JD.com Inc. is an online direct sales company in China, offering a wide variety of products through its website and mobile applications.
| Key Statistics | |||||||
| 52-Week Range | Avg. Daily Vol (3 Mo) | Market Value | Dividend Yield | Float % | Target Price | Consensus Rating (5 strong buy – 1 strong sell) |
Next Earnings Announcement |
| 30.84 – 92.77 | 13,199,379 | 133,423.1 | – | – | 87.90 | 4.78 | 02/03/2021 |
Products include appliances, computers, digital products, communication products, fresh food, clothing, books and household items to both retail consumers and vendors.
Being a direct retailer and the second-largest e-commerce company in China, JD.com takes on inventories and orders using its own logistics network, allowing it to control the quality of the products it sells. It operates a different approach to its Chinese rival Alibaba (BABA), the largest e-commerce company in China which operates an online marketplace charging listing fees and commissions to third parties. As a direct retailer, JD.com typically has lower margins but higher revenue that the online marketplace model, however the company has been able to boost margins over the past few years by expanding its logistics unit, JD Logistics to offer services to third parties for deliveries, having invested heavily in logistics automation including drones. The unit offers an integrated supply chain to third parties, including transport, warehousing, distribution and after-sale services with revenue from logistics and other services growing 54% in the first half of 2020
The e-commerce giant has benefited from the tailwinds of the COVID-19 pandemic as consumer shift to online purchases. The company experienced accelerated adoption of users of e-commerce retailers with active users for JD.com jumping 30% in Q2 and a further 32% in Q3 2020. Leveraging JD Logistics going forward is seen as key to boosting both margins and profits, although revenue from logistics and services only accounted for 13.1% in Q3 2020 while online sales accounted for 86.9%. 100% of revenue is generated within China, while the company partners with others to expand their ecosystem including Tencent and Walmart.
For the financial year ending December 2019 revenue rose 27.9% to 692,157.8 Yuan, estimated to rise a further 28.2% in 2020 to 739,463.8m Yuan and a further 22.5% in 2021 to 905,598.6 Yuan. Adjusted earnings per share is forecast to rise 131.8% in 2020 to 131.8 Yuan and increase 41% in 2021 to 15.34 Yuan per share. Based on these figures the stock is trading on forward P/E ratios of 52.9 and 37.5 in 2020 and 2021 respectively, a 48% and 32% premium to peers which trade on an average of 35.8 and 28.4 respectively.
The average target price of analysts covering the stock is $94.78 with 92% of analysts rating the stock as a buy, compared to 0% as a sell and 8% as a hold.
