Declining Stock and Decent Financials: Is The Market Wrong About JD.com, Inc. (NASDAQ:JD)?

Simply Wall St.02-17

It is hard to get excited after looking at JD.com's (NASDAQ:JD) recent performance, when its stock has declined 12% over the past three months. However, stock prices are usually driven by a company’s ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2412238674?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/idUHYnUHv_aVOL0PF6o4vA--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/d0e0583e2b216efa1f3393fad3de0bcc","is_english":true,"pubTime":"2024-02-17 20:00","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2412238674","market":"us","top_or_hot":-1,"title":"Declining Stock and Decent Financials: Is The Market Wrong About JD.com, Inc. (NASDAQ:JD)?","media":"Simply Wall St.","content":"<div>\n<p>It is hard to get excited after looking at JD.com's (NASDAQ:JD) recent performance, when its stock has declined 12% over the past three months. However, stock prices are usually driven by a company’s ...</p>\n\n<a href=\"https://finance.yahoo.com/news/declining-stock-decent-financials-market-120013910.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Declining Stock and Decent Financials: Is The Market Wrong About JD.com, Inc. (NASDAQ:JD)?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nDeclining Stock and Decent Financials: Is The Market Wrong About JD.com, Inc. (NASDAQ:JD)?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-02-17 20:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/declining-stock-decent-financials-market-120013910.html><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>It is hard to get excited after looking at JD.com's (NASDAQ:JD) recent performance, when its stock has declined 12% over the past three months. However, stock prices are usually driven by a company’s ...</p>\n\n<a href=\"https://finance.yahoo.com/news/declining-stock-decent-financials-market-120013910.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU2210150020.SGD","symbol_name":"Natixis Thematics Subscription Economy R/A SGD","start_time":0,"source_url":"https://finance.yahoo.com/news/declining-stock-decent-financials-market-120013910.html","article_id":"2412238674","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/idUHYnUHv_aVOL0PF6o4vA--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/d0e0583e2b216efa1f3393fad3de0bcc"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2412238674","pubTimestamp":1708171213,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"It is hard to get excited after looking at JD.com's  recent performance, when its stock has declined 12% over the past three months. However, stock prices are usually driven by a company’s financials over the long term, which in this case look pretty respectable. Particularly, we will be paying attention to JD.com's  ROE today.Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.Return on equity can be calculated by using the formula:. Return on Equity = Net Profit  ÷ Shareholders' Equity. So, based on the above formula, the ROE for JD.com is:. With a three-year median payout ratio of 34% (implying that the company retai","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU2210150020.SGD":"Natixis Thematics Subscription Economy R/A SGD","BK4505":"高瓴资本持仓","QLD":"纳指两倍做多ETF","QQQ":"纳指100ETF","LU2210149790.SGD":"Natixis Thematics Subscription Economy R/A SGD-H","PSQ":"纳指反向ETF","BK4504":"桥水持仓","BK4112":"金融交易所和数据","IE00BGV7N243.SGD":"FSSA Global Emerging Markets Focus I Acc SGD","IE0008368742.USD":"首域中国增长基金I Acc","SQQQ":"纳指三倍做空ETF","LU1688375341.USD":"贝莱德中国灵活股票基金","BK4551":"寇图资本持仓","BK4531":"中概回港概念",".IXIC":"NASDAQ Composite","JD":"京东","NDAQ":"纳斯达克OMX交易所","BK4585":"ETF&股票定投概念","LU1880383366.USD":"东方汇理中国股票基金 A2 (C)","LU0106959298.USD":"UBS (LUX) EQUITY FUND - EMERGING MARKETS SUSTAINABLE LEADERS (USD) \"P\" (USD) ACC","BK4558":"双十一","BK4509":"腾讯概念","JDCMF":"JD.com, Inc.","QID":"纳指两倍做空ETF","BK4220":"综合零售","BK4524":"宅经济概念","BK4579":"人工智能","09618":"京东集团-SW","BK4526":"热门中概股","BK4588":"碎股","BK4122":"互联网与直销零售","BK4503":"景林资产持仓","TQQQ":"纳指三倍做多ETF","LU2095319765.USD":"Natixis Thematics Subscription Economy R/A USD","SG9999002463.SGD":"LionGlobal China Growth SGD"},"translate_title":"下跌的股票和良好的财务状况：市场对京东公司（纳斯达克：JD）的看法是错误的吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{".IXIC":1,"JD":1,"JDCMF":1,"NDAQ":1,"NQmain":0.6,"PSQ":0.6,"QID":0.6,"QLD":0.6,"QQQ":0.6,"SQQQ":0.6,"TQQQ":0.6,"09618":0.6,"MNQmain":0.6},"content_text":"It is hard to get excited after looking at JD.com's (NASDAQ:JD) recent performance, when its stock has declined 12% over the past three months. However, stock prices are usually driven by a company’s financials over the long term, which in this case look pretty respectable. Particularly, we will be paying attention to JD.com's  ROE today. \n Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. \n View our latest analysis for JD.com \n How Is ROE Calculated? \n Return on equity can be calculated by using the formula: \n Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity \nSo, based on the above formula, the ROE for JD.com is:\n8.3% = CN¥25b ÷ CN¥296b (Based on the trailing twelve months to September 2023).\n The 'return' refers to a company's earnings over the last year. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.08 in profit. \n What Has ROE Got To Do With Earnings Growth? \n So far, we've learned that ROE is a measure of a company's profitability. Based on how much of its profits the company chooses to reinvest or \"retain\", we are then able to evaluate a company's future ability to generate profits. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. \n A Side By Side comparison of JD.com's Earnings Growth And 8.3% ROE \n At first glance, JD.com's ROE doesn't look very promising. We then compared the company's ROE to the broader industry and were disappointed to see that the ROE is lower than the industry average of 19%. Although, we can see that JD.com saw a modest net income growth of 11% over the past five years. So, the growth in the company's earnings could probably have been caused by other variables. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio. \n We then performed a comparison between JD.com's net income growth with the industry, which revealed that the company's growth is similar to the average industry growth of 13% in the same 5-year period. \n\n\n\n  NasdaqGS:JD Past Earnings Growth February 17th 2024\n \n\n Earnings growth is an important metric to consider when valuing a stock. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is JD fairly valued? This infographic on the company's intrinsic value  has everything you need to know. \n Is JD.com Efficiently Re-investing Its Profits? \n With a three-year median payout ratio of 34% (implying that the company retains 66% of its profits), it seems that JD.com is reinvesting efficiently in a way that it sees respectable amount growth in its earnings and pays a dividend that's well covered. \n Along with seeing a growth in earnings, JD.com only recently started paying dividends. Its quite possible that the company was looking to impress its shareholders. \n Conclusion \n On the whole, we do feel that JD.com has some positive attributes. Even in spite of the low rate of return, the company has posted impressive earnings growth as a result of reinvesting heavily into its business. The latest industry analyst forecasts show that the company is expected to maintain its current growth rate. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. \nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2412238674"}