Vipshop Holdings Ltd (VIPS)

Price$13.20Cached quoteAs of 2026-09-05 13:19 UTC

AI: Undervalued

Price checkThe shares look undervalued because cash and recurring cash flow cover much of the market value.

Using 95.1 million ordinary shares outstanding at June 30, with each ordinary share equal to five American depositary shares, the observed price implies an equity value near $6.2 billion. Vipshop held about $4.9 billion of cash, restricted cash and short-term investments, against $1.6 billion of short-term loans. Trailing twelve-month free cash flow, meaning cash left after running and investing in the business, was about $1.06 billion. That puts the shares near six times free cash flow, while roughly $3.3 billion of net liquid assets provides substantial downside support.

Big pictureSales are drifting lower, but the core business still produces strong profits and cash.

Revenue fell from RMB112.9 billion in 2023 to RMB105.9 billion in 2025. First-quarter 2026 sales rose 1.2%, but second-quarter sales fell 4.3%; management guides third-quarter sales to decline as much as 5%. That makes Vipshop exposed to weak Chinese consumer spending. Still, operating income was about RMB4.0 billion in the first half of 2026, almost flat year over year, and trailing free cash flow rose to RMB7.2 billion from RMB6.8 billion. One weak quarter therefore does not yet show cash generation breaking.

Business strengthA cash-rich balance sheet and aggressive buybacks improve per-share value despite weak growth.

Vipshop's share count fell from 117.2 million ordinary shares at end-2022 to 95.1 million by June 2026, so owners now claim a larger slice of the business. It returned about $400 million through dividends and buybacks in the first half of 2026, had $216.9 million remaining under its existing repurchase plan, and authorized another $1 billion program. The trade-off is that short-term loans climbed to RMB11.0 billion, but liquid funds still exceeded those loans by more than RMB22 billion. Stock compensation remains material but has been more than offset by repurchases.

What could change the storyStabilizing customer activity could unlock upside, while prolonged sales declines could turn the low valuation into a trap.

The bull case needs only modest improvement: active customers and orders stabilize, apparel and high-value members sustain margins, and buybacks continue shrinking the share count. At today's roughly six-times free-cash-flow valuation, even flat long-run earnings could support attractive owner returns. The bear case is that second-quarter active customers fell 2.8%, orders fell 5.5%, and management expects third-quarter revenue between flat and down 5%. If those declines persist and operating margins contract, today's cheap multiple would reflect a genuinely shrinking retail franchise rather than mispricing.

AI: News

Second-quarter slowdownCore retail weakened and adjusted profit fell sharply, despite a large one-time investment gain.

On August 25, Vipshop reported second-quarter revenue of RMB24.7 billion, down 4.3%, with active customers down to 42.3 million and orders down to 182.4 million. Reported net income jumped 189% because of a RMB5.79 billion commercial-property investment gain, while adjusted net income fell to RMB392 million, partly because of a one-time withholding-tax charge. The shares were about 5% lower premarket and closed roughly 1% lower; that timing suggests concern, but does not prove a single cause.

Bigger buyback planManagement authorized another large repurchase program, increasing the potential benefit from the depressed valuation.

On August 20, the board authorized a new $1.0 billion repurchase program that begins after the existing plan is fully used; the authorization was disclosed with results on August 25. Vipshop still had $216.9 million remaining under the existing program at June 30 and had already returned about $400 million to shareholders through dividends and repurchases in the first half. Buying stock at a low earnings and cash-flow multiple can materially raise value per remaining share, provided the retail business does not keep shrinking.

First-quarter resilienceEarlier results showed that better apparel demand can still lift margins and cash generation.

On May 21, first-quarter revenue rose 1.2% to RMB26.6 billion, gross profit rose 6.8%, and shareholder net income increased 13.6% to RMB2.2 billion. Free cash flow was RMB1.61 billion versus a large outflow a year earlier, while active customers and orders also increased slightly. The shares finished about 2% higher that day, although broader market moves may also have contributed. The quarter showed that Vipshop can still grow when merchandising and seasonal demand align, making the later slowdown more important to watch.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010
Revenue	$15.15B	$14.85B	$15.90B	$14.96B	$18.37B	$15.61B	$13.36B	$12.29B	$11.21B	$8.15B	$6.21B	$3.77B	$1.70B	$692.1M	$227.1M	$32.6M
Gross profit	$3.50B	$3.49B	$3.62B	$3.13B	$3.63B	$3.26B	$2.97B	$2.48B	$2.50B	$1.96B	$1.53B	$938.3M	$407.8M	$154.5M	$43.3M	$3.2M
Gross margin	23.12%	23.49%	22.79%	20.96%	19.74%	20.90%	22.24%	20.19%	22.35%	24.03%	24.62%	24.87%	24.03%	22.32%	19.08%	9.85%
Operating expenses	$2.49B	$2.36B	$2.45B	$2.34B	$2.90B	$2.47B	$2.38B	$2.24B	$2.17B	$1.62B	$1.26B	$802.3M	$353.9M	$166.4M	$150.3M	$11.6M
Operating income	$1.16B	$1.26B	$1.28B	$898.5M	$876.0M	$898.1M	$685.7M	$352.1M	$413.5M	$390.0M	$319.6M	$136.0M	$53.8M	−$11.9M	−$106.9M	−$8.4M
Operating margin	7.68%	8.46%	8.07%	6.01%	4.77%	5.75%	5.13%	2.86%	3.69%	4.78%	5.15%	3.60%	3.17%	−1.73%	−47.07%	−25.68%
EBITDA	$1.38B	$1.45B	$1.47B	$1.08B	$1.05B	$1.05B	$807.2M	$471.1M	$576.7M	$530.4M	$409.3M	$194.3M	$62.9M	−$7.4M	−$105.5M	−$8.3M
EBITDA margin	9.13%	9.77%	9.22%	7.20%	5.72%	6.74%	6.04%	3.83%	5.15%	6.51%	6.60%	5.15%	3.71%	−1.07%	−46.47%	−25.36%
Net income	$1.04B	$1.07B	$1.16B	$915.1M	$736.4M	$907.2M	$572.6M	$310.3M	$290.9M	$287.0M	$232.9M	$122.8M	$52.3M	−$9.5M	−$107.3M	−$8.4M
Net profit margin	6.84%	7.23%	7.27%	6.12%	4.01%	5.81%	4.29%	2.52%	2.60%	3.52%	3.75%	3.25%	3.08%	−1.37%	−47.23%	−25.68%
Basic EPSper basic share	$10.35	$10.00	$10.33	$7.18	$5.39	$6.70	$4.32	$2.34	$2.55	$2.53	—	—	$0.48	-$0.11	-$3.38	-$0.18
Diluted EPSper diluted share	$10.12	$9.83	$10.16	$7.13	$5.29	$6.56	$4.25	$2.27	$2.45	$2.43	—	—	$0.45	-$0.11	-$3.38	-$0.18

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Owners

Reported shareholders

Ownership data is not available for this listing yet.

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)4$411.1K disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 9, 2026Form 4	Wang YuhuaChief Financial Officer	SellClass A ordinary shares	2.6K	$69.12	$179.0K	51.4K
Jun 9, 2026Form 4	Yang DonghaoDirector	SellClass A ordinary shares	397	$69.30	$27.5K	73.2K
Apr 8, 2026Form 4	Liu ChunDirector	SellClass A ordinary shares	145	$77.88	$11.3K	6.3K
Apr 8, 2026Form 4	Li TianminChief Technology Officer	SellClass A ordinary shares	2.5K	$77.88	$193.3K	65.6K

Review ownership filings at SEC.gov ↗

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Vipshop Holdings Ltd (VIPS)

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