Dingdong (Cayman) Limited American Depositary Shares (each two representing three Ordinary Shares) (DDL)

FairStock Score: 35/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am a patient value investor, and I start with the business: Dingdong sells fresh groceries and prepared foods in China through its app, mini-programs, and some offline channels. That is a difficult trade unless scale and repeat purchase behavior create an advantage. The provided figures show rapid growth, but the quality is mixed. In the 2026 second quarter, the data list revenue of $73.2M and net income of $269.0M, a margin above 100%; that is so unusual that I would not anchor on it as durable earning power. The trailing P/E of 20.00, as calculated by FairStock at the 2026-10-13 close of $2.20, implies the market is not paying a rich multiple, but ROE of 1.04% and ROCE of -0.56% tell me the core capital returns are weak. The balance sheet looks lightly levered with D/E of 0.04, and trailing free cash flow of $444.5M gives a 78.0% FCF yield, which is remarkable if repeatable. Against a $570.1M market cap, that cash generation would be the central attraction. Yet Altman Z-score of -1.92 signals financial distress risk, and the FairStock score is only 35/100. The Graham Number is $3.28, offering a 32.93% margin of safety at the close, and the Piotroski F-score is 6/9. The beta of 0.48 suggests low market sensitivity, but a grocery delivery business in China can be fiercely competitive. I would demand several years of consistent filed results before trusting the growth; the Lynch category is none because only zero years of filed results are available. Cheapness without durable earnings is not enough.

In plain English: Dingdong sells fresh groceries and prepared foods in China through online apps and some offline channels. The business is growing and produces a lot of cash, but its profits look thin and some recent figures are very unusual. At $2.20 on 2026-10-13, the price looks roughly fair to a bit cheap compared with its yearly profit and one simple value estimate, though the overall quality picture is weak.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer