JD.COM INC-ADR (JD) Stock Fundamental Analysis
NASDAQ:JD - Nasdaq - US47215P1066 - ADR - Currency: USD
Overall JD gets a fundamental rating of 5 out of 10. We evaluated JD against 32 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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.
Of the past 5 years JD 4 years were profitable.
Each year in the past 5 years JD had a positive operating cash flow.
1.2 Ratios
The Return On Assets of JD (5.42%) is better than 64.52% of its industry peers.
JD has a Return On Equity of 15.26%. This is in the better half of the industry: JD outperforms 61.29% of its industry peers.
The Return On Invested Capital of JD (6.95%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for JD is significantly below the industry average of 11.29%.
The last Return On Invested Capital (6.95%) for JD is above the 3 year average (3.46%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.42% | ||
| ROE | 15.26% | ||
| ROIC | 6.95% |
ROA(3y)1.62%
ROA(5y)4.25%
ROE(3y)4.53%
ROE(5y)10.96%
ROIC(3y)3.46%
ROIC(5y)3.3%
1.3 Margins
With a Profit Margin value of 3.12%, JD perfoms like the industry average, outperforming 58.06% of the companies in the same industry.
In the last couple of years the Profit Margin of JD has declined.
JD has a Operating Margin (3.28%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of JD has grown nicely.
The Gross Margin of JD (15.59%) is worse than 93.55% of its industry peers.
JD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.28% | ||
| PM (TTM) | 3.12% | ||
| GM | 15.59% |
OM growth 3Y22.95%
OM growth 5YN/A
PM growth 3Y-30.46%
PM growth 5YN/A
GM growth 3Y0.21%
GM growth 5Y0.62%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), JD is destroying value.
JD has about the same amout of shares outstanding than it did 1 year ago.
JD has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, JD has a worse debt to assets ratio.
2.2 Solvency
JD has a debt to FCF ratio of 1.20. This is a very positive value and a sign of high solvency as it would only need 1.20 years to pay back of all of its debts.
JD has a Debt to FCF ratio of 1.20. This is in the better half of the industry: JD outperforms 77.42% of its industry peers.
JD has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.24, JD perfoms like the industry average, outperforming 58.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.2 | ||
| Altman-Z | N/A |
ROIC/WACC0.76
WACC9.11%
2.3 Liquidity
A Current Ratio of 1.17 indicates that JD should not have too much problems paying its short term obligations.
JD has a Current ratio of 1.17. This is in the lower half of the industry: JD underperforms 70.97% of its industry peers.
A Quick Ratio of 0.90 indicates that JD may have some problems paying its short term obligations.
JD has a Quick ratio (0.90) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 33.76% over the past year.
The earnings per share for JD have been decreasing by -21.73% on average. This is quite bad
JD shows a small growth in Revenue. In the last year, the Revenue has grown by 4.09%.
The Revenue has been growing by 18.61% on average over the past years. This is quite good.
EPS 1Y (TTM)33.76%
EPS 3Y-21.73%
EPS 5YN/A
EPS Q2Q%29.55%
Revenue 1Y (TTM)4.09%
Revenue growth 3Y13.3%
Revenue growth 5Y18.61%
Sales Q2Q%5.12%
3.2 Future
The Earnings Per Share is expected to grow by 33.88% on average over the next years. This is a very strong growth
Based on estimates for the next years, JD will show a small growth in Revenue. The Revenue will grow by 4.56% on average per year.
EPS Next Y31.12%
EPS Next 2Y17.84%
EPS Next 3Y15.2%
EPS Next 5Y33.88%
Revenue Next Year5.49%
Revenue Next 2Y5.44%
Revenue Next 3Y5.45%
Revenue Next 5Y4.56%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.15, the valuation of JD can be described as reasonable.
Based on the Price/Earnings ratio, JD is valued cheaper than 80.65% of the companies in the same industry.
JD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
Based on the Price/Forward Earnings ratio of 9.56, the valuation of JD can be described as reasonable.
83.87% of the companies in the same industry are more expensive than JD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of JD to the average of the S&P500 Index (22.68), we can say JD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.15 | ||
| Fwd PE | 9.56 |
4.2 Price Multiples
JD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. JD is cheaper than 90.32% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, JD is valued cheaply inside the industry as 90.32% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.45 | ||
| EV/EBITDA | 4.77 |
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.
A more expensive valuation may be justified as JD's earnings are expected to grow with 15.20% in the coming years.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y17.84%
EPS Next 3Y15.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.95%, JD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.54, JD pays a better dividend. On top of this JD pays more dividend than 80.65% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, JD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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 2Y17.84%
EPS Next 3Y15.2%
42.42
+1.23 (+2.99%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners24.12%
Inst Owner Change-2.74%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap61.49B
Analysts83.53
Price Target49.35 (16.34%)
Short Float %3.06%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
Yearly Dividend2.15
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.35%
Min EPS beat(2)1.33%
Max EPS beat(2)3.36%
EPS beat(4)2
Avg EPS beat(4)-11.26%
Min EPS beat(4)-31.18%
Max EPS beat(4)3.36%
EPS beat(8)2
Avg EPS beat(8)-21.51%
EPS beat(12)2
Avg EPS beat(12)-22.18%
EPS beat(16)2
Avg EPS beat(16)-22.29%
Revenue beat(2)0
Avg Revenue beat(2)-2.01%
Min Revenue beat(2)-2.36%
Max Revenue beat(2)-1.66%
Revenue beat(4)1
Avg Revenue beat(4)-1.14%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)0.5%
Revenue beat(8)2
Avg Revenue beat(8)-1.23%
Revenue beat(12)3
Avg Revenue beat(12)-1.18%
Revenue beat(16)5
Avg Revenue beat(16)-0.63%
PT rev (1m)0.62%
PT rev (3m)9.69%
EPS NQ rev (1m)21.39%
EPS NQ rev (3m)-10.76%
EPS NY rev (1m)-5.65%
EPS NY rev (3m)-7.17%
Revenue NQ rev (1m)2.86%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.15 | ||
| Fwd PE | 9.56 | ||
| P/S | 0.4 | ||
| P/FCF | 8.45 | ||
| P/OCF | 8.45 | ||
| P/B | 1.95 | ||
| P/tB | 2.75 | ||
| EV/EBITDA | 4.77 |
EPS(TTM)4.18
EY9.85%
EPS(NY)4.44
Fwd EY10.46%
FCF(TTM)5.02
FCFY11.83%
OCF(TTM)5.02
OCFY11.83%
SpS106.24
BVpS21.73
TBVpS15.41
PEG (NY)0.33
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.42% | ||
| ROE | 15.26% | ||
| ROCE | 9.69% | ||
| ROIC | 6.95% | ||
| ROICexc | 14.04% | ||
| ROICexgc | 21.76% | ||
| OM | 3.28% | ||
| PM (TTM) | 3.12% | ||
| GM | 15.59% | ||
| FCFM | 4.72% |
ROA(3y)1.62%
ROA(5y)4.25%
ROE(3y)4.53%
ROE(5y)10.96%
ROIC(3y)3.46%
ROIC(5y)3.3%
ROICexc(3y)8.4%
ROICexc(5y)7.81%
ROICexgc(3y)15.66%
ROICexgc(5y)13.5%
ROCE(3y)4.92%
ROCE(5y)4.67%
ROICexcg growth 3Y21.12%
ROICexcg growth 5YN/A
ROICexc growth 3Y15.62%
ROICexc growth 5YN/A
OM growth 3Y22.95%
OM growth 5YN/A
PM growth 3Y-30.46%
PM growth 5YN/A
GM growth 3Y0.21%
GM growth 5Y0.62%
F-Score5
Asset Turnover1.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.2 | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 117.56% | ||
| Profit Quality | 151.36% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | N/A |
F-Score5
WACC9.11%
ROIC/WACC0.76
Cap/Depr(3y)157.42%
Cap/Depr(5y)123.25%
Cap/Sales(3y)1.09%
Cap/Sales(5y)0.91%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)33.76%
EPS 3Y-21.73%
EPS 5YN/A
EPS Q2Q%29.55%
EPS Next Y31.12%
EPS Next 2Y17.84%
EPS Next 3Y15.2%
EPS Next 5Y33.88%
Revenue 1Y (TTM)4.09%
Revenue growth 3Y13.3%
Revenue growth 5Y18.61%
Sales Q2Q%5.12%
Revenue Next Year5.49%
Revenue Next 2Y5.44%
Revenue Next 3Y5.45%
Revenue Next 5Y4.56%
EBIT growth 1Y34.71%
EBIT growth 3Y39.31%
EBIT growth 5YN/A
EBIT Next Year56.97%
EBIT Next 3Y25.4%
EBIT Next 5YN/A
FCF growth 1Y15.31%
FCF growth 3Y10.3%
FCF growth 5Y49.03%
OCF growth 1Y15.31%
OCF growth 3Y11.84%
OCF growth 5Y23.31%