Checking the Peter Lynch growth stock criteria for JD.COM INC-ADR (NASDAQ:JD)

Peter Lynch, one of the most successful investors of all time, focused on growth stocks with strong fundamentals and a business model that’s easy to understand. Let’s analyze whether JD.COM INC-ADR (NASDAQ:JD) fits his legendary investment approach.

Applying Peter Lynch’s stock selection rules to JD.COM INC-ADR (NASDAQ:JD)

• The Return on Equity (ROE) of JD stands at 17.28%, reflecting the company's strong profitability and effective utilization of shareholder equity. This metric signifies the company's ability to generate returns for its investors.
• A Debt/Equity ratio of 0.27 suggests that JD is managing its debt levels responsibly.
• JD has experienced 26.75 growth in EPS over a 5-year period, demonstrating its ability to generate sustained and positive earnings momentum.
• A PEG ratio of 0.27 suggests that JD offers an attractive balance between growth and valuation.
• With a Current Ratio of 1.29, JD demonstrates solid short-term financial stability.

What else is there to say on the fundamentals of JD?

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, JD scores 5 out of 10 in our fundamental rating. JD was compared to 31 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 is not valued too expensively and it also shows a decent growth rate.

Our latest full fundamental report of JD contains the most current fundamental analsysis.

More Affordable Growth stocks can be found in our Peter Lynch screener.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.