NasdaqGS:JD

Stock Analysis Report

Executive Summary

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

Rewards

Earnings are forecast to grow 27.55% per year

Earnings grew by 166.8% over the past year

Risk Analysis

Large one-off items impacting financial results



Snowflake Analysis

Reasonable growth potential with proven track record.


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


Market Performance


7 Day Return

5.4%

JD

0.7%

US Online Retail

1.1%

US Market


1 Year Return

51.9%

JD

14.3%

US Online Retail

17.8%

US Market

Return vs Industry: JD exceeded the US Online Retail industry which returned 14.3% over the past year.

Return vs Market: JD exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

JDIndustryMarket
7 Day5.4%0.7%1.1%
30 Day0.2%1.0%1.4%
90 Day5.5%0.07%3.9%
1 Year51.9%51.9%14.4%14.3%20.3%17.8%
3 Year23.4%23.4%98.0%97.8%44.8%35.4%
5 Year41.5%41.5%173.1%161.3%71.3%52.4%

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?

90.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: JD ($33.26) is trading above our estimate of fair value ($31.83)

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


Price To Earnings Ratio

PE vs Industry: JD is poor value based on its PE Ratio (90.8x) compared to the Online Retail industry average (30.7x).

PE vs Market: JD is poor value based on its PE Ratio (90.8x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: JD is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: JD is overvalued based on its PB Ratio (4.5x) compared to the US Online Retail industry average (2.5x).


Next Steps

Future Growth

How is JD.com forecast to perform in the next 1 to 3 years based on estimates from 38 analysts?

27.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JD's forecast earnings growth (27.5% per year) is above the savings rate (1.7%).

Earnings vs Market: JD's earnings (27.5% 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: JD's revenue (14.3% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: JD's revenue (14.3% 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 (17.1%).


Next Steps

Past Performance

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

63.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JD has a large one-off loss of CN¥1.9B impacting its September 30 2019 financial results.

Growing Profit Margin: JD's current net profit margins (0.7%) are higher than last year (0.3%).


Past Earnings Growth Analysis

Earnings Trend: JD has become profitable over the past 5 years, growing earnings by 63.1% per year.

Accelerating Growth: JD's earnings growth over the past year (166.8%) exceeds its 5-year average (63.1% per year).

Earnings vs Industry: JD earnings growth over the past year (166.8%) exceeded the Online Retail industry 8.2%.


Return on Equity

High ROE: JD's Return on Equity (3.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is JD.com's financial position?


Financial Position Analysis

Short Term Liabilities: JD's short term assets (CN¥129.6B) do not cover its short term liabilities (CN¥132.8B).

Long Term Liabilities: JD's short term assets (CN¥129.6B) exceed its long term liabilities (CN¥19.3B).


Debt to Equity History and Analysis

Debt Level: JD's debt to equity ratio (10.9%) is considered satisfactory.

Reducing Debt: JD's debt to equity ratio has increased from 7.5% to 10.9% over the past 5 years.

Debt Coverage: JD's debt is well covered by operating cash flow (302.4%).

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


Balance Sheet

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

Debt Coverage by Assets: JD's debt is covered by short term assets (assets are 12.7x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate JD'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 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

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

6.3yrs

Average management tenure


CEO

Richard Liu (46yo)

0yrs

Tenure

0

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


Management Age and Tenure

6.3yrs

Average Tenure

46yo

Average Age

Experienced Management: JD's management team is seasoned and experienced (6.3 years average tenure).


Board Age and Tenure

5.7yrs

Average Tenure

55yo

Average Age

Experienced Board: JD's board of directors are considered experienced (5.7 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

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


Management Team

  • Sidney Huang (54yo)

    Chief Financial Officer

    • Tenure: 6.3yrs
  • Richard Liu (46yo)

    Founder

    • Tenure: 0yrs
  • Lei Xu (44yo)

    Chief Marketing Officer & CEO of JD Mall

    • Tenure: 0yrs
  • Shengqiang Chen (43yo)

    Chief Executive Officer of JD Finance

    • Tenure: 6.3yrs
  • Chen Zhang (55yo)

    Senior Advisor

    • Tenure: 0.5yrs
  • Ruiyu Li

    Senior Director of Investor Relations

    • Tenure: 0yrs
  • Zhenhui Wang (44yo)

    Chief Executive Officer of JD Logistics

    • Tenure: 0yrs
  • Jon Liao (51yo)

    Chief Strategy Officer

    • Tenure: 0yrs
  • Yayun Li

    Chief Compliance Officer

    • Tenure: 0yrs
  • Rui Yu

    Chief Human Resources Officer

    • Tenure: 0yrs

Board Members

  • Louis Hsieh (55yo)

    Independent Director

    • Tenure: 5.6yrs
  • Ming Huang (55yo)

    Independent Director

    • Tenure: 5.8yrs
  • Martin Lau (46yo)

    Director

    • Tenure: 5.8yrs
  • Richard Liu (46yo)

    Founder

    • Tenure: 0yrs
  • Dingbo Xu (56yo)

    Independent Director

    • Tenure: 1.6yrs

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:
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: US$48.565b
  • Shares outstanding: 1.46b
  • Website: https://www.jd.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JDNasdaqGS (Nasdaq Global Select)YesADS EA REPR 2 COM 'A' SHSUSUSDMay 2014
JD NBMV (Bolsa Mexicana de Valores)YesADS EA REPR 2 COM 'A' SHSMXMXNMay 2014
013ADB (Deutsche Boerse AG)YesADS EA REPR 2 COM 'A' SHSDEEURMay 2014
JDWBAG (Wiener Boerse AG)YesADS EA REPR 2 COM 'A' SHSATEURMay 2014

Biography

JD.com, Inc., through its subsidiaries, 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 Busine ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 00:51
End of Day Share Price2019/12/10 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.