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Dada Nexus Ltd. (DADA)
NASDAQ:DADA
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Dada Nexus
(NASDAQ:DADA)
Rating:49Neutral
Price Target:―
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. SPDR S&P 500 ETF (SPY)
Market Cap
$507.96M
Dividend YieldN/A
Average Volume (3M)N/A
Price to Earnings (P/E)―
Beta (1Y)0.56
Revenue Growth-13.54%
EPS Growth-3.33%
CountryUS
Employees2,159
SectorConsumer Cyclical
Sector Strength61
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.03
Shares Outstanding258,246,150
10 Day Avg. VolumeN/A
30 Day Avg. VolumeN/A
Financial Highlights & Ratios
PEG Ratio4.86
Price to Book (P/B)-12.50
Price to Sales (P/S)0.00
P/FCF Ratio-67.62
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-23.47% Downside
Rating ConsensusHold
Number of Analyst Covering0
Dada Nexus Business Overview & Revenue Model
Company DescriptionDada Nexus (DADA) is a leading platform of local on-demand retail and delivery in China, operating through its two main business segments: Dada Now and JD-Daojia. Dada Now is a crowdsourced, on-demand delivery platform open to retailers and individual senders across various industries and product categories. JD-Daojia (JDDJ) is an online retail platform that partners with local supermarkets and retailers to provide consumers with a seamless shopping experience. The company leverages its technology-driven infrastructure to offer efficient and timely delivery services, enhancing the last-mile logistics ecosystem.
How the Company Makes MoneyDada Nexus generates its revenue primarily through service fees charged to merchants and delivery fees from consumers. The company earns commissions from retailers on the JD-Daojia platform based on the gross merchandise volume (GMV) of transactions facilitated through the platform. Additionally, Dada Now generates income by charging delivery fees to customers who utilize its logistics services. Strategic partnerships, particularly with major retail chains and e-commerce platforms like JD.com, further bolster its revenue streams by expanding its reach and service offerings. The company also benefits from the growing demand for efficient delivery solutions in urban areas, which drives increased usage of its platforms.
Dada Nexus Earnings Call Summary
Earnings Call Date:May 20, 2025
(Q3-2024)
| % Change Since: -3.92%|
Next Earnings Date:Aug 26, 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.Q3-2024 Updates
Positive Updates
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.
Negative Updates
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.Dada Nexus Financial Statement Overview
Summary
Dada Nexus is facing significant financial challenges. The income statement reflects inconsistent revenue growth and ongoing losses. The balance sheet shows stability due to a high equity ratio but is offset by declining stockholders' equity. Cash flow issues are evident, with negative free cash flow and inefficient cash generation.Income Statement
Dada Nexus has shown inconsistent revenue growth with a decline of 8.06% from 2023 to 2024. The company is operating at a significant loss with negative net income and EBIT margins. The gross profit margin has also decreased, reflecting challenges in cost management and revenue generation.35
Negative
Balance Sheet
The company's balance sheet shows a stable equity position with a high equity ratio of 69.16% in 2024, indicating financial stability. However, the debt-to-equity ratio remains low, suggesting limited leverage. The declining stockholders' equity over recent years may indicate ongoing financial risks.55
Neutral
Cash Flow
Free cash flow remains negative, with no significant improvement over the years. The operating cash flow to net income ratio in 2023 was negative, reflecting inefficiencies in converting sales into actual cash flow. The lack of operating cash flow in 2024 is concerning for liquidity management.40
Negative
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.66B | 10.51B | 9.37B | 6.87B | 5.74B |
| Gross Profit | 2.44B | 3.98B | 3.62B | 1.73B | 1.02B |
| EBITDA | -1.57B | -1.45B | -1.62B | -2.39B | -1.56B |
| Net Income | -2.04B | -1.96B | -2.01B | -2.47B | -1.71B |
Balance Sheet | |||||
| Total Assets | 5.21B | 7.57B | 9.05B | 5.28B | 9.55B |
| Cash, Cash Equivalents and Short-Term Investments | 3.00B | 3.45B | 3.94B | 1.71B | 6.23B |
| Total Debt | 40.02M | 15.13M | 141.03M | 182.00M | 881.26M |
| Total Liabilities | 1.61B | 2.02B | 2.05B | 1.49B | 2.52B |
| Stockholders Equity | 3.61B | 5.56B | 7.00B | 3.79B | 7.03B |
Cash Flow | |||||
| Free Cash Flow | -1.06B | -388.09M | -949.18M | -2.67B | -1.13B |
| Operating Cash Flow | -1.06B | -380.84M | -945.44M | -2.66B | -1.11B |
| Investing Cash Flow | 1.78B | 1.21B | -1.03B | -686.66M | -229.76M |
| Financing Cash Flow | -81.07M | -85.20M | 3.05B | -1.55B | 5.89B |
Dada Nexus Technical Analysis
Neutral
1.96
Price Trends
1.97
Negative
1.90
Positive
1.69
Positive
Market Momentum
>-0.01
Positive
42.73
Neutral
36.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DADA, the sentiment is Neutral. The current price of 1.96 is below the 20-day moving average (MA) of 2.03, below the 50-day MA of 1.97, and above the 200-day MA of 1.69, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.73 is Neutral, neither overbought nor oversold. The STOCH value of 36.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 3 New Risks
1.
We cannot guarantee that any share repurchase program will be fully consummated or that any share repurchase program will enhance long-term shareholder value, and share repurchases could increase the volatility of the price of our ADSs and could diminish our cash reserves. Q4, 2023
2.
Jingdong Bangneng may have actual or potential conflicts of interest with us. Q4, 2023
3.
If we determine our goodwill and other intangible assets to be impaired, our results of operations and financial condition may be adversely affected. Q4, 2023
Dada Nexus Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $49.77B | 7.83 | 19.81% | 3.06% | 8.13% | 91.39% | |
77 Outperform | $255.59B | 14.24 | 13.04% | 1.82% | 5.17% | 74.55% | |
75 Outperform | $143.86B | 11.16 | 36.31% | ― | 35.04% | 22.04% | |
74 Outperform | $54.99B | 219.02 | 6.06% | ― | 20.88% | -80.08% | |
66 Neutral | £1.86B | 11.27 | 6.18% | 3.11% | 0.61% | -17.57% | |
53 Neutral | $542.51M | ― | -134.38% | ― | -23.23% | ― | |
49 Neutral | $507.96M | ― | -44.36% | ― | -13.54% | -3.33% |
* Consumer Cyclical Sector Average
Performance Comparison
DADA
Dada Nexus
1.96
0.52
36.11%
JD
JD
32.07
5.60
21.16%
BABA
Alibaba
108.70
36.41
50.37%
PDD
PDD Holdings
103.59
-31.09
-23.08%
JMIA
Jumia Technologies AG
4.43
-4.03
-47.64%
CPNG
Coupang
30.29
8.88
41.48%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.