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Dada Nexus Ltd. (DADA)
NASDAQ:DADA
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Dada Nexus
(NASDAQ:DADA)
58Neutral
Positive Factors
Financial Performance
Dada printed a better-than-expected 2Q24 with total revenues 4.7%/3% better than analyst/consensus estimates contributed by 47% year-over-year growth in Dada Now.
Management
The newly elected Chairman Mr. Kevin Qing Guo is viewed as a positive addition to the board and could bring valuable advice on high-level strategic direction.
Negative Factors
Growth Projection
Into the second half, JD Now is expected to still experience negative growth while Dada Now growth likely decelerate though remain healthy given high base.
Dada Nexus (DADA) vs. S&P 500 (SPY)
Market Cap
$488.54M
Dividend YieldN/A
Average Volume (3M)1.82M
Price to Earnings (P/E)―
Beta (1Y)1.25
Revenue Growth-10.58%
EPS Growth-91.05%
CountryUS
Employees2,376
SectorConsumer Cyclical
Sector Strength49
IndustryRetail - Discretionary
Share Statistics
EPS (TTM)-1.09
Shares Outstanding264,536,250
10 Day Avg. Volume1,546,085
30 Day Avg. Volume1,816,628
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.34
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
$1.50Price Target Upside-18.92% Downside
Rating ConsensusHold
Number of Analyst Covering1
Dada Nexus Business Overview & Revenue Model
Company DescriptionDada Nexus Ltd is a platform of local on-demand retail and delivery in China. The company operates JD-Daojia, and Dada Now. The firm distributes various products online to its customers. The company provides delivery service and marketplace service through its mobile platforms, websites, and mini-programs. The Group's principal operations and geographic markets are in the People's Republic of China.
How the Company Makes MoneyDada Nexus makes money primarily through commissions and service fees from its JD-Daojia and Dada Now platforms. JD-Daojia generates revenue by charging retailers and brand owners a commission on each transaction facilitated through its platform. Dada Now earns money by charging delivery fees to businesses and individual consumers for its logistics and delivery services. The company also benefits from strategic partnerships, particularly with JD.com, which integrates its services to enhance retail and delivery capabilities. This partnership not only boosts the transaction volume but also enhances the technological and logistical support for Dada Nexus, thereby contributing to its revenue growth.
Dada Nexus Financial Statement Overview
Summary
Dada Nexus shows strong revenue growth and a solid equity base with low leverage. However, persistent negative profitability and cash flows indicate operational inefficiencies and a need for profitability improvements.Income Statement
Dada Nexus has shown a consistent increase in total revenue over the years, with a 12.1% growth rate from 2022 to 2023. The gross profit margin for 2023 is 37.84%, indicating a reasonable level of profitability at the gross level. However, the company continues to suffer from negative net profit margins, with a net loss in 2023, highlighting challenges in achieving operational profitability. The negative EBIT and EBITDA margins further underscore persistent operating inefficiencies.60
Neutral
Balance Sheet
The balance sheet shows a strong equity base with a high equity ratio of 73.37% in 2023, reflecting financial stability. The debt-to-equity ratio is low at 0.02, indicating minimal leverage, which reduces financial risk. However, the negative return on equity (-35.22%) suggests that the company is not efficiently generating profits from its equity base.70
Positive
Cash Flow
There is a significant improvement in operating cash flow from 2022 to 2023, but it remains negative, showing ongoing challenges in generating positive cash flows from operations. Free cash flow also improved but stayed negative, indicating difficulties in covering capital expenditures and supporting growth without external financing. The operating cash flow to net income ratio is favorable, suggesting better cash conversion than net income might imply.55
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 10.38B | 10.51B | 9.37B | 6.87B | 5.74B | 3.10B | Gross Profit |
| 3.45B | 3.98B | 3.62B | 1.73B | 1.02B | 253.83M | EBIT |
| -2.09B | -1.15B | -2.12B | -2.58B | -1.76B | -1.75B | EBITDA |
| -1.68B | -1.45B | -1.62B | -2.39B | -1.56B | -1.54B | Net Income Common Stockholders |
| -1.94B | -1.96B | -2.01B | -2.47B | -1.71B | -1.67B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.32B | 3.45B | 3.94B | 1.71B | 6.23B | 2.11B | Total Assets |
| 8.34B | 7.57B | 9.05B | 5.28B | 9.55B | 4.29B | Total Debt |
| 129.70M | 15.13M | 141.03M | 182.00M | 881.26M | 0.00 | Net Debt |
| -807.43M | -1.88B | -1.09B | -330.83M | -4.58B | -1.15B | Total Liabilities |
| 1.68B | 2.02B | 2.05B | 1.49B | 2.52B | 11.48B | Stockholders Equity |
| 6.66B | 5.56B | 7.00B | 3.79B | 7.03B | -7.19B |
| Cash Flow | Free Cash Flow | ||||
| 69.40M | -388.09M | -949.18M | -2.67B | -1.13B | -1.33B | Operating Cash Flow |
| 69.40M | -380.84M | -945.44M | -2.66B | -1.11B | -1.30B | Investing Cash Flow |
| 0.00 | 1.21B | -1.03B | -686.66M | -229.76M | -267.46M | Financing Cash Flow |
| 0.00 | -85.20M | 3.05B | -1.55B | 5.89B | 0.00 |
Dada Nexus Technical Analysis
Positive
1.85
Price Trends
1.67
Positive
1.59
Positive
1.52
Positive
Market Momentum
0.04
Positive
57.56
Neutral
52.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DADA, the sentiment is Positive. The current price of 1.85 is below the 20-day moving average (MA) of 1.87, above the 50-day MA of 1.67, and above the 200-day MA of 1.52, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 57.56 is Neutral, neither overbought nor oversold. The STOCH value of 52.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DADA.
Dada Nexus Risk Analysis
Dada Nexus disclosed 96 risk factors in its most recent earnings report. Dada Nexus 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
Dada Nexus 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 | $329.64B | 19.28 | 11.97% | 0.71% | 4.28% | 28.42% | |
81 Outperform | $163.68B | 11.68 | 48.55% | ― | 84.13% | 122.96% | |
79 Outperform | $64.10B | 10.80 | 17.55% | 1.83% | 1.88% | 49.67% | |
73 Outperform | $2.11T | 35.11 | 24.29% | ― | 10.99% | 91.61% | |
72 Outperform | $98.45B | 17.04 | 33.99% | 5.67% | 0.16% | -13.41% | |
59 Neutral | $12.50B | 10.40 | 2.26% | 3.63% | 1.65% | -18.81% | |
58 Neutral | $488.54M | ― | -44.36% | ― | -10.58% | -91.05% |
* Consumer Cyclical Sector Average
Performance Comparison
DADA
Dada Nexus
1.86
-0.63
-25.30%
AMZN
Amazon
193.89
15.14
8.47%
UPS
United Parcel
115.23
-31.13
-21.27%
JD
JD
41.24
14.92
56.69%
BABA
Alibaba
138.35
66.49
92.53%
PDD
PDD Holdings
118.76
-4.44
-3.60%
Dada Nexus Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -2.63% | Next Earnings Date: May 20, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in user engagement and revenue for Dada's platforms, particularly JD NOW and Dada NOW, with significant improvements in operational efficiency and store expansion. However, there were challenges in JD NOW revenue due to decreased advertising and increased administrative costs.Highlights
JD NOW User Growth
Year-on-year growth in monthly transacting users and orders through the JD App increased by over 100% this quarter. High-frequency users through the JD App more than doubled.
Dada NOW Revenue Increase
Net revenues from Dada NOW increased by 39% year-on-year to RMB 1.5 billion, driven by strengthened partnerships with chain merchants and enhanced delivery service quality.
Enhanced Fulfillment Efficiency
The average fulfillment time for JD NOW orders was shortened by more than 20% year-over-year, improving delivery efficiency.
Store Expansion
The number of operating stores increased by over 70% year-over-year to more than 600,000 stores, expanding product offerings.
Improved Net Loss Margin
Non-GAAP net loss ratio was 2.4%, narrowing by 3.7 percentage points compared to the previous quarter, due to improved cost efficiency.
Lowlights
Decreased JD NOW Revenue
Net revenues for JD NOW were affected by a decrease in online advertising and marketing services revenues, as well as a decrease in fulfillment services due to the delivery fee waiver program.
Increased General and Administrative Expenses
General and administrative expenses rose due to an increase in the provision for credit loss and litigation-related expenses.
Company Guidance
During Dada's third quarter 2024 earnings call, CFO Henry Jun Mao highlighted several key metrics indicating the company's robust growth trajectory. JD NOW experienced over 100% year-on-year growth in both monthly transacting users and orders via the JD App, demonstrating strong user engagement and increased penetration among JD users. Dada NOW reported a 46% year-on-year growth in net revenues for the first nine months of the year, reaching RMB 1.5 billion in the third quarter alone, fueled by enhanced partnerships with chain merchants. The company's total net revenues for the quarter amounted to RMB 2.4 billion. Despite a non-GAAP net loss of RMB 59 million, the loss margin improved by 3.7 percentage points sequentially, thanks to better cost efficiency and optimized consumer subsidy strategies. Additionally, the average fulfillment time for JD NOW orders decreased by over 20% year-over-year, reflecting improvements in delivery efficiency. The call underscored Dada's focus on high-quality growth, user experience, and the synergies between its retail and delivery platforms to drive sustainable long-term expansion.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.