NYSE:VIPS

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with solid track record.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.1%

VIPS

0.2%

US Online Retail

0.5%

US Market


1 Year Return

189.0%

VIPS

64.6%

US Online Retail

18.7%

US Market

Return vs Industry: VIPS exceeded the US Online Retail industry which returned 68.2% over the past year.

Return vs Market: VIPS exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

VIPSIndustryMarket
7 Day-1.1%0.2%0.5%
30 Day5.7%4.3%4.9%
90 Day35.7%30.4%19.8%
1 Year189.0%189.0%64.7%64.6%21.2%18.7%
3 Year131.8%131.8%120.4%120.2%46.2%36.8%
5 Year28.2%28.2%330.5%329.6%85.3%65.1%

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?

17.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VIPS ($22.86) is trading below our estimate of fair value ($27.79)

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


Price To Earnings Ratio

PE vs Industry: VIPS is good value based on its PE Ratio (27.7x) compared to the US Online Retail industry average (31.1x).

PE vs Market: VIPS is poor value based on its PE Ratio (27.7x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: VIPS is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: VIPS's PB Ratio (4.7x) is in line with the US Online Retail industry average.


Next Steps

Future Growth

How is Vipshop Holdings forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

19.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VIPS's forecast earnings growth (19.4% per year) is above the savings rate (2.2%).

Earnings vs Market: VIPS's earnings (19.4% per year) are forecast to grow slower than the US market (24.1% per year).

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

Revenue vs Market: VIPS's revenue (9.4% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: VIPS's revenue (9.4% 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 high in 3 years time (20.1%)


Next Steps

Past Performance

How has Vipshop Holdings performed over the past 5 years?

19.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VIPS has high quality earnings.

Growing Profit Margin: VIPS's current net profit margins (4.2%) are higher than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: VIPS's earnings have grown by 19.7% per year over the past 5 years.

Accelerating Growth: VIPS's earnings growth over the past year (54.9%) exceeds its 5-year average (19.7% per year).

Earnings vs Industry: VIPS earnings growth over the past year (54.9%) exceeded the Online Retail industry -7.4%.


Return on Equity

High ROE: VIPS's Return on Equity (16.4%) 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¥18.4B) exceed its short term liabilities (CN¥18.2B).

Long Term Liabilities: VIPS's short term assets (CN¥18.4B) exceed its long term liabilities (CN¥2.7B).


Debt to Equity History and Analysis

Debt Level: VIPS's debt to equity ratio (9.2%) is considered satisfactory.

Reducing Debt: VIPS's debt to equity ratio has reduced from 128.1% to 9.2% over the past 5 years.

Debt Coverage: VIPS's debt is well covered by operating cash flow (579%).

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


Balance Sheet


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 recent payouts.

High Dividend: Unable to evaluate VIPS'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 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?

7.8yrs

Average management tenure


CEO

Eric Shen (49 yo)

10yrs

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-Founder10yrsno data12.28%
CN¥ 1.9b
Xiaobo Hong
Co-Founder9.58yrsno data6.85%
CN¥ 1.1b
Donghao Yang
Chief Financial Officer9yrsno datano data
Tsun-Ming Kao
Chief Technology Officer1.33yrsno datano data
Jessie Fan
Head Of Investor Relationsno datano datano data
Yizhi Tang
Senior Vice President of Logistics7.75yrsno datano data
Mei Chuan Hung
Senior Consultant4.08yrsno datano data
Jing Jiang
Senior Corporate Advisor5.42yrsno datano data

7.8yrs

Average Tenure

49yo

Average Age

Experienced Management: VIPS's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ya Shen
Co-Founder10yrsno data12.28%
CN¥ 1.9b
Xiaobo Hong
Co-Founder9.58yrsno data6.85%
CN¥ 1.1b
Frank Lin
Independent Director9.58yrsno datano data
Nanyan Zheng
Independent Director8.42yrsno datano data
Kathleen Chien
Independent Director8.42yrsno datano data
Chi Ping Lau
Director2.33yrsno datano data
Xing Liu
Independent Director9.58yrsno datano data
Chun Liu
Independent Director7.42yrsno datano data
Yu Xu
Director9.58yrsno datano data

9.6yrs

Average Tenure

49yo

Average Age

Experienced Board: VIPS's board of directors are considered experienced (9.6 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

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$15.372b
  • Shares outstanding: 672.42m
  • 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)YesSPONSORED ADS AUSUSDMar 2012
1VPADB (Deutsche Boerse AG)YesSPONSORED ADS ADEEURMar 2012
VIPS NBMV (Bolsa Mexicana de Valores)YesSPONSORED ADS AMXMXNMar 2012
0LQ0LSE (London Stock Exchange)YesSPONSORED ADS AGBUSDMar 2012

Biography

Vipshop Holdings Limited operates as an online discount retailer for various brands in the People's Republic of China. It operates through four segments, Vip.com, Shan Shan Outlets, Internet Finance, and O ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 01:18
End of Day Share Price2020/08/13 00:00
Earnings2020/03/31
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.