Checking the Peter Lynch growth stock criteria for VIPSHOP HOLDINGS LTD - ADR (NYSE:VIPS)

Peter Lynch, one of the most successful investors of all time, focused on growth stocks with strong fundamentals and a business model that’s easy to understand. Let’s analyze whether VIPSHOP HOLDINGS LTD - ADR (NYSE:VIPS) fits his legendary investment approach.

Checking the Peter Lynch growth stock criteria for VIPSHOP HOLDINGS LTD - ADR (NYSE:VIPS)

• With a favorable Return on Equity (ROE) of 21.93%, VIPS demonstrates its ability to deliver attractive returns for shareholders. This metric highlights the company's effective management of assets 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 experienced 17.77 growth in EPS over a 5-year period, demonstrating its ability to generate sustained and positive earnings momentum.
• With a PEG ratio at 0.31, VIPS is priced attractively relative to its earnings expansion.
• With a Current Ratio of 1.21, VIPS appears well-positioned to meet its near-term financial obligations.

Fundamental analysis of VIPS

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

VIPS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 31 industry peers in the Broadline Retail industry. VIPS has an excellent profitability rating, but there are some minor concerns on its financial health. VIPS has a bad growth rate and is valued cheaply.

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

More Affordable Growth stocks can be found in our Peter Lynch screener.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.