Vipshop (VIPS) AI Stock Analysis

• Market Cap: $9.09B
• Dividend Yield: 2.6%
• Average Volume (3M): 2.69M
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.80
• Revenue Growth: -5.24%
• EPS Growth: -12.89%
• Country: US
• Employees: 14,966
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.57
• Shares Outstanding: 415,323,580
• 10 Day Avg. Volume: 2,824,618
• 30 Day Avg. Volume: 2,690,622
• PEG Ratio: 5.71
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 9.37
• Enterprise Value/Market Cap: 0.56
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 0.20
• Enterprise Value/Ebitda: 0.53
• 1Y Price Target: $18.45
• Price Target Upside: 0.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 79 Outperform
• Price Target: $19.50 ▲(5.81% Upside)

Vipshop's overall stock score reflects strong financial performance and attractive valuation, supported by positive technical indicators. However, recent declines in revenue and income, along with increased operating expenses, present challenges. The company's strategic initiatives and commitment to shareholder returns provide a balanced outlook.

Positive Factors

Financial Stability

The company's low leverage and strong equity position indicate financial stability, providing a solid foundation for future growth and resilience against economic fluctuations.

Customer Growth

The recovery in active customers and growth in Super VIP memberships suggest effective customer engagement strategies, which are crucial for sustaining revenue and market position.

Brand Expansion

Expanding brand partnerships and focusing on customized products enhance Vipshop's competitive edge, attracting diverse consumer segments and boosting sales potential.

Negative Factors

Revenue Decline

A decline in net revenues indicates challenges in maintaining sales momentum, which could impact profitability and market share if not addressed.

Operating Income Decrease

The decrease in operating income suggests rising costs or inefficiencies, potentially affecting the company's ability to invest in growth and innovation.

Increased Operating Expenses

Rising operating expenses, particularly in general and administrative areas, may pressure margins and reduce financial flexibility, hindering long-term profitability.

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 generates revenue primarily through its online sales of discounted products. The company employs a flash sales model, allowing it to sell products at reduced prices for a limited period, which encourages quick purchasing decisions among consumers. Key revenue streams include direct sales of merchandise, where it buys inventory from brand partners at wholesale prices and sells them at a markup during flash sales. Additionally, Vipshop earns revenue through logistics and fulfillment services, which are crucial for its operational efficiency, and by leveraging its platform for advertising and promotional partnerships with brands. Significant partnerships with well-known domestic and international brands enhance its product offerings and attract a larger customer base, contributing to its earnings.

Vipshop Financial Statement Overview

Summary

Vipshop demonstrates solid financial health with strong profitability and a robust balance sheet, indicative of prudent financial management. While past cash flows have been strong, recent operational cash flow issues need monitoring. Overall, the company is well-positioned for continued growth in the retail sector.

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
EBITDA	9.63B	10.41B	11.53B	6.96B	6.25B	6.31B
Net Income	7.37B	7.74B	8.12B	6.30B	4.68B	5.91B
Balance Sheet
Total Assets	74.57B	74.94B	72.32B	65.48B	62.29B	58.94B
Cash, Cash Equivalents and Short-Term Investments	28.56B	28.22B	27.90B	23.53B	21.68B	19.32B
Total Debt	5.09B	3.05B	2.34B	3.66B	3.21B	2.70B
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: 18.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 18.43 is above the 20-day moving average (MA) of 17.84, above the 50-day MA of 16.77, and above the 200-day MA of 14.88, indicating a bullish trend. The MACD of 0.53 indicates Positive momentum. The RSI at 67.24 is Neutral, neither overbought nor oversold. The STOCH value of 50.75 is Neutral, 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	79 Outperform	$9.09B	10.04	17.79%	2.60%	-5.24%	-12.89%
MNSO	77 Outperform	6.91B	21.11	25.38%	2.77%	10.93%	-10.89%
CHWY	68 Neutral	16.45B	111.91	38.76%	―	9.04%	-56.79%
JMIA	63 Neutral	1.39B	-11.16	-114.16%	―	-13.22%	―
ETSY	59 Neutral	6.36B	51.33	-14.58%	―	2.38%	-38.88%
W	57 Neutral	11.26B	-36.19	17.86%	―	0.87%	54.67%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Vipshop Corporate Events

Vipshop Reports Q2 2025 Financial Results with GMV Growth

On August 14, 2025, Vipshop Holdings Limited reported its unaudited financial results for the second quarter of 2025, ending June 30. The company experienced a slight decline in total net revenues to RMB25.8 billion compared to the previous year. However, the gross merchandise value (GMV) saw a year-over-year increase of 1.7%, reaching RMB51.4 billion. Despite a decrease in net income and active customers, Vipshop maintained healthy profitability and continues to focus on growth initiatives and resource optimization. The company is confident in its strategy to return to sustainable growth, supported by strong performance in apparel categories and growth in Super VIP memberships.