Don't Buy JD.com Before Checking Its Fundamentals!

By Scott Lee • Monday, November 14 12:01 • Permanent Link

JD.com marked a 5.0% change today, compared to -0.1% for the S&P 500. Is it a good value at today's price of $51.38? Only an in-depth analysis can answer that question, but here are some facts that can give you an idea:

JD.com, Inc. provides supply chain-based technologies and services in the People's Republic of China.
JD.com belongs to the Consumer Cyclical sector, which has an average price to earnings (P/E) ratio of 24.11 and an average price to book (P/B) of 3.11
The company's P/B ratio is 0.4
JD.com has a trailing 12 month Price to Earnings (P/E) ratio of -52.6 based on its trailing 12 month price to earnings (Eps) of $-0.98 per share
Its forward P/E ratio is 18.5, based on its forward earnings per share (Eps) of $2.78
JD has a Price to Earnings Growth (PEG) ratio of 40.19, which shows the company is overvalued when we factor growth into the price to earnings calculus.
Over the last four years, JD.com has averaged free cash flows of $19,633,507,500.00, which on average grew 138.9%
JD's gross profit margins have averaged 7.8 % over the last four years and during this time they had a growth rate of 0.4 % and a coefficient of variability of 6.1 %.
JD.com has moved -42.2% over the last year compared to -14.7% for the S&P 500 -- a difference of -27.4%
JD has an average analyst rating of buy and is -35.56% away from its mean target price of $79.73 per share

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The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.