NasdaqGS:BZUN

Stock Analysis Report

Executive Summary

Baozun Inc. provides brand e-commerce service to brand partners in the People’s Republic of China.

Rewards

Trading at 50.7% below its fair value

Earnings are forecast to grow 40.65% per year

Earnings grew by 44.1% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Exceptional growth potential with proven track record.

Share Price & News

How has Baozun's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BZUN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.4%

BZUN

1.0%

US Online Retail

0.5%

US Market


1 Year Return

-4.8%

BZUN

29.1%

US Online Retail

20.3%

US Market

Return vs Industry: BZUN underperformed the US Online Retail industry which returned 29.1% over the past year.

Return vs Market: BZUN underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

BZUNIndustryMarket
7 Day-0.4%1.0%0.5%
30 Day-7.9%7.6%2.0%
90 Day-8.4%21.1%9.4%
1 Year-4.8%-4.8%29.2%29.1%22.8%20.3%
3 Year132.2%132.2%111.7%111.5%50.1%40.4%
5 Yearn/a221.2%207.0%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Baozun undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BZUN ($32.93) is trading below our estimate of fair value ($66.74)

Significantly Below Fair Value: BZUN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BZUN is poor value based on its PE Ratio (40.5x) compared to the Online Retail industry average (29.9x).

PE vs Market: BZUN is poor value based on its PE Ratio (40.5x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: BZUN is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: BZUN is overvalued based on its PB Ratio (6x) compared to the US Online Retail industry average (2.9x).


Next Steps

Future Growth

How is Baozun forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

40.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BZUN's forecast earnings growth (40.7% per year) is above the savings rate (1.7%).

Earnings vs Market: BZUN's earnings (40.7% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BZUN's revenue (23% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: BZUN's revenue (23% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BZUN's Return on Equity is forecast to be high in 3 years time (21.8%)


Next Steps

Past Performance

How has Baozun performed over the past 5 years?

66.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BZUN has high quality earnings.

Growing Profit Margin: BZUN's current net profit margins (4.9%) are higher than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: BZUN has become profitable over the past 5 years, growing earnings by 66.6% per year.

Accelerating Growth: BZUN's earnings growth over the past year (44.1%) is below its 5-year average (66.6% per year).

Earnings vs Industry: BZUN earnings growth over the past year (44.1%) exceeded the Online Retail industry 15%.


Return on Equity

High ROE: BZUN's Return on Equity (13.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Baozun's financial position?


Financial Position Analysis

Short Term Liabilities: BZUN's short term assets (CN¥5.2B) exceed its short term liabilities (CN¥1.7B).

Long Term Liabilities: BZUN's short term assets (CN¥5.2B) exceed its long term liabilities (CN¥2.2B).


Debt to Equity History and Analysis

Debt Level: BZUN's debt to equity ratio (90.2%) is considered high.

Reducing Debt: BZUN's debt to equity ratio has increased from 31.6% to 90.2% over the past 5 years.

Debt Coverage: BZUN's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: BZUN's interest payments on its debt are well covered by EBIT (27.2x coverage).


Balance Sheet

Inventory Level: BZUN has a high level of physical assets or inventory.

Debt Coverage by Assets: BZUN's debt is covered by short term assets (assets are 2.4x debt).


Next Steps

Dividend

What is Baozun's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if BZUN'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 BZUN'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?

2.2yrs

Average management tenure


CEO

Vincent Qiu (51yo)

13.1yrs

Tenure

0

Mr. Wenbin Qiu, also known as Vincent, Co-founded Baozun Inc. in 2007 and has been the Chairman & Chief Executive Officer since 2007. Prior to founding Baozun Company, Mr. Qiu founded Shanghai Erry Network ...


Leadership Team

NamePositionTenureCompensationOwnership
Wenbin Qiu
Chairman of the Board & CEO13.1yrsno data5.3% CN¥108.9m
Junhua Wu
Chief Growth Officer & Director8.1yrsno data2.08% CN¥42.7m
Qiu Wenbin
President0yrsno datano data
Bin Lu
Chief Financial Officer1.3yrsno datano data
Meng Li
Chief Information Technology & Innovation Officer2yrsno datano data
Wendy Sun
Investor Relations Director0yrsno datano data
Yuen Kwok
Chief Human Resource Officer & GM of Home Appliances and Digital Products0yrsno datano data
Lie Ma
Chief Strategy Officer3.2yrsno datano data

2.2yrs

Average Tenure

46yo

Average Age

Experienced Management: BZUN's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wenbin Qiu
Chairman of the Board & CEO13.1yrsno data5.3% CN¥108.9m
Junhua Wu
Chief Growth Officer & Director8.1yrsno data2.08% CN¥42.7m
Hsien-Chieng Hsia
Independent Director3.8yrsno datano data
Gang Yu
Independent Director1.8yrsno datano data
Satoshi Okada
Director5.3yrsno datano data
Bin Yu
Independent Director4.8yrsno datano data
Changqing Ye
Independent Director3.8yrsno datano data
Yiu-Pong Chan
Independent Director4.8yrsno datano data
Xiuyun Liu
Director2.6yrsno datano data

4.8yrs

Average Tenure

49yo

Average Age

Experienced Board: BZUN's board of directors are considered experienced (4.8 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 been diluted in the past year, with total shares outstanding growing by 2.9%.


Top Shareholders

Company Information

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


Key Information

  • Name: Baozun Inc.
  • Ticker: BZUN
  • Exchange: NasdaqGS
  • Founded: 2007
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: US$2.056b
  • Shares outstanding: 62.42m
  • Website: https://www.baozun.com

Number of Employees


Location

  • Baozun Inc.
  • Building B
  • No. 1268 Wanrong Road
  • Shanghai
  • 200436
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BZUNNasdaqGS (Nasdaq Global Select)YesSPONSORED ADRUSUSDMay 2015
2BZADB (Deutsche Boerse AG)YesSPONSORED ADRDEEURMay 2015
BZUN NBMV (Bolsa Mexicana de Valores)YesSPONSORED ADRMXMXNMay 2015
0HLULSE (London Stock Exchange)YesSPONSORED ADRGBUSDMay 2015

Biography

Baozun Inc. provides brand e-commerce service to brand partners in the People’s Republic of China. It offers end-to-end e-commerce solutions, including IT infrastructure setup and integration, sale of apparel, home and electronic products, online store design and setup, visual merchandising and marketing, online store operations, customer services, warehousing, and order fulfillment. The company also operates Maikefeng mobile application that offers various branded products. It serves brand partners in the apparel and accessories; appliances; electronics; home and furnishings; food and health products; beauty and cosmetics; fast moving consumer goods and mother and baby; and insurance and automobiles categories. The company was formerly known as Baozun Cayman Inc. and changed its name to Baozun Inc. in March 2015. Baozun Inc. was founded in 2007 and is headquartered in Shanghai, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 01:55
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.