Vipshop Stock Analysis: Why Vipshop Has Returned Over 5000%


  • Vipshop has returned 5000% in 3 years, more than 5 times Amazon's 10 year return.
  • Vipshop has delivered stellar revenue, user and order growth.
  • Vipshop is profitable, but gross margin expansion will make it a compelling investment option.

Why Vipshop Has Returned Over 5000% : Video Transcript

Welcome to this videograph about Vipshop (NYSE:VIPS), China's flash sale e-commerce portal.

Vipshop Stock Return Since IPO

Vipshop has returned over 5,000 percent since its IPO, a little over 3 years ago. That's nearly 5 times as much as Amazon has returned over the last decade. Let's look under the hood, to see what's triggered such a mind-boggling rally.

Vipshop Revenue Growth

Vipshop has grown its revenue at breakneck speeds since it went public, clocking a revenue of over 3.7 billion Dollars in 2014.

Vipshop User Growth And Order Growth

The case is similar with Vipshop's active customer base and total orders, both of which have grown at a stellar pace.

Vipshop Growth On Mobile

In 2014 alone, Vipshop made great progress on mobile, generating 66% of its gross merchandise sales on mobile in Q4, up from 46% in Q2.

Vipshop Net Margins

The e-commerce company reported a net profit margin of 3.6% in 2014, a marked improvement, from its 2011 loss margin of 47%. albeit somewhat flat since 2012. But before you jump in, here's what you should bear in mind.

Vipshop Stock Analysis : Gross Margin Expansion The Key

Vipshop now makes profits, and that's very encouraging. But the improvements in Vipshop's gross margins, seem to have tapered off, and it might get tougher for Vipshop to expand its net profit margins. Combined with impressive growth in revenue, users and orders, if Vipshop can continue to show improvements in its gross and net margins, it could become a compelling investment option.

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See our Vipshop stock analysis to get a quick roundup of other financial aspects like free cash flows and more.

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Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice. Buying and selling of securities carries the risk of monetary losses. Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions. Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

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