NasdaqGS:BZUN

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.3%

BZUN

-1.1%

US Online Retail

-5.3%

US Market


1 Year Return

-16.3%

BZUN

73.9%

US Online Retail

10.4%

US Market

Return vs Industry: BZUN underperformed the US Online Retail industry which returned 77% over the past year.

Return vs Market: BZUN underperformed the US Market which returned 12% over the past year.


Shareholder returns

BZUNIndustryMarket
7 Day-4.3%-1.1%-5.3%
30 Day8.7%3.4%-2.1%
90 Day-13.0%7.4%1.7%
1 Year-16.3%-16.3%74.0%73.9%12.9%10.4%
3 Year17.2%17.2%113.5%113.3%34.3%25.4%
5 Year401.2%401.2%264.9%264.2%73.7%54.3%

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?

47.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BZUN ($36.59) is trading above our estimate of fair value ($24.56)

Significantly Below Fair Value: BZUN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BZUN is poor value based on its PE Ratio (47.3x) compared to the US Online Retail industry average (31.7x).

PE vs Market: BZUN is poor value based on its PE Ratio (47.3x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: BZUN is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: BZUN is overvalued based on its PB Ratio (5.6x) compared to the US Online Retail industry average (4.5x).


Next Steps

Future Growth

How is Baozun forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

32.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BZUN's forecast earnings growth (32.7% per year) is above the savings rate (2.2%).

Earnings vs Market: BZUN's earnings (32.7% per year) are forecast to grow faster than the US market (22% per year).

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

Revenue vs Market: BZUN's revenue (18.5% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: BZUN's revenue (18.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BZUN's Return on Equity is forecast to be low in 3 years time (19.4%).


Next Steps

  • Explore growth companies in the Retail industry.

Past Performance

How has Baozun performed over the past 5 years?

48.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BZUN has high quality earnings.

Growing Profit Margin: BZUN's current net profit margins (3.8%) are lower than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: BZUN has become profitable over the past 5 years, growing earnings by 48.1% per year.

Accelerating Growth: BZUN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BZUN had negative earnings growth (-5.3%) over the past year, making it difficult to compare to the Online Retail industry average (27.7%).


Return on Equity

High ROE: BZUN's Return on Equity (11%) is considered low.


Next Steps

Financial Health

How is Baozun's financial position?


Financial Position Analysis

Short Term Liabilities: BZUN's short term assets (CN¥5.6B) exceed its short term liabilities (CN¥2.0B).

Long Term Liabilities: BZUN's short term assets (CN¥5.6B) exceed its long term liabilities (CN¥2.2B).


Debt to Equity History and Analysis

Debt Level: BZUN's debt to equity ratio (75%) is considered high.

Reducing Debt: Insufficient data to determine if BZUN's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: BZUN's debt is not well covered by operating cash flow (11.9%).

Interest Coverage: BZUN's interest payments on its debt are well covered by EBIT (18.1x coverage).


Balance Sheet


Next Steps

Dividend

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

0.036%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate BZUN'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 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?

5.4yrs

Average board tenure


CEO

Vincent Qiu (52 yo)

no data

Tenure

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 ...


Board Members

NamePositionTenureCompensationOwnership
Wenbin Qiu
Chairman of the Board & CEOno datano data4.46%
CN¥ 126.9m
Junhua Wu
Chief Growth Officer & Director8.75yrsno data1.67%
CN¥ 47.4m
Hsien-Chieng Hsia
Independent Director4.42yrsno datano data
Satoshi Okada
Director6yrsno data0%
CN¥ 0
Bin Yu
Independent Director5.42yrsno datano data
Changqing Ye
Independent Director4.42yrsno datano data
Yiu-Pong Chan
Independent Director5.42yrsno datano data
Xiuyun Liu
Director3.25yrsno datano data

5.4yrs

Average Tenure

50yo

Average Age

Experienced Board: BZUN'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 been diluted in the past year, with total shares outstanding growing by 24.8%.


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$2.845b
  • Shares outstanding: 77.76m
  • 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
9991SEHK (The Stock Exchange of Hong Kong Ltd.)Class A Ordinary SharesHKHKDSep 2020

Biography

Baozun Inc. provides e-commerce solutions to brand partners in the People’s Republic of China. It assists brands to execute their e-commerce strategies by selling their goods directly to customers online o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 01:00
End of Day Share Price2020/10/30 00:00
Earnings2020/06/30
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.