NYSE:WUBA

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

58.com Inc. operates various multi-category online classifieds platforms and vertical listing platforms that enable local businesses and consumers to connect, share information, and conduct business in the People's Republic of China.


Snowflake Analysis

Flawless balance sheet with outstanding track record.


Similar Companies

Share Price & News

How has 58.com's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WUBA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.3%

WUBA

1.9%

US Interactive Media and Services

1.3%

US Market


1 Year Return

7.9%

WUBA

30.1%

US Interactive Media and Services

14.9%

US Market

Return vs Industry: WUBA underperformed the US Interactive Media and Services industry which returned 25.3% over the past year.

Return vs Market: WUBA underperformed the US Market which returned 12.5% over the past year.


Shareholder returns

WUBAIndustryMarket
7 Day0.3%1.9%1.3%
30 Day2.9%4.6%4.7%
90 Day7.4%16.6%17.1%
1 Year7.9%7.9%30.2%30.1%17.3%14.9%
3 Year8.7%8.7%43.2%43.1%38.9%29.9%
5 Year-2.7%-2.7%118.9%118.4%71.3%52.8%

Price Volatility Vs. Market

How volatile is 58.com's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is 58.com undervalued compared to its fair value and its price relative to the market?

5.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WUBA ($55.37) is trading below our estimate of fair value ($58.48)

Significantly Below Fair Value: WUBA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WUBA is good value based on its PE Ratio (0.9x) compared to the US Interactive Media and Services industry average (33.3x).

PE vs Market: WUBA is good value based on its PE Ratio (0.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: WUBA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: WUBA is good value based on its PB Ratio (0.3x) compared to the US Interactive Media and Services industry average (2.2x).


Next Steps

Future Growth

How is 58.com forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-55.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WUBA's earnings are forecast to decline over the next 3 years (-55.4% per year).

Earnings vs Market: WUBA's earnings are forecast to decline over the next 3 years (-55.4% per year).

High Growth Earnings: WUBA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WUBA's revenue is expected to decline over the next 3 years (-8.7% per year).

High Growth Revenue: WUBA's revenue is forecast to decline over the next 3 years (-8.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WUBA's Return on Equity is forecast to be low in 3 years time (10.2%).


Next Steps

Past Performance

How has 58.com performed over the past 5 years?

76.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WUBA has high quality earnings.

Growing Profit Margin: WUBA's current net profit margins (61%) are higher than last year (18.7%).


Past Earnings Growth Analysis

Earnings Trend: WUBA has become profitable over the past 5 years, growing earnings by 76.9% per year.

Accelerating Growth: WUBA's earnings growth over the past year (260.3%) exceeds its 5-year average (76.9% per year).

Earnings vs Industry: WUBA earnings growth over the past year (260.3%) exceeded the Interactive Media and Services industry -39.3%.


Return on Equity

High ROE: WUBA's Return on Equity (25.5%) is considered high.


Next Steps

Financial Health

How is 58.com's financial position?


Financial Position Analysis

Short Term Liabilities: WUBA's short term assets (CN¥16.5B) exceed its short term liabilities (CN¥7.2B).

Long Term Liabilities: WUBA's short term assets (CN¥16.5B) exceed its long term liabilities (CN¥481.7M).


Debt to Equity History and Analysis

Debt Level: WUBA is debt free.

Reducing Debt: WUBA had no debt 5 years ago.

Debt Coverage: WUBA has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: WUBA has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is 58.com current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate WUBA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate WUBA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WUBA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WUBA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WUBA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Michael Yao (44 yo)

20.58yrs

Tenure

Mr. Jinbo Yao, also known as Michael, Founded 58.com Inc. in 2000. (Beijing 58 Information and Technology Co., Ltd). Mr. Yao has been Chairman and Chief Executive Officer of 58.com Inc. (Beijing 58 Informa ...


Leadership Team

NamePositionTenureCompensationOwnership
Jinbo Yao
Chairman & CEO20.58yrsno data10.15%
CN¥ 842.2m
Jiandong Zhuang
Co-President2.08yrsno datano data
Mingke He
Co-President2.08yrsno datano data
Wei Ye
Chief Financial Officer0.92yrno datano data
Hongyu Xing
Chief Technology Officer4.42yrsno datano data
Hao Zhou
Chief Strategic Officer0.92yrno datano data
Minghui Xiang
Chief People Officer2.08yrsno datano data
Xiaohua Chen
Chief Executive Officer of 58 Home Business Units6.25yrsno datano data

2.1yrs

Average Tenure

44yo

Average Age

Experienced Management: WUBA's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jinbo Yao
Chairman & CEO20.58yrsno data10.15%
CN¥ 842.2m
Robert Frank Dodds
Independent Director0.33yrno datano data
Cheng-Chun Yu
Independent Director6.83yrsno datano data
Chi Zhang
Independent Director4.75yrsno datano data
Li Dong
Independent Director0.33yrno datano data
Xiaoguang Wu
Director6yrsno datano data

5.4yrs

Average Tenure

46.5yo

Average Age

Experienced Board: WUBA's board of directors are considered experienced (5.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

58.com Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: 58.com Inc.
  • Ticker: WUBA
  • Exchange: NYSE
  • Founded: 2005
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: US$8.302b
  • Shares outstanding: 149.93m
  • Website: https://www.58.com

Number of Employees


Location

  • 58.com Inc.
  • Building 105
  • 10 Jiuxianqiao North Road Jia
  • Beijing
  • Beijing Province
  • 100015
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WUBANYSE (New York Stock Exchange)YesADR EACH REPR 2 COM USD0.00001USUSDOct 2013
58QADB (Deutsche Boerse AG)YesADR EACH REPR 2 COM USD0.00001DEEUROct 2013
WUBA NBMV (Bolsa Mexicana de Valores)YesADR EACH REPR 2 COM USD0.00001MXMXNOct 2013
0A2GLSE (London Stock Exchange)YesADR EACH REPR 2 COM USD0.00001GBUSDOct 2013

Biography

58.com Inc. operates various multi-category online classifieds platforms and vertical listing platforms that enable local businesses and consumers to connect, share information, and conduct business in the ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 00:17
End of Day Share Price2020/07/31 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.