JD.com, Inc. (NASDAQ: JD)

Sector: Consumer Cyclical Industry: Internet Retail CIK: 0001549802
Market Cap 42.35 Bn
P/B 1.30
P/E 9.36
P/S 0.23
ROIC (Qtr) 34.78
Div Yield % 3.40
Rev 1y % (Qtr) 14.85
Total Debt (Qtr) 15.74 Bn
Debt/Equity (Qtr) 0.48

About

JD.com, Inc., often recognized by its stock symbol JD, is a prominent supply chain-based technology and service provider that operates within the e-commerce industry. Established in 2004 by Richard Qiangdong Liu, the company has its headquarters in Beijing, China, and has grown to become one of the largest e-commerce companies in China. JD.com's primary business activities revolve around its e-commerce platform, which offers a wide array of products such as electronics, home appliances, and general merchandise. The company operates both online...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 17.60B provide 4.25x coverage of short-term debt 4.14B, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 90.04B provides 5.72x coverage of total debt 15.74B, indicating robust asset backing and low credit risk.
  • Tangible assets of 90.04B provide exceptional 242.27x coverage of deferred revenue 371.63M, showing strong service capability backing.
  • Cash position of 17.60B provides exceptional 41.30x coverage of minority interest expenses 426.26M, indicating strong liquidity.
  • Operating cash flow of 3.23B provides strong 8.69x coverage of deferred revenue 371.63M, indicating service delivery capability.

Bear case

  • Investment activities of 1.66B provide weak support for R&D spending of 2.80B, which is 0.59x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Long-term investments of 16.99B represent a high 0.95x of fixed assets 17.80B, indicating potential overexposure to financial assets versus operational capabilities.
  • Tax assets of 642.98M provide limited offset against tax liabilities of 2.29B, which is 0.28x, indicating potential future cash flow pressure from tax obligations.
  • R&D investment of 2.80B represents just 0.12x of SG&A expenses of 23.96B, indicating potential underinvestment in innovation relative to administrative overhead.
  • Short-term investments of 11.97B represent 1.36x of working capital 8.81B, suggesting potentially excessive financial asset allocation versus operational needs.

Product and Service Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Internet Retail
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 AMZN Amazon Com Inc 2,526.56 Bn 33.03 3.65 135.42 Bn
2 BABA Alibaba Group Holding Ltd 395.87 Bn 22.47 2.79 39.55 Bn
3 PDD PDD Holdings Inc. 149.89 Bn 10.44 2.55 1.50 Bn
4 MELI Mercadolibre Inc 106.40 Bn 51.23 4.06 9.88 Bn
5 DASH DoorDash, Inc. 88.88 Bn 103.00 7.03 3.26 Bn
6 SE Sea Ltd 73.28 Bn 51.67 3.48 4.24 Bn
7 EBAY Ebay Inc 64.91 Bn 5.04 6.46 7.02 Bn
8 JD JD.com, Inc. 42.35 Bn 9.36 0.23 15.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.01 1.64
EV to Cash from Ops. EV/CFO -0.24 10.76
EV to Debt EV to Debt -0.05 18.39
EV to EBIT EV/EBIT -0.15 20.59
EV to EBITDA EV/EBITDA -0.12 20.75
EV to Free Cash Flow [EV/FCF] EV/FCF -0.54 16.58
EV to Market Cap EV to Market Cap -0.02 -3.15
EV to Revenue EV/Rev 0.00 -4.05
Price to Book Value [P/B] P/B 1.30 5.50
Price to Earnings [P/E] P/E 9.36 36.85
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -93.84
Dividend Payout Ratio % Div Payout % (Qtr) 31.80 -203.90
Dividend per Basic Share Div per Share (Qtr) 1.00 0.08
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 13.79 -3.46
Interest Coverage Int. cover (Qtr) 13.16 -1,581.43
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 36.96 -39.45
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 19.42 53.91
Dividend Growth (1y) % Div 1y % (Qtr) 31.58 1.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -6.52 37.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 -62.59
EBIT Growth (1y) % EBIT 1y % (Qtr) -15.80 8.33
EBT Growth (1y) % EBT 1y % (Qtr) -16.89 -10.66
EPS Growth (1y) % EPS 1y % (Qtr) -3.45 13.44
FCF Growth (1y) % FCF 1y % (Qtr) -68.49 -46.02
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 19.41 23.19
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.26 1.17
Cash Payout Ratio Cash Payout Ratio 0.00 -0.04
Cash Ratio Cash Ratio (Qtr) 0.40 2.14
Current Ratio Curr Ratio (Qtr) 1.20 3.56
Debt to Equity Ratio Debt/Equity (Qtr) 0.48 0.52
Interest Cover Ratio Int Coverage (Qtr) 13.16 -1,581.43
Times Interest Earned Times Interest Earned (Qtr) 13.16 -1,581.43
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 4.40
EBIT Margin % EBIT Margin % (Qtr) 20.83 -36.99
EBT Margin % EBT Margin % (Qtr) 2.70 -40.80
Gross Margin % Gross Margin % (Qtr) 16.00 44.74
Net Profit Margin % Net Margin % (Qtr) 2.50 -40.62