JD.COM INC-ADR (JD) Stock Fundamental Analysis
NASDAQ:JD - Nasdaq - US47215P1066 - ADR - Currency: USD
Taking everything into account, JD scores 6 out of 10 in our fundamental rating. JD was compared to 28 industry peers in the Broadline Retail industry. JD has only an average score on both its financial health and profitability. JD is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
Each year in the past 5 years JD had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.66%, JD is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
With a decent Return On Equity value of 19.26%, JD is doing good in the industry, outperforming 75.00% of the companies in the same industry.
JD's Return On Invested Capital of 8.62% is fine compared to the rest of the industry. JD outperforms 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for JD is significantly below the industry average of 11.59%.
The 3 year average ROIC (6.16%) for JD is below the current ROIC(8.62%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.66% | ||
| ROE | 19.26% | ||
| ROIC | 8.62% |
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
JD has a Profit Margin of 3.76%. This is in the better half of the industry: JD outperforms 64.29% of its industry peers.
JD's Profit Margin has improved in the last couple of years.
JD has a Operating Margin (3.53%) which is in line with its industry peers.
JD's Operating Margin has improved in the last couple of years.
JD's Gross Margin of 16.00% is on the low side compared to the rest of the industry. JD is outperformed by 92.86% of its industry peers.
In the last couple of years the Gross Margin of JD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.53% | ||
| PM (TTM) | 3.76% | ||
| GM | 16% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), JD is creating some value.
Compared to 1 year ago, JD has less shares outstanding
The number of shares outstanding for JD has been reduced compared to 5 years ago.
The debt/assets ratio for JD is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of JD is 1.18, which is an excellent value as it means it would take JD, only 1.18 years of fcf income to pay off all of its debts.
JD's Debt to FCF ratio of 1.18 is fine compared to the rest of the industry. JD outperforms 78.57% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that JD is not too dependend on debt financing.
JD has a Debt to Equity ratio (0.24) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | N/A |
ROIC/WACC1.11
WACC7.79%
2.3 Liquidity
A Current Ratio of 1.26 indicates that JD should not have too much problems paying its short term obligations.
With a Current ratio value of 1.26, JD is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
A Quick Ratio of 0.92 indicates that JD may have some problems paying its short term obligations.
JD's Quick ratio of 0.92 is on the low side compared to the rest of the industry. JD is outperformed by 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 46.92% over the past year.
JD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.75% yearly.
JD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.90%.
Measured over the past years, JD shows a quite strong growth in Revenue. The Revenue has been growing by 14.97% on average per year.
EPS 1Y (TTM)46.92%
EPS 3Y42.56%
EPS 5Y26.75%
EPS Q2Q%48.76%
Revenue 1Y (TTM)8.9%
Revenue growth 3Y6.79%
Revenue growth 5Y14.97%
Sales Q2Q%15.78%
3.2 Future
JD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.75% yearly.
JD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.19% yearly.
EPS Next Y6.71%
EPS Next 2Y6.97%
EPS Next 3Y8.44%
EPS Next 5Y25.75%
Revenue Next Year10.08%
Revenue Next 2Y7.9%
Revenue Next 3Y7.15%
Revenue Next 5Y5.19%
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
Based on the Price/Earnings ratio of 6.30, the valuation of JD can be described as very cheap.
Based on the Price/Earnings ratio, JD is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.30. JD is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 5.98, which indicates a rather cheap valuation of JD.
92.86% of the companies in the same industry are more expensive than JD, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.76. JD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.3 | ||
| Fwd PE | 5.98 |
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.
JD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. JD is cheaper than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.32 | ||
| EV/EBITDA | 1.82 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of JD may justify a higher PE ratio.
PEG (NY)0.94
PEG (5Y)0.24
EPS Next 2Y6.97%
EPS Next 3Y8.44%
5. Dividend
5.1 Amount
JD has a Yearly Dividend Yield of 3.13%. Purely for dividend investing, there may be better candidates out there.
JD's Dividend Yield is rather good when compared to the industry average which is at 11.00. JD pays more dividend than 89.29% of the companies in the same industry.
JD's Dividend Yield is a higher than the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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 2Y6.97%
EPS Next 3Y8.44%
31.1
-0.12 (-0.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners25.53%
Inst Owner Change-0.01%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap45.08B
Analysts84.44
Price Target50.66 (62.89%)
Short Float %1.8%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Yearly Dividend0.8
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.91%
Min EPS beat(2)-9.14%
Max EPS beat(2)7.31%
EPS beat(4)3
Avg EPS beat(4)0.72%
Min EPS beat(4)-9.14%
Max EPS beat(4)7.31%
EPS beat(8)3
Avg EPS beat(8)-14.48%
EPS beat(12)3
Avg EPS beat(12)-18.02%
EPS beat(16)3
Avg EPS beat(16)-18.91%
Revenue beat(2)2
Avg Revenue beat(2)2.9%
Min Revenue beat(2)1.63%
Max Revenue beat(2)4.16%
Revenue beat(4)2
Avg Revenue beat(4)0.44%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)4.16%
Revenue beat(8)4
Avg Revenue beat(8)0.06%
Revenue beat(12)5
Avg Revenue beat(12)-0.49%
Revenue beat(16)6
Avg Revenue beat(16)-0.42%
PT rev (1m)-2.37%
PT rev (3m)-4.88%
EPS NQ rev (1m)-18.89%
EPS NQ rev (3m)-9.8%
EPS NY rev (1m)0%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)5.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.3 | ||
| Fwd PE | 5.98 | ||
| P/S | 0.27 | ||
| P/FCF | 6.32 | ||
| P/OCF | 6.32 | ||
| P/B | 1.38 | ||
| P/tB | 1.97 | ||
| EV/EBITDA | 1.82 |
EPS(TTM)4.94
EY15.88%
EPS(NY)5.2
Fwd EY16.71%
FCF(TTM)4.92
FCFY15.81%
OCF(TTM)4.92
OCFY15.81%
SpS115.37
BVpS22.53
TBVpS15.8
PEG (NY)0.94
PEG (5Y)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.66% | ||
| ROE | 19.26% | ||
| ROCE | 10.77% | ||
| ROIC | 8.62% | ||
| ROICexc | 17.01% | ||
| ROICexgc | 26.21% | ||
| OM | 3.53% | ||
| PM (TTM) | 3.76% | ||
| GM | 16% | ||
| FCFM | 4.26% |
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%
ROICexcg growth 3Y94.13%
ROICexcg 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-Score6
Asset Turnover1.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.18 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.69% | ||
| Profit Quality | 113.36% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | N/A |
F-Score6
WACC7.79%
ROIC/WACC1.11
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)46.92%
EPS 3Y42.56%
EPS 5Y26.75%
EPS Q2Q%48.76%
EPS Next Y6.71%
EPS Next 2Y6.97%
EPS Next 3Y8.44%
EPS Next 5Y25.75%
Revenue 1Y (TTM)8.9%
Revenue growth 3Y6.79%
Revenue growth 5Y14.97%
Sales Q2Q%15.78%
Revenue Next Year10.08%
Revenue Next 2Y7.9%
Revenue Next 3Y7.15%
Revenue Next 5Y5.19%
EBIT growth 1Y38.32%
EBIT growth 3Y127.2%
EBIT growth 5Y50.59%
EBIT Next Year38.52%
EBIT Next 3Y21.61%
EBIT Next 5YN/A
FCF growth 1Y28.85%
FCF growth 3Y21.74%
FCF growth 5Y19.82%
OCF growth 1Y28.85%
OCF growth 3Y11.16%
OCF growth 5Y18.58%