30 USD
+0.93 (+3.2%)
29.61 USD
-0.39 (-1.3%)
Overall JD gets a fundamental rating of 5 out of 10. We evaluated JD against 30 industry peers in the Broadline Retail industry. While JD is still in line with the averages on profitability rating, there are concerns on its financial health. JD has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- JD had positive earnings in the past year.
- In the past year JD had a positive cash flow from operations.
- Of the past 5 years JD 4 years were profitable.
- In the past 5 years JD always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 4.51%, JD perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 13.88%, JD is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
- The Return On Invested Capital of JD (3.54%) is worse than 63.33% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for JD is below the industry average of 9.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.51% | ||
| ROE | 13.88% | ||
| ROIC | 3.54% |
ROA(3y)3.84%
ROA(5y)4.5%
ROE(3y)10.86%
ROE(5y)11.44%
ROIC(3y)6.16%
ROIC(5y)4.58%
1.3 Margins
- The Profit Margin of JD (2.47%) is better than 63.33% of its industry peers.
- JD's Profit Margin has improved in the last couple of years.
- JD has a worse Operating Margin (1.35%) than 66.67% of its industry peers.
- JD's Operating Margin has improved in the last couple of years.
- JD's Gross Margin of 15.96% is on the low side compared to the rest of the industry. JD is outperformed by 93.33% of its industry peers.
- In the last couple of years the Gross Margin of JD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.35% | ||
| PM (TTM) | 2.47% | ||
| GM | 15.96% |
OM growth 3Y112.76%
OM growth 5Y30.98%
PM growth 3YN/A
PM growth 5Y11.06%
GM growth 3Y5.37%
GM growth 5Y1.63%
2. Health
2.1 Basic Checks
- JD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- JD has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, JD has less shares outstanding
- JD has a worse debt/assets ratio than last year.
2.2 Solvency
- JD has a debt to FCF ratio of 3.50. This is a good value and a sign of high solvency as JD would need 3.50 years to pay back of all of its debts.
- JD has a Debt to FCF ratio of 3.50. This is in the better half of the industry: JD outperforms 66.67% of its industry peers.
- A Debt/Equity ratio of 0.26 indicates that JD is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.26, JD is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 3.5 | ||
| Altman-Z | N/A |
ROIC/WACC0.46
WACC7.64%
2.3 Liquidity
- A Current Ratio of 1.20 indicates that JD should not have too much problems paying its short term obligations.
- The Current ratio of JD (1.20) is worse than 73.33% of its industry peers.
- A Quick Ratio of 0.88 indicates that JD may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.88, JD is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
- JD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.38%.
- JD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.76% yearly.
- The Revenue has grown by 16.63% in the past year. This is quite good.
- The Revenue has been growing by 14.97% on average over the past years. This is quite good.
EPS 1Y (TTM)-15.38%
EPS 3Y42.56%
EPS 5Y26.76%
EPS Q2Q%-56.91%
Revenue 1Y (TTM)16.63%
Revenue growth 3Y6.79%
Revenue growth 5Y14.97%
Sales Q2Q%14.85%
3.2 Future
- JD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.05% yearly.
- JD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.92% yearly.
EPS Next Y-33.87%
EPS Next 2Y-10.04%
EPS Next 3Y3.29%
EPS Next 5Y22.05%
Revenue Next Year15.16%
Revenue Next 2Y10.21%
Revenue Next 3Y8.95%
Revenue Next 5Y5.92%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 8.33, which indicates a very decent valuation of JD.
- JD's Price/Earnings ratio is rather cheap when compared to the industry. JD is cheaper than 96.67% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.32. JD is valued rather cheaply when compared to this.
- JD is valuated reasonably with a Price/Forward Earnings ratio of 8.12.
- Based on the Price/Forward Earnings ratio, JD is valued cheaper than 90.00% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of JD to the average of the S&P500 Index (24.32), we can say JD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.33 | ||
| Fwd PE | 8.12 |
4.2 Price Multiples
- JD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. JD is cheaper than 93.33% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of JD indicates a somewhat cheap valuation: JD is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.19 | ||
| EV/EBITDA | 3.8 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y-10.04%
EPS Next 3Y3.29%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.39%, JD has a reasonable but not impressive dividend return.
- JD's Dividend Yield is rather good when compared to the industry average which is at 2.19. JD pays more dividend than 96.67% of the companies in the same industry.
- JD's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
5.2 History
- JD has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
DPN/A
EPS Next 2Y-10.04%
EPS Next 3Y3.29%
JD.COM INC-ADR / JD FAQ
What is the fundamental rating for JD stock?
ChartMill assigns a fundamental rating of 5 / 10 to JD.
What is the valuation status of JD.COM INC-ADR (JD) stock?
ChartMill assigns a valuation rating of 6 / 10 to JD.COM INC-ADR (JD). This can be considered as Fairly Valued.
What is the profitability of JD stock?
JD.COM INC-ADR (JD) has a profitability rating of 5 / 10.
What is the valuation of JD.COM INC-ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for JD.COM INC-ADR (JD) is 8.33 and the Price/Book (PB) ratio is 1.31.