JD - Embedded Expectations Analysis - 2019 06 21
JD.com, Inc. (JD:USA) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with an 18.4x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management has concerns about earnings growth, JD Retail margins, and the potential of their logistics business.Specifically, management may lack confidence in their ability to sustain revenue growth, maintain earnings performance, and continue to expand JD Retail margins through capacity utilization. In addition, they may be concerned about their ability to create innovative offerings for consumers, the fair value of investments, and their recent partnerships and financing agreements. Finally, they may be exaggerating the potential of their logistics business, and concerned about the sustainability of JD Retail's low operating expense ratio.
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