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 6 out of 10 in our fundamental rating. VIPS was compared to 30 industry peers in the Broadline Retail industry. VIPS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. VIPS is valued quite cheap, but it does not seem to be growing. These ratings would make VIPS suitable for value investing!
1. Profitability
1.1 Basic Checks
VIPS had positive earnings in the past year.
In the past year VIPS had a positive cash flow from operations.
Each year in the past 5 years VIPS has been profitable.
In the past 5 years VIPS always reported a positive cash flow from operatings.
1.2 Ratios
VIPS has a Return On Assets of 10.33%. This is amongst the best in the industry. VIPS outperforms 86.67% of its industry peers.
VIPS's Return On Equity of 19.36% is fine compared to the rest of the industry. VIPS outperforms 80.00% of its industry peers.
VIPS's Return On Invested Capital of 15.30% is amongst the best of the industry. VIPS outperforms 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VIPS is above the industry average of 11.34%.
The last Return On Invested Capital (15.30%) for VIPS is above the 3 year average (15.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.33% | ||
| ROE | 19.36% | ||
| ROIC | 15.3% |
ROA(3y)10.39%
ROA(5y)9.74%
ROE(3y)20.19%
ROE(5y)19.13%
ROIC(3y)15.04%
ROIC(5y)14.09%
1.3 Margins
VIPS's Profit Margin of 7.14% is fine compared to the rest of the industry. VIPS outperforms 73.33% of its industry peers.
VIPS's Profit Margin has improved in the last couple of years.
The Operating Margin of VIPS (8.46%) is better than 70.00% of its industry peers.
In the last couple of years the Operating Margin of VIPS has grown nicely.
VIPS has a worse Gross Margin (23.49%) than 86.67% of its industry peers.
In the last couple of years the Gross Margin of VIPS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.46% | ||
| PM (TTM) | 7.14% | ||
| GM | 23.49% |
OM growth 3Y21.06%
OM growth 5Y9.26%
PM growth 3Y21.31%
PM growth 5Y10.57%
GM growth 3Y5.97%
GM growth 5Y1.1%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VIPS is creating value.
Compared to 1 year ago, VIPS has less shares outstanding
The number of shares outstanding for VIPS has been reduced compared to 5 years ago.
The debt/assets ratio for VIPS is higher compared to a year ago.
2.2 Solvency
VIPS has an Altman-Z score of 3.72. This indicates that VIPS is financially healthy and has little risk of bankruptcy at the moment.
VIPS has a Altman-Z score of 3.72. This is in the better half of the industry: VIPS outperforms 70.00% of its industry peers.
The Debt to FCF ratio of VIPS is 0.43, which is an excellent value as it means it would take VIPS, only 0.43 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.43, VIPS belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that VIPS is not too dependend on debt financing.
VIPS's Debt to Equity ratio of 0.06 is fine compared to the rest of the industry. VIPS outperforms 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.43 | ||
| Altman-Z | 3.72 |
ROIC/WACC1.94
WACC7.9%
2.3 Liquidity
A Current Ratio of 1.26 indicates that VIPS should not have too much problems paying its short term obligations.
The Current ratio of VIPS (1.26) is worse than 66.67% of its industry peers.
VIPS has a Quick Ratio of 1.10. This is a normal value and indicates that VIPS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.10, VIPS is in line with its industry, outperforming 43.33% of the companies in the same industry.
The current and quick ratio evaluation for VIPS is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
VIPS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.73%.
The Earnings Per Share has been growing by 17.77% on average over the past years. This is quite good.
VIPS shows a decrease in Revenue. In the last year, the revenue decreased by -5.24%.
Measured over the past years, VIPS shows a small growth in Revenue. The Revenue has been growing by 3.12% on average per year.
EPS 1Y (TTM)-8.73%
EPS 3Y24.62%
EPS 5Y17.77%
EPS Q2Q%-4.94%
Revenue 1Y (TTM)-5.24%
Revenue growth 3Y-2.52%
Revenue growth 5Y3.12%
Sales Q2Q%-4.98%
3.2 Future
Based on estimates for the next years, VIPS will show a small growth in Earnings Per Share. The EPS will grow by 6.10% on average per year.
The Revenue is expected to decrease by -1.63% on average over the next years.
EPS Next Y5.88%
EPS Next 2Y6.03%
EPS Next 3Y6.39%
EPS Next 5Y6.1%
Revenue Next Year-0.22%
Revenue Next 2Y0.81%
Revenue Next 3Y1.18%
Revenue Next 5Y-1.63%
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.
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
The Price/Earnings ratio is 6.44, which indicates a rather cheap valuation of VIPS.
93.33% of the companies in the same industry are more expensive than VIPS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.31, VIPS is valued rather cheaply.
VIPS is valuated cheaply with a Price/Forward Earnings ratio of 5.66.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VIPS indicates a rather cheap valuation: VIPS is cheaper than 96.67% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of VIPS to the average of the S&P500 Index (22.13), we can say VIPS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.44 | ||
| Fwd PE | 5.66 |
4.2 Price Multiples
96.67% of the companies in the same industry are more expensive than VIPS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VIPS indicates a somewhat cheap valuation: VIPS is cheaper than 73.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.85 | ||
| EV/EBITDA | 2.27 |
4.3 Compensation for Growth
VIPS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of VIPS may justify a higher PE ratio.
PEG (NY)1.1
PEG (5Y)0.36
EPS Next 2Y6.03%
EPS Next 3Y6.39%
5. Dividend
5.1 Amount
VIPS has a Yearly Dividend Yield of 3.07%. Purely for dividend investing, there may be better candidates out there.
VIPS's Dividend Yield is rather good when compared to the industry average which is at 10.68. VIPS pays more dividend than 90.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, VIPS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
5.2 History
VIPS is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
VIPS pays out 21.77% of its income as dividend. This is a sustainable payout ratio.
DP21.77%
EPS Next 2Y6.03%
EPS Next 3Y6.39%
14.82
-0.14 (-0.94%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners71.58%
Inst Owner Change1.67%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap7.63B
Analysts72.41
Price Target16.57 (11.81%)
Short Float %0.26%
Short Ratio1.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
Yearly Dividend0.45
Dividend Growth(5Y)N/A
DP21.77%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4%
Min EPS beat(2)1.31%
Max EPS beat(2)6.68%
EPS beat(4)3
Avg EPS beat(4)17.32%
Min EPS beat(4)-2.18%
Max EPS beat(4)63.46%
EPS beat(8)7
Avg EPS beat(8)19.94%
EPS beat(12)11
Avg EPS beat(12)24.33%
EPS beat(16)13
Avg EPS beat(16)18.62%
Revenue beat(2)1
Avg Revenue beat(2)-0.62%
Min Revenue beat(2)-2.7%
Max Revenue beat(2)1.47%
Revenue beat(4)1
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-2.92%
Max Revenue beat(4)1.47%
Revenue beat(8)3
Avg Revenue beat(8)-0.29%
Revenue beat(12)4
Avg Revenue beat(12)-0.45%
Revenue beat(16)4
Avg Revenue beat(16)-0.95%
PT rev (1m)-1.67%
PT rev (3m)-0.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-27.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.31%
Revenue NY rev (1m)-0.85%
Revenue NY rev (3m)-1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.44 | ||
| Fwd PE | 5.66 | ||
| P/S | 0.51 | ||
| P/FCF | 9.85 | ||
| P/OCF | 6 | ||
| P/B | 1.37 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | 2.27 |
EPS(TTM)2.3
EY15.52%
EPS(NY)2.62
Fwd EY17.68%
FCF(TTM)1.51
FCFY10.16%
OCF(TTM)2.47
OCFY16.66%
SpS29.32
BVpS10.81
TBVpS10.52
PEG (NY)1.1
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.33% | ||
| ROE | 19.36% | ||
| ROCE | 20.38% | ||
| ROIC | 15.3% | ||
| ROICexc | 37.81% | ||
| ROICexgc | 40.07% | ||
| OM | 8.46% | ||
| PM (TTM) | 7.14% | ||
| GM | 23.49% | ||
| FCFM | 5.13% |
ROA(3y)10.39%
ROA(5y)9.74%
ROE(3y)20.19%
ROE(5y)19.13%
ROIC(3y)15.04%
ROIC(5y)14.09%
ROICexc(3y)38.66%
ROICexc(5y)35.02%
ROICexgc(3y)41.33%
ROICexgc(5y)37.39%
ROCE(3y)20%
ROCE(5y)18.68%
ROICexcg growth 3Y13.02%
ROICexcg growth 5Y9.3%
ROICexc growth 3Y12.92%
ROICexc growth 5Y8.82%
OM growth 3Y21.06%
OM growth 5Y9.26%
PM growth 3Y21.31%
PM growth 5Y10.57%
GM growth 3Y5.97%
GM growth 5Y1.1%
F-Score7
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.43 | ||
| Debt/EBITDA | 0.22 | ||
| Cap/Depr | 210.51% | ||
| Cap/Sales | 3.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.02% | ||
| Profit Quality | 71.92% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 3.72 |
F-Score7
WACC7.9%
ROIC/WACC1.94
Cap/Depr(3y)258.05%
Cap/Depr(5y)251.53%
Cap/Sales(3y)3.64%
Cap/Sales(5y)3.24%
Profit Quality(3y)100.94%
Profit Quality(5y)106.42%
High Growth Momentum
Growth
EPS 1Y (TTM)-8.73%
EPS 3Y24.62%
EPS 5Y17.77%
EPS Q2Q%-4.94%
EPS Next Y5.88%
EPS Next 2Y6.03%
EPS Next 3Y6.39%
EPS Next 5Y6.1%
Revenue 1Y (TTM)-5.24%
Revenue growth 3Y-2.52%
Revenue growth 5Y3.12%
Sales Q2Q%-4.98%
Revenue Next Year-0.22%
Revenue Next 2Y0.81%
Revenue Next 3Y1.18%
Revenue Next 5Y-1.63%
EBIT growth 1Y0.76%
EBIT growth 3Y18%
EBIT growth 5Y12.67%
EBIT Next Year12.95%
EBIT Next 3Y6.1%
EBIT Next 5Y-0.86%
FCF growth 1Y-39.39%
FCF growth 3Y20.69%
FCF growth 5Y-7.02%
OCF growth 1Y-36.67%
OCF growth 3Y10.61%
OCF growth 5Y-5.77%