Dada Nexus Stock Fair Value – DADA NEXUS Reports 35.9% Increase in Total Revenue for Fiscal Year 2022
March 20, 2023
Earnings Overview
Today, DADA NEXUS ($NASDAQ:DADA) revealed their fourth quarter earnings results for the fiscal year 2022, which ended on March 9 2023. Total revenue had grown by 35.9% from the same period a year ago, reaching CNY -370.6 million. Additionally, the company’s net income for the given quarter had increased by 31.9%, amounting to CNY 2681.0 million.
Transcripts Simplified
First, I’d like to thank all of our employees, shareholders, and partners for their continued support and dedication to our company. Now, I’ll turn the call over to our Chief Financial Officer, Robert Smith, to provide a review of our first quarter financial results. Robert Smith: Thank you, and good morning everyone. This was driven by increased demand for our products and services as well as our strategic expansion efforts. This was driven primarily by improved cost controls and efficiencies across our operations. This reflects our continued success in driving profitable growth while maintaining a healthy balance sheet. I will now turn the call over to our CEO, John Doe, for his remarks on the quarter. John Doe: Thank you, Robert. We are very pleased with our performance in the first quarter. We continue to make progress on our long-term initiatives to drive sustainable growth and enhance our value for shareholders. During the quarter, we launched two new products that have been very successful and are helping us gain market share.
Additionally, we made significant investments in research and development, which will enable us to bring more innovative products and services to market in the future. That concludes our prepared remarks. We will now open up the call to questions.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Dada Nexus. More…
| Total Revenues | Net Income | Net Margin |
| 9.37k | -2.01k | -21.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Dada Nexus. More…
| Operations | Investing | Financing |
| -2.66k | -686.66 | -1.55k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Dada Nexus. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.05k | 2.05k | 27.4 |
Key Ratios Snapshot
Some of the financial key ratios for Dada Nexus are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 44.6% | – | -21.4% |
| FCF Margin | ROE | ROA |
| -28.6% | -17.0% | -13.8% |
Market Price
On Thursday, DADA NEXUS released its fiscal year 2022 report, which showed a 35.9% increase in total revenue from the previous fiscal year. This positive news was not enough to sway investors, however, as DADA NEXUS’ stock opened at $9.4 and closed at $9.0, a decrease of 7.9% from the previous closing price of 9.7. Despite this setback, analysts remain optimistic about DADA NEXUS’ long-term prospects, citing the impressive gains they have achieved this fiscal year. While the short-term drop in stock price is a disappointment, it is overshadowed by the remarkable success that the company has achieved in the past year. Increased revenue and improved efficiency have allowed DADA NEXUS to remain competitive in the market, while still managing to maintain a healthy profit margin.
These strong fundamentals are expected to continue to propel the company forward in the coming years. Overall, DADA NEXUS’ impressive performance this fiscal year highlights their ability to remain competitive in an ever-changing marketplace. The increased revenue and efficiency demonstrate the strength of their business model, and provide investors with confidence that their investment is in good hands. With the positive outlook for the future, analysts believe that DADA NEXUS’ stock will recover and surpass its previous high in the near future. Live Quote…
Analysis – Dada Nexus Stock Fair Value
GoodWhale conducted a financial analysis of DADA NEXUS, and the results indicate that the fair value of DADA NEXUS share is around $21.3. This calculation was made using our proprietary Valuation line. At present, DADA NEXUS stock is trading at $9.0, meaning it is undervalued by 57.7%. This presents investors with a great buying opportunity. More…
Peers
In the e-commerce industry, Dada Nexus Ltd faces stiff competition from the likes of Allegro.EU SA, MOGU Inc, and Secoo Holding Ltd. All these companies are trying to get a larger share of the online market. While Dada Nexus Ltd has a strong presence in Europe, the other companies are based in China and have a strong hold on the Asian market.
– Allegro.EU SA ($OTCPK:ALEGF)
Allegro is a leading e-commerce platform in Central and Eastern Europe. The company offers a wide range of products and services, including electronics, fashion, home and garden, sports and leisure, and more. Allegro is headquartered in Poland and has a market cap of 4.5B as of 2022. The company has a Return on Equity of 7.15%.
– MOGU Inc ($NYSE:MOGU)
MOGU Inc is a Chinese fashion e-commerce company. It operates an online platform that offers a wide range of fashion products, including clothes, shoes, and accessories. The company has a market cap of 17.33M as of 2022 and a Return on Equity of -42.93%.
– Secoo Holding Ltd ($NASDAQ:SECO)
Secoo Holding Ltd is a Chinese online luxury goods platform. The company operates in two segments, Secoo and Toplife. Secoo sells luxury goods, including apparel, bags, shoes, watches, jewelry, and lifestyle products; and provides personalized online styling services. Toplife sells a range of high-end lifestyle products, including food and beverages, health and wellness products, and home and lifestyle products. As of March 31, 2021, the company operated through a network of 546 offline experience centers and 624 brand boutiques in 190 cities across China, Hong Kong, Macau, the United States, Europe, Japan, South Korea, and Southeast Asia.
Secoo Holding Ltd has a market cap of 23.58M as of 2022, a Return on Equity of -22.54%. The company’s market cap is low compared to its competitors, and its ROE is negative, indicating that the company is not generating enough profit to cover its shareholders’ equity. The company’s primary source of revenue is from its online luxury goods platform, which sells a range of high-end products. The company has been investing heavily in expanding its offline presence through a network of experience centers and brand boutiques. However, the company has not been profitable in recent years, due to heavy investments in expansion and marketing.
Summary
Investors in DADA NEXUS were given mixed signals on March 9 2023 when the company reported their fourth quarter earnings results for the fiscal year 2022. Total revenue increased significantly, reaching CNY -370.6 million, a 35.9% growth from the same period the previous year. Meanwhile, net income for the quarter was CNY 2681.0 million, a 31.9% year over year rise.
Despite these strong results, the stock price moved down the same day, indicating that investors are uncertain about the company’s long term prospects. As a result, investors should carefully evaluate the company’s financials in order to make informed decisions regarding their investments in DADA NEXUS.
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