VIPSHOP HOLDINGS LTD - ADR (VIPS) Stock Fundamental Analysis
NYSE:VIPS - New York Stock Exchange, Inc. - US92763W1036 - ADR - Currency: USD
We assign a fundamental rating of 6 out of 10 to VIPS. VIPS was compared to 28 industry peers in the Broadline Retail industry. VIPS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. VIPS is cheap, but on the other hand it scores bad on growth. These ratings would make VIPS suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year VIPS was profitable.
VIPS had a positive operating cash flow in the past year.
VIPS had positive earnings in each of the past 5 years.
VIPS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VIPS has a Return On Assets of 10.33%. This is amongst the best in the industry. VIPS outperforms 85.71% of its industry peers.
Looking at the Return On Equity, with a value of 19.36%, VIPS is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 15.30%, VIPS belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VIPS is above the industry average of 11.59%.
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 71.43% of its industry peers.
In the last couple of years the Profit Margin of VIPS has grown nicely.
VIPS has a better Operating Margin (8.46%) than 67.86% of its industry peers.
In the last couple of years the Operating Margin of VIPS has grown nicely.
VIPS has a Gross Margin of 23.49%. This is amonst the worse of the industry: VIPS underperforms 89.29% of its industry peers.
VIPS's Gross Margin has been stable in the last couple of years.
| 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.
VIPS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, VIPS has less shares outstanding
The debt/assets ratio for VIPS is higher compared to a year ago.
2.2 Solvency
VIPS has an Altman-Z score of 3.77. This indicates that VIPS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of VIPS (3.77) is better than 67.86% of its industry peers.
VIPS has a debt to FCF ratio of 0.43. This is a very positive value and a sign of high solvency as it would only need 0.43 years to pay back of all of its debts.
VIPS has a better Debt to FCF ratio (0.43) than 89.29% of its industry peers.
VIPS has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of VIPS (0.06) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.43 | ||
| Altman-Z | 3.77 |
ROIC/WACC1.98
WACC7.73%
2.3 Liquidity
A Current Ratio of 1.26 indicates that VIPS should not have too much problems paying its short term obligations.
VIPS's Current ratio of 1.26 is on the low side compared to the rest of the industry. VIPS is outperformed by 64.29% 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.
With a Quick ratio value of 1.10, VIPS perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
VIPS does not score too well on the current and quick ratio evaluation. However, as it has 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
The earnings per share for VIPS have decreased by -8.73% in the last year.
Measured over the past years, VIPS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.77% on average per year.
Looking at the last year, VIPS shows a decrease in Revenue. The Revenue has decreased by -5.24% in the last year.
The Revenue has been growing slightly by 3.12% on average over the past years.
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
The Earnings Per Share is expected to grow by 6.02% on average over the next years.
Based on estimates for the next years, VIPS will show a decrease in Revenue. The Revenue will decrease by -1.68% on average per year.
EPS Next Y4.02%
EPS Next 2Y4.59%
EPS Next 3Y5.1%
EPS Next 5Y6.02%
Revenue Next Year-0.68%
Revenue Next 2Y0.61%
Revenue Next 3Y0.99%
Revenue Next 5Y-1.68%
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
A Price/Earnings ratio of 6.77 indicates a rather cheap valuation of VIPS.
Based on the Price/Earnings ratio, VIPS is valued cheaper than 89.29% of the companies in the same industry.
VIPS is valuated cheaply when we compare the Price/Earnings ratio to 27.18, which is the current average of the S&P500 Index.
VIPS is valuated cheaply with a Price/Forward Earnings ratio of 6.10.
VIPS's Price/Forward Earnings ratio is rather cheap when compared to the industry. VIPS is cheaper than 96.43% of the companies in the same industry.
VIPS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.77 | ||
| Fwd PE | 6.1 |
4.2 Price Multiples
VIPS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VIPS is cheaper than 96.43% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VIPS indicates a somewhat cheap valuation: VIPS is cheaper than 78.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.34 | ||
| EV/EBITDA | 2.53 |
4.3 Compensation for Growth
The 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)1.68
PEG (5Y)0.38
EPS Next 2Y4.59%
EPS Next 3Y5.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.06%, VIPS has a reasonable but not impressive dividend return.
VIPS's Dividend Yield is rather good when compared to the industry average which is at 12.99. VIPS pays more dividend than 85.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, VIPS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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 2Y4.59%
EPS Next 3Y5.1%
15.58
+0.47 (+3.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners71.58%
Inst Owner Change-0.2%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap8.02B
Analysts72.41
Price Target16.57 (6.35%)
Short Float %0.34%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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)0%
PT rev (3m)-1.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.32%
EPS NY rev (1m)-1.75%
EPS NY rev (3m)-2.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)-1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.77 | ||
| Fwd PE | 6.1 | ||
| P/S | 0.53 | ||
| P/FCF | 10.34 | ||
| P/OCF | 6.3 | ||
| P/B | 1.44 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 2.53 |
EPS(TTM)2.3
EY14.76%
EPS(NY)2.55
Fwd EY16.39%
FCF(TTM)1.51
FCFY9.67%
OCF(TTM)2.47
OCFY15.87%
SpS29.36
BVpS10.82
TBVpS10.53
PEG (NY)1.68
PEG (5Y)0.38
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 | 3.77 |
F-Score7
WACC7.73%
ROIC/WACC1.98
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 Y4.02%
EPS Next 2Y4.59%
EPS Next 3Y5.1%
EPS Next 5Y6.02%
Revenue 1Y (TTM)-5.24%
Revenue growth 3Y-2.52%
Revenue growth 5Y3.12%
Sales Q2Q%-4.98%
Revenue Next Year-0.68%
Revenue Next 2Y0.61%
Revenue Next 3Y0.99%
Revenue Next 5Y-1.68%
EBIT growth 1Y0.76%
EBIT growth 3Y18%
EBIT growth 5Y12.67%
EBIT Next Year12.95%
EBIT Next 3Y6.1%
EBIT Next 5Y-0.92%
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%