JD.com logged a -5.9% change during today's morning session, and is now trading at a price of $36.23 per share.
JD.com returned losses of -36.0% last year, with its stock price reaching a high of $67.87 and a low of $31.57. Over the same period, the stock underperformed the S&P 500 index by -42.0%. As of April 2023, the company's 50-day average price was $37.13. JD.com, Inc. provides supply chain-based technologies and services in the People's Republic of China. Based in Beijing, China, the large-cap Consumer Discretionary company has 450,679 full time employees. JD.com has not offered a regular dividend during the last year.
The Company Has a Positive Net Current Asset Value:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $576,888 | $745,802 | $951,592 | $1,046,236 |
| Gross Margins | 14.6% | 14.6% | 13.6% | 14.1% |
| Operating Margins | 0.9% | 1.4% | 0.4% | 1.8% |
| Net Margins | 2.11% | 6.62% | -0.37% | 0.99% |
| Net Income (MM) | $12,187 | $49,405 | -$3,560 | $10,388 |
| Net Interest Expense (MM) | $1,061 | $1,628 | -$1,213 | -$2,106 |
| Depreciation & Amort. (MM) | -$5,828 | -$6,068 | -$6,232 | -$7,236 |
| Earnings Per Share | $8.22 | $31.68 | -$2.3 | $1.72 |
| EPS Growth | n/a | 285.4% | -107.26% | 174.78% |
| Diluted Shares (MM) | 1,484 | 1,555 | 1,554 | 428 |
| Free Cash Flow (MM) | $21,266 | $34,874 | $23,735 | $35,839 |
| Capital Expenditures (MM) | -$3,515 | -$7,670 | -$18,566 | -$21,980 |
| Net Current Assets (MM) | -$20,005 | $34,133 | $49,949 | $29,947 |
| Current Ratio | 0.99 | 1.35 | 1.35 | 1.32 |
| Long Term Debt (MM) | $10,052 | $12,531 | $9,386 | $30,233 |
| Net Debt / EBITDA | -1.14 | -1.11 | -8.72 | -1.2 |
JD.com has growing revenues and increasing reinvestment in the business, low leverage, and consistent free cash flow. However, JD.com has slimmer gross margins than its peers, weak operating margins with a positive growth rate, and declining EPS growth. Finally, we note that JD.com has just enough current assets to cover current liabilities.
JD.com Is Currently Under Priced:
JD.com has a trailing twelve month P/E ratio of 21.6, compared to an average of 22.33 for the Consumer Discretionary sector. Based on its EPS guidance of $3.41, the company has a forward P/E ratio of 10.9. The -16.1% compound average growth rate of JD.com's historical and projected earnings per share yields a PEG ratio of -1.34. This indicates that its shares are overvalued.In contrast, the market is likely undervaluing JD.com in terms of its equity because its P/B ratio is 0.27 while the sector average is 3.12. The company's shares are currently trading -79.0% below their Graham number.
JD.com Has No Average Rating Visible In Our Data:
The 38 analysts following JD.com have set target prices ranging from $39.99 to $96.97 per share, for an average of $60.27 with a buy rating. As of April 2023, the company is trading -38.4% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
The largest shareholder is Tiger Global Management, LLC, whose 2% stake in the company is worth $872,342,305.
