JD.COM INC-ADR (JD) Stock Fundamental Analysis
NASDAQ:JD - Nasdaq - US47215P1066 - ADR - Currency: USD
Taking everything into account, JD scores 6 out of 10 in our fundamental rating. JD was compared to 28 industry peers in the Broadline Retail industry. Both the profitability and the financial health of JD get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on JD.
1. Profitability
1.1 Basic Checks
JD had positive earnings in the past year.
JD had a positive operating cash flow in the past year.
JD had positive earnings in 4 of the past 5 years.
Each year in the past 5 years JD had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.66%, JD is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
JD's Return On Equity of 19.26% is fine compared to the rest of the industry. JD outperforms 75.00% of its industry peers.
JD's Return On Invested Capital of 8.62% is fine compared to the rest of the industry. JD outperforms 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for JD is significantly below the industry average of 11.59%.
The last Return On Invested Capital (8.62%) for JD is above the 3 year average (6.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.66% | ||
| ROE | 19.26% | ||
| ROIC | 8.62% |
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
JD's Profit Margin of 3.76% is fine compared to the rest of the industry. JD outperforms 64.29% of its industry peers.
In the last couple of years the Profit Margin of JD has grown nicely.
JD has a Operating Margin (3.53%) which is comparable to the rest of the industry.
JD's Operating Margin has improved in the last couple of years.
JD's Gross Margin of 16.00% is on the low side compared to the rest of the industry. JD is outperformed by 92.86% of its industry peers.
JD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.53% | ||
| PM (TTM) | 3.76% | ||
| GM | 16% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), JD is creating some value.
JD has less shares outstanding than it did 1 year ago.
JD has less shares outstanding than it did 5 years ago.
JD has a worse debt/assets ratio than last year.
2.2 Solvency
JD has a debt to FCF ratio of 1.18. This is a very positive value and a sign of high solvency as it would only need 1.18 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.18, JD is doing good in the industry, outperforming 78.57% of the companies in the same industry.
JD has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.24, JD is in line with its industry, outperforming 53.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | N/A |
ROIC/WACC1.09
WACC7.91%
2.3 Liquidity
A Current Ratio of 1.26 indicates that JD should not have too much problems paying its short term obligations.
JD's Current ratio of 1.26 is on the low side compared to the rest of the industry. JD is outperformed by 67.86% of its industry peers.
A Quick Ratio of 0.92 indicates that JD may have some problems paying its short term obligations.
JD's Quick ratio of 0.92 is on the low side compared to the rest of the industry. JD is outperformed by 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
JD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.92%, which is quite impressive.
JD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.75% yearly.
The Revenue has grown by 8.90% in the past year. This is quite good.
Measured over the past years, JD shows a quite strong growth in Revenue. The Revenue has been growing by 14.97% on average per year.
EPS 1Y (TTM)46.92%
EPS 3Y42.56%
EPS 5Y26.75%
EPS Q2Q%48.76%
Revenue 1Y (TTM)8.9%
Revenue growth 3Y6.79%
Revenue growth 5Y14.97%
Sales Q2Q%15.78%
3.2 Future
JD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.75% yearly.
Based on estimates for the next years, JD will show a small growth in Revenue. The Revenue will grow by 5.19% on average per year.
EPS Next Y6.71%
EPS Next 2Y6.97%
EPS Next 3Y8.44%
EPS Next 5Y25.75%
Revenue Next Year10.08%
Revenue Next 2Y7.9%
Revenue Next 3Y7.15%
Revenue Next 5Y5.19%
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
Based on the Price/Earnings ratio of 6.56, the valuation of JD can be described as very cheap.
JD's Price/Earnings ratio is rather cheap when compared to the industry. JD is cheaper than 89.29% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.28. JD is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.24, the valuation of JD can be described as very cheap.
92.86% of the companies in the same industry are more expensive than JD, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, JD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.56 | ||
| Fwd PE | 6.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of JD indicates a rather cheap valuation: JD is cheaper than 100.00% of the companies listed in the same industry.
92.86% of the companies in the same industry are more expensive than JD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.59 | ||
| EV/EBITDA | 2.11 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
JD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.98
PEG (5Y)0.25
EPS Next 2Y6.97%
EPS Next 3Y8.44%
5. Dividend
5.1 Amount
JD has a Yearly Dividend Yield of 3.02%.
Compared to an average industry Dividend Yield of 11.83, JD pays a better dividend. On top of this JD pays more dividend than 85.71% of the companies listed in the same industry.
JD's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
5.2 History
JD has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
DPN/A
EPS Next 2Y6.97%
EPS Next 3Y8.44%
32.47
-0.23 (-0.7%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners25.53%
Inst Owner Change-4.45%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap47.07B
Analysts84.86
Price Target50.66 (56.02%)
Short Float %1.8%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
Yearly Dividend0.8
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.91%
Min EPS beat(2)-9.14%
Max EPS beat(2)7.31%
EPS beat(4)3
Avg EPS beat(4)0.72%
Min EPS beat(4)-9.14%
Max EPS beat(4)7.31%
EPS beat(8)3
Avg EPS beat(8)-14.48%
EPS beat(12)3
Avg EPS beat(12)-18.02%
EPS beat(16)3
Avg EPS beat(16)-18.91%
Revenue beat(2)2
Avg Revenue beat(2)2.9%
Min Revenue beat(2)1.63%
Max Revenue beat(2)4.16%
Revenue beat(4)2
Avg Revenue beat(4)0.44%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)4.16%
Revenue beat(8)4
Avg Revenue beat(8)0.06%
Revenue beat(12)5
Avg Revenue beat(12)-0.49%
Revenue beat(16)6
Avg Revenue beat(16)-0.42%
PT rev (1m)-2.37%
PT rev (3m)-0.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.42%
EPS NY rev (1m)0%
EPS NY rev (3m)8.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.56 | ||
| Fwd PE | 6.24 | ||
| P/S | 0.28 | ||
| P/FCF | 6.59 | ||
| P/OCF | 6.59 | ||
| P/B | 1.44 | ||
| P/tB | 2.05 | ||
| EV/EBITDA | 2.11 |
EPS(TTM)4.95
EY15.24%
EPS(NY)5.21
Fwd EY16.03%
FCF(TTM)4.93
FCFY15.17%
OCF(TTM)4.93
OCFY15.17%
SpS115.58
BVpS22.57
TBVpS15.82
PEG (NY)0.98
PEG (5Y)0.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.66% | ||
| ROE | 19.26% | ||
| ROCE | 10.77% | ||
| ROIC | 8.62% | ||
| ROICexc | 17.01% | ||
| ROICexgc | 26.21% | ||
| OM | 3.53% | ||
| PM (TTM) | 3.76% | ||
| GM | 16% | ||
| FCFM | 4.26% |
ROA(3y)3.84%
ROA(5y)4.5%
ROE(3y)10.86%
ROE(5y)11.44%
ROIC(3y)6.16%
ROIC(5y)4.58%
ROICexc(3y)14.68%
ROICexc(5y)11.07%
ROICexgc(3y)26.77%
ROICexgc(5y)19.28%
ROCE(3y)7.82%
ROCE(5y)5.8%
ROICexcg growth 3Y94.13%
ROICexcg growth 5Y23.51%
ROICexc growth 3Y86.93%
ROICexc growth 5Y21.7%
OM growth 3Y112.76%
OM growth 5Y30.98%
PM growth 3YN/A
PM growth 5Y11.06%
GM growth 3Y5.37%
GM growth 5Y1.63%
F-Score6
Asset Turnover1.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.18 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.69% | ||
| Profit Quality | 113.36% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | N/A |
F-Score6
WACC7.91%
ROIC/WACC1.09
Cap/Depr(3y)108.05%
Cap/Depr(5y)124.04%
Cap/Sales(3y)0.79%
Cap/Sales(5y)0.89%
Profit Quality(3y)262.86%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)46.92%
EPS 3Y42.56%
EPS 5Y26.75%
EPS Q2Q%48.76%
EPS Next Y6.71%
EPS Next 2Y6.97%
EPS Next 3Y8.44%
EPS Next 5Y25.75%
Revenue 1Y (TTM)8.9%
Revenue growth 3Y6.79%
Revenue growth 5Y14.97%
Sales Q2Q%15.78%
Revenue Next Year10.08%
Revenue Next 2Y7.9%
Revenue Next 3Y7.15%
Revenue Next 5Y5.19%
EBIT growth 1Y38.32%
EBIT growth 3Y127.2%
EBIT growth 5Y50.59%
EBIT Next Year38.52%
EBIT Next 3Y21.61%
EBIT Next 5YN/A
FCF growth 1Y28.85%
FCF growth 3Y21.74%
FCF growth 5Y19.82%
OCF growth 1Y28.85%
OCF growth 3Y11.16%
OCF growth 5Y18.58%