JD (JD) AI Stock Analysis

• Market Cap: $49.36B
• Dividend Yield: 3.08%
• Average Volume (3M): 10.24M
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.93
• Revenue Growth: 14.61%
• EPS Growth: 32.78%
• Country: US
• Employees: 570,895
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Specialty Retail
• EPS (TTM): 0.69
• Shares Outstanding: 1,432,535,000
• 10 Day Avg. Volume: 10,058,735
• 30 Day Avg. Volume: 10,239,459
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 0.27
• Enterprise Value/Ebitda: 0.76
• 1Y Price Target: $40.90
• Price Target Upside: 28.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 72 Outperform
• Price Target: $35.00 ▲(10.17% Upside)

JD's overall stock score reflects its strong financial performance and attractive valuation, which are the most significant factors. While technical analysis shows mixed signals, the company's strategic investments and revenue growth provide a positive outlook. Challenges in new business profitability and cash flow pressure are notable risks but are balanced by the company's long-term growth potential.

Positive Factors

Earnings

JD Retail delivered robust revenue and earnings growth, with a 21% increase in revenue and 38% growth in operating profit year-over-year, surpassing market expectations.

Industry Leadership

JD delivered a strong topline beat in 2Q, showcasing its leadership in 3C and home appliances and proving itself as the primary beneficiary of China’s trade-in program, with substantial outperformance versus the broader industry.

Strategic Investments

Investment in food delivery brought early-stage synergies, with over 40% growth in quarterly active users and increased cross-selling from food delivery users to other categories.

Negative Factors

Competitive Environment

JD needs to demonstrate clearer ROI on its FD investments, within a more dynamic and competitive environment than in previous quarters, indicating reduced margin for error.

Growth Challenges

JD now faces moderate growth headwinds as trade-in benefits begin to normalize and y/y comparisons will become more challenging, which may constrain further core margin expansion.

Profitability

Investment in the food delivery business led to a wider operating loss of RMB14.8bn, exceeding previous expectations due to aggressive spending.

JD Business Overview & Revenue Model

Company Description

JD.com, Inc. is one of China's largest e-commerce companies, specializing in online retail and logistics. Founded in 1998, JD operates a wide range of product categories, including electronics, apparel, home goods, and groceries, primarily through its online platform. The company is known for its commitment to quality and efficiency, with a robust logistics network that enables rapid delivery across China. JD also invests in technology and innovation to enhance the shopping experience, including artificial intelligence and big data analytics.

How the Company Makes Money

JD.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 Financial Statement Overview

Summary

JD exhibits strong financial performance characterized by robust revenue growth, improved profitability, and a solid balance sheet. The company has effective cash flow management, though there are areas for potential optimization, particularly in free cash flow. Overall, JD's financial position is stable and reflects operational strength.

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.

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.

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.16T	1.08T	1.05T	951.59B	745.80B
Gross Profit	113.44B	159.70B	147.07B	129.07B	109.11B
EBITDA	47.36B	42.82B	23.21B	4.14B	58.01B
Net Income	41.36B	24.17B	10.38B	-3.56B	49.41B
Balance Sheet
Total Assets	698.23B	628.96B	595.25B	496.51B	422.29B
Cash, Cash Equivalents and Short-Term Investments	234.00B	190.15B	219.96B	185.33B	146.66B
Total Debt	89.77B	68.43B	65.05B	34.14B	31.55B
Total Liabilities	384.94B	332.58B	321.13B	249.72B	200.67B
Stockholders Equity	239.35B	231.86B	213.37B	208.91B	187.54B
Cash Flow
Free Cash Flow	44.28B	39.51B	35.84B	23.74B	34.87B
Operating Cash Flow	58.09B	59.52B	57.82B	42.30B	42.54B
Investing Cash Flow	-871.00M	-59.54B	-54.03B	-74.25B	-57.81B
Financing Cash Flow	-21.00B	-5.81B	1.18B	19.50B	71.07B

JD Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 31.77
• 50DMA: Negative
• 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 Negative. The current price of 31.77 is below the 20-day moving average (MA) of 32.12, below the 50-day MA of 32.41, and below the 200-day MA of 36.25, indicating a bearish trend. The MACD of -0.23 indicates Negative momentum. The RSI at 47.41 is Neutral, neither overbought nor oversold. The STOCH value of 38.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JD.

JD Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BABA	80 Outperform	$287.80B	15.88	13.04%	1.63%	5.17%	74.55%
PDD	80 Outperform	$165.19B	12.81	36.31%	―	35.04%	22.04%
SE	78 Outperform	$104.95B	89.95	14.48%	―	34.12%	―
MELI	73 Outperform	$121.28B	59.08	43.83%	―	38.27%	46.21%
JD	72 Outperform	$49.36B	8.95	17.26%	3.08%	14.61%	32.78%
CPNG	62 Neutral	$51.30B	141.69	8.55%	―	18.69%	-65.55%
Sector *	61 Neutral	$17.43B	12.62	-6.02%	3.11%	1.71%	-15.47%