JD.COM INC-ADR (JD) Stock Fundamental Analysis
USA - NASDAQ:JD - US47215P1066 - ADR
31.85 USD
-2.12 (-6.24%)
31.24 USD
-0.61 (-1.92%)
We assign a fundamental rating of 5 out of 10 to JD. JD was compared to 28 industry peers in the Broadline Retail industry. There are concerns on the financial health of JD while its profitability can be described as average. JD may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year JD was profitable.
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
The Return On Assets of JD (5.47%) is better than 64.29% of its industry peers.
Looking at the Return On Equity, with a value of 17.02%, JD is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
JD has a Return On Invested Capital (6.42%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for JD is below the industry average of 10.41%.
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 64.29% of its industry peers.
JD's Profit Margin has improved in the last couple of years.
JD's Operating Margin of 2.44% is in line compared to the rest of the industry. JD outperforms 46.43% of its industry peers.
In the last couple of years the Operating Margin of JD has grown nicely.
JD has a Gross Margin of 16.02%. This is amonst the worse of the industry: JD underperforms 92.86% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
JD has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of JD is 2.89, which is a good value as it means it would take JD, 2.89 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.89, JD is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that JD is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.25, JD is in line with its industry, outperforming 53.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.89 | ||
| Altman-Z | N/A |
ROIC/WACC0.85
WACC7.52%
2.3 Liquidity
JD has a Current Ratio of 1.22. This is a normal value and indicates that JD is financially healthy and should not expect problems in meeting its short term obligations.
JD has a worse Current ratio (1.22) than 71.43% 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 67.86% 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.
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)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
JD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.90% yearly.
Based on estimates for the next years, JD will show a small growth in Revenue. The Revenue will grow by 5.75% on average per year.
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 7.51.
Based on the Price/Earnings ratio, JD is valued cheaply inside the industry as 96.43% of the companies are valued more expensively.
JD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.02.
With a Price/Forward Earnings ratio of 7.61, the valuation of JD can be described as very cheap.
JD's Price/Forward Earnings ratio is rather cheap when compared to the industry. JD is cheaper than 96.43% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.57. JD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.51 | ||
| Fwd PE | 7.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, JD is valued cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, JD is valued a bit cheaper than the industry average as 67.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.25 | ||
| EV/EBITDA | 2.8 |
4.3 Compensation for Growth
The decent profitability rating of JD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.28
EPS Next 2Y-3.3%
EPS Next 3Y5.76%
5. Dividend
5.1 Amount
JD has a Yearly Dividend Yield of 2.72%.
JD's Dividend Yield is rather good when compared to the industry average which is at 8.13. JD pays more dividend than 85.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, JD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
5.2 History
JD has paid a dividend for less than 5 years, so there is no long track record yet.
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%
31.85
-2.12 (-6.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners25.94%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap46.17B
Analysts84.44
Price Target44.67 (40.25%)
Short Float %1.74%
Short Ratio1.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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)0.68%
PT rev (3m)-11.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-71.41%
EPS NY rev (1m)-4.04%
EPS NY rev (3m)-38.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.6%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)4.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.51 | ||
| Fwd PE | 7.61 | ||
| P/S | 0.26 | ||
| P/FCF | 13.25 | ||
| P/OCF | 13.25 | ||
| P/B | 1.45 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | 2.8 |
EPS(TTM)4.24
EY13.31%
EPS(NY)4.19
Fwd EY13.14%
FCF(TTM)2.4
FCFY7.55%
OCF(TTM)2.4
OCFY7.55%
SpS122.54
BVpS22
TBVpS15.21
PEG (NY)N/A
PEG (5Y)0.28
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%
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-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
WACC7.52%
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%