NASDAQ · Consumer Cyclical

JD.com, Inc.

JD · Internet Retail

$27.57

▼ -0.34 (-1.22%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

F⤢

Gross Profit Margin 16.8%

Operating Margin 1.2%

Net Income Margin 1.6%

Fin. Health

D⤢

Years to Pay Off Debt 21.2 yrs

Working Capital vs Long-Term Debt -$7.0B

Working Capital $55.6B

Valuation

A⤢

Margin of Safety 75.6%

Price-to-Book 0.17x

Cash Flow

A⤢

Free Cash Flow $555M

Profitability

Gross Profit Margin 16.8%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 1.2%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 1.6%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 21.2 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$7.0B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $55.6B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About JD.com, Inc.

JD.com, Inc. operates as a supply chain-based technology and service provider in the People's Republic of China and Europe. It operates through three segments: JD Retail, JD Logistics, and New Businesses. The company provides home appliances; mobile handsets and other digital products; computers, including desktop, laptop, and other various products, as well as printers and other office equipment; furniture and household goods; apparel; cosmetics and other personal care items; and pet products. It offers women's shoes, bags, watches, jewelry, and luxury goods; men's shoes, sports gear, and fitness equipment; automobiles and accessories; maternal and childcare products; toys and musical instruments; food, beverages, and fresh produce; gifts, flowers, and plants; and pharmaceutical and healthcare products, such as OCT pharmaceutical products, nutritional supplements, healthcare services, and other healthcare equipment. In addition, the company provides books, e-books, music, movies, and other media products; virtual goods consisting of online travel agency, attraction tickets, and prepaid phone cards and game cards; industrial products; and installation and maintenance services. Further, it offers online marketplace services for third-party merchants; marketing services; and omni-channel solutions to customers and offline retailers, as well as online healthcare services. Additionally, the company develops, owns, and manages its logistics facilities and other real estate properties to support third parties; and offers asset management services and integrated service platform; leasing of storage facilities and related management services, as well as engages in online retail business; technology-driven supply chain solutions; and logistics services. The company was formerly known as 360buy Jingdong Inc. and changed its name to JD.com, Inc. in January 2014. JD.com, Inc. was incorporated in 2006 and is headquartered in Beijing, the People's Republic of China.

Market Data

Market Cap $37.2B

Enterprise Value $9.1B

P/E (TTM) 20.12

Dividend Yield 25.06%

Exchange NASDAQ

Key Margins

Gross Profit 16.8%

Operating Margin 1.2%

Net Margin 1.6%

Company Info

Sector Consumer Cyclical

Industry Internet Retail

Employees 900000

Country China

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering JD.com, Inc. at $27.57.

The business passes only 3 of 6 of Graham's defensive criteria — well below his required standard.

At $27.57, the stock trades below its Graham Number of $113.00 — suggesting a margin of safety exists.

The margin of safety of 75.6% exceeds Graham's recommended 33% threshold — a rare opportunity.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025
Gross Profit %	16.8%▲	15.6%
Operating Margin %	1.2%▲	-1.3%
Net Income %	1.6%▲	-0.8%
Diluted EPS	3.54▲	-2.08

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$685.7B	$695.2B	N/A
Total Debt	$108.0B▲	$107.1B•	N/A
Working Capital	$55.6B▼	$68.3B•	N/A
Years to Pay Debt	21.17	-39.48	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025
Free Cash Flow	$555M▼	$6.7B
Owner Earnings	N/A	N/A
CapEx % of Net Income	N/A	N/A

Income Statement

	2026	2025
Tax Effect Of Unusual Items	0	-125,652
Tax Rate For Calcs	0	0
Normalized EBITDA	7,776,000	848,000
Total Unusual Items		-1,369,000
Total Unusual Items Excluding Goodwill		-1,369,000
Net Income From Continuing Operation Net Minority Interest	5,102,000	-2,713,000
Reconciled Depreciation
Reconciled Cost Of Revenue	262,667,000	297,218,000
EBITDA	7,776,000	-521,000
EBIT	7,776,000	-521,000
Net Interest Income	-686,000	8,226,000
Interest Expense	686,000	830,000
Normalized Income	5,102,000	-1,469,652
Net Income From Continuing And Discontinued Operation	5,102,000	-2,713,000
Total Expenses	311,887,000	356,830,000
Total Operating Income As Reported	3,807,000	-5,849,000
Diluted Average Shares	1,432,500	1,469,500
Basic Average Shares	1,370,000	1,405,500
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	5,102,000	-3,134,000
Net Income Common Stockholders	5,102,000	-2,713,000
Net Income	5,102,000	-2,713,000
Minority Interests	-728,000	-1,486,000
Net Income Including Noncontrolling Interests	5,830,000	-1,227,000
Net Income Continuous Operations	5,830,000	-1,227,000
Tax Provision	1,260,000	-124,000
Pretax Income	7,090,000	-1,351,000
Other Income Expense	3,969,000	-5,031,000
Other Non Operating Income Expenses	2,333,000	-5,545,000
Earnings From Equity Interest	1,636,000	1,883,000
Gain On Sale Of Security		706,000
Net Non Operating Interest Income Expense	-686,000	8,226,000
Interest Expense Non Operating	686,000	830,000
Operating Income	3,807,000	-4,546,000
Operating Expense	49,220,000	59,612,000
Other Operating Expenses	23,393,000	24,292,000
Depreciation Amortization Depletion Income Statement
Depreciation And Amortization In Income Statement
Amortization
Amortization Of Intangibles Income Statement
Research And Development	6,866,000	6,663,000
Selling General And Administration	18,961,000	28,657,000
Selling And Marketing Expense	15,372,000	25,347,000
General And Administrative Expense	3,589,000	3,310,000
Other Gand A	3,589,000	3,310,000
Salaries And Wages
Gross Profit	53,027,000	55,066,000
Cost Of Revenue	262,667,000	297,218,000
Total Revenue	315,694,000	352,284,000
Operating Revenue	315,694,000	352,284,000

Balance Sheet

	2026	2025	2024
Treasury Shares Number	96,000	76,448
Ordinary Shares Number	2,701,000	2,741,847
Share Issued	2,771,171	2,812,018
Total Debt	108,020,000	107,105,000
Tangible Book Value	145,925,000	154,148,000
Invested Capital	290,875,000	299,038,000
Working Capital	55,635,000	68,349,000
Net Tangible Assets	145,925,000	154,148,000
Capital Lease Obligations	33,631,000	33,107,000
Common Stock Equity	216,486,000	225,040,000
Total Capitalization	279,142,000	287,513,000
Total Equity Gross Minority Interest	280,730,000	293,783,000
Minority Interest	64,244,000	68,743,000
Stockholders Equity	216,486,000	225,040,000
Gains Losses Not Affecting Retained Earnings		6,442,000	8,109,000
Other Equity Adjustments		6,442,000	8,109,000
Treasury Stock		7,874,000	27,739,000
Retained Earnings		84,957,000	76,573,000
Additional Paid In Capital		141,515,000	182,404,000
Total Liabilities Net Minority Interest	404,992,000	401,418,000
Total Non Current Liabilities Net Minority Interest	95,965,000	95,346,000
Other Non Current Liabilities	1,158,000	1,146,000
Non Current Deferred Liabilities	8,006,000	8,019,000
Non Current Deferred Revenue			502,000
Non Current Deferred Taxes Liabilities	8,006,000	8,019,000
Long Term Debt And Capital Lease Obligation	86,801,000	86,181,000
Long Term Capital Lease Obligation	24,145,000	23,708,000
Long Term Debt	62,656,000	62,473,000
Current Liabilities	309,027,000	306,072,000
Other Current Liabilities		24,921,000	24,466,000
Current Deferred Liabilities	41,830,000	39,092,000
Current Deferred Revenue	41,830,000	39,092,000
Current Debt And Capital Lease Obligation	21,219,000	20,924,000
Current Capital Lease Obligation	9,486,000	9,399,000
Current Debt	11,733,000	11,525,000
Other Current Borrowings	11,733,000	11,525,000
Current Provisions		1,063,000	1,029,000
Payables And Accrued Expenses	245,978,000	220,072,000
Current Accrued Expenses	53,151,000	22,217,000
Interest Payable		302,000	208,000
Payables	192,827,000	197,855,000
Other Payable		1,844,000	1,902,000
Dueto Related Parties Current	1,565,000	624,000
Total Tax Payable	4,047,000	7,008,000
Accounts Payable	187,215,000	188,379,000
Total Assets	685,722,000	695,201,000
Total Non Current Assets	321,060,000	320,780,000
Other Non Current Assets	9,938,000	11,853,000
Non Current Deferred Assets	5,636,000	5,237,000
Non Current Deferred Taxes Assets	5,636,000	5,237,000
Investments And Advances	104,025,000	103,818,000
Investmentin Financial Assets	51,061,000	51,840,000
Long Term Equity Investment	52,964,000	51,978,000
Goodwill And Other Intangible Assets	70,561,000	70,892,000
Other Intangible Assets	44,270,000	44,601,000
Goodwill	26,291,000	26,291,000
Net PPE	130,900,000	128,980,000
Accumulated Depreciation		-32,428,000	-25,953,000
Gross PPE	130,900,000	161,408,000
Leases		7,656,000	5,895,000
Construction In Progress	5,516,000	6,503,000
Other Properties	125,384,000	34,387,000
Machinery Furniture Equipment		34,146,000	28,871,000
Land And Improvements		78,716,000	70,977,000
Current Assets	364,662,000	374,421,000
Other Current Assets	18,888,000	17,898,000
Assets Held For Sale Current	395,000	395,000
Restricted Cash	13,540,000	12,137,000
Prepaid Assets	7,104,000	5,856,000
Inventory	96,166,000	95,428,000
Inventories Adjustments Allowances		-4,787,000	-4,087,000
Other Inventories		2,044,000	1,782,000
Finished Goods		98,171,000	91,631,000
Receivables	26,436,000	29,475,000
Duefrom Related Parties Current	1,006,000	2,142,000
Accounts Receivable	25,430,000	27,333,000
Allowance For Doubtful Accounts Receivable		-2,089,000	-2,065,000
Gross Accounts Receivable		29,422,000	27,661,000
Cash Cash Equivalents And Short Term Investments	202,133,000	213,232,000
Other Short Term Investments	100,304,000	75,744,000
Cash And Cash Equivalents	101,829,000	137,488,000

Cash Flow

	2026	2025
Free Cash Flow	555,000	6,695,000
Capital Expenditure
End Cash Position	115,369,000	149,625,000
Beginning Cash Position	149,625,000	125,335,000
Effect Of Exchange Rate Changes	-1,511,000	884,000
Changes In Cash	-32,745,000	23,406,000
Financing Cash Flow	-5,445,000	-15,005,000
Investing Cash Flow	-27,855,000	17,532,000
Cash Flow From Continuing Investing Activities
Net Other Investing Changes
Capital Expenditure Reported
Operating Cash Flow	555,000	20,879,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $301.1B ▲ $315.7B +4.9%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 15.9% ▲ 16.8% +0.9pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 1.3% ▼ 1.2% -0.1pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 3.6% ▼ 1.6% -2.0pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$315.7B/qtr (≈$1,262.8B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

1.18x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$555M

vs Positive

Operating Cash Flow

$555M

Latest quarter · Buffett's cash reality check

ROIC

0.8%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

0.1x

Net Assets: $280.7B

Asset Context — Internet Retail

Platform and internet businesses derive value from network effects, user data, and brand — intangibles that accounting rules don't capitalise. A low or negative Net Assets figure is expected and not a risk signal. ROIC and FCF per share are more relevant valuation anchors.

Peers & Industry Comparison

Internet Retail — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
JD	$27.57	$37.2B	20.12	16.8%	1.6%	$315.7B
AMZN Amazon.com, Inc.	$244.39	$2,628.9B	31.5	50.6%	12.2%	$742.8B
BABA Alibaba Group Holding Limited	$107.10	$256.9B	16.5	39.8%	10.1%	$1,023.7B
EBAY eBay Inc.	$108.24	$48.1B	25.0	71.8%	17.6%	$11.6B
ETSY Etsy, Inc.	$73.95	$7.0B	28.3	71.6%	9.8%	$2.9B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.95%

Low — management has little skin in the game

Return on Equity (ROE)

2.4%

Weak — poor returns on equity

Return on Assets (ROA)

0.7%

Poor — assets are not generating adequate returns

Share Buybacks (Latest Year)

$21.4B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+0.9% YoY

Debt is roughly stable

Leadership Team

Qiangdong Liu

Founder & Chairman

Age 52

Su Shan

Chief Financial Officer

Age 43

Li Yayun

Senior Vice President

Age 44

Yanzhong Yao

President of JD Retail Appliance & Home and Senior VP

Age 43

Top Institutional Holders

Institution	% Owned	Shares
Dodge & Cox Inc.	0.98%	12,194,648
FIL LTD	0.95%	11,820,000
Newlands Management Operations LLC	0.94%	11,693,590
Franklin Resources, Inc.	0.85%	10,608,107
Susquehanna International Group, LLP	0.83%	10,341,787
Invesco Ltd.	0.50%	6,242,252
Discerene Group, LP	0.48%	5,957,841
Coreview Capital Management Ltd.	0.44%	5,541,555

Risk Analysis

Beta (Market Risk)

0.38

Low volatility — more stable than the market

Short Interest

2.4% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.38x

Conservative balance sheet — low financial risk

Current Ratio

1.18x

Adequate liquidity

52-Week Price Range

Low: $24.51 Current: $27.57 High: $36.86

Currently at 25% of 52-week range

JD.com, Inc.

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry Comparison

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis