VIPSHOP HOLDINGS LTD - ADR (VIPS) Stock Fundamental Analysis
NYSE:VIPS - New York Stock Exchange, Inc. - US92763W1036 - ADR - Currency: USD
VIPS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 28 industry peers in the Broadline Retail industry. Both the health and profitability get an excellent rating, making VIPS a very profitable company, without any liquidiy or solvency issues. VIPS is valued quite cheap, but it does not seem to be growing. With these ratings, VIPS could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year VIPS was profitable.
In the past year VIPS had a positive cash flow from operations.
VIPS had positive earnings in each of the past 5 years.
VIPS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 10.33%, VIPS belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
Looking at the Return On Equity, with a value of 19.36%, VIPS is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
VIPS's Return On Invested Capital of 15.30% is amongst the best of the industry. VIPS outperforms 82.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VIPS is above the industry average of 11.59%.
The 3 year average ROIC (15.04%) for VIPS is below the current ROIC(15.30%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.33% | ||
| ROE | 19.36% | ||
| ROIC | 15.3% |
ROA(3y)10.39%
ROA(5y)9.74%
ROE(3y)20.19%
ROE(5y)19.13%
ROIC(3y)15.04%
ROIC(5y)14.09%
1.3 Margins
VIPS has a Profit Margin of 7.14%. This is in the better half of the industry: VIPS outperforms 71.43% of its industry peers.
VIPS's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 8.46%, VIPS is doing good in the industry, outperforming 67.86% of the companies in the same industry.
In the last couple of years the Operating Margin of VIPS has grown nicely.
VIPS has a worse Gross Margin (23.49%) than 89.29% of its industry peers.
In the last couple of years the Gross Margin of VIPS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.46% | ||
| PM (TTM) | 7.14% | ||
| GM | 23.49% |
OM growth 3Y21.06%
OM growth 5Y9.26%
PM growth 3Y21.31%
PM growth 5Y10.57%
GM growth 3Y5.97%
GM growth 5Y1.1%
2. Health
2.1 Basic Checks
VIPS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
VIPS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for VIPS has been reduced compared to 5 years ago.
VIPS has a worse debt/assets ratio than last year.
2.2 Solvency
VIPS has an Altman-Z score of 3.73. This indicates that VIPS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of VIPS (3.73) is better than 67.86% of its industry peers.
The Debt to FCF ratio of VIPS is 0.43, which is an excellent value as it means it would take VIPS, only 0.43 years of fcf income to pay off all of its debts.
VIPS has a Debt to FCF ratio of 0.43. This is amongst the best in the industry. VIPS outperforms 89.29% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that VIPS is not too dependend on debt financing.
VIPS's Debt to Equity ratio of 0.06 is fine compared to the rest of the industry. VIPS outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.43 | ||
| Altman-Z | 3.73 |
ROIC/WACC1.95
WACC7.85%
2.3 Liquidity
A Current Ratio of 1.26 indicates that VIPS should not have too much problems paying its short term obligations.
VIPS has a Current ratio of 1.26. This is in the lower half of the industry: VIPS underperforms 64.29% of its industry peers.
VIPS has a Quick Ratio of 1.10. This is a normal value and indicates that VIPS is financially healthy and should not expect problems in meeting its short term obligations.
VIPS has a Quick ratio (1.10) which is in line with its industry peers.
The current and quick ratio evaluation for VIPS is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
VIPS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.73%.
The Earnings Per Share has been growing by 17.77% on average over the past years. This is quite good.
The Revenue has decreased by -5.24% in the past year.
Measured over the past years, VIPS shows a small growth in Revenue. The Revenue has been growing by 3.12% on average per year.
EPS 1Y (TTM)-8.73%
EPS 3Y24.62%
EPS 5Y17.77%
EPS Q2Q%-4.94%
Revenue 1Y (TTM)-5.24%
Revenue growth 3Y-2.52%
Revenue growth 5Y3.12%
Sales Q2Q%-4.98%
3.2 Future
VIPS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.02% yearly.
Based on estimates for the next years, VIPS will show a decrease in Revenue. The Revenue will decrease by -1.68% on average per year.
EPS Next Y4.28%
EPS Next 2Y4.35%
EPS Next 3Y4.74%
EPS Next 5Y6.02%
Revenue Next Year-0.39%
Revenue Next 2Y0.71%
Revenue Next 3Y1.07%
Revenue Next 5Y-1.68%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 6.55, the valuation of VIPS can be described as very cheap.
Based on the Price/Earnings ratio, VIPS is valued cheaper than 92.86% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.28, VIPS is valued rather cheaply.
A Price/Forward Earnings ratio of 5.93 indicates a rather cheap valuation of VIPS.
Based on the Price/Forward Earnings ratio, VIPS is valued cheaper than 96.43% of the companies in the same industry.
VIPS is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.55 | ||
| Fwd PE | 5.93 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VIPS indicates a rather cheap valuation: VIPS is cheaper than 96.43% of the companies listed in the same industry.
78.57% of the companies in the same industry are more expensive than VIPS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.99 | ||
| EV/EBITDA | 2.35 |
4.3 Compensation for Growth
VIPS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of VIPS may justify a higher PE ratio.
PEG (NY)1.53
PEG (5Y)0.37
EPS Next 2Y4.35%
EPS Next 3Y4.74%
5. Dividend
5.1 Amount
VIPS has a Yearly Dividend Yield of 3.11%.
VIPS's Dividend Yield is rather good when compared to the industry average which is at 11.83. VIPS pays more dividend than 89.29% of the companies in the same industry.
VIPS's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
5.2 History
VIPS does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
21.77% of the earnings are spent on dividend by VIPS. This is a low number and sustainable payout ratio.
DP21.77%
EPS Next 2Y4.35%
EPS Next 3Y4.74%
15.07
-0.03 (-0.2%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners71.58%
Inst Owner Change1.67%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap7.76B
Analysts72.41
Price Target16.57 (9.95%)
Short Float %0.37%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
Yearly Dividend0.45
Dividend Growth(5Y)N/A
DP21.77%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4%
Min EPS beat(2)1.31%
Max EPS beat(2)6.68%
EPS beat(4)3
Avg EPS beat(4)17.32%
Min EPS beat(4)-2.18%
Max EPS beat(4)63.46%
EPS beat(8)7
Avg EPS beat(8)19.94%
EPS beat(12)11
Avg EPS beat(12)24.33%
EPS beat(16)13
Avg EPS beat(16)18.62%
Revenue beat(2)1
Avg Revenue beat(2)-0.62%
Min Revenue beat(2)-2.7%
Max Revenue beat(2)1.47%
Revenue beat(4)1
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-2.92%
Max Revenue beat(4)1.47%
Revenue beat(8)3
Avg Revenue beat(8)-0.29%
Revenue beat(12)4
Avg Revenue beat(12)-0.45%
Revenue beat(16)4
Avg Revenue beat(16)-0.95%
PT rev (1m)-1.67%
PT rev (3m)-0.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.36%
EPS NY rev (1m)-1.51%
EPS NY rev (3m)-2.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.31%
Revenue NY rev (1m)-1.01%
Revenue NY rev (3m)-1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.55 | ||
| Fwd PE | 5.93 | ||
| P/S | 0.51 | ||
| P/FCF | 9.99 | ||
| P/OCF | 6.09 | ||
| P/B | 1.39 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 2.35 |
EPS(TTM)2.3
EY15.26%
EPS(NY)2.54
Fwd EY16.87%
FCF(TTM)1.51
FCFY10.01%
OCF(TTM)2.47
OCFY16.41%
SpS29.37
BVpS10.83
TBVpS10.53
PEG (NY)1.53
PEG (5Y)0.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.33% | ||
| ROE | 19.36% | ||
| ROCE | 20.38% | ||
| ROIC | 15.3% | ||
| ROICexc | 37.81% | ||
| ROICexgc | 40.07% | ||
| OM | 8.46% | ||
| PM (TTM) | 7.14% | ||
| GM | 23.49% | ||
| FCFM | 5.13% |
ROA(3y)10.39%
ROA(5y)9.74%
ROE(3y)20.19%
ROE(5y)19.13%
ROIC(3y)15.04%
ROIC(5y)14.09%
ROICexc(3y)38.66%
ROICexc(5y)35.02%
ROICexgc(3y)41.33%
ROICexgc(5y)37.39%
ROCE(3y)20%
ROCE(5y)18.68%
ROICexcg growth 3Y13.02%
ROICexcg growth 5Y9.3%
ROICexc growth 3Y12.92%
ROICexc growth 5Y8.82%
OM growth 3Y21.06%
OM growth 5Y9.26%
PM growth 3Y21.31%
PM growth 5Y10.57%
GM growth 3Y5.97%
GM growth 5Y1.1%
F-Score7
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.43 | ||
| Debt/EBITDA | 0.22 | ||
| Cap/Depr | 210.51% | ||
| Cap/Sales | 3.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.02% | ||
| Profit Quality | 71.92% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 3.73 |
F-Score7
WACC7.85%
ROIC/WACC1.95
Cap/Depr(3y)258.05%
Cap/Depr(5y)251.53%
Cap/Sales(3y)3.64%
Cap/Sales(5y)3.24%
Profit Quality(3y)100.94%
Profit Quality(5y)106.42%
High Growth Momentum
Growth
EPS 1Y (TTM)-8.73%
EPS 3Y24.62%
EPS 5Y17.77%
EPS Q2Q%-4.94%
EPS Next Y4.28%
EPS Next 2Y4.35%
EPS Next 3Y4.74%
EPS Next 5Y6.02%
Revenue 1Y (TTM)-5.24%
Revenue growth 3Y-2.52%
Revenue growth 5Y3.12%
Sales Q2Q%-4.98%
Revenue Next Year-0.39%
Revenue Next 2Y0.71%
Revenue Next 3Y1.07%
Revenue Next 5Y-1.68%
EBIT growth 1Y0.76%
EBIT growth 3Y18%
EBIT growth 5Y12.67%
EBIT Next Year12.95%
EBIT Next 3Y6.1%
EBIT Next 5Y-0.92%
FCF growth 1Y-39.39%
FCF growth 3Y20.69%
FCF growth 5Y-7.02%
OCF growth 1Y-36.67%
OCF growth 3Y10.61%
OCF growth 5Y-5.77%