JD.com Stock Analysis

Company Overview

JD.com is one of China’s largest e‑commerce platforms, offering a broad range of goods from electronics to fresh groceries, backed by a nationwide logistics network and cutting‑edge automation.

Key Statistics

Market Cap

$49.04 B

Revenue (TTM)

$158.76 B

Net Income (TTM)

$5.67 B

Shares Out.

1.44 B

EPS (TTM)

$3.68

P/E Ratio

9.26

Forward P/E

7.23

Dividend Yield

2.88%

Beta

0.54

Earnings Date

May 15, 2025

With a market cap near $50 B and a 9.3× P/E, JD.com trades at a deep discount to U.S. peers. Its 3.6% net margin reflects scale and logistics efficiencies despite thin retail margins.

Quarterly Revenue & Net Income

• Q4 2024: Revenue 1,158,819 M; Net Income 41,359 M (3.57% margin). • Q3 2024: Revenue 1,117,910 M; Net Income 34,894 M (3.12%). • Q2 2024: Revenue 1,105,221 M; Net Income 31,099 M (2.81%). • Q1 2024: Revenue 1,101,755 M; Net Income 25,036 M (2.27%). Gradual revenue growth with improving margin in Q4 reflects strong holiday sales and cost control.

Valuation Metrics

At 0.32× P/S and 9.3× P/E, JD.com looks cheap relative to growth. Its 0.92 × PEG implies modest earnings momentum ahead, supported by expanding marketplace and logistics‑as‑a‑service.

Risks & Opportunities

Risks

Intense competition from Alibaba and Pinduoduo may pressure market share.

Regulatory scrutiny in China around data and antitrust risks.

Thin retail margins are vulnerable to logistics cost inflation.

Consumer spending slowdowns could reduce discretionary purchases.

Opportunities

Growth of logistics‑as‑a‑service to third‑party merchants.

Expansion of high‑margin services like JD Health and fintech.

International expansion into Southeast Asian markets.

AI‑driven supply chain and personalization to boost efficiency.

Conclusion

JD.com’s asset‑light marketplace expansion and high‑margin services underpin steady top‑line growth. Strong free cash flow (> $5 B annually) funds dividends and buybacks. Key risks include consumer slowdown and margin pressure, but valuation remains compelling for long‑term investors.

Disclaimer: For informational purposes only. Not investment advice.

1. Company Overview

JD.com (NASDAQ: JD) is one of China’s largest e‑commerce platforms, offering a wide range of products—from electronics and home appliances to groceries and fashion—through its proprietary logistics network. The company differentiates itself with same‑ and next‑day delivery, advanced warehousing automation and a growing “JD Health” and “JD Logistics” ecosystem targeting B2B customers.

2. Financial Performance

a. Revenue and Growth

TTM Revenue: $158.76 B
TTM Revenue Growth: +6.8% YoY

JD.com generated $158.8 billion over the past twelve months, reflecting steady market share gains in China’s online retail sector despite intensifying competition.

b. Profitability

Net Income (TTM): $5.67 B
EPS (TTM): $3.68
Gross Margin: 9.8%
Operating Margin: 3.4%
Profit Margin: 3.6%

Margins remain modest in e‑commerce, but improved from prior years as JD.com leverages scale and logistics efficiencies.

c. Cash Flow

Operating Cash Flow (TTM): $7.96 B
CapEx (TTM): –$2.40 B
Free Cash Flow (TTM): $5.57 B ($3.87/share)

Robust free cash flow underscores the strength of JD.com’s capital‑light model as it monetizes logistics investments.

3. Balance Sheet

Cash & Equivalents: $32.06 B
Total Debt: $12.30 B
Net Cash Position: $19.76 B ($13.72/share)
Total Equity: $42.92 B ($22.59/share)
Working Capital: $11.94 B

A strong net cash position and ample liquidity support further platform and logistics expansion.

4. Valuation

PE Ratio (TTM): 9.3×
Forward PE: 7.2×
PS Ratio: 0.32×
PB Ratio: 1.51×
EV/EBITDA: 4.4×
EV/FCF: 5.3×
PEG Ratio: 0.92×

JD.com trades at a material discount to growth peers, with sub‑1× PEG suggesting attractive value if mid‑single‑digit growth persists.

5. Market Performance

Last Close Price: $34.72
52‑Week Range: $24.13 – $47.82 (+33.5%)
Beta (5Y): 0.54
50‑Day MA: $40.29
200‑Day MA: $35.53
RSI (14‑day): 36.0
Avg. Volume (20 days): 15.6 M shares
Short Interest: 22.6 M shares (1.75% of float; 1.6 days to cover)

A subdued beta reflects relatively low volatility versus the broader market; recent underperformance versus peers may offer a buying opportunity.

6. Financial Health & Risks

Strengths:

Logistics Moat: Proprietary delivery network supports differentiated service.
Balance‑Sheet Strength: Net‑cash of $19.8 billion provides strategic optionality.
Free Cash Flow: High FCF of $5.6 billion funds reinvestment and shareholder returns.

Risks:

Intense Competition: Battling Alibaba, Pinduoduo and rising social‑commerce platforms.
Margin Pressure: Lower‑margin categories and promotional spending may compress profits.
Regulatory Environment: Chinese tech firms face evolving data‑security and antitrust rules.

7. Conclusion

Pros:

Leading fulfillment capabilities and logistics scale.
Attractively valued on earnings and cash‑flow multiples.
Strong net‑cash position mitigates balance‑sheet risk.

Cons:

Slower top‑line growth vs. e‑commerce peers.
Low single‑digit margins limit upside to operating leverage.
Regulatory and macro uncertainties in China.

Final Note:
JD.com offers a compelling combination of platform advantage, free‑cash generation and balance‑sheet flexibility at a valuation well below global peers. Investors bullish on China’s digital‑retail expansion may find JD.com’s current multiples attractive, though they should consider execution risks amid an increasingly competitive and regulated environment.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Please consult a qualified financial advisor before making any investment decisions.

JD.com, Inc. (NASDAQ: JD)