Is the business good?
How good a business is VIPS?
Vipshop Holdings Limited earns 26% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
26%
Return on invested capital · cost of capital 9.0% · 17 points above what the capital costs: growth creates value
- Operating margin
- 7.7%
Operating margin · Internet Retail median 7.6% · fiscal year to FY2025
- Cash conversion
- 0.74×
Cash conversion · 0.82× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −5.1%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 5.8% |
| FY2021 | 4.8% |
| FY2022 | 6.0% |
| FY2023 | 8.1% |
| FY2024 | 8.5% |
| FY2025 | 7.7% |
Details›
- Gross marginfiscal year to FY2025
- 23%
- Operating marginfiscal year to FY2025
- 7.7%
- Net marginfiscal year to FY2025
- 7.0%
- Free cash flow margin
- 5.2%
- Revenue, trailing twelve months
- $105.9B
- Free cash flow, trailing twelve months
- $5.47B
- Net income, trailing twelve months
- $7.41B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 26%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Internet Retail
Ranks #4 of 18 by Smart Score