| Snowflake Score | |
|---|---|
| Valuation | 6/6 |
| Future Growth | 4/6 |
| Past Performance | 0/6 |
| Financial Health | 6/6 |
| Dividends | 0/6 |
JD Stock Overview
JD.com, Inc. provides supply chain-based technologies and services in the People’s Republic of China.
Rewards
Analysts in good agreement that stock price will rise by 56.2%
Risk Analysis
No risks detected for JD from our risk checks.
JD.com, Inc. Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$52.31 |
| 52 Week High | US$92.69 |
| 52 Week Low | US$41.56 |
| Beta | 0.34 |
| 1 Month Change | -19.41% |
| 3 Month Change | -18.28% |
| 1 Year Change | -29.29% |
| 3 Year Change | 88.03% |
| 5 Year Change | 36.94% |
| Change since IPO | 150.29% |
Recent News & Updates
JD.com, Inc.'s (NASDAQ:JD) Intrinsic Value Is Potentially 89% Above Its Share Price
How far off is JD.com, Inc. ( NASDAQ:JD ) from its intrinsic value? Using the most recent financial data, we'll take a...
JD.com Non-GAAP EPS of $0.61 beats by $0.20, revenue of $40B beats by $1.42B
JD.com press release (NASDAQ:JD): Q2 Non-GAAP EPS of $0.61 beats by $0.20. Revenue of $40B (+5.4% Y/Y) beats by $1.42B. Shares +2.6% PM. Annual active customer accounts increased by 9.2% to 580.8M in the twelve months ended June 30, 2022 from 531.9M in the twelve months ended June 30, 2021. CFO comment: “Our emphasis on financial discipline and operational efficiency has allowed us to return to shareholders in the form of share repurchases as well as a special cash dividend issued during the quarter. We will continue to focus on generating strong shareholder returns while maintaining our commitment to investing for the long term.” “JD.com's resilient business model, industry-leading supply chain capabilities and efficient operations helped us deliver solid quarterly results amidst ongoing challenges in the external environment,” said Lei Xu, CEO of JD.com. “We are encouraged to see our commitment to providing the best possible user experience while supporting local communities and enterprises across China translates into increased mindshare, stronger user engagement and expanding user base, especially in our core JD Retail business. We will continue to serve our business partners, customers and society effectively through our supply chain based infrastructure while innovating to support China's long-term growth.”
JD.com: What To Watch For With Q2 Earnings
The sell-side analysts expect slower revenue growth and an earnings decline for JD in Q2 2022, as it was affected by pandemic lockdown disruptions and higher costs relating to COVID-19. Investors should watch JD's performance at the recent 618 Shopping Festival and its cost optimization initiatives to determine the likelihood of either an earnings beat or miss in Q2 2022. I am upgrading my rating for JD.com stock from a Hold to a Buy, in view of an expected EPS beat for JD and the company's improved shareholder capital return. Elevator Pitch My investment rating for JD.com, Inc.'s (JD) [9618:HK] stock is a Buy. Previously, I evaluated JD's five-year or intermediate-term outlook in an earlier article for the company written on September 3, 2021. My latest update for JD.com focuses on the preview of the stock's upcoming quarterly earnings. My view is that it is highly probable that JD.com's actual Q2 2022 earnings can beat expectations. If investors watch JD's 618 Shopping Festival GMV growth and its commentary on costs at its Q1 2022 earnings briefing, they should see positive signs related to the company's Q2 2022 earnings expectations. Also, I am positive on JD's special dividend payment earlier in the year and its decision to increase its share repurchase authorization in end-2021. This explains my decision to raise my rating for JD from a Hold to a Buy. JD.com Q2 2022 Earnings Announcement Date In a press release published on August 10, 2022, JD revealed that its financial results for the second quarter of the current year will be announced on August 23, 2022, prior to trading hours. The Consensus Financial Forecasts For JD JD.com is expected to have experienced slower top line expansion in Q2 2022, and it should have seen a decrease in its bottom line for the same quarter, according to consensus numbers. Based on the sell-side's consensus financial forecasts obtained from S&P Capital IQ, JD's revenue growth (in RMB terms) is projected to slow from +26.2% YoY in Q2 2021 and +18.0% YoY in Q1 2022 to a mere +3.1% YoY for Q2 2022. The market's expectations of a moderation in the top line growth rate for JD.com in the second quarter of this year appears to be reasonable. China probably saw the worst of COVID-related lockdowns in April 2022, which affected key cities including Shanghai. There was a progressive easing of pandemic restrictions in the country in June 2022, but it is fair to assume that COVID-19 lockdowns in China hurt the country's economy and affected JD's business operations for a significant part of Q2 2022. On the other hand, analysts see JD.com reversing from a +2.4% YoY increase in its normalized earnings per share for Q1 2022 to a -4.7% YoY decline in its adjusted EPS for Q2 2022, in RMB terms. Apart from negative operating leverage, it is likely that the sell-side analysts considered the probability of higher expenses and an unfavorable revenue mix in determining their profit estimates for JD. The company had earlier highlighted at its Q1 2022 results briefing on May 17, 2022 that its near-term profitability will be negatively impacted by "additional COVID-related costs" and "product mix shift due to the uneven performance of our different product categories." As such, an expected contraction in JD's earnings for Q2 2022 seems fairly realistic. Spotlight On 618 Shopping Festival It is important to review JD.com's performance for the 618 Shopping Festival, before I assess whether a Q2 2022 earnings beat or miss for JD is more likely. A Chinese data analytics company, Syntun, describes the 618 Shopping Festival as "the second-largest e-commerce shopping festival in China" which is "second only to 'Single's Day' (November 11)" in a press release dated June 19, 2022. In a blog post published on June 19, 2022, JD revealed that its gross merchandise volume or GMV increased by +10.3% YoY from RMB343.8 billion during the 618 Shopping Festival in 2021 to RMB379.3 billion for this year's 618 Shopping Festival. It is worthy of note that JD.com's prior second-quarter top line expansion has approximated its GMV growth for the 618 Shopping Festival to a large extent. As an illustration, JD's revenue rose by +33.8% YoY in Q2 2020 and this was just slightly higher than the company's +33.2% YoY increase in GMV for the 618 Shopping Festival in 2020. Similarly, JD delivered a +27.8% YoY growth in GMV for the 2021 618 Shopping Festival, and its Q2 2021 sales increase wasn't that far off at +26.2% YoY. In summary, JD's performance at the 618 Shopping Festival for 2022 wasn't as good as that for prior years, but this was to be expected considering the negative effects of COVID-19 lockdowns on the economy and consumer confidence. More significantly, there is a gap between JD's GMV growth (+10.3%) for this year's 618 Shopping Festival and the market's consensus Q2 2022 revenue expansion estimate (+3.1%), and I discuss the implications of this in the subsequent section. JD Should Deliver A Q2 2022 Earnings Beat I hold the view that there is a high probability of an earnings beat for JD when it reports Q2 2022 financial results on August 23, 2022. As I highlighted in the prior section of this article, the sell-side's consensus revenue growth projection for JD.com in Q2 2022 seems to be a tad too low compared with the company's GMV growth for this year's 618 Shopping Festival. Even after considering the COVID-19 lockdowns and related logistical challenges in delivering products, I think JD could possibly achieve a YoY revenue growth in the +4%-5% range for Q2 2022, which implies that its second-quarter top line will surpass market expectations. My expectations of a Q2 2022 earnings beat for JD.com are supported by both higher-than-expected revenue and lower-than-expected costs for JD in the quarter. Although I discussed about pandemic-related expenses which will be a drag on JD's profitability in an earlier section of this article, it is likely that JD.com can offset these additional costs with other cost optimization initiatives. JD.com disclosed at its Q1 2022 earnings call in the middle of May 2022 that it has been implementing "strict cost and expense control measures to step up financial discipline" starting in "mid-March", and noted that "we will continue that (cost control measures) in Q2." At the first-quarter investor call, JD also noted that it "adjusted the investment pace and further focused on fewer selected regions" for its new businesses (typically faster-growing businesses on revenue which are either loss making or boast low profitability). Therefore, I think that JD's costs and profitability for Q2 2022 could be better than what investors expect.
Shareholder Returns
| JD | US Online Retail | US Market | |
|---|---|---|---|
| 7D | -5.5% | -8.1% | -5.2% |
| 1Y | -29.3% | -39.6% | -23.1% |
Return vs Industry: JD exceeded the US Online Retail industry which returned -39.6% over the past year.
Return vs Market: JD underperformed the US Market which returned -23.1% over the past year.
Price Volatility
| JD volatility | |
|---|---|
| JD Average Weekly Movement | 6.2% |
| Online Retail Industry Average Movement | 10.6% |
| Market Average Movement | 6.9% |
| 10% most volatile stocks in US Market | 15.9% |
| 10% least volatile stocks in US Market | 2.8% |
Stable Share Price: JD is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: JD's weekly volatility (6%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2006 | 390,000 | Lei Xu | https://www.jd.com |
JD.com, Inc. provides supply chain-based technologies and services in the People’s Republic of China. The company offers computers, communication, and consumer electronics products, as well as home appliances; and general merchandise products comprising food, beverage and fresh produce, baby and maternity products, furniture and household goods, cosmetics and other personal care items, pharmaceutical and healthcare products, books, automobile accessories, apparel and footwear, bags, and jewelry. It also provides online marketplace services for third-party merchants; marketing services; and omni-channel solutions to customers and offline retailers, as well as online healthcare services.
JD.com, Inc. Fundamentals Summary
| JD fundamental statistics | |
|---|---|
| Market Cap | US$79.92b |
| Earnings (TTM) | -US$924.13m |
| Revenue (TTM) | US$140.56b |
0.6x
P/S Ratio-86.5x
P/E RatioIs JD overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| JD income statement (TTM) | |
|---|---|
| Revenue | CN¥1.00t |
| Cost of Revenue | CN¥926.71b |
| Gross Profit | CN¥75.16b |
| Other Expenses | CN¥81.75b |
| Earnings | -CN¥6.59b |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | -4.31 |
| Gross Margin | 7.50% |
| Net Profit Margin | -0.66% |
| Debt/Equity Ratio | 15.2% |
How did JD perform over the long term?
See historical performance and comparison