JD - Embedded Expectations Analysis - 2018 10 19
JD.com, Inc. (JD) currently trades above corporate averages relative to UAFRS-based (Uniform) Earnings, with a 28.5x Uniform P/E. However, even at these levels, the market has bearish expectations for the firm, and management has concerns about their R&D investments, earnings guidance, and inventory control measuresSpecifically, management may have concerns about their substantial amount of investment in R&D, and their ability to sustain strong booking in JD Mall. Furthermore, they may have concerns about the effects of seasonality on their sales, and may lack confidence in their ability to meet their FY 2018 earnings guidance. Moreover, they may lack confidence in their ability to open an additional 20 to 30 stores over the next few months, and to improve inventory control and product design. Finally, they may lack confidence in their ability to improve their advertising and supply chain in their B2B segment, and may be exaggerating the benefits from their partnership with Google
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