- 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.