Now trading at a price of $26.24, JD.com has moved -1.5% so far today.
JD.com returned losses of -15.7% last year, with its stock price reaching a high of $35.69 and a low of $20.82. Over the same period, the stock underperformed the S&P 500 index by -42.0%. AThe company's 50-day average price was $26.55. JD.com, Inc. operates as a supply chain-based technology and service provider in the People's Republic of China. Based in Beijing, China, the Large-Cap Consumer Discretionary company has 517,124 full time employees. JD.com has not offered a dividend during the last year.
Exceptional EPS Growth but an Average Current Ratio:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $67,198 | $82,865 | $114,299 | $149,326 | $151,690 | $152,771 |
| Operating Margins | -1% | 2% | 2% | 0% | 2% | 2% |
| Net Margins | -1% | 2% | 7% | 0% | 1% | 2% |
| Net Income (M) | -$407 | $1,708 | $7,561 | -$701 | $1,407 | $3,275 |
| Net Interest Expense (M) | $124 | $104 | $172 | $190 | $305 | $406 |
| Depreciation & Amort. (M) | $809 | $837 | $930 | $978 | $1,049 | $1,168 |
| Diluted Shares (M) | 2,878 | 2,967 | 3,109 | 3,107 | 3,181 | 3,171 |
| Earnings Per Share | -$0.13 | $0.59 | $2.43 | -$0.18 | $0.47 | $1.07 |
| EPS Growth | n/a | 553.85% | 311.86% | -107.41% | 361.11% | 127.66% |
| Avg. Price | $33.37 | $28.1 | $58.78 | $76.79 | $60.82 | $26.24 |
| P/E Ratio | -256.69 | 46.83 | 23.42 | -426.61 | 126.71 | 24.3 |
| Free Cash Flow (M) | $1,967 | $2,795 | $6,520 | $5,765 | $7,586 | $7,816 |
| CAPEX (M) | $1,070 | $764 | n/a | $873 | $797 | $567 |
| Current Ratio | 0.87 | 0.99 | 1.35 | 1.35 | 1.32 | 1.16 |
JD.com has exceptional EPS growth, generally positive cash flows, and rapidly growing revenues and decreasing reinvestment in the business. Furthermore, JD.com has weak operating margins with a positive growth rate and just enough current assets to cover current liabilities, as shown by its current ratio of 1.16.
an Exceptionally Low P/B Ratio but Trading Above Its Fair Price:
JD.com has a trailing twelve month P/E ratio of 9.6, compared to an average of 22.15 for the Consumer Discretionary sector. Based on its EPS guidance of $4.16, the company has a forward P/E ratio of 6.4. According to the 64.8% compound average growth rate of JD.com's historical and projected earnings per share, the company's PEG ratio is 0.15. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 23.9%. On this basis, the company's PEG ratio is 0.4. This suggests that its shares are undervalued. Additionally, the market is possibly undervaluing JD.com in terms of its equity because its P/B ratio is 0.17 whereas the sector average is 3.11. The company's shares are currently trading 66.6% below their Graham number.
Analysts Give JD.com an Average Rating of Buy:
The 38 analysts following JD.com have set target prices ranging from $28.1 to $60.21 per share, for an average of $39.9 with a buy rating. The company is trading -34.2% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
JD.com has an average amount of shares sold short because 2.6% of the company's shares are sold short. Institutions own 18.7% of the company's shares, and the insider ownership rate stands at 0.88%, suggesting a small amount of insider investors. The largest shareholder is Dodge & Cox Inc, whose 1% stake in the company is worth $589,855,488.
