JD (JD) AI Stock Analysis

• Market Cap: $50.10B
• Dividend Yield: 2.98%
• Average Volume (3M): 10.69M
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.89
• Revenue Growth: 14.61%
• EPS Growth: 32.78%
• Country: US
• Employees: 570,895
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Specialty Retail
• EPS (TTM): 0.69
• Shares Outstanding: 1,490,500,000
• 10 Day Avg. Volume: 13,431,576
• 30 Day Avg. Volume: 10,692,692
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 0.27
• Enterprise Value/Ebitda: 0.79
• 1Y Price Target: $41.23
• Price Target Upside: 25.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 74 Outperform
• Price Target: $37.00 ▲(12.63% Upside)

JD's overall stock score reflects strong financial performance and a solid valuation, supported by robust revenue growth and improved profitability. However, technical analysis presents mixed signals, and short-term profitability is impacted by significant investments in new business initiatives. Despite these challenges, the long-term outlook remains positive, driven by strategic growth initiatives and strong user engagement.

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.

Market Position

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.

User Growth

User growth remained a highlight, with quarterly active customers up over 40% year-over-year, driven by strong performance in JD Retail, food delivery, and Jingxi, as well as higher shopping frequency.

Negative Factors

Competitive Pressure

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

Growth Headwinds

JD now faces moderate growth headwinds as trade-in benefits begin to normalize and year-over-year 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. 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 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'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.

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	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

• Technical Analysis Sentiment: Positive
• Last Price: 32.85
• 50DMA: Positive
• 100DMA: Positive
• 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 32.85 is above the 20-day moving average (MA) of 31.52, above the 50-day MA of 31.96, and below the 200-day MA of 35.75, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 59.05 is Neutral, neither overbought nor oversold. The STOCH value of 67.17 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
PDD	79 Outperform	$173.15B	13.59	31.78%	―	20.09%	-1.83%
BABA	78 Outperform	$322.71B	15.33	15.22%	1.46%	5.48%	128.65%
SE	78 Outperform	$113.44B	97.23	14.48%	―	34.12%	―
JD	74 Outperform	$50.10B	8.88	17.26%	2.98%	14.61%	32.78%
MELI	73 Outperform	$122.56B	59.70	43.83%	―	38.27%	46.21%
CPNG	62 Neutral	$52.70B	145.57	8.55%	―	18.69%	-65.55%
Sector *	61 Neutral	$17.92B	12.81	-2.97%	2.98%	1.30%	-14.28%