29.84 USD
-0.16 (-0.53%)
29.8 USD
-0.04 (-0.13%)
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
- JD has a Return On Assets (4.51%) which is comparable to the rest of the industry.
- With a decent Return On Equity value of 13.88%, JD is doing good in 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.
- JD had an Average Return On Invested Capital over the past 3 years of 6.16%. This 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.
- In the last couple of years the Profit Margin of JD has grown nicely.
- JD has a Operating Margin of 1.35%. This is in the lower half of the industry: JD underperforms 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
- The debt/assets ratio for JD is higher compared to a year ago.
2.2 Solvency
- The Debt to FCF ratio of JD is 3.50, which is a good value as it means it would take JD, 3.50 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 3.50, JD is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- A Debt/Equity ratio of 0.26 indicates that JD is not too dependend on debt financing.
- JD has a Debt to Equity ratio of 0.26. This is comparable to the rest of the industry: JD outperforms 60.00% of its industry peers.
| 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.
- JD has a worse Current ratio (1.20) 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 has a Quick ratio of 0.88. This is in the lower half of the industry: JD underperforms 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
- Based on estimates for the next years, JD will show a very strong growth in Earnings Per Share. The EPS will grow by 22.05% on average per year.
- Based on estimates for the next years, JD will show a small growth in Revenue. The Revenue will grow by 5.92% on average per year.
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
- With a Price/Earnings ratio of 8.27, the valuation of JD can be described as very reasonable.
- JD's Price/Earnings ratio is rather cheap when compared to the industry. JD is cheaper than 93.33% of the companies 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.
- JD is valuated reasonably with a Price/Forward Earnings ratio of 8.06.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of JD indicates a rather cheap valuation: JD is cheaper than 90.00% of the companies listed in the same industry.
- JD is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.27 | ||
| Fwd PE | 8.06 |
4.2 Price Multiples
- 93.33% of the companies in the same industry are more expensive than JD, based on the Enterprise Value to EBITDA ratio.
- 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%.
- Compared to an average industry Dividend Yield of 2.35, JD pays a better dividend. On top of this JD pays more dividend than 93.33% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, JD pays a better dividend.
| 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.