JD.com Inc (JD, Financial) has experienced a remarkable uptick in its stock price, with a 13.97% gain over the past week and a 12.26% gain over the past three months. The current market capitalization stands at $44.62 billion, with the stock price at $28.44. When compared to the GF Value of $61.58, JD.com's shares are deemed significantly undervalued, a sentiment echoed by the past GF Value of $60.1. This valuation suggests a potential upside for investors, as the current and past GF Valuations both indicate the stock is significantly undervalued.
Introduction to JD.com Inc
JD.com Inc, a titan in the retail-cyclical industry, operates one of China's leading e-commerce platforms. With a business model comparable to Pinduoduo in terms of 2022 China GMV, JD.com still trails behind Alibaba. The company prides itself on offering a vast array of authentic products, complemented by fast and reliable delivery. JD.com has established a robust nationwide fulfilment infrastructure and a last-mile delivery network, which is managed by its own workforce. This infrastructure supports the company's direct online sales, its online marketplace, and its omnichannel operations. 
Assessing JD.com's Profitability
JD.com's Profitability Rank is currently at 5/10. The company's Operating Margin of 2.78% is better than 46.17% of its peers. Additionally, its ROE of 10.87% and ROA of 4.02% are better than 65.53% and 61.41% of peers, respectively. The ROIC stands at 7.30%, surpassing 64.87% of competitors. Over the past decade, JD.com has maintained profitability for four years, outperforming 24.28% of its industry counterparts. 
Exploring JD.com's Growth Trajectory
JD.com boasts a perfect Growth Rank of 10/10. The company's 3-Year Revenue Growth Rate per Share of 19.40% exceeds 81.12% of its industry peers. Its 5-Year Revenue Growth Rate per Share of 43.20% is higher than 96.83% of competitors. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) of 3.73% is better than 38.33% of peers. The 3-Year EPS without NRI Growth Rate of 33.00% also surpasses 75.24% of the industry. The EPS Growth Rate (Future 3Y To 5Y Est) of 6.66% outperforms 20.97% of peers. These growth metrics underscore JD.com's strong performance and potential for future expansion. 
JD.com's Shareholder Composition
Leading the pack of JD.com's shareholders is Dodge & Cox, holding 21,944,549 shares, which translates to a 1.39% share percentage. Following closely is Chase Coleman (Trades, Portfolio) with 8,803,991 shares, amounting to a 0.56% share percentage. Chris Davis (Trades, Portfolio) also holds a significant stake with 4,490,036 shares, representing a 0.29% share percentage. This shareholder composition reflects the confidence and commitment of major investors in JD.com's business model and growth prospects.
Competitive Landscape
JD.com operates in a highly competitive e-commerce market. Its closest competitors based on market capitalization are Coupang Inc (CPNG, Financial) with a market cap of $34.91 billion, Sea Ltd (SE, Financial) at $33.47 billion, and eBay Inc (EBAY, Financial) with $26.96 billion. These companies, while formidable, have market valuations that trail JD.com's, highlighting the latter's significant presence and influence in the retail-cyclical sector.
Conclusion: JD.com's Undervaluation and Growth Potential
In conclusion, JD.com Inc's recent stock performance indicates a significant undervaluation, as evidenced by the GF Value. The company's solid profitability metrics and exceptional growth rates position it well for future success. The shareholder composition reveals strong institutional support, and when compared to its competitors, JD.com maintains a leading market cap, suggesting a robust competitive edge. For value investors, JD.com presents an attractive opportunity, combining a favorable valuation with strong growth prospects in the dynamic e-commerce industry.
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.
