29.78 USD
-0.06 (-0.2%)
29.76 USD
-0.02 (-0.07%)
We assign a fundamental rating of 5 out of 10 to JD. JD was compared to 30 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.
1. Profitability
1.1 Basic Checks
- In the past year JD was profitable.
- JD had a positive operating cash flow in the past year.
- Of the past 5 years JD 4 years were profitable.
- In the past 5 years JD always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.51%, JD is in line with its industry, outperforming 60.00% of the companies in the same industry.
- With a decent Return On Equity value of 13.88%, JD is doing good in the industry, outperforming 73.33% of the companies in the same industry.
- JD's Return On Invested Capital of 3.54% is on the low side compared to the rest of the industry. JD is outperformed by 63.33% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for JD is below the industry average of 9.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.51% | ||
| ROE | 13.88% | ||
| ROIC | 3.54% |
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's Profit Margin of 2.47% is fine compared to the rest of the industry. JD outperforms 63.33% of its industry peers.
- In the last couple of years the Profit Margin of JD has grown nicely.
- JD has a Operating Margin of 1.35%. This is in the lower half of the industry: JD underperforms 66.67% of its industry peers.
- In the last couple of years the Operating Margin of JD has grown nicely.
- With a Gross Margin value of 15.96%, JD is not doing good in the industry: 93.33% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of JD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.35% | ||
| PM (TTM) | 2.47% | ||
| GM | 15.96% |
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.
- The number of shares outstanding for JD has been reduced compared to 5 years ago.
- JD has a worse debt/assets ratio than last year.
2.2 Solvency
- The Debt to FCF ratio of JD is 3.50, which is a good value as it means it would take JD, 3.50 years of fcf income to pay off all of its debts.
- JD has a better Debt to FCF ratio (3.50) than 66.67% of its industry peers.
- JD has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
- JD has a Debt to Equity ratio of 0.26. This is comparable to the rest of the industry: JD outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 3.5 | ||
| Altman-Z | N/A |
ROIC/WACC0.46
WACC7.66%
2.3 Liquidity
- A Current Ratio of 1.20 indicates that JD should not have too much problems paying its short term obligations.
- JD has a Current ratio of 1.20. This is in the lower half of the industry: JD underperforms 73.33% of its industry peers.
- A Quick Ratio of 0.88 indicates that JD may have some problems paying its short term obligations.
- JD has a worse Quick ratio (0.88) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
- The earnings per share for JD have decreased strongly by -15.38% in the last year.
- Measured over the past years, JD shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.76% on average per year.
- Looking at the last year, JD shows a quite strong growth in Revenue. The Revenue has grown by 16.63% in the last year.
- The Revenue has been growing by 14.97% on average over the past years. This is quite good.
EPS 1Y (TTM)-15.38%
EPS 3Y42.56%
EPS 5Y26.76%
EPS Q2Q%-56.91%
Revenue 1Y (TTM)16.63%
Revenue growth 3Y6.79%
Revenue growth 5Y14.97%
Sales Q2Q%14.85%
3.2 Future
- The Earnings Per Share is expected to grow by 22.05% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 5.92% on average over the next years.
EPS Next Y-33.87%
EPS Next 2Y-10.04%
EPS Next 3Y3.29%
EPS Next 5Y22.05%
Revenue Next Year15.16%
Revenue Next 2Y10.21%
Revenue Next 3Y8.95%
Revenue Next 5Y5.92%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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
- A Price/Earnings ratio of 8.25 indicates a reasonable valuation of JD.
- Based on the Price/Earnings ratio, JD is valued cheaper than 93.33% of the companies in the same industry.
- JD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
- With a Price/Forward Earnings ratio of 8.04, the valuation of JD can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, JD is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of JD to the average of the S&P500 Index (25.98), we can say JD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.25 | ||
| Fwd PE | 8.04 |
4.2 Price Multiples
- 93.33% of the companies in the same industry are more expensive than JD, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, JD is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.07 | ||
| EV/EBITDA | 3.72 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y-10.04%
EPS Next 3Y3.29%
5. Dividend
5.1 Amount
- JD has a Yearly Dividend Yield of 3.42%. 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 2.35. JD pays more dividend than 93.33% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, JD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
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 2Y-10.04%
EPS Next 3Y3.29%
JD.COM INC-ADR / JD FAQ
What is the fundamental rating for JD stock?
ChartMill assigns a fundamental rating of 5 / 10 to JD.
What is the valuation status of JD.COM INC-ADR (JD) stock?
ChartMill assigns a valuation rating of 6 / 10 to JD.COM INC-ADR (JD). This can be considered as Fairly Valued.
What is the profitability of JD stock?
JD.COM INC-ADR (JD) has a profitability rating of 5 / 10.
What is the valuation of JD.COM INC-ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for JD.COM INC-ADR (JD) is 8.25 and the Price/Book (PB) ratio is 1.3.