Vipshop Holdings Ltd (NYSE: VIPS)

Sector: Consumer Cyclical Industry: Internet Retail CIK: 0001529192
Market Cap 9.26 Bn
P/B 1.63
P/E 9.28
P/S 0.62
ROIC (Qtr) 96.96
Div Yield % 0.00
Rev 1y % (Qtr) 3.36
Total Debt (Qtr) 1.20 Bn
Debt/Equity (Qtr) 0.21

About

Vipshop Holdings Ltd, a prominent player in the Chinese e-commerce market, operates under the well-known brand name Vipshop. The company's stock symbol is VIPS. Vipshop is a leading online discount retailer, offering a wide range of products from over 46,000 domestic and international brands. Vipshop's inception took place in August 2008, with a group of entrepreneurs aiming to transform the way brands sell and customers buy off-price products. The company's business model is anchored in the innovative "flash sales" model, which provides customers...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 3.53B provide 3.17x coverage of short-term debt 1.11B, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 9.38B provides 7.84x coverage of total debt 1.20B, indicating robust asset backing and low credit risk.
  • Tangible assets of 9.38B provide exceptional 24.42x coverage of deferred revenue 384.06M, showing strong service capability backing.
  • Long-term investments of 905.48M provide solid 11.02x coverage of long-term debt 82.13M, indicating strategic financial planning.
  • Cash position of 3.53B provides exceptional 174.18x coverage of minority interest expenses 20.24M, indicating strong liquidity.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 252.65M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 0 provides insufficient coverage of deferred revenue obligations of 384.06M, which is 0x, raising concerns about future service delivery capabilities.
  • Operating cash flow of 0 provides minimal 0x coverage of tax expenses of 285.43M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating cash flow of 0 barely covers operating expenses of 1.03B with a 0 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Operating cash flow of 0 shows concerning coverage of minority interest expenses of 20.24M, which is 0x, suggesting complex corporate structure risks.

Products and Services 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 0.05 1.64
EV to Cash from Ops. EV/CFO 0.48 10.76
EV to Debt EV to Debt 0.50 18.39
EV to EBIT EV/EBIT 0.46 20.59
EV to EBITDA EV/EBITDA 0.41 20.75
EV to Free Cash Flow [EV/FCF] EV/FCF 0.78 16.58
EV to Market Cap EV to Market Cap 0.06 -3.15
EV to Revenue EV/Rev 0.04 -4.05
Price to Book Value [P/B] P/B 1.63 5.50
Price to Earnings [P/E] P/E 9.28 36.85
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -93.84
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -203.90
Dividend per Basic Share Div per Share (Qtr) 0.00 0.08
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 -3.46
Interest Coverage Int. cover (Qtr) 118.51 -1,581.43
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -39.45
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 11.79 53.91
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -13.61 37.93
EBITDA Growth (1y) % EBITDA Growth (1y) % 0.00 -62.59
EBIT Growth (1y) % EBIT 1y % (Qtr) -12.88 8.33
EBT Growth (1y) % EBT 1y % (Qtr) -13.16 -10.66
EPS Growth (1y) % EPS 1y % (Qtr) -8.32 13.44
FCF Growth (1y) % FCF Growth (1y) % 0.00 -46.02
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -5.37 23.19
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.19 1.17
Cash Payout Ratio Cash Payout Ratio 0.00 -0.04
Cash Ratio Cash Ratio (Qtr) 0.81 2.14
Current Ratio Curr Ratio (Qtr) 1.30 3.56
Debt to Equity Ratio Debt/Equity (Qtr) 0.21 0.52
Interest Cover Ratio Int Coverage (Qtr) 118.51 -1,581.43
Times Interest Earned Times Interest Earned (Qtr) 118.51 -1,581.43
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 4.40
EBIT Margin % EBIT Margin % (Qtr) 61.47 -36.99
EBT Margin % EBT Margin % (Qtr) 8.56 -40.80
Gross Margin % Gross Margin % (Qtr) 23.10 44.74
Net Profit Margin % Net Margin % (Qtr) 6.70 -40.62