Vipshop Holdings Limited
Vipshop Holdings Limited Fundamental Analysis
Vipshop Holdings Limited (VIPS) shows moderate financial fundamentals with a PE ratio of 8.51, profit margin of 6.66%, and ROE of 17.74%. The company generates $109.4B in annual revenue with weak year-over-year growth of -3.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VIPS's fundamental strength across five key dimensions:
Efficiency Score
WeakVIPS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVIPS trades at attractive valuation levels.
Growth Score
WeakVIPS faces weak or negative growth trends.
Financial Health Score
ExcellentVIPS maintains a strong and stable balance sheet.
Profitability Score
WeakVIPS struggles to sustain strong margins.
Key Financial Metrics
Is VIPS Expensive or Cheap?
P/E Ratio
VIPS trades at 8.51 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, VIPS's PEG of 0.35 indicates potential undervaluation.
Price to Book
The market values Vipshop Holdings Limited at 1.50 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.67 times EBITDA. This is generally considered low.
How Well Does VIPS Make Money?
Net Profit Margin
For every $100 in sales, Vipshop Holdings Limited keeps $6.66 as profit after all expenses.
Operating Margin
Core operations generate 7.31 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.74 in profit for every $100 of shareholder equity.
ROA
Vipshop Holdings Limited generates $9.06 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Vipshop Holdings Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Vipshop Holdings Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
VIPS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.51
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.35
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.50
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.30
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How VIPS Stacks Against Its Sector Peers
| Metric | VIPS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.51 | 25.25 | Better (Cheaper) |
| ROE | 17.74% | 1170.00% | Weak |
| Net Margin | 6.66% | 742.00% | Weak |
| Debt/Equity | 0.21 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 1.30 | 9.19 | Neutral |
| ROA | 9.06% | -6467.00% (disorted) | Weak |
VIPS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Vipshop Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
46.76%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
142.55%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-6.50%
Industry Style: Cyclical, Growth, Discretionary
Declining