VIPSHOP HOLDINGS LTD - ADR (VIPS) Stock Fundamental Analysis
NYSE:VIPS - New York Stock Exchange, Inc. - US92763W1036 - ADR - Currency: USD
Taking everything into account, VIPS scores 5 out of 10 in our fundamental rating. VIPS was compared to 32 industry peers in the Broadline Retail industry. VIPS has an excellent profitability rating, but there are some minor concerns on its financial health. VIPS is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year VIPS was profitable.
Of the past 5 years VIPS 4 years were profitable.
VIPS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.87%, VIPS belongs to the top of the industry, outperforming 90.32% of the companies in the same industry.
VIPS has a Return On Equity of 21.93%. This is in the better half of the industry: VIPS outperforms 74.19% of its industry peers.
VIPS has a better Return On Invested Capital (16.70%) than 90.32% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VIPS is above the industry average of 11.29%.
The last Return On Invested Capital (16.70%) for VIPS is above the 3 year average (13.88%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.87% | ||
| ROE | 21.93% | ||
| ROIC | 16.7% |
ROA(3y)9.45%
ROA(5y)9.33%
ROE(3y)18.51%
ROE(5y)18.93%
ROIC(3y)13.88%
ROIC(5y)14.26%
1.3 Margins
VIPS has a Profit Margin of 7.50%. This is in the better half of the industry: VIPS outperforms 70.97% of its industry peers.
In the last couple of years the Profit Margin of VIPS has grown nicely.
Looking at the Operating Margin, with a value of 9.09%, VIPS is in the better half of the industry, outperforming 70.97% of the companies in the same industry.
VIPS's Operating Margin has improved in the last couple of years.
VIPS has a worse Gross Margin (23.73%) than 87.10% of its industry peers.
In the last couple of years the Gross Margin of VIPS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.09% | ||
| PM (TTM) | 7.5% | ||
| GM | 23.73% |
OM growth 3Y12.56%
OM growth 5Y23.43%
PM growth 3Y7.44%
PM growth 5Y23.35%
GM growth 3Y2.93%
GM growth 5Y2.45%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), VIPS is creating value.
VIPS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 3.99 indicates that VIPS is not in any danger for bankruptcy at the moment.
VIPS has a Altman-Z score of 3.99. This is in the better half of the industry: VIPS outperforms 70.97% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that VIPS is not too dependend on debt financing.
VIPS has a better Debt to Equity ratio (0.14) than 67.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.99 |
ROIC/WACC1.83
WACC9.12%
2.3 Liquidity
A Current Ratio of 1.21 indicates that VIPS should not have too much problems paying its short term obligations.
VIPS has a Current ratio of 1.21. This is in the lower half of the industry: VIPS underperforms 67.74% of its industry peers.
A Quick Ratio of 1.03 indicates that VIPS should not have too much problems paying its short term obligations.
VIPS has a Quick ratio (1.03) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.64% over the past year.
The Earnings Per Share has been growing by 33.68% on average over the past years. This is a very strong growth
VIPS shows a decrease in Revenue. In the last year, the revenue decreased by -0.06%.
Measured over the past years, VIPS shows a small growth in Revenue. The Revenue has been growing by 5.95% on average per year.
EPS 1Y (TTM)13.64%
EPS 3Y23.17%
EPS 5Y33.68%
EPS Q2Q%-26.05%
Revenue 1Y (TTM)-0.06%
Revenue growth 3Y3.48%
Revenue growth 5Y5.95%
Sales Q2Q%-9.18%
3.2 Future
VIPS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -9.70% yearly.
VIPS is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -12.12% yearly.
EPS Next Y35.99%
EPS Next 2Y19.87%
EPS Next 3Y19.23%
EPS Next 5Y-9.7%
Revenue Next Year-3.67%
Revenue Next 2Y-1.91%
Revenue Next 3Y-0.86%
Revenue Next 5Y-12.12%
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 decreasing.
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 6.35, the valuation of VIPS can be described as very cheap.
Based on the Price/Earnings ratio, VIPS is valued cheaper than 87.10% of the companies in the same industry.
VIPS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
With a Price/Forward Earnings ratio of 4.39, the valuation of VIPS can be described as very cheap.
93.55% of the companies in the same industry are more expensive than VIPS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of VIPS to the average of the S&P500 Index (22.68), we can say VIPS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.35 | ||
| Fwd PE | 4.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIPS is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.53 |
4.3 Compensation for Growth
VIPS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of VIPS may justify a higher PE ratio.
A more expensive valuation may be justified as VIPS's earnings are expected to grow with 19.23% in the coming years.
PEG (NY)0.18
PEG (5Y)0.19
EPS Next 2Y19.87%
EPS Next 3Y19.23%
5. Dividend
5.1 Amount
VIPS has a Yearly Dividend Yield of 2.82%.
Compared to an average industry Dividend Yield of 5.54, VIPS pays a better dividend. On top of this VIPS pays more dividend than 87.10% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, VIPS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
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 Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y19.87%
EPS Next 3Y19.23%
14.73
+0.2 (+1.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners72.53%
Inst Owner Change-0.96%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap7.56B
Analysts73.33
Price Target16.05 (8.96%)
Short Float %0.27%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.25%
Min EPS beat(2)-2.18%
Max EPS beat(2)6.68%
EPS beat(4)3
Avg EPS beat(4)19.94%
Min EPS beat(4)-2.18%
Max EPS beat(4)63.46%
EPS beat(8)7
Avg EPS beat(8)21.04%
EPS beat(12)11
Avg EPS beat(12)26.21%
EPS beat(16)13
Avg EPS beat(16)19.49%
Revenue beat(2)0
Avg Revenue beat(2)-1.81%
Min Revenue beat(2)-2.7%
Max Revenue beat(2)-0.91%
Revenue beat(4)1
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-2.92%
Max Revenue beat(4)1.94%
Revenue beat(8)2
Avg Revenue beat(8)-0.61%
Revenue beat(12)3
Avg Revenue beat(12)-1.05%
Revenue beat(16)4
Avg Revenue beat(16)-1.01%
PT rev (1m)-3.61%
PT rev (3m)-2.99%
EPS NQ rev (1m)0.87%
EPS NQ rev (3m)-10.19%
EPS NY rev (1m)39.63%
EPS NY rev (3m)6.24%
Revenue NQ rev (1m)0.9%
Revenue NQ rev (3m)-10.61%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.35 | ||
| Fwd PE | 4.39 | ||
| P/S | 0.5 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.46 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 2.53 |
EPS(TTM)2.32
EY15.75%
EPS(NY)3.35
Fwd EY22.78%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS29.49
BVpS10.09
TBVpS9.8
PEG (NY)0.18
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.87% | ||
| ROE | 21.93% | ||
| ROCE | 23.6% | ||
| ROIC | 16.7% | ||
| ROICexc | 32.8% | ||
| ROICexgc | 34.33% | ||
| OM | 9.09% | ||
| PM (TTM) | 7.5% | ||
| GM | 23.73% | ||
| FCFM | N/A |
ROA(3y)9.45%
ROA(5y)9.33%
ROE(3y)18.51%
ROE(5y)18.93%
ROIC(3y)13.88%
ROIC(5y)14.26%
ROICexc(3y)35.12%
ROICexc(5y)32.7%
ROICexgc(3y)37.56%
ROICexgc(5y)34.82%
ROCE(3y)18.31%
ROCE(5y)18.7%
ROICexcg growth 3Y12.43%
ROICexcg growth 5Y24.99%
ROICexc growth 3Y12.29%
ROICexc growth 5Y24.69%
OM growth 3Y12.56%
OM growth 5Y23.43%
PM growth 3Y7.44%
PM growth 5Y23.35%
GM growth 3Y2.93%
GM growth 5Y2.45%
F-ScoreN/A
Asset Turnover1.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.47 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 3.99 |
F-ScoreN/A
WACC9.12%
ROIC/WACC1.83
Cap/Depr(3y)282.56%
Cap/Depr(5y)299.49%
Cap/Sales(3y)3.57%
Cap/Sales(5y)3.51%
Profit Quality(3y)99.51%
Profit Quality(5y)131.93%
High Growth Momentum
Growth
EPS 1Y (TTM)13.64%
EPS 3Y23.17%
EPS 5Y33.68%
EPS Q2Q%-26.05%
EPS Next Y35.99%
EPS Next 2Y19.87%
EPS Next 3Y19.23%
EPS Next 5Y-9.7%
Revenue 1Y (TTM)-0.06%
Revenue growth 3Y3.48%
Revenue growth 5Y5.95%
Sales Q2Q%-9.18%
Revenue Next Year-3.67%
Revenue Next 2Y-1.91%
Revenue Next 3Y-0.86%
Revenue Next 5Y-12.12%
EBIT growth 1Y25.74%
EBIT growth 3Y16.48%
EBIT growth 5Y30.78%
EBIT Next Year22.46%
EBIT Next 3Y7.5%
EBIT Next 5Y-5.67%
FCF growth 1Y23.82%
FCF growth 3Y-1.29%
FCF growth 5Y33.67%
OCF growth 1Y37.02%
OCF growth 3Y6.84%
OCF growth 5Y20.2%