29.84 USD
-0.16 (-0.53%)
29.8 USD
-0.04 (-0.13%)
Taking everything into account, JD scores 5 out of 10 in our fundamental rating. JD was compared to 30 industry peers in the Broadline Retail industry. There are concerns on the financial health of JD while its profitability can be described as average. JD has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year JD was profitable.
- JD had a positive operating cash flow in the past year.
- JD had positive earnings in 4 of the past 5 years.
- JD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.51%, JD is in line with its industry, outperforming 60.00% of the companies in the same industry.
- JD has a better Return On Equity (13.88%) than 73.33% of its industry peers.
- JD has a worse Return On Invested Capital (3.54%) than 63.33% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for JD is below the industry average of 9.28%.
| 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.
- The Operating Margin of JD (1.35%) is worse than 66.67% of its industry peers.
- In the last couple of years the Operating Margin of JD has grown nicely.
- 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.
- JD's Gross Margin has improved in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so JD is destroying value.
- Compared to 1 year ago, JD has less shares outstanding
- Compared to 5 years ago, JD has less shares outstanding
- Compared to 1 year ago, JD has a worse debt to assets ratio.
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.
- Looking at the Debt to FCF ratio, with a value of 3.50, JD is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- JD has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of JD (0.26) is comparable to the rest of the 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.
- JD has a Quick Ratio of 1.20. This is a bad value and indicates that JD is not financially healthy enough and could expect problems in meeting its short term obligations.
- JD's Quick ratio of 0.88 is on the low side compared to the rest of the industry. JD is outperformed by 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
- The earnings per share for JD have decreased strongly by -15.38% in the last year.
- The Earnings Per Share has been growing by 26.76% on average over the past years. This is a very strong growth
- Looking at the last year, JD shows a quite strong growth in Revenue. The Revenue has grown by 16.63% in the last year.
- JD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.97% yearly.
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
- The Earnings Per Share is expected to grow by 22.05% on average over the next years. This is a very strong growth
- 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
- JD is valuated reasonably with a Price/Earnings ratio of 8.27.
- Compared to the rest of the industry, the Price/Earnings ratio of JD indicates a rather cheap valuation: JD is cheaper than 93.33% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of JD to the average of the S&P500 Index (27.21), we can say JD is valued rather cheaply.
- A Price/Forward Earnings ratio of 8.06 indicates a reasonable valuation of JD.
- Based on the Price/Forward Earnings ratio, JD is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. JD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.27 | ||
| Fwd PE | 8.06 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, JD is valued cheaper than 93.33% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, JD is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.1 | ||
| EV/EBITDA | 3.72 |
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
- JD has a Yearly Dividend Yield of 3.42%.
- JD's Dividend Yield is rather good when compared to the industry average which is at 2.35. JD pays more dividend than 93.33% of the companies in the same industry.
- JD's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
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 8.27 and the Price/Book (PB) ratio is 1.3.