bullish
Vipshop: Net Cash at 40% of Market Cap, Now Paying Dividends and Buying Back Shares
Wium has highlighted this Insight as a Top Pick
234 Views15 May 2024 19:40
SUMMARY
- The slowdown in Chinese retail sales of apparel seems to have been factored into Vipshop Holdings (VIPS US) 1Q 2024 revenue growth expectations whilst bottom-line is supported by margin expansion.
- With net cash at ~40% of its market cap, the share price should be supported by the ongoing share repurchase program and its inaugural annual dividend policy.
- Its 6.6x NTM PE ratio (~4x ex-cash) seems extremely attractive for a highly cash-generative business set to (conservatively) grow earnings at high-single-digits whilst buying back shares and paying dividends.
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