JD (JD) AI Stock Analysis

• Market Cap: $43.51B
• Dividend Yield: 3.37%
• Average Volume (3M): 7.56M
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.91
• Revenue Growth: 16.54%
• EPS Growth: -3.61%
• Country: US
• Employees: 570,895
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.54
• Shares Outstanding: 1,490,500,000
• 10 Day Avg. Volume: 8,891,545
• 30 Day Avg. Volume: 7,562,074
• PEG Ratio: 0.12
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 8.80
• Enterprise Value/Market Cap: 8.91
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 2.34
• Enterprise Value/Ebitda: 8.83
• 1Y Price Target: $36.63
• Price Target Upside: 19.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $32.00 ▲(4.13% Upside)

JD's overall stock score reflects strong financial performance and attractive valuation, supported by robust earnings call insights. However, technical analysis indicates bearish momentum, which tempers the overall score.

Positive Factors

Revenue Growth

Consistent double-digit revenue growth across multiple segments indicates strong market demand and effective business strategies, supporting long-term expansion.

User Base Expansion

Significant growth in the user base enhances JD's market position and potential for increased sales, ensuring sustained engagement and revenue opportunities.

AI and New Business Initiatives

Advancements in AI and new business ventures diversify JD's offerings, driving innovation and competitive advantage in the evolving retail landscape.

Negative Factors

Profit Margin Pressures

Ongoing investments and rising operational costs are compressing profit margins, which may limit profitability and require strategic cost management.

Challenges in Electronics and Home Appliances

Slower growth in key categories like electronics suggests market saturation or competitive pressures, potentially impacting overall revenue growth.

Cash Conversion Efficiency

A decline in cash conversion efficiency could affect liquidity and operational flexibility, necessitating improvements in cash management practices.

JD Business Overview & Revenue Model

Company Description

JD.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 Money

JD.com generates revenue through several key streams. The primary source of income comes from direct sales of products, where the company purchases goods from suppliers and sells them to consumers. Additionally, JD operates a marketplace model, allowing third-party sellers to list and sell their products on its platform, from which it earns commissions on sales. The company also generates revenue through logistics services, offering fulfillment solutions to other businesses. Strategic partnerships with various brands and companies, including technology firms and financial services, further enhance its revenue potential by expanding its service offerings and market reach.

JD Financial Statement Overview

Summary

JD demonstrates solid financial performance with consistent revenue growth and a stable balance sheet. However, profitability margins have faced some pressure, and operational costs have increased, impacting net profit margins.

Income Statement

JD's income statement shows a consistent revenue growth trend, with a TTM revenue growth rate of 3.06%. The gross profit margin has improved to 14.43% in TTM, indicating better cost management. However, the net profit margin has slightly decreased to 3.06% from 3.57% in the previous year, suggesting some pressure on profitability. The EBIT and EBITDA margins have also seen a decline, reflecting increased operational costs.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.44 in TTM. The return on equity has slightly decreased to 16.63%, indicating a slight decline in profitability relative to shareholders' equity. The equity ratio remains strong at 32.51%, suggesting a solid capital structure.

Cash Flow

JD's cash flow statement shows a positive free cash flow growth rate of 11.60% in TTM, indicating improved cash generation. However, the operating cash flow to net income ratio has decreased to 0.77, suggesting a potential decline in cash conversion efficiency. The free cash flow to net income ratio remains healthy at 32.86%.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.30T	1.16T	1.08T	1.05T	951.59B	745.80B
Gross Profit	165.96B	113.44B	159.70B	147.07B	129.07B	109.11B
EBITDA	43.93B	47.36B	42.82B	23.21B	4.87B	58.01B
Net Income	32.20B	41.36B	24.17B	10.38B	-3.56B	49.41B
Balance Sheet
Total Assets	713.53B	698.23B	628.96B	595.25B	496.51B	422.29B
Cash, Cash Equivalents and Short-Term Investments	198.27B	234.00B	190.15B	219.96B	185.33B	146.66B
Total Debt	112.09B	89.77B	68.43B	65.05B	34.14B	31.55B
Total Liabilities	409.11B	384.94B	332.58B	321.13B	249.72B	200.67B
Stockholders Equity	231.93B	239.35B	231.86B	213.37B	208.91B	187.54B
Cash Flow
Free Cash Flow	9.10B	44.28B	39.51B	35.84B	23.74B	34.87B
Operating Cash Flow	23.00B	58.09B	59.52B	57.82B	42.30B	42.54B
Investing Cash Flow	11.82B	-871.00M	-59.54B	-54.03B	-74.25B	-57.81B
Financing Cash Flow	-14.51B	-21.00B	-5.81B	1.18B	19.50B	71.07B

JD Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.73
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 30.73 is above the 20-day moving average (MA) of 29.24, above the 50-day MA of 29.86, and below the 200-day MA of 32.60, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.72 is Neutral, neither overbought nor oversold. The STOCH value of 69.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JD.

JD Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MELI	73 Outperform	$108.99B	50.61	40.65%	―	38.01%	44.52%
JD	70 Outperform	$43.51B	10.10	13.68%	3.37%	16.54%	-3.61%
PDD	70 Outperform	$165.29B	11.74	29.98%	―	12.53%	-6.43%
SE	69 Neutral	$77.90B	55.54	15.66%	―	35.85%	1336.48%
BABA	68 Neutral	$377.79B	22.27	12.39%	1.31%	5.14%	50.76%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CPNG	60 Neutral	$40.50B	103.98	8.73%	―	16.63%	-62.54%