Has JD.com, Inc.'s (NASDAQ:JD) Impressive Stock Performance Got Anything to Do With Its Fundamentals?

Simply Wall St.10-09

JD.com (NASDAQ:JD) has had a great run on the share market with its stock up by a significant 67% over the last month. Given that stock prices are usually aligned with a company's financial ...

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/2474226075?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":"2024-10-09 21:00","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2474226075","market":"us","top_or_hot":-1,"title":"Has JD.com, Inc.'s (NASDAQ:JD) Impressive Stock Performance Got Anything to Do With Its Fundamentals?","media":"Simply Wall St.","content":"<div>\n<p>JD.com (NASDAQ:JD) has had a great run on the share market with its stock up by a significant 67% over the last month. Given that stock prices are usually aligned with a company's financial ...</p>\n\n<a href=\"https://finance.yahoo.com/news/jd-com-inc-nasdaq-jd-130022386.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>Has JD.com, Inc.'s (NASDAQ:JD) Impressive Stock Performance Got Anything to Do With Its Fundamentals?</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\">\nHas JD.com, Inc.'s (NASDAQ:JD) Impressive Stock Performance Got Anything to Do With Its Fundamentals?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-09 21:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/jd-com-inc-nasdaq-jd-130022386.html><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>JD.com (NASDAQ:JD) has had a great run on the share market with its stock up by a significant 67% over the last month. Given that stock prices are usually aligned with a company's financial ...</p>\n\n<a href=\"https://finance.yahoo.com/news/jd-com-inc-nasdaq-jd-130022386.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":"BK4524","symbol_name":"宅经济概念","start_time":0,"source_url":"https://finance.yahoo.com/news/jd-com-inc-nasdaq-jd-130022386.html","article_id":"2474226075","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=2474226075","pubTimestamp":1728478822,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"JD.com  has had a great run on the share market with its stock up by a significant 67% over the last month. Given that stock prices are usually aligned with a company's financial performance in the long-term, we decided to study its financial indicators more closely to see if they had a hand to play in the recent price move. In this article, we decided to focus on JD.com's  ROE.Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.Return on Equity = Net Profit  ÷ Shareholders' Equity. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It’s important for an investor to know whether the market has priced in the company's expected earnings growth . By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. What is JD worth to","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4524":"宅经济概念","BK4220":"综合零售",".IXIC":"NASDAQ Composite","BK4579":"人工智能","QID":"纳指两倍做空ETF","JDCMF":"JD.com, Inc.","BK4588":"碎股","BK4526":"热门中概股","09618":"京东集团-SW","JD":"京东","BK4503":"景林资产持仓","BK4122":"互联网与直销零售","NDAQ":"纳斯达克OMX交易所","BK4551":"寇图资本持仓","SQQQ":"纳指三倍做空ETF","LU2095319765.USD":"Natixis Thematics Subscription Economy R/A USD","SG9999002463.SGD":"LionGlobal China Growth SGD","BK4505":"高瓴资本持仓","IE0008368742.USD":"首域中国增长基金I Acc","LU2210150020.SGD":"Natixis Thematics Subscription Economy R/A SGD","BK4504":"桥水持仓","LU0307460666.USD":"EASTSPRING INVESTMENTS CHINA EQUITY \"A\" ACC","LU2210149790.SGD":"Natixis Thematics Subscription Economy R/A SGD-H","IE00BKPKM429.USD":"NEUBERGER BERMAN GLOBAL SUSTAINABLE EQUITY \"A\" (USD) ACC","QLD":"纳指两倍做多ETF","BK4112":"金融交易所和数据","LU0588546209.SGD":"Eastspring Investments - China Equity Fund AS SGD","IE00B64PRP62.GBP":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (GBP) ACC","IE00BGV7N243.SGD":"FSSA Global Emerging Markets Focus I Acc SGD","TQQQ":"纳指三倍做多ETF","IE00B3QW5Z07.USD":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (USD) ACC","LU1688375341.USD":"贝莱德中国灵活股票基金","IE00BGHQF748.EUR":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (EUR) ACC","PSQ":"纳指反向ETF","BK4531":"中概回港概念","LU0315179316.USD":"EASTSPRING INVESTMENTS ASIAN DYNAMIC \"A\" (USD) ACC","BK4585":"ETF&股票定投概念","LU1880383366.USD":"东方汇理中国股票基金 A2 (C)","BK4558":"双十一","LU0106959298.USD":"UBS (LUX) EQUITY FUND - EMERGING MARKETS SUSTAINABLE LEADERS (USD) \"P\" (USD) ACC","BK4509":"腾讯概念"},"translate_title":"京东公司（纳斯达克股票代码：JD）令人印象深刻的股票表现与其基本面有关系吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{".IXIC":1,"JD":1,"JDCMF":1,"NDAQ":1,"PSQ":0.6,"QID":0.6,"QLD":0.6,"SQQQ":0.6,"TQQQ":0.6,"09618":0.6,"MNQmain":0.6,"NQmain":0.6},"content_text":"JD.com (NASDAQ:JD) has had a great run on the share market with its stock up by a significant 67% over the last month. Given that stock prices are usually aligned with a company's financial performance in the long-term, we decided to study its financial indicators more closely to see if they had a hand to play in the recent price move. In this article, we decided to focus on JD.com's  ROE. \n Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. \n Check out 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:\n11% = CN¥31b ÷ CN¥288b (Based on the trailing twelve months to June 2024).\n The 'return' is the amount earned after tax over the last twelve months. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.11 in profit. \n What Has ROE Got To Do With Earnings Growth? \n Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Depending on how much of these profits the company reinvests or \"retains\", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. \n JD.com's Earnings Growth And 11% ROE \n To start with, JD.com's ROE looks acceptable. Yet, the fact that the company's ROE is lower than the industry average of 21% does temper our expectations. Additionally, the low net income growth of 4.9% seen by JD.com over the past five years doesn't paint a very bright picture. Not to forget, the company does have a decent ROE to begin with, just that it is lower than the industry average. So there might be other reasons for the earnings growth to be low. Such as, the company pays out a huge portion of its earnings as dividends, or is facing competitive pressures. \n Next, on comparing with the industry net income growth, we found that JD.com's reported growth was lower than the industry growth of 15% over the last few years, which is not something we like to see. \n\n\n\n  NasdaqGS:JD Past Earnings Growth October 9th 2024\n \n\n The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. What is JD worth today? The  intrinsic value infographic in our free research report  helps visualize whether JD is currently mispriced by the market. \n Is JD.com Making Efficient Use Of Its Profits? \n Despite having a normal three-year median payout ratio of 34% (or a retention ratio of 66% over the past three years, JD.com has seen very little growth in earnings as we saw above. So there might be other factors at play here which could potentially be hampering growth. For example, the business has faced some headwinds. \n Only recently, JD.com started paying a dividend. This means that the management might have concluded that its shareholders prefer dividends over earnings growth. Our latest analyst data shows that the future payout ratio of the company is expected to drop to 23% over the next three years. As a result, the expected drop in JD.com's payout ratio explains the anticipated rise in the company's future ROE to 13%, over the same period. \n Conclusion \n Overall, we feel that JD.com certainly does have some positive factors to consider. However, while the company does have a decent ROE and a high profit retention, its earnings growth number is quite disappointing. This suggests that there might be some external threat to the business, that's hampering growth. With that said, the latest industry analyst forecasts reveal that the company's earnings are expected to accelerate. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. \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":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"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":"4.29.1","shortVersion":"4.29.1","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/2474226075"}