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JD.com Inc (JD)
NASDAQ:JD
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JD
(NASDAQ:JD)
78Outperform
Positive Factors
Earnings
JD reported strong 4Q24 results with a substantial beat on both revenue and net profit.
Government Policies
Management expects government’s stimulus policies, including continued trade-in subsidies, to underpin consumer sentiment and feels confident to outgrow the industry.
Shareholder Returns
The company announced a dividend of US$1.5 billion and a new repurchase quota of US$5.0 billion, enhancing investor returns.
Negative Factors
Comparative Performance
JD benefits from favorable policies tailwind in 4Q24 and FY25, and it understandably would encounter tough comparisons heading into FY26.
Margin Expansion
Investment may cap near-term margin expansion as JD plans to expand its logistics network and capacities.
JD (JD) vs. S&P 500 (SPY)
Market Cap
$62.78B
Dividend Yield2.01%
Average Volume (3M)14.47M
Price to Earnings (P/E)9.9
Beta (1Y)1.26
Revenue Growth5.20%
EPS Growth77.60%
CountryUS
Employees517,124
SectorConsumer Cyclical
Sector Strength61
IndustrySpecialty Retail
Share Statistics
EPS (TTM)3.74
Shares Outstanding1,449,500,000
10 Day Avg. Volume10,712,902
30 Day Avg. Volume14,474,122
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)N/A
Price to Sales (P/S)0.44
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$52.58Price Target Upside42.84% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
JD Business Overview & Revenue Model
Company DescriptionJD.com, Inc. (JD) is a leading Chinese e-commerce company headquartered in Beijing. It operates one of the largest online retail platforms in China, providing a broad selection of authentic products across various categories including electronics, apparel, home appliances, and groceries. JD is known for its advanced logistics network, which ensures efficient and reliable delivery of products to consumers. Additionally, JD is involved in technology initiatives such as AI, big data, and robotics to enhance its services and operational efficiency.
How the Company Makes MoneyJD.com makes money primarily through its online retail services, where it sells a wide array of goods directly to consumers. The company generates revenue from the sale of products on its platform, as well as through third-party marketplace services where it charges commissions and fees to other merchants selling on its site. JD also earns money from its logistics and fulfillment services, which are offered not only to its own e-commerce operations but also to third-party clients. In addition to these, JD has ventured into technology services, providing cloud computing and AI-based solutions, contributing to its revenue streams. Strategic partnerships with other companies, such as Tencent, enhance JD's market reach and add to its revenue through various collaboration efforts.
JD Financial Statement Overview
Summary
JD has shown significant revenue growth and improved profitability, with a strong balance sheet characterized by low debt and strong equity. However, incomplete cash flow data for 2024 creates some uncertainty in cash flow analysis.Income Statement
JD has shown impressive revenue growth, increasing from 576.9 billion in 2019 to 1.16 trillion in 2024. The gross profit margin has been stable, around 9.8% in 2024 compared to 14.8% in 2023, indicating effective cost management. Net profit margin improved significantly to 3.6% in 2024 from a loss in 2021, showing a strong recovery and profitability. EBIT and EBITDA margins are also healthy, demonstrating operational efficiency.85
Very Positive
Balance Sheet
The debt-to-equity ratio is relatively low at 0.37, indicating manageable leverage. The equity ratio is strong at 34.3%, showing a solid equity base. Return on equity has improved significantly to 17.3% in 2024, reflecting effective use of equity to generate profits. Overall, JD's balance sheet is stable with a good balance between liabilities and equity.78
Positive
Cash Flow
Free cash flow has been positive, though growth has been inconsistent, with significant fluctuations. The operating cash flow to net income ratio is unavailable in 2024 due to missing data, but prior years showed strong cash generation relative to net income. While the cash flow statements indicate strong cash positions, the lack of reported cash flow metrics in 2024 prevents a complete assessment.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.16T | 1.08T | 1.05T | 951.59B | 745.80B | Gross Profit |
| 113.44B | 159.70B | 147.07B | 129.07B | 109.11B | EBIT |
| 38.74B | 26.02B | 19.72B | 3.37B | 44.23B | EBITDA |
| 47.36B | 42.82B | 23.21B | 4.14B | 58.01B | Net Income Common Stockholders |
| 41.36B | 24.17B | 10.38B | -3.56B | 49.41B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 234.00B | 190.15B | 219.96B | 185.33B | 146.66B | Total Assets |
| 698.23B | 628.96B | 595.25B | 496.51B | 422.29B | Total Debt |
| 89.77B | 68.43B | 65.05B | 34.14B | 31.55B | Net Debt |
| -18.58B | -3.46B | -13.82B | -36.63B | -54.53B | Total Liabilities |
| 384.94B | 332.58B | 321.13B | 249.72B | 200.67B | Stockholders Equity |
| 239.35B | 231.86B | 213.37B | 208.91B | 187.54B |
| Cash Flow | Free Cash Flow | |||
| 0.00 | 39.51B | 35.84B | 23.74B | 34.87B | Operating Cash Flow |
| 0.00 | 59.52B | 57.82B | 42.30B | 42.54B | Investing Cash Flow |
| 0.00 | -59.54B | -54.03B | -74.25B | -57.81B | Financing Cash Flow |
| 0.00 | -5.81B | 1.18B | 19.50B | 71.07B |
JD Technical Analysis
Negative
36.81
Price Trends
41.32
Negative
38.78
Negative
35.12
Positive
Market Momentum
0.18
Positive
47.87
Neutral
14.05
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JD, the sentiment is Negative. The current price of 36.81 is below the 20-day moving average (MA) of 41.84, below the 50-day MA of 41.32, and above the 200-day MA of 35.12, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 47.87 is Neutral, neither overbought nor oversold. The STOCH value of 14.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JD.
JD Risk Analysis
JD disclosed 111 risk factors in its most recent earnings report. JD reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
JD Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $303.69B | 16.39 | 11.97% | 0.84% | 4.28% | 28.42% | |
78 Outperform | $62.78B | 9.85 | 17.55% | 2.01% | 5.20% | 77.60% | |
78 Outperform | $144.72B | 9.87 | 45.06% | ― | 57.51% | 82.28% | |
78 Outperform | $68.95B | 142.71 | 5.93% | ― | 28.46% | 185.04% | |
74 Outperform | $93.35B | 48.85 | 51.50% | ― | 43.56% | 91.72% | |
59 Neutral | $38.75B | 241.98 | 3.76% | ― | 24.14% | -88.77% | |
59 Neutral | $11.22B | 10.13 | -1.22% | 3.96% | 1.32% | -18.57% |
* Consumer Cyclical Sector Average
Performance Comparison
JD
JD
36.81
10.87
41.90%
MELI
Mercadolibre
1,841.29
352.71
23.69%
BABA
Alibaba
116.54
46.34
66.01%
SE
Sea
106.63
50.65
90.48%
PDD
PDD Holdings
104.21
-13.41
-11.40%
CPNG
Coupang
20.06
1.63
8.84%
JD Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: -15.88% | Next Earnings Date: May 15, 2025
Earnings Call Sentiment Positive
JD.com demonstrated strong financial performance with significant revenue growth and user engagement improvements. While there were challenges in the new business segment and a temporary impact on home appliance sales, the company's strong fundamentals and strategic investments in AI and logistics position it well for future growth.Highlights
Strong Q4 and Full Year 2024 Performance
JD.com reported a robust Q4 with a 13% year-on-year revenue increase to RMB347 billion and a full-year 7% revenue growth to RMB1.2 trillion. The company showed strong double-digit growth across most categories, including electronics and home appliances with a 16% year-on-year increase.
Growth in General Merchandise
General merchandise revenues grew by 11% year-on-year in Q4 and 9% for the full year. The supermarket business, specifically, saw double-digit growth for four consecutive quarters, driven by improvements in supply chain capabilities.
User Growth and Engagement
JD.com experienced double-digit growth in quarterly active customers for five consecutive quarters. User shopping frequency also showed double-digit growth for four quarters in a row.
Shareholder Returns
JD.com increased its annual dividend by 32% year-on-year to $1 per ADS and repurchased 8.1% of outstanding shares in 2024, reflecting a strong commitment to shareholder returns.
AI and Robotics Integration
The company has integrated AI across various business areas, including marketing, customer service, and logistics, to improve efficiency and reduce costs.
Lowlights
Decline in New Business Segment
The new business segment saw a revenue decline of 31% in Q4 and 28% for the full year, mainly due to adjustments in the Jingxi business.
Temporary Impact on Home Appliance Sales
Home appliance sales were temporarily affected early in the year due to sales being pulled forward to the end of 2024.
Company Guidance
During the JD.com fourth quarter and full year 2024 earnings call, the company reported strong financial results, with total revenues increasing by 7% year-on-year and a non-GAAP net margin reaching 4.1%. The electronics and home appliances category saw a notable upswing with revenues growing by 16% year-on-year, while the general merchandise category accelerated to 11% growth year-on-year. JD.com also experienced double-digit user growth for five consecutive quarters, with shopping frequency rising similarly. The company emphasized its commitment to lowering costs, improving efficiency, and investing in user experience. In 2024, JD.com returned significant value to shareholders with a total shareholder return rate of close to 10%, including a 32% year-on-year increase in annual cash dividends and a share repurchase program that accounted for 8.1% of its shares outstanding. Looking ahead, JD.com aims to leverage AI and industrial robotics to further enhance operational efficiency and user experience, as well as to capitalize on government stimulus policies to drive future growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.