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 operating cash flow looks good at 18.4 times the net income.
- The company has a healthy 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 registered an average TTM Net loss of -1%.
- JD.com is debt laden and has a high debt/equity ratio of 0.94.
- The lack of profits renders the PE ratio useless for JD stock.
- The company is trading at a price to sales multiple of 1.6, which is higher in comparison to the Internet Commerce industry average of 0.7, making JD stock expensive.
- JD.com has a low ROIC (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.