Baozun Inc. American Depositary Shares (BZUN)

FairStock Score: 40/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Baozun as a Graham-style bargain hunter, but I must ask whether the low price is a bargain or a warning. The company provides end-to-end e-commerce solutions in China and has moved into brand management. Its latest reported quarter, fiscal Q2 2026, produced $2.7 billion of revenue and $17.0 million of net income, a margin of just 0.62%. That is a thin cushion. Trailing EPS is -$0.35, so the P/E is -9.93, and ROE is -1.16%. ROCE of 0.91% tells me the business is barely earning a return on capital employed. Revenue growth of 15.34% and profit growth of 88.18% are encouraging, but the starting point is weak. The balance sheet has D/E of 0.34, not alarming, yet an Altman Z-score of 0.60 signals meaningful distress risk. EV/EBITDA of 829.06 is not a value multiple; it is a red flag. On the positive side, at the 2026-10-13 close of $3.47, P/B is 0.37, so the market values the equity at a steep discount to book. Piotroski F-Score is 6/9, suggesting some improving fundamentals. But FairStock score is 40/100, and the Lynch category is none because there are only 0 years of filed results, needing 3. I see no obvious durable moat: e-commerce services in China are competitive, and a 0.62% net margin suggests little pricing power. The stock could be cheap if margins normalize and asset value is real, but the numbers do not yet prove that.

In plain English: Baozun helps companies in China sell online, handling store design, marketing, customer service, warehousing, delivery, and brand management. In its latest reported quarter, it earned only about 62 cents of profit for every $100 of sales, and it has lost money on a trailing basis, so the business looks weak on profitability. At $3.47 on 2026-10-13, the shares look inexpensive compared with the company's accounting value, but that low price reflects real doubts about profits and financial strength.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer