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.


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


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

2.7%

JD

6.8%

US Online Retail

9.4%

US Market


1 Year Return

36.3%

JD

5.7%

US Online Retail

-6.8%

US Market

Return vs Industry: JD exceeded the US Online Retail industry which returned 4.1% over the past year.

Return vs Market: JD exceeded the US Market which returned -10% over the past year.


Shareholder returns

JDIndustryMarket
7 Day2.7%6.8%9.4%
30 Day-1.5%3.3%-3.9%
90 Day5.3%-2.3%-16.5%
1 Year36.3%36.3%5.8%5.7%-4.8%-6.8%
3 Year26.8%26.8%82.7%82.4%23.4%15.2%
5 Year21.3%21.3%187.4%175.4%41.3%25.7%

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?

22.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JD ($41.99) is trading below our estimate of fair value ($50.63)

Significantly Below Fair Value: JD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: JD is poor value based on its PE Ratio (35.6x) compared to the Online Retail industry average (21.8x).

PE vs Market: JD is poor value based on its PE Ratio (35.6x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: JD is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: JD is overvalued based on its PB Ratio (5.3x) compared to the US Online Retail industry average (2.2x).


Next Steps

Future Growth

How is JD.com forecast to perform in the next 1 to 3 years based on estimates from 37 analysts?

19.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JD's forecast earnings growth (19.1% per year) is above the savings rate (1.7%).

Earnings vs Market: JD's earnings (19.1% per year) are forecast to grow faster than the US market (13.3% per year).

High Growth Earnings: JD's earnings are forecast to grow, but not significantly.

Revenue vs Market: JD's revenue (13.2% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: JD's revenue (13.2% 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 (17.4%).


Next Steps

Past Performance

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

69.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JD has a large one-off gain of CN¥8.6B impacting its December 31 2019 financial results.

Growing Profit Margin: JD became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: JD has become profitable over the past 5 years, growing earnings by 69.5% per year.

Accelerating Growth: JD has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: JD has become profitable in the last year, making it difficult to compare its past year earnings growth to the Online Retail industry (18.4%).


Return on Equity

High ROE: JD's Return on Equity (11.8%) is considered low.


Next Steps

Financial Health

How is JD.com's financial position?


Financial Position Analysis

Short Term Liabilities: JD's short term assets (CN¥139.1B) do not cover its short term liabilities (CN¥140.0B).

Long Term Liabilities: JD's short term assets (CN¥139.1B) exceed its long term liabilities (CN¥19.1B).


Debt to Equity History and Analysis

Debt Level: JD's debt to equity ratio (10%) is considered satisfactory.

Reducing Debt: JD's debt to equity ratio has increased from 5% to 10% over the past 5 years.

Debt Coverage: JD's debt is well covered by operating cash flow (246.5%).

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


Balance Sheet


Next Steps

Dividend

What is JD.com's 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 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

How experienced are the management team and are they aligned to shareholders interests?

6.0yrs

Average board tenure


CEO

Richard Liu (46yo)

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 ...


Board Members

NamePositionTenureCompensationOwnership
Qiangdong Liu
Founderno datano data15.99% CN¥9.6b
Tung-Jung Hsieh
Independent Director5.92yrsno datano data
Ming Huang
Independent Director6.08yrsno datano data
Chi Ping Lau
Director6.08yrsno datano data
Dingbo Xu
Independent Director1.92yrsno datano data

6.0yrs

Average Tenure

55yo

Average Age

Experienced Board: JD's board of directors are considered experienced (6 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:
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: US$60.197b
  • 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 Businesses. The company offers home appliances; mobile handsets and other digital products; desktop, laptop, and other computers, as well as printers and other office equipment; furniture and household goods; apparel; cosmetics, personal care items, and pet products; women’s shoes, bags, jewelry, and luxury goods; men’s shoes, sports gears, and fitness equipment; automobiles and accessories; maternal and childcare products, toys, and musical instruments; and food, beverage, and fresh produce. It also provides gifts, flowers, and plants; nutritional supplements; books, e-books, music, movie, and other media products; and virtual goods, such as online travel agency, attraction tickets, and prepaid phone and game cards, as well as industrial products. In addition, the company offers an online marketplace for third-party sellers to sell products to customers; and transaction processing and billing, value-added fulfillment, and other services. Further, it provides online marketing services for suppliers, merchants, and other partners; supply chain and logistics services for various industries; and consumer financing services to individual customers. Additionally, the company offers online-to-offline solutions, as well as online and in-person payment options and customer services. JD.com, Inc. offers its products through its Website jd.com and mobile apps, as well as directly to customers. As of December 31, 2018, JD.com, Inc. operated fulfillment centers in 7 cities; and 550 warehouses in 81cities covering various counties and districts. The company has strategic cooperation agreement with Tencent Holdings Limited. JD.com, Inc. is headquartered in Beijing, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 07:10
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
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.