VIPSVipshop Holdings Limited
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.1×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Margins have held roughly steady, a stable cost structure.
A balanced mix of margins, efficiency, and leverage. ROE 18% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
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.
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 6.0% · fiscal year to FY2025
- Cash conversion
- 1.15×
Cash conversion · 1.30× a year ago · operating cash flow covers the operating profit after tax
- 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 is operating cash flow over operating profit after tax.
Internet Retail
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