JD.com Stock Analysis (NASDAQ:JD)
JD.com Analysis Video
View JD.com stock analysis video. This is our JD analyst opinion covering the buy and sell arguments for JD stock.
JD.Com Inc(ADR) Stock Rating (2.2/5)
Our JD.com stock opinion is based on fundamentals of the company. This JD.com stock analysis is based on latest Q1 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.
Should you buy JD stock?
- JD.com's revenue growth came in at 32.3% in 2017 Q1.
- The company has an operating cash flow which is 18.4 times the net income. We see this as a positive signal.
- JD.com has a healthy FCF (Free Cash Flow) margin of 5.8%.
Should you sell JD stock?
- JD.com had a poor average operating margin of 1.6% over the last 4 quarters.
- JD.com posted an average Net loss of -1% in the last twelve months.
- JD.com is debt laden and has a high debt/equity ratio of 0.94.
- The company does not have profits. Hence the PE ratio is meaningless for JD stock.
- The company is trading at a price to sales multiple of 1.5, which is overvalued in comparison to the Internet Commerce industry average multiple of 0.7.
- JD.com has a poor return on invested capital of 4.4%.
- A negative ROE of -1.7% indicates that the company is not able to generate profits with the money shareholders have invested.