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Dada Nexus (FRA:D0A) Net-Net Working Capital : €1.10 (As of Sep. 2024)


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What is Dada Nexus Net-Net Working Capital?

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

Dada Nexus's Net-Net Working Capital for the quarter that ended in Sep. 2024 was €1.10.

The industry rank for Dada Nexus's Net-Net Working Capital or its related term are showing as below:

FRA:D0A's Price-to-Net-Net-Working-Capital is ranked better than
91.17% of 317 companies
in the Retail - Cyclical industry
Industry Median: 5.99 vs FRA:D0A: 1.17

Dada Nexus Net-Net Working Capital Historical Data

The historical data trend for Dada Nexus's Net-Net Working Capital can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Dada Nexus Net-Net Working Capital Chart

Dada Nexus Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Net-Net Working Capital
Get a 7-Day Free Trial -5.48 2.15 0.29 1.13 0.84

Dada Nexus Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Net-Net Working Capital Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.08 0.84 1.01 0.88 1.10

Competitive Comparison of Dada Nexus's Net-Net Working Capital

For the Internet Retail subindustry, Dada Nexus's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Dada Nexus's Price-to-Net-Net-Working-Capital Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Dada Nexus's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Dada Nexus's Price-to-Net-Net-Working-Capital falls into.



Dada Nexus Net-Net Working Capital Calculation

Dada Nexus's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2023 is calculated as

Net-Net Working Capital(A: Dec. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(443.249+0.75 * 49.672+0.5 * 1.191-259.034
-0-0)/264.078
=0.84

Dada Nexus's Net-Net Working Capital (NNWC) per share for the quarter that ended in Sep. 2024 is calculated as

Net-Net Working Capital(Q: Sep. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(353.562+0.75 * 147.653+0.5 * 1.504-178.478
-0-0)/259.805
=1.10

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.


Dada Nexus  (FRA:D0A) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.


Dada Nexus Net-Net Working Capital Related Terms

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Dada Nexus Business Description

Traded in Other Exchanges
Address
No.1088 Yangshupu Road, 22nd Floor, Oriental Fisherman’s Wharf, Yangpu District, Shanghai, CHN, 200082
Dada Nexus is a leading crowdsourced delivery service in China. The company has two core businesses, Dada Now, which is an on-demand delivery platform that provides last-mile and intracity services; and JD Daojia, or JDDJ, which is an online on-demand retail platform that connects consumers to merchants with its delivery capabilities. As of 2022, Dada Now accounted for 34% of revenue while JDDJ accounted for the rest. JDDJ and Dada Nexus merged in 2016, where JD.com received 47.4% ownership of the merged entity in exchange for its JDDJ business. As of June 2023, JD.com and Walmart Inc own 53.9% and 9.3% of Dada Nexus, respectively. Dada Nexus competes with other logistics companies such as SF Intra-City, with Didi in its delivery business, and with Meituan in its on-demand retail segment.

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