Buffett Brain · Research note
Score updated 27 Oct 2026 · analysis from 23 Aug 2026
JD· Consumer Discretionary
JD.com
JD.com struggles with profitability and lacks a clear economic moat, making it an unattractive investment under Buffett's criteria.
Buffett fit
Weak fit
Owner
4
Durability
19
Management
63
Price
29
Score updated 27 Oct 2026 · analysis from 23 Aug 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Consumer Discretionary stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned JD.com entirely, the focus would be on improving profitability and establishing a clear competitive advantage.
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JD.com's long-term durability is questionable given its lack of profitability and the competitive nature of the e-commerce industry.
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JD.com has reduced its share count by 2.16% annually over the past five years, which is positive.
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JD.com's current valuation does not offer a sufficient .
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- What would change the call
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1Revenue of $193.02B reflects a large scale of operations.
- 2 yield of 4.1% indicates some level of shareholder returns.
- 3Dividend yield of 3.47% provides income to shareholders.
- 4Net debt/EBITDA of -1.09 shows a net cash position, indicating financial flexibility.
Concerns
5- 1 of -0.21% indicates lack of profitability.
- 2 of -0.65% is below the sector top-quintile cutoff of 13.7%.
- 3 of 14.51% is significantly below the sector's top-quintile cutoff of 53.9%.
- 4Interest coverage of -1.0 suggests potential financial distress.
Price history
$25.24-67.8%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
JD.com operates as a supply chain-based technology and service provider in China, offering a wide range of products from electronics to general merchandise. It also provides logistics services and online marketplace solutions. Despite its large revenue base of $193.02B, the company's is -0.21%, indicating struggles with profitability. Unit economics are weak, reflected in a net margin of just 1.05%.
How this analysis has moved
The call has held across 5 reviews.
Sep 27, 2026 → Oct 22, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Consumer Discretionary
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