Evaluating VIPSHOP HOLDINGS LTD - ADR (NYSE:VIPS) using Peter Lynch’s legendary strategy

Lynch preferred companies with low P/E ratios relative to growth, manageable debt, and strong profitability. In this analysis, we see if VIPSHOP HOLDINGS LTD - ADR (NYSE:VIPS) fits his winning formula.

Applying Peter Lynch’s stock selection rules to VIPSHOP HOLDINGS LTD - ADR (NYSE:VIPS)

• VIPS exhibits a strong Return on Equity (ROE) of 21.93%, indicating the company's ability to generate solid returns on shareholder investments. This metric reflects the company's efficient utilization of equity capital and its profitability.
• With a Debt-to-Equity ratio at 0.14, VIPS showcases its prudent financial management. The company's balanced approach between debt and equity reflects its commitment to maintaining a stable capital structure.
• VIPS has achieved 17.77 growth in EPS over the past 5 years, reflecting a sustained improvement in earnings performance.
• A PEG ratio of 0.4 suggests that VIPS offers an attractive balance between growth and valuation.
• With a Current Ratio of 1.21, VIPS demonstrates solid short-term financial stability.

What else is there to say on the fundamentals of VIPS?

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Overall VIPS gets a fundamental rating of 5 out of 10. We evaluated VIPS against 32 industry peers in the Broadline Retail industry. While VIPS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. VIPS is valued quite cheap, but it does not seem to be growing.

Our latest full fundamental report of VIPS contains the most current fundamental analsysis.

Our Peter Lynch screener lists more Affordable Growth stocks and is updated daily.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.