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JD.com Inc (JD)
:JD
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JD
(NASDAQ:JD)
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Select Model
Rating:79Outperform
Price Target:
$40.00
▲(15.94% Upside)
JD's strong financial performance and attractive valuation are the primary drivers of its high score. Technical analysis supports a positive outlook, though caution is advised due to potential overbought conditions. The earnings call underscores robust growth, albeit with short-term profitability challenges.
Positive Factors
Revenue Growth
Strong revenue growth indicates JD's expanding market presence and successful business strategies, supporting long-term sustainability.
Logistics Expansion
Expanding logistics capabilities strengthens JD's competitive advantage in delivery efficiency, crucial for sustaining growth in e-commerce.
User Engagement
Increased user engagement and shopping frequency bolster JD's revenue potential and customer loyalty, enhancing long-term business stability.
Negative Factors
Decline in Net Income
A significant decline in net income due to investments in new ventures may strain profitability, impacting JD's financial health in the near term.
Operating Loss in New Business
Widening losses in new business sectors could divert resources from core operations, potentially affecting JD's overall profitability.
Free Cash Flow Impact
A substantial drop in free cash flow limits JD's financial flexibility, potentially affecting its ability to invest in growth opportunities.
JD (JD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$54.48B
Dividend Yield2.84%
Average Volume (3M)17.98M
Price to Earnings (P/E)9.7
Beta (1Y)0.89
Revenue Growth14.61%
EPS Growth32.78%
CountryUS
Employees570,895
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.69
Shares Outstanding1,490,500,000
10 Day Avg. Volume24,701,305
30 Day Avg. Volume17,984,301
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.76
Enterprise Value/Revenue0.03
Enterprise Value/Gross Profit0.27
Enterprise Value/Ebitda0.79
Forecast
1Y Price Target
$41.96Price Target Upside21.62% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
JD Business Overview & Revenue Model
Company DescriptionJD.com, Inc. operates as a supply chain-based technology and service provider in the People's Republic of China. The company offers computers, communication, and consumer electronics products, as well as home appliances; and general merchandise products comprising food, beverage and fresh produce, baby and maternity products, furniture and household goods, cosmetics and other personal care items, pharmaceutical and healthcare products, industrial products, books, automobile accessories, apparel and footwear, bags, and jewelry. It also provides online marketplace services for third-party merchants; marketing services; and omni-channel solutions to customers and offline retailers, as well as online healthcare services. In addition, the company develops, owns, and manages its logistics facilities and other real estate properties to support third parties; offers asset management services and integrated service platform; leasing of storage facilities and related management services; and engages in online retail business. Further, it provides integrated data, technology, business, and user management industry solutions to support the digitization of enterprises and institutions; and technology-driven supply chain solutions and logistics services. The company was formerly known as 360buy Jingdong Inc. and changed its name to JD.com, Inc. in January 2014. JD.com, Inc. was incorporated in 2006 and is headquartered in Beijing, the People's Republic of China.
How the Company Makes MoneyJD.com generates revenue primarily through the sale of products on its platform, acting as both a direct retailer and a marketplace for third-party sellers. The company earns money from direct sales of goods, which contribute significantly to its revenue, as well as from commissions charged to third-party sellers for listing their products on JD's platform. Additionally, JD monetizes its logistics services by offering delivery solutions to other businesses and third-party sellers, creating another revenue stream. Partnerships with various brands and manufacturers also enhance its product offerings and drive sales. Furthermore, JD has been expanding its services into areas like cloud computing and technology solutions, which are anticipated to contribute to future revenue growth.
JD Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue by different business segments, revealing which areas are the most lucrative and where JD might face opportunities or challenges.
Breaks down revenue by different business segments, revealing which areas are the most lucrative and where JD might face opportunities or challenges.
Data provided by:
Main Street Data
Main Street DataJD Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue growth and improvements in core retail profitability, driven by robust user engagement and supply chain capabilities. However, significant investments in new business initiatives like food delivery have impacted short-term profitability and cash flow. While the long-term outlook remains positive, the current financial impact of these investments presents challenges.Q2-2025 Updates
Positive Updates
Solid Top-Line Growth
JD.com reported a solid top-line growth of 22% year-on-year in the second quarter, with total revenues reaching RMB 357 billion.
JD Retail Profitability Improvement
JD Retail's non-GAAP operating profit increased by 38% year-on-year to RMB 13.9 billion in the second quarter, with an operating margin of 4.5% up from 3.9% in the same period last year.
Record User Growth and Engagement
Quarterly active customers (QAC) accelerated notably to over 40% year-on-year in Q2, with shopping frequency on JD's platform rising by over 40%. JD Plus members saw an even faster shopping frequency growth of over 50% year-on-year.
Strong Performance in Electronics and Home Appliances
Revenues in electronics and home appliances were up 23% year-on-year, driven by strong supply chain capabilities.
General Merchandise Growth
General merchandise business delivered strong performance with revenues up 16% year-on-year, maintaining double-digit growth for major categories like supermarkets and fashion.
Negative Updates
Decline in Non-GAAP Net Income
Non-GAAP net income attributable to ordinary shareholders was RMB 7.4 billion, down 49% year-on-year, primarily due to investments in new businesses like food delivery.
Operating Loss in New Business
The non-GAAP operating loss for New Business widened to RMB 14.8 billion, primarily driven by the rapid expansion of food delivery and Jingxi business.
Impact on Free Cash Flow
The last 12 months' free cash flow as of the end of the second quarter was RMB 10 billion, compared to RMB 56 billion in the same period last year, due to cash outflows associated with the trading program and decline in operating income.
Company Guidance
During JD.com's second quarter 2025 earnings call, the company reported a robust year-on-year revenue growth of 22%, reaching RMB 357 billion. The electronics and home appliances category saw a 23% increase in revenues, while general merchandise revenues rose by 16%. JD Retail's operating profit improved by 38% year-on-year to RMB 13.9 billion, with an operating margin expansion to 4.5%. The company also noted a significant rise in quarterly active customers, which grew by over 40%, and a similar increase in user shopping frequency. Despite a decrease in non-GAAP net income attributable to ordinary shareholders to RMB 7.4 billion due to investments in new businesses like JD Food Delivery, JD remains confident in its core retail business and its strategic initiatives to drive long-term sustainable growth.JD Financial Statement Overview
Summary
JD's financial performance is strong, with significant revenue growth, improved profitability, and a solid balance sheet. The company has shown effective cash flow management, although there are areas for potential optimization. Overall, JD is in a stable financial position, reflecting its operational strength and strategic financial management.Income Statement
JD has demonstrated strong revenue growth, with a significant increase from previous periods, particularly the jump from 2020 to the recent TTM. The gross profit margin is healthy, reflecting efficient cost management, while net profit margin has improved drastically over the years, indicating better profitability. EBIT and EBITDA margins have also shown improvement, depicting operational efficiency and strong earnings before interest, taxes, depreciation, and amortization.85
Very Positive
Balance Sheet
JD maintains a robust balance sheet with a solid equity base, as evidenced by a favorable equity ratio. The debt-to-equity ratio is manageable, suggesting a balanced approach to leveraging. Return on equity shows an upward trend, indicating effective use of equity to generate profits despite some fluctuations in earlier years.80
Positive
Cash Flow
JD's cash flow statements show a positive trend in operating cash flow, indicating strong cash generation from core operations. Free cash flow has been positive and growing, although there was a dip in the latest TTM compared to the previous year. The ratios of cash flow to net income highlight efficient cash conversion, although recent decreases suggest potential areas for improvement.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.20T | 1.16T | 1.08T | 1.05T | 951.59B | 745.80B |
| Gross Profit | 155.12B | 113.44B | 159.70B | 147.07B | 129.07B | 109.11B |
| EBITDA | 52.39B | 47.36B | 42.82B | 23.21B | 4.14B | 58.01B |
| Net Income | 45.12B | 41.36B | 24.17B | 10.38B | -3.56B | 49.41B |
Balance Sheet | ||||||
| Total Assets | 677.86B | 698.23B | 628.96B | 595.25B | 496.51B | 422.29B |
| Cash, Cash Equivalents and Short-Term Investments | 194.16B | 234.00B | 190.15B | 219.96B | 185.33B | 146.66B |
| Total Debt | 87.43B | 89.77B | 68.43B | 65.05B | 34.14B | 31.55B |
| Total Liabilities | 369.19B | 384.94B | 332.58B | 321.13B | 249.72B | 200.67B |
| Stockholders Equity | 234.32B | 239.35B | 231.86B | 213.37B | 208.91B | 187.54B |
Cash Flow | ||||||
| Free Cash Flow | 37.99B | 44.28B | 39.51B | 35.84B | 23.74B | 34.87B |
| Operating Cash Flow | 51.30B | 58.09B | 59.52B | 57.82B | 42.30B | 42.54B |
| Investing Cash Flow | -13.05B | -871.00M | -59.54B | -54.03B | -74.25B | -57.81B |
| Financing Cash Flow | -20.85B | -21.00B | -5.81B | 1.18B | 19.50B | 71.07B |
JD Technical Analysis
Positive
34.50
Price Trends
32.60
Positive
32.83
Positive
35.63
Negative
Market Momentum
0.72
Negative
56.08
Neutral
61.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JD, the sentiment is Positive. The current price of 34.5 is above the 20-day moving average (MA) of 33.49, above the 50-day MA of 32.60, and below the 200-day MA of 35.63, indicating a neutral trend. The MACD of 0.72 indicates Negative momentum. The RSI at 56.08 is Neutral, neither overbought nor oversold. The STOCH value of 61.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JD.
JD Risk Analysis
JD disclosed 111 risk factors in its most recent earnings report. JD 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
JD Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $54.48B | 9.74 | 17.26% | 2.84% | 14.61% | 32.78% | |
79 Outperform | $180.53B | 14.17 | 27.06% | ― | 20.09% | -1.83% | |
78 Outperform | $109.28B | 93.66 | 12.43% | ― | 34.12% | ― | |
74 Outperform | $125.14B | 60.96 | 35.94% | ― | 38.27% | 46.21% | |
74 Outperform | $408.17B | 19.44 | 12.88% | 1.15% | 5.48% | 128.65% | |
62 Neutral | $58.68B | 162.08 | 7.79% | ― | 18.69% | -65.55% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
JD
JD
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-5.50
-13.75%
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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.