JD.com Inc (JD, Financial), a prominent player in the Retail - Cyclical industry, has experienced a notable fluctuation in its stock price recently. Over the past week, the stock has seen a decrease of 2.04%. However, looking at a broader timeline, JD.com's stock has surged by an impressive 48.00% over the past three months. This significant increase is noteworthy, especially when considering the company's current valuation status. According to GuruFocus's valuation metrics, JD.com is significantly undervalued with a GF Value of $58.17, while the current stock price stands at $34.09. This valuation suggests a substantial potential for growth, maintaining its status as significantly undervalued from three months ago when the GF Value was slightly higher at $60.76.
Overview of JD.com Inc
JD.com stands as a major e-commerce platform in China, rivalling giants like Alibaba and Pinduoduo in terms of Gross Merchandise Volume (GMV). The company is renowned for its vast array of authentic products and its robust, speedy delivery network. JD.com has developed a comprehensive nationwide fulfillment infrastructure and a last-mile delivery network, which are both managed by its own employees. This setup supports its direct sales online, its online marketplace, and its omnichannel businesses, providing a seamless shopping experience for its customers. 
Profitability Insights
JD.com's financial health, as indicated by its Profitability Rank, is solid with a score of 6/10. The company's Operating Margin is 2.89%, which is more competitive than 46.22% of its peers in the industry. In terms of return metrics, JD.com reports a Return on Equity (ROE) of 10.85%, a Return on Assets (ROA) of 4.01%, and a Return on Invested Capital (ROIC) of 6.96%. These figures are commendable as they surpass the majority of their counterparts in the Retail - Cyclical sector. 
Growth Trajectory
JD.com has achieved the highest possible Growth Rank of 10/10, reflecting its robust expansion in revenue and earnings. The company's 3-Year Revenue Growth Rate per Share stands at 9.30%, better than 60.89% of its industry peers. Looking ahead, the Total Revenue Growth Rate (Future 3Y to 5Y Est) is projected at 13.30%, which is superior to 85.3% of companies in the same sector. Furthermore, the 3-Year EPS without NRI Growth Rate is 18.30%, with future estimates promising a growth rate of 17.70% over the next 3 to 5 years. These growth metrics not only demonstrate JD.com's past achievements but also its potential for future expansion. 
Investor Confidence
JD.com's appeal among investors is evident from its major shareholders. Dodge & Cox holds a significant stake with 21,944,549 shares, representing 1.39% of the company. Following them, Chase Coleman (Trades, Portfolio) owns 8,803,991 shares (0.56%), and Chris Davis (Trades, Portfolio) holds 4,384,782 shares (0.29%). These holdings underscore the confidence that seasoned investors have in JD.com's business model and future prospects.
Competitive Landscape
In comparison to its competitors, JD.com holds a strong position. Coupang Inc (CPNG, Financial) with a market cap of $39.62 billion, Sea Ltd (SE, Financial) with $37.14 billion, and eBay Inc (EBAY, Financial) with $26.21 billion are some of its closest competitors. Despite the fierce competition, JD.com's innovative business strategies and efficient operational framework allow it to maintain a competitive edge in the bustling e-commerce market.
Conclusion
In summary, JD.com presents a compelling case for investors looking for growth and value. The company's robust growth metrics, strong profitability, and strategic market position highlight its potential amidst recent price volatility. With its stock currently undervalued according to GF Value, JD.com offers an attractive opportunity for value investors seeking to capitalize on the e-commerce boom in China.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
