JD
📈 JD.com’s market price has grown significantly, with a 71% increase in the last year, excluding dividends.
💰 The company has substantial cash reserves, with $33 billion available for stock repurchases and dividends.
🚀 JD.com’s revenues are growing, with a 15% annual compound growth rate over the last five years.
✅ The company’s logistics sector, JD Logistics, is experiencing rapid growth and automation.
@invertirdesdecasa:
“JD presented an excellent earnings report, and beyond the market price growth in the last year, I believe the opportunity today is much more interesting than it was a year ago. In the last calendar year, the market price grew by 71% in dollars, not counting the dividends that JD paid, which were very interesting the previous year. In fact, the dividend will increase this year. The company closed at around $230, a fairly solid and strong growth in market price, with a total market cap of $64 billion. Solid growth of JD’s business, both in the last quarter and in recent years, with an excellent double-digit 15% annual compound growth of total revenues over the last five years, and a 133.4% growth in the last quarter of the holiday season. The company has two main revenue streams: product sales (the red bar) and services (the gray bar), which is growing quite rapidly at a compound growth rate of almost 30% annualized over the last five years. Within the product category, electronics and home appliances are the strongest, accounting for nearly 50% of revenues and growing very quickly at 15.8%. In the service sector, logistics revenue is growing very rapidly, and the company has a phenomenal degree of automation. All of this growth has been accompanied by better net profits, with both total profit and net profit margin versus total sales growing quite well, especially in the last quarter. JD bought back 8.1% of all its outstanding shares in 2024, and declared a dividend last year of around $1, with a yield of 2.4% in dividends alone. It also has authorized $5 billion more in share repurchases, with $33 billion in cash to repurchase shares and pay dividends, generating $6 billion in free cash flow and growing, with only $12 billion in total debt. The non-current assets of JD include long-term investments in other companies, such as equity investments or long-term bonds and certificates of deposit, for almost $16 billion. JD has nearly $49 billion in total investments and a market cap of $64 billion. After subtracting debt, it has net cash and investments of $36.9 billion. Operating profits quadrupled in the last quarter, and final net profits after taxes almost tripled from quarter to quarter. Earnings per share grew even faster because JD repurchased 8.1% of its shares in the last year. Annual net profits for the last year grew 72% year-over-year. The company has $36.9 billion in net equity investments. If you subtract all net investments from the price, you are paying $27.1 billion for its operating businesses. It is capitalizing at three times its pre-tax profits, 4.8 times PE against the adjusted price, and 4.5 times against its free cash flow.”
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Read more articles by the world’s top 100 analysts on JD.com (JD) at the following link. JD stock.
