NYSE:VIPS

Stock Analysis Report

Executive Summary

Vipshop Holdings Limited operates as an online discount retailer for various brands in the People's Republic of China.

Rewards

Trading at 36.2% below its fair value

Earnings are forecast to grow 17.76% per year

Earnings grew by 88.7% over the past year

Risk Analysis

No risks detected for VIPS from our risk checks.


Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

How has Vipshop Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VIPS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.8%

VIPS

-1.0%

US Online Retail

-3.8%

US Market


1 Year Return

65.4%

VIPS

-1.1%

US Online Retail

-15.9%

US Market

Return vs Industry: VIPS exceeded the US Online Retail industry which returned -0.9% over the past year.

Return vs Market: VIPS exceeded the US Market which returned -15.9% over the past year.


Shareholder returns

VIPSIndustryMarket
7 Day-5.8%-1.0%-3.8%
30 Day-14.5%-6.0%-17.4%
90 Day-5.7%-7.8%-24.1%
1 Year65.4%65.4%-1.1%-1.1%-14.1%-15.9%
3 Year5.9%5.9%68.6%68.4%10.0%2.8%
5 Year-52.8%-52.8%167.0%155.6%27.6%13.5%

Price Volatility Vs. Market

How volatile is Vipshop Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Vipshop Holdings undervalued compared to its fair value and its price relative to the market?

36.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VIPS ($14.11) is trading below our estimate of fair value ($22.1)

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


Price To Earnings Ratio

PE vs Industry: VIPS is good value based on its PE Ratio (16.6x) compared to the Online Retail industry average (21.1x).

PE vs Market: VIPS is poor value based on its PE Ratio (16.6x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: VIPS is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: VIPS is overvalued based on its PB Ratio (3.1x) compared to the US Online Retail industry average (2.1x).


Next Steps

Future Growth

How is Vipshop Holdings forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

17.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VIPS's forecast earnings growth (17.8% per year) is above the savings rate (1.7%).

Earnings vs Market: VIPS's earnings (17.8% per year) are forecast to grow faster than the US market (13.4% per year).

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

Revenue vs Market: VIPS's revenue (6.7% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: VIPS's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VIPS's Return on Equity is forecast to be low in 3 years time (18.9%).


Next Steps

Past Performance

How has Vipshop Holdings performed over the past 5 years?

19.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VIPS has high quality earnings.

Growing Profit Margin: VIPS's current net profit margins (4.3%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: VIPS's earnings have grown by 19.8% per year over the past 5 years.

Accelerating Growth: VIPS's earnings growth over the past year (88.7%) exceeds its 5-year average (19.8% per year).

Earnings vs Industry: VIPS earnings growth over the past year (88.7%) exceeded the Online Retail industry 18.4%.


Return on Equity

High ROE: VIPS's Return on Equity (17.9%) is considered low.


Next Steps

Financial Health

How is Vipshop Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: VIPS's short term assets (CN¥23.0B) do not cover its short term liabilities (CN¥23.9B).

Long Term Liabilities: VIPS's short term assets (CN¥23.0B) exceed its long term liabilities (CN¥2.4B).


Debt to Equity History and Analysis

Debt Level: VIPS's debt to equity ratio (5.2%) is considered satisfactory.

Reducing Debt: VIPS's debt to equity ratio has reduced from 142.9% to 5.2% over the past 5 years.

Debt Coverage: VIPS's debt is well covered by operating cash flow (496.1%).

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


Balance Sheet

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

Debt Coverage by Assets: VIPS's debt is covered by short term assets (assets are 19.9x debt).


Next Steps

Dividend

What is Vipshop Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

7.4yrs

Average management tenure


CEO

Eric Shen (48yo)

9.67s

Tenure

Mr. Ya Shen, also known as Eric, Co-founded Vipshop Holdings Limited in August 22, 2008 and has been its Chief Executive Officer since August 22, 2008. Mr. Shen has more than 18 years of experience in the  ...


Leadership Team

NamePositionTenureCompensationOwnership
Ya Shen
Co-Founder9.67yrsno data12.31% CN¥1.2b
Xiaobo Hong
Co-Founder9.25yrsno data6.77% CN¥640.5m
Donghao Yang
Chief Financial Officer8.67yrsno datano data
Tsun-Ming Kao
Chief Technology Officer1yrno datano data
Jessie Fan
Head Of Investor Relationsno datano datano data
Yizhi Tang
Senior Vice President of Logistics7.42yrsno datano data
Mei Chuan Hung
Senior Consultant3.75yrsno datano data
Jing Jiang
Senior Corporate Advisor5.08yrsno datano data

7.4yrs

Average Tenure

47yo

Average Age

Experienced Management: VIPS's management team is seasoned and experienced (7.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ya Shen
Co-Founder9.67yrsno data12.31% CN¥1.2b
Xiaobo Hong
Co-Founder9.25yrsno data6.77% CN¥640.5m
Frank Lin
Independent Director9.25yrsno datano data
Nanyan Zheng
Independent Director8.08yrsno datano data
Kathleen Chien
Independent Director8.08yrsno datano data
Chi Ping Lau
Director2yrsno datano data
Xing Liu
Independent Director9.25yrsno datano data
Chun Liu
Independent Director7.08yrsno datano data
Yu Xu
Director9.25yrsno datano data

9.3yrs

Average Tenure

48yo

Average Age

Experienced Board: VIPS's board of directors are considered experienced (9.3 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

Vipshop Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vipshop Holdings Limited
  • Ticker: VIPS
  • Exchange: NYSE
  • Founded: 2008
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: US$9.460b
  • Shares outstanding: 670.47m
  • Website: https://www.vip.com

Number of Employees


Location

  • Vipshop Holdings Limited
  • No. 20 Huahai Street
  • Liwan District
  • Guangzhou
  • Guangdong Province
  • 510370
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VIPSNYSE (New York Stock Exchange)YesSPON ADR EA REPR 2 ORD SHS USD0.0001USUSDMar 2012
1VPADB (Deutsche Boerse AG)YesSPON ADR EA REPR 2 ORD SHS USD0.0001DEEURMar 2012
VIPS NBMV (Bolsa Mexicana de Valores)YesSPON ADR EA REPR 2 ORD SHS USD0.0001MXMXNMar 2012
0LQ0LSE (London Stock Exchange)YesSPON ADR EA REPR 2 ORD SHS USD0.0001GBUSDMar 2012

Biography

Vipshop Holdings Limited operates as an online discount retailer for various brands in the People's Republic of China. It operates in two segments, Vip.com and Internet Finance Business. The company offers women's apparel, such as casual wear, jeans, dresses, outerwear, swimsuits, lingerie, pajamas, and maternity clothes; men's apparel comprising casual and smart-casual T-shirts, polo shirts, jackets, pants, and underwear; women and men casual and formal shoes; and accessories that include belts, jewelry, watches, and glasses for women and men. It also provides handbags, which comprise purses, satchels, duffel bags, and wallets; apparel, gears and accessories, furnishings and decor, toys, and games for boys, girls, infants, and toddlers; sports apparel, sports gear, and footwear for tennis, badminton, soccer, and swimming; and consumer electronic products, including computers, mobile handsets, digital cameras, and home appliances. In addition, the company offers skin care and cosmetic products, such as cleansers, lotions, face and body creams, face masks, sunscreens, foundations, lipsticks, eye shadows, and nail polish; and home furnishings comprising bedding and bath products, home decors, dining and tabletop items, and small household appliances. Further, it provides designer apparel, footwear, and accessories; and snacks and health supplements, and occasion-based gifts. Additionally, the company offers Internet finance services, which comprise consumer and supplier financing, and microcredit, as well as wealth management services. It provides its branded products through its vipshop.com, vip.com, and lefeng.com online platforms, as well as through its cellular phone application. Additionally, the company offers warehousing, logistics, procurement, research and development, consulting, and software development and information technology support services. Vipshop Holdings Limited was founded in 2008 and is headquartered in Guangzhou, the People's Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 04:51
End of Day Share Price2020/04/03 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.