NasdaqGS:JD

Stock Analysis Report

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Market Cap

US$113.1b

Last Updated

2021/06/24 03:12 UTC

Data Sources

Company Financials +

Executive Summary

JD.com, Inc. operates as an e-commerce company and retail infrastructure service provider in the People’s Republic of China. More Details


Snowflake Analysis

Very undervalued with flawless balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: JD is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: JD's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

2.3%

JD

2.3%

US Online Retail

0.5%

US Market


1 Year Return

22.2%

JD

21.1%

US Online Retail

42.6%

US Market

Return vs Industry: JD exceeded the US Online Retail industry which returned 21.1% over the past year.

Return vs Market: JD underperformed the US Market which returned 42.6% over the past year.


Shareholder returns

JDIndustryMarket
7 Day2.3%2.3%0.5%
30 Day2.1%5.5%1.9%
90 Day-7.1%7.0%7.9%
1 Year22.2%22.2%21.2%21.1%44.9%42.6%
3 Year90.5%90.5%73.0%72.4%64.4%54.1%
5 Year258.7%258.7%288.5%288.0%128.3%102.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

33.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JD ($73.14) is trading below our estimate of fair value ($110.7)

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


Price To Earnings Ratio

PE vs Industry: JD is good value based on its PE Ratio (14x) compared to the US Online Retail industry average (30.8x).

PE vs Market: JD is good value based on its PE Ratio (14x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: JD is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: JD is good value based on its PB Ratio (3.9x) compared to the US Online Retail industry average (4.7x).


Future Growth

How is JD.com forecast to perform in the next 1 to 3 years based on estimates from 39 analysts?

24.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JD's forecast earnings growth (24.7% per year) is above the savings rate (2%).

Earnings vs Market: JD's earnings (24.7% per year) are forecast to grow faster than the US market (15.7% per year).

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

Revenue vs Market: JD's revenue (16.6% per year) is forecast to grow faster than the US market (9.5% per year).

High Growth Revenue: JD's revenue (16.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JD's Return on Equity is forecast to be low in 3 years time (11.1%).


Past Performance

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

86.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JD has a high level of non-cash earnings.

Growing Profit Margin: JD's current net profit margins (6.5%) are higher than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: JD has become profitable over the past 5 years, growing earnings by 86.3% per year.

Accelerating Growth: JD's earnings growth over the past year (774.9%) exceeds its 5-year average (86.3% per year).

Earnings vs Industry: JD earnings growth over the past year (774.9%) exceeded the Online Retail industry 117.1%.


Return on Equity

High ROE: JD's Return on Equity (23%) is considered high.


Financial Health

How is JD.com's financial position?


Financial Position Analysis

Short Term Liabilities: JD's short term assets (CN¥227.6B) exceed its short term liabilities (CN¥162.2B).

Long Term Liabilities: JD's short term assets (CN¥227.6B) exceed its long term liabilities (CN¥26.6B).


Debt to Equity History and Analysis

Debt Level: JD's debt to equity ratio (7.5%) is considered satisfactory.

Reducing Debt: JD's debt to equity ratio has reduced from 31.6% to 7.5% over the past 5 years.

Debt Coverage: JD's debt is well covered by operating cash flow (216.1%).

Interest Coverage: JD earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate JD'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 JD's dividends per share have been stable in the past.

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

2.9yrs

Average management tenure


CEO

Richard Liu (47 yo)

no data

Tenure

Mr. Qiangdong Liu, also known as Richard, founded JD.com, Inc. in 2004. He serves as Chairman and Chief Executive Officer at JD.com, Inc. He has been a Non-Executive Director of Farfetch UK Limited since J...


Leadership Team

Experienced Management: JD's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: JD's board of directors are considered experienced (7.2 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

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


Key Information

  • Name: JD.com, Inc.
  • Ticker: JD
  • Exchange: NasdaqGS
  • Founded: 2006
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: US$113.144b
  • Shares outstanding: 1.55b
  • Website: https://www.jd.com

Number of Employees


Location

  • JD.com, Inc.
  • Building A
  • 20th Floor
  • Beijing
  • 101111
  • China

Listings


Biography

JD.com, Inc. operates as an e-commerce company and retail infrastructure service provider in the People’s Republic of China. It operates in two segments, JD Retail and New Businesses. The company offers ho...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/24 03:12
End of Day Share Price2021/06/23 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.