NasdaqGS:BZUN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

2.3%

BZUN

4.5%

US Online Retail

3.4%

US Market


1 Year Return

13.0%

BZUN

4.9%

US Online Retail

5.4%

US Market

Return vs Industry: BZUN exceeded the US Online Retail industry which returned 4.9% over the past year.

Return vs Market: BZUN exceeded the US Market which returned 5.4% over the past year.


Shareholder returns

BZUNIndustryMarket
7 Day2.3%4.5%3.4%
30 Day-6.6%-3.1%-1.0%
90 Day-13.0%-6.0%-0.4%
1 Year13.0%13.0%4.9%4.9%7.7%5.4%
3 Year198.9%198.9%79.2%79.0%46.2%36.8%
5 Yearn/a178.3%166.2%65.6%47.5%

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

Undervalued: BZUN ($44.59) is trading below our estimate of fair value ($99.09)

Significantly Undervalued: 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 (56.9x) compared to the Online Retail industry average (32.4x).

PE vs Market: BZUN is poor value based on its PE Ratio (56.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: BZUN is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: BZUN is overvalued based on its PB Ratio (8.4x) compared to the US Online Retail industry average (2.5x).


Next Steps

Future Growth

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

37.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BZUN's forecast earnings growth (37.4% per year) is above the savings rate (2.7%).

Earnings vs Market: BZUN's earnings (37.4% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: BZUN's revenue (23.1% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: BZUN's revenue (23.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BZUN's Return on Equity is forecast to be high in 3 years time (23.4%)


Next Steps

Past Performance

How has Baozun performed over the past 5 years?

71.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BZUN has become profitable over the past 5 years, growing earnings by 71.5% per year.

Accelerating Growth: BZUN's earnings growth over the past year (44.9%) is below its 5-year average (71.5% per year).

Earnings vs Industry: BZUN earnings growth over the past year (44.9%) exceeded the Online Retail industry -15.1%.


Return on Equity

High ROE: BZUN's Return on Equity (13.5%) is considered low.


Return on Assets

ROA vs Industry: BZUN has a higher Return on Assets than the Online Retail industry average last year.


Return on Capital Employed

ROCE Improving: BZUN has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Baozun's financial position?


Financial Position Analysis

Short Term Liabilities: BZUN's short term assets (CN¥5.1B) exceeds its short term liabilities (CN¥1.7B)

Long Term Liabilities: BZUN's short term assets (5.1B) exceeds its long term liabilities (2.1B)


Debt to Equity History and Analysis

Debt Level: BZUN's debt to equity ratio (89.2%) is considered high

Reducing Debt: BZUN's debt to equity ratio has increased from 21.7% to 89.2% 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 (32.2x 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 2.406610x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Baozun's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Vincent Qiu (51yo)

12.8yrs

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 ...


Management Age and Tenure

1.8yrs

Average Tenure

46yo

Average Age

Experienced Management: BZUN's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

4.4yrs

Average Tenure

49yo

Average Age

Experienced Board: BZUN's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Qiu Wenbin

    President

    • Tenure: 0yrs
  • Robin Lu (50yo)

    Chief Financial Officer

    • Tenure: 0.9yrs
  • Vincent Qiu (51yo)

    Chairman of the Board & CEO

    • Tenure: 12.8yrs
  • Junhua Wu (41yo)

    Chief Growth Officer & Director

    • Tenure: 7.8yrs
  • Aaron Kwok (55yo)

    Chief Human Resource Officer & GM of Home Appliances and Digital Products

    • Tenure: 0yrs
  • Frank Ma (42yo)

    Chief Strategy Officer

    • Tenure: 2.8yrs
  • Michael Li (41yo)

    Chief Information Technology & Innovation Officer

    • Tenure: 1.7yrs
  • Wendy Sun

    Investor Relations Director

    • Tenure: 0yrs

Board Members

  • Steve Hsia (56yo)

    Independent Director

    • Tenure: 3.4yrs
  • Gang Yu (60yo)

    Independent Director

    • Tenure: 1.5yrs
  • Satoshi Okada (60yo)

    Director

    • Tenure: 5yrs
  • Bin Yu (49yo)

    Independent Director

    • Tenure: 4.4yrs
  • Benjamin Ye (49yo)

    Independent Director

    • Tenure: 3.4yrs
  • Vincent Qiu (51yo)

    Chairman of the Board & CEO

    • Tenure: 12.8yrs
  • Junhua Wu (41yo)

    Chief Growth Officer & Director

    • Tenure: 7.8yrs
  • Yiu-Pong Chan (47yo)

    Independent Director

    • Tenure: 4.4yrs
  • Jessica Liu (43yo)

    Director

    • Tenure: 2.3yrs

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$2.778b
  • Shares outstanding: 62.30m
  • 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)YesADR EACH REPR 3 ORD CL A SPONSUSUSDMay 2015
2BZADB (Deutsche Boerse AG)YesADR EACH REPR 3 ORD CL A SPONSDEEURMay 2015
BZUN NBMV (Bolsa Mexicana de Valores)YesADR EACH REPR 3 ORD CL A SPONSMXMXNMay 2015
0HLULSE (London Stock Exchange)YesADR EACH REPR 3 ORD CL A SPONSGBUSDMay 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 appa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 00:32
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
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.