JD.COM INC-ADR (JD) Stock Fundamental Analysis
USA - NASDAQ:JD - US47215P1066 - ADR
32.83 USD
-0.93 (-2.75%)
32.66 USD
-0.17 (-0.52%)
We assign a fundamental rating of 5 out of 10 to JD. JD was compared to 30 industry peers in the Broadline Retail industry. JD has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year JD had a positive cash flow from operations.
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
JD has a better Return On Assets (5.47%) than 63.33% of its industry peers.
The Return On Equity of JD (17.02%) is better than 76.67% of its industry peers.
JD has a Return On Invested Capital of 6.42%. This is comparable to the rest of the industry: JD outperforms 50.00% 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 10.42%.
The 3 year average ROIC (6.16%) for JD is below the current ROIC(6.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.47% | ||
| ROE | 17.02% | ||
| ROIC | 6.42% |
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 (3.06%) is better than 63.33% of its industry peers.
JD's Profit Margin has improved in the last couple of years.
JD has a Operating Margin of 2.44%. This is comparable to the rest of the industry: JD outperforms 43.33% of its industry peers.
In the last couple of years the Operating Margin of JD has grown nicely.
With a Gross Margin value of 16.02%, JD is not doing good in the industry: 93.33% of the companies in the same industry are doing better.
JD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.44% | ||
| PM (TTM) | 3.06% | ||
| GM | 16.02% |
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.
The number of shares outstanding for JD has been reduced compared to 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
JD has a debt to FCF ratio of 2.89. This is a good value and a sign of high solvency as JD would need 2.89 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.89, JD is doing good in the industry, outperforming 76.67% of the companies in the same industry.
JD has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
JD has a Debt to Equity ratio (0.25) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.89 | ||
| Altman-Z | N/A |
ROIC/WACC0.85
WACC7.57%
2.3 Liquidity
A Current Ratio of 1.22 indicates that JD should not have too much problems paying its short term obligations.
JD's Current ratio of 1.22 is on the low side compared to the rest of the industry. JD is outperformed by 73.33% of its industry peers.
A Quick Ratio of 0.90 indicates that JD may have some problems paying its short term obligations.
The Quick ratio of JD (0.90) is worse than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
JD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.10%, which is quite good.
The Earnings Per Share has been growing by 26.75% 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 14.47% in the last year.
The Revenue has been growing by 14.97% on average over the past years. This is quite good.
EPS 1Y (TTM)9.1%
EPS 3Y42.56%
EPS 5Y26.75%
EPS Q2Q%-47.01%
Revenue 1Y (TTM)14.47%
Revenue growth 3Y6.79%
Revenue growth 5Y14.97%
Sales Q2Q%22.4%
3.2 Future
The Earnings Per Share is expected to grow by 24.90% 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 5.75% yearly.
EPS Next Y-33.38%
EPS Next 2Y-3.3%
EPS Next 3Y5.76%
EPS Next 5Y24.9%
Revenue Next Year14.65%
Revenue Next 2Y10.09%
Revenue Next 3Y8.6%
Revenue Next 5Y5.75%
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.
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
JD is valuated cheaply with a Price/Earnings ratio of 7.74.
Compared to the rest of the industry, the Price/Earnings ratio of JD indicates a rather cheap valuation: JD is cheaper than 96.67% of the companies listed in the same industry.
JD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.77.
The Price/Forward Earnings ratio is 7.84, which indicates a rather cheap valuation of JD.
Based on the Price/Forward Earnings ratio, JD is valued cheaply inside the industry as 96.67% of the companies are valued more expensively.
JD is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.74 | ||
| Fwd PE | 7.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, JD is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of JD indicates a somewhat cheap valuation: JD is cheaper than 73.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.65 | ||
| EV/EBITDA | 2.5 |
4.3 Compensation for Growth
JD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-3.3%
EPS Next 3Y5.76%
5. Dividend
5.1 Amount
With a yearly dividend of 0.43%, JD is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 9.75, JD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, JD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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 2Y-3.3%
EPS Next 3Y5.76%
32.83
-0.93 (-2.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners25.94%
Inst Owner Change0.58%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap47.59B
Revenue(TTM)1265.12B
Net Income(TTM)38.65B
Analysts84.44
Price Target44.67 (36.06%)
Short Float %1.74%
Short Ratio1.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend0.79
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-20.01%
Min EPS beat(2)-30.88%
Max EPS beat(2)-9.14%
EPS beat(4)2
Avg EPS beat(4)-7.34%
Min EPS beat(4)-30.88%
Max EPS beat(4)7.31%
EPS beat(8)3
Avg EPS beat(8)-13.68%
EPS beat(12)3
Avg EPS beat(12)-19.26%
EPS beat(16)3
Avg EPS beat(16)-19.18%
Revenue beat(2)2
Avg Revenue beat(2)2.91%
Min Revenue beat(2)1.63%
Max Revenue beat(2)4.18%
Revenue beat(4)3
Avg Revenue beat(4)1.9%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)4.18%
Revenue beat(8)4
Avg Revenue beat(8)0.42%
Revenue beat(12)5
Avg Revenue beat(12)-0.2%
Revenue beat(16)6
Avg Revenue beat(16)-0.29%
PT rev (1m)-0.31%
PT rev (3m)-11.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-58.55%
EPS NY rev (1m)0%
EPS NY rev (3m)-38.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.71%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)4.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.74 | ||
| Fwd PE | 7.84 | ||
| P/S | 0.27 | ||
| P/FCF | 13.65 | ||
| P/OCF | 13.65 | ||
| P/B | 1.49 | ||
| P/tB | 2.16 | ||
| EV/EBITDA | 2.5 |
EPS(TTM)4.24
EY12.92%
EPS(NY)4.19
Fwd EY12.76%
FCF(TTM)2.41
FCFY7.33%
OCF(TTM)2.41
OCFY7.33%
SpS122.61
BVpS22.01
TBVpS15.22
PEG (NY)N/A
PEG (5Y)0.29
Graham Number45.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.47% | ||
| ROE | 17.02% | ||
| ROCE | 8.02% | ||
| ROIC | 6.42% | ||
| ROICexc | 14.48% | ||
| ROICexgc | 24.59% | ||
| OM | 2.44% | ||
| PM (TTM) | 3.06% | ||
| GM | 16.02% | ||
| FCFM | 1.96% |
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%
ROICexgc growth 3Y94.13%
ROICexgc 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-Score7
Asset Turnover1.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.89 | ||
| Debt/EBITDA | 1.42 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.48% | ||
| Profit Quality | 64.21% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | N/A |
F-Score7
WACC7.57%
ROIC/WACC0.85
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)9.1%
EPS 3Y42.56%
EPS 5Y26.75%
EPS Q2Q%-47.01%
EPS Next Y-33.38%
EPS Next 2Y-3.3%
EPS Next 3Y5.76%
EPS Next 5Y24.9%
Revenue 1Y (TTM)14.47%
Revenue growth 3Y6.79%
Revenue growth 5Y14.97%
Sales Q2Q%22.4%
Revenue Next Year14.65%
Revenue Next 2Y10.09%
Revenue Next 3Y8.6%
Revenue Next 5Y5.75%
EBIT growth 1Y-9.08%
EBIT growth 3Y127.2%
EBIT growth 5Y50.59%
EBIT Next Year-18.18%
EBIT Next 3Y17.49%
EBIT Next 5YN/A
FCF growth 1Y-52.76%
FCF growth 3Y21.74%
FCF growth 5Y19.82%
OCF growth 1Y-52.76%
OCF growth 3Y11.16%
OCF growth 5Y18.58%