reasonable price (historical-CAGR basis)
— UnknownUnknown — no dataPEG < 1 (hist. growth)— · < 1.00
Unknown — no dataEPS growth 10–30%— · 10.0%–30.0%
Verdict Unknown for this set.Verdict Unknown for this set. None of the 2 checks below carry data.Lynch GARP under The screens ›
Income — dividend safety
Income & Dividend Safetycoverage over headline yield
— UnknownUnknown — no dataPays a dividend— · > 0
Unknown — no dataYield in a healthy band (not a yield trap)— · 1.0%–8.0%
Unknown — no dataCovered by free cash flow— · ≥ 1.20
Unknown — no dataEarnings payout not stretched— · ≤ 75.0%
Unknown — no dataBalance sheet can sustain the payout−4.4× · ≤ 4.0×
Verdict Unknown for this set.Verdict Unknown for this set. None of the 5 checks below carry data. The pass rule for Income & Dividend Safety is not published separately on the methodology page.
Dividend Growthraises you can count on
— UnknownUnknown — no dataPays a dividend— · > 0
Unknown — no dataAnnual dividend raised 10+ years running (Aristocrat ≥25, King ≥50)— · ≥ 10.00
Unknown — no dataNo dividend cut in the last 5 years—
Unknown — no data5-year dividend growth ≥ 5%/yr— · ≥ 5.0%
Unknown — no dataCovered by free cash flow— · ≥ 1.20
Unknown — no dataPayout not stretched— · ≤ 75.0%
Verdict Unknown for this set.Verdict Unknown for this set. None of the 6 checks below carry data.Dividend Growth under The screens ›
Long Hold — quality compounders
Quality Compounderhigh returns, reinvested, few new shares
~ BorderlinePassesReturn on invested capital ≥ 15% in 4+ of the last 5 years4 of 4 on file
PassesRevenue compounding ≥ 8%/yr over 5 years46.5% per year · ≥ 8.0%
FailsNot diluting: diluted share count flat-to-down (≤ +1%/yr)4.2% · ≤ 1.0%
PassesFree cash flow margin ≥ 12%24.5% · ≥ 12.0%
PassesEarnings backed by cash (operating cash flow ≥ net income)1.09 · ≥ 1.00
Reading: does not hold. Not a gate checkDisciplined buybacks: actively reducing the share count (bonus)reading, not a gate check4.2%
Decided by the pass rule for Quality Compounder.The pass rule for Quality Compounder is what decides that verdict, and it is not restated here. Lines marked as readings are published beside the checks and are not gate checks.Quality Compounder under The screens ›
Timing — dip & swing receipts
Drawdown Contexta dip, not a collapse
✕ FailsFailsOff its 52-week high by 8–35% (a dip, not a collapse)45.1% · 8.0%–35.0%
PassesDip within its own normal pullback band0.15
FailsNot past where its dips have historically recovered from2.27
FailsA dip in an uptrend (above a rising 200-day)94.68
FailsHigher-low structure still intactstructure broken · higher low
Unknown — no dataClear of the earnings blackout (more than 5 days out)— · > 5.00
Decided by the pass rule for Drawdown Context.The pass rule for Drawdown Context is what decides that verdict, and it is not published separately on the methodology page. 1 of 6 carry no data.
Reversal Evidencedaily close onlysigns the pullback is turning
~ BorderlinePassesA bullish MACD cross within 10 sessions7.00 · ≤ 10.00
FailsReclaimed a rising 50-day EMA82.29
PassesPrinted a higher lowyes
FailsA volume thrust on the turn (≥ 1.2× normal)0.98 · ≥ 1.20
FailsReversal signals fired: 3 of 4 (MACD·MA·HL·Vol)2.00 · ≥ 3.00
Decided by the pass rule for Reversal Evidence.The pass rule for Reversal Evidence is what decides that verdict, and it is not published separately on the methodology page.
Not-a-Value-Trap Gatecheap for a good reason, not a broken one
✕ FailsUnknown — no dataIn the cheap half of its own 5-year valuation range—
FailsEarnings estimates not being cut−0.02
FailsReturns on capital not deteriorating0.18
Decided by the pass rule for Not-a-Value-Trap Gate.The pass rule for Not-a-Value-Trap Gate is what decides that verdict, and it is not published separately on the methodology page. 1 of 3 carry no data.
Quality Floorpasses the quality/value gate on this dip
✓ QualifiesPassesOperating profit is positive(fiscal 2025: files no quarterly statements)$13.3B · > 0
PassesReturn on invested capital ≥ 10%(fiscal 2025: files no quarterly statements)18.4% · ≥ 10.0%
PassesA solvent balance sheet (Altman Z ≥ 1.8, net debt/EBITDA ≤ 4)(fiscal 2025: files no quarterly statements)5.4×
PassesQuality score ≥ 5066.60 · ≥ 50.00
PassesRevenue growing over 5 years(fiscal 2020 to 2025)46.5% per year · > 0
Decided by the pass rule for Quality Floor.The pass rule for Quality Floor is what decides that verdict, and it is not published separately on the methodology page.
Qualified Dipa pullback with receipts, not a falling knife
~ BorderlineA research signal from published criteria, not a recommendation.
FailsDrawdown context45.1% off its 52-week high
FailsReversal evidence2 of 4 signals fired
FailsTrap gate0 of 3 held · 1 no data
PassesQuality floor5 of 5 held
Invalidation level (structure break): below this the dip's structure has broken$84.17
Decided by the pass rule for Qualified Dip.The pass rule for Qualified Dip is what decides that verdict, and it is not restated here.Qualified Dip under The screens ›
Trend Alignmentprice in a confirmed uptrend
✕ FailsFailsTrading above its 50-day average83.93
FailsTrading above its 200-day average94.68
Fails50-day average above the 200-day (uptrend stack)83.93
Fails50-day average sloping up−0.01 · > 0
Decided by the pass rule for Trend Alignment.The pass rule for Trend Alignment is what decides that verdict, and it is not published separately on the methodology page.
Relative Strengthoutperforming, ranked vs the universe
✕ FailsFails3-month return in the top half of the universe0.47 · ≥ 0.50
Fails12-minus-1 momentum in the top half of the universe0.09 · ≥ 0.50
FailsRelative strength vs the S&P 500 improving−0.00 · > 0
FailsEarnings estimates being revised up−0.02
Decided by the pass rule for Relative Strength.The pass rule for Relative Strength is what decides that verdict, and it is not published separately on the methodology page.
Momentum Triggera trigger you can see
✕ FailsPassesMACD above its signal line−1.77
FailsBack above the 50-day on a fresh cross (≤10 sessions)7.00
FailsHigher high and higher low (stair-stepping up)no higher high · higher low
FailsA volume thrust on the move (≥ 1.2× normal)0.98 · ≥ 1.20
Decided by the pass rule for Momentum Trigger.The pass rule for Momentum Trigger is what decides that verdict, and it is not published separately on the methodology page.
Volatility Regimecontext, not a signal
Context, not scoredAverage daily swing: normal0.02
Volatility band width: squeezed (compressed range)0.01
Distance from its 52-week high: a deep pullback0.45
✓
Every verdict is auditableEach criterion shows the live number and the pass rule side by side — a receipt, not a rating. Several of these screens publish their rule in full under The screens; each row links to its own section where there is one.
!
Unknown ≠ failAn “— Unknown” verdict means the inputs were insufficient: context, not a signal, and never counted as a fail.
Computed from our fundamentals DB; historical-CAGR PEG basis for Lynch. Research, not investment advice. Tenet's rulesets are independently developed from publicly available sources, and Tenet is not affiliated with, sponsored by, endorsed by or otherwise associated with any referenced investor or trademark owner. Full notice. MAGIC FORMULA is a trademark of MagicFormulaInvesting.com LLC.