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JD.com Inc (JD)
NASDAQ:JD
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JD
(NASDAQ:JD)79Outperform
Positive Factors
Earnings Performance
JD.com reported a significant increase in revenue and profitability, with non-GAAP net profit up 24% year-over-year, exceeding consensus expectations.
Revenue Growth
The nationwide implementation of the home appliance trade-in program is expected to drive JD.com's revenue growth.
Negative Factors
Shareholder Returns
Management is focused on enhancing shareholder returns, though the pace of share buybacks has slowed.
JD (JD) vs. S&P 500 (SPY)
Market Cap
$65.53B
Dividend Yield1.84%
Average Volume (3M)13.43M
Price to Earnings (P/E)13.1
Beta (1Y)1.55
Revenue Growth1.88%
EPS Growth49.67%
CountryUS
Employees517,124
SectorConsumer Cyclical
Sector Strength53
IndustryRetail - Discretionary
Share Statistics
EPS (TTM)3.14
Shares Outstanding1,449,500,000
10 Day Avg. Volume16,279,072
30 Day Avg. Volume13,429,523
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)N/A
Price to Sales (P/S)0.43
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
$50.13Price Target Upside22.42% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
JD Business Overview & Revenue Model
Company DescriptionIncorporated in 1998, China-based JD.com is a technology driven e-commerce company and operates through two business segments, JD Mall, and New Businesses. It is the largest retailer in China and provides electronics products and general merchandise products, including audio, video products, and books. JD.com offers its products through its website JD.com and mobile apps, as well as directly to customers.
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 exhibits a strong financial position with impressive revenue and profitability growth, a solid balance sheet, and robust cash flow management. These factors collectively contribute to JD's competitive stance in the Retail - Discretionary industry. While there are areas for improvement, such as maintaining equity levels, the company's financial health is generally positive.Income Statement
JD has shown strong revenue growth, with a noticeable increase in Total Revenue from the previous year. The Gross Profit Margin is healthy, reflecting efficient cost management, and Net Profit Margin has improved significantly, indicating enhanced profitability. EBIT and EBITDA margins are stable, showcasing operational efficiency.85
Very Positive
Balance Sheet
The company's balance sheet reveals a solid equity base with a favorable Debt-to-Equity Ratio, denoting prudent leverage management. The Return on Equity is commendable, signifying effective use of shareholders' funds. The Equity Ratio underscores a robust financial structure, although slight fluctuations in Stockholders' Equity warrant attention.78
Positive
Cash Flow
JD demonstrates strong cash flow capabilities with a positive Free Cash Flow and a healthy Operating Cash Flow to Net Income Ratio, indicating effective cash conversion from earnings. The Free Cash Flow Growth Rate is positive, highlighting an upward cash generation trend, although slightly impacted by capital expenditure requirements.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.12T | 1.08T | 1.05T | 951.59B | 745.80B | 576.89B | Gross Profit |
| 156.70B | 159.70B | 147.07B | 129.07B | 109.11B | 84.42B | EBIT |
| 36.64B | 26.02B | 19.72B | 3.37B | 44.23B | 4.70B | EBITDA |
| 44.79B | 42.82B | 23.21B | 4.14B | 58.01B | 10.53B | Net Income Common Stockholders |
| 34.89B | 24.17B | 10.38B | -3.56B | 49.41B | 12.19B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 190.15B | 190.15B | 219.96B | 185.33B | 146.66B | 61.57B | Total Assets |
| 628.96B | 628.96B | 595.25B | 496.51B | 422.29B | 259.72B | Total Debt |
| 68.43B | 68.43B | 65.05B | 34.14B | 31.55B | 18.77B | Net Debt |
| -3.46B | -3.46B | -13.82B | -36.63B | -54.53B | -18.20B | Total Liabilities |
| 332.58B | 332.58B | 321.13B | 249.72B | 200.67B | 159.10B | Stockholders Equity |
| 231.86B | 231.86B | 213.37B | 208.91B | 187.54B | 81.86B |
| Cash Flow | Free Cash Flow | ||||
| 40.04B | 39.51B | 35.84B | 23.74B | 34.87B | 21.27B | Operating Cash Flow |
| 53.04B | 59.52B | 57.82B | 42.30B | 42.54B | 24.78B | Investing Cash Flow |
| -51.81B | -59.54B | -54.03B | -74.25B | -57.81B | -25.35B | Financing Cash Flow |
| -20.02B | -5.81B | 1.18B | 19.50B | 71.07B | 2.57B |
JD Technical Analysis
Positive
40.95
Price Trends
38.43
Positive
38.52
Positive
33.84
Positive
Market Momentum
0.67
Positive
52.34
Neutral
47.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JD, the sentiment is Positive. The current price of 40.95 is above the 20-day moving average (MA) of 40.68, above the 50-day MA of 38.43, and above the 200-day MA of 33.84, indicating a bullish trend. The MACD of 0.67 indicates Positive momentum. The RSI at 52.34 is Neutral, neither overbought nor oversold. The STOCH value of 47.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $312.51B | 18.26 | 12.08% | 0.75% | 4.28% | 28.42% | |
82 Outperform | $2.16T | 36.91 | 20.72% | ― | 10.99% | 91.61% | |
81 Outperform | $157.50B | 11.15 | 38.87% | ― | 84.13% | 122.96% | |
79 Outperform | $65.53B | 13.05 | 15.26% | 1.84% | 1.88% | 49.67% | |
76 Outperform | $104.43B | 54.65 | 43.92% | ― | 43.56% | 91.72% | |
73 Outperform | $31.07B | 16.91 | 38.29% | 1.65% | 2.79% | -23.30% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% |
* Consumer Cyclical Sector Average
Performance Comparison
JD
JD
40.95
20.09
96.31%
AMZN
Amazon
203.80
29.68
17.05%
EBAY
eBay
66.67
17.53
35.67%
MELI
Mercadolibre
2,059.87
532.58
34.87%
BABA
Alibaba
129.85
59.29
84.03%
PDD
PDD Holdings
113.41
-7.92
-6.53%
JD Earnings Call Summary
Earnings Call Date: Nov 14, 2024 | % Change Since: 14.74% | Next Earnings Date: Mar 5, 2025
Earnings Call Sentiment Positive
JD.com showcased strong revenue growth across key segments, increased profitability, and successful user growth initiatives, despite challenges in new business revenue and matching supply with demand under the trade-in program. The company's strategic investments and share repurchase programs reflect a positive outlook.Highlights
Accelerated Top Line Growth
JD.com reported a 5% year-on-year increase in net revenues to RMB 260 billion in Q3 2024, outpacing domestic total retail sales growth.
Impressive User Growth
The number of quarterly active customers grew at a double-digit rate year-on-year for the fourth consecutive quarter.
Continued Profitability Increase
Gross profit grew by 16% year-on-year, with a gross margin expansion of 165 bps to 17.3%. Non-GAAP net profit increased by 24% year-on-year.
Successful Share Repurchase Program
Completed a USD 3 billion share repurchase program and launched a new USD 5 billion program extending through 2027.
Strong General Merchandise Performance
General merchandise revenues increased by 8% year-on-year, with supermarket categories achieving double-digit growth.
Lowlights
New Business Revenue Decline
Revenue from new business was down 26% year-on-year, primarily due to adjustments in the Jingxi business.
Challenges in Matching Consumer Demand
Some products under the trade-in program experienced high demand that could not be fully matched due to limited production capacity.
Increased Operating Loss in New Business
Non-GAAP operating loss in new business was RMB 615 million, compared to a RMB 192 million loss a year ago.
Company Guidance
During JD.com's Q3 2024 earnings call, the company provided positive guidance with several key metrics highlighting their growth trajectory. The top line growth for Q3 accelerated by 5% year-on-year, reaching RMB 260 billion. In particular, the general merchandise category saw an 8% revenue increase, while the supermarket category delivered double-digit growth. The electronics and home appliances category also rebounded with a 3% year-on-year growth, supported by China's national trade-in program. JD Logistics demonstrated significant efficiency improvements, resulting in a 624% year-on-year increase in non-GAAP operating income and a 400 bps increase in operating margin to 4.7%. The company's non-GAAP net profit grew by 24% year-on-year, with a net margin of 5.1%, and they completed a USD 3.65 billion share repurchase program, reflecting their commitment to shareholder returns. Looking ahead, JD.com remains optimistic about continuing its growth momentum, focusing on enhancing user experience, optimizing costs, and expanding their product offerings to maintain a high-quality, sustainable growth path.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.