Vipshop (VIPS) AI Stock Analysis

• Market Cap: $7.72B
• Dividend Yield: 3.2%
• Average Volume (3M): 3.73M
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.90
• Revenue Growth: -5.90%
• EPS Growth: -11.16%
• Country: US
• Employees: 14,966
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Specialty Retail
• EPS (TTM): 0.61
• Shares Outstanding: 437,081,500
• 10 Day Avg. Volume: 3,640,368
• 30 Day Avg. Volume: 3,728,555
• PEG Ratio: 0.06
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.76
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $18.43
• Price Target Upside: 23.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 78 Outperform
• Price Target: $16.00 ▲(6.95%Upside)

Vipshop shows strong financial performance and an attractive valuation, but faces challenges with declining revenue and profit margins. Despite mixed earnings call sentiment, the stock remains a potentially undervalued investment.

Positive Factors

Apparel Segment Performance

The apparel segment returned to positive growth during the quarter, and active SVIP members increased by 18% year over year, contributing 51% of total online spending.

Membership Growth

A return to growth in apparel and an 18% y/y rise in SVIP members, now driving over half of online spending.

Strategic Differentiation

Merchandising remains a key strategic differentiator, particularly in fashion apparel, athleisure, and family lifestyle categories.

Negative Factors

Lack of Growth Catalysts

There is a lack of growth catalyst for VIPS in the first half of 2025.

Revenue Decline

Revenue declined 5% year over year and active customers fell 4%.

Stock Downgrade

Analysts have downgraded the stock from Buy to Neutral due to less than 15% expected total return and lack of near-term catalyst.

Vipshop Business Overview & Revenue Model

Company Description

Vipshop Holdings Limited operates online platforms for various brands in the People's Republic of China. It operates in Vip.com, Shan Shan Outlets, and Others segments. The company offers women's apparel, such as casual wear, jeans, dresses, outerwear, lingerie, pajamas, and maternity clothes; men's apparel comprising casual and smart-casual T-shirts, polo shirts, jackets, pants, and underwear; and skin care and cosmetic products, including cleansers, lotions, face and body creams, face masks, sunscreen, foundations, lipsticks, eye shadows, and other cosmetics-related items. It also provides shoes and bags, which comprises casual and formal shoes, purses, satchels, luggage, duffel bags, and wallets; handbags; apparel, gears and accessories, furnishings and decor, toys, and games for boys, girls, infants, and toddlers; sportswear, sports gear, and footwear for various sporting activities; home furnishings, such as bed and bath products, home decor, kitchen and tabletop items, and home appliances; and consumer electronic products. In addition, the company offers food and snacks, beverages, fresh produce, and pet goods; beauty products; and internet finance services, including consumer and supplier financing, and microcredit. Vipshop Holdings Limited provides its branded products through its vip.com and vipshop.com online platforms, as well as through its internet website and cellular phone application. Further, it offers warehousing, logistics, product procurement, research and development, technology development, and consulting services; software development and information technology support solutions; and supply chain services. Vipshop Holdings Limited was founded in 2008 and is headquartered in Guangzhou, the People's Republic of China.

How the Company Makes Money

Vipshop makes money primarily through the sale of discounted branded products on its e-commerce platform. The company operates a flash sales model, where it purchases excess inventory from brands at a discount and resells these products at competitive prices to its customers. This model allows Vipshop to offer significant discounts, attracting a large customer base. Revenue is generated from the markup on these discounted products. Additionally, Vipshop benefits from strategic partnerships with various international and domestic brands, enhancing its product offerings and expanding its customer reach. The company's logistics and supply chain efficiency also contribute to its profitability by minimizing overhead costs and ensuring timely delivery of products.

Vipshop Financial Statement Overview

Summary

Vipshop demonstrates solid financial health with strong profitability and a robust balance sheet, indicative of prudent financial management. However, recent operational cash flow issues need monitoring.

Income Statement

The company exhibits strong profitability with a high gross profit margin and consistent net profit margins over the years. Revenue has shown fluctuations but remains robust, indicating resilience in a competitive retail sector. EBIT and EBITDA margins are healthy, reflecting efficient operational management.

Balance Sheet

Vipshop maintains a solid balance sheet with a low debt-to-equity ratio and strong equity ratio, showcasing financial stability and low leverage. The return on equity is impressive, reflecting efficient use of equity capital. The company's assets and equity have been growing, supporting future expansion.

Cash Flow

Cash flow analysis shows a volatile but positive free cash flow trend, indicating good cash generation capability. However, recent operating cash flow dropped to zero, raising concerns about operational cash sustainability. Nonetheless, previous years show strong free cash flow to net income ratios, highlighting effective cash management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
107.04B	108.42B	112.86B	103.15B	117.06B	101.86B
	Gross Profit
25.01B	25.47B	25.72B	21.62B	23.11B	21.29B
	EBIT
8.69B	9.17B	9.10B	6.20B	5.58B	5.86B
	EBITDA
9.52B	10.48B	11.53B	6.96B	6.25B	6.31B
	Net Income Common Stockholders
7.37B	7.74B	8.12B	6.30B	4.68B	5.91B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
28.56B	28.22B	27.90B	23.53B	21.68B	19.32B
	Total Assets
74.57B	74.94B	72.32B	65.48B	62.29B	58.94B
	Total Debt
5.09B	3.05B	2.34B	3.66B	3.21B	2.70B
	Net Debt
-23.28B	-23.30B	-23.07B	-18.28B	-13.08B	-9.29B
	Total Liabilities
32.76B	33.39B	33.76B	31.40B	28.46B	29.56B
	Stockholders Equity
40.21B	39.97B	36.96B	32.75B	32.63B	28.50B
Cash Flow		Free Cash Flow
0.00	5.57B	9.18B	7.42B	3.17B	9.55B
	Operating Cash Flow
0.00	9.13B	14.41B	10.52B	6.74B	11.82B
	Investing Cash Flow
0.00	-3.57B	-5.16B	1.05B	-2.33B	-6.70B
	Financing Cash Flow
0.00	-4.97B	-6.15B	-5.57B	-58.79M	-20.84M

Vipshop Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VIPS, the sentiment is Positive. The current price of 14.96 is above the 20-day moving average (MA) of 14.55, above the 50-day MA of 13.90, and above the 200-day MA of 13.95, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 59.22 is Neutral, neither overbought nor oversold. The STOCH value of 89.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VIPS.

Vipshop Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIPS	78 Outperform	$7.72B	7.81	19.00%	3.20%	-5.90%	-11.16%
MNSO	76 Outperform	$5.79B	17.08	24.98%	3.51%	9.80%	-6.33%
RVLV	76 Outperform	$1.56B	30.12	11.97%	―	9.09%	106.50%
CHWY	75 Outperform	$19.00B	45.65	76.24%	―	7.64%	369.79%
ETSY	68 Neutral	$6.45B	42.76	-39.97%	―	2.18%	-32.87%
Sector *	63 Neutral	$6.94B	11.34	2.80%	4.26%	2.68%	-24.70%
W	44 Neutral	$6.15B	―	17.86%	―	-0.89%	46.62%