NYSE:BABA is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Discover ALIBABA GROUP HOLDING-SP ADR (NYSE:BABA)—an undervalued stock our stock screener has picked out. NYSE:BABA demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Unpacking NYSE:BABA's Valuation Rating

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:BABA has achieved a 7 out of 10:

• BABA is valuated reasonably with a Price/Earnings ratio of 8.81.
• BABA's Price/Earnings ratio is rather cheap when compared to the industry. BABA is cheaper than 81.82% of the companies in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 28.69, BABA is valued rather cheaply.
• A Price/Forward Earnings ratio of 8.97 indicates a reasonable valuation of BABA.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of BABA indicates a somewhat cheap valuation: BABA is cheaper than 75.76% of the companies listed in the same industry.
• BABA is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.54, which is the current average of the S&P500 Index.
• Based on the Enterprise Value to EBITDA ratio, BABA is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
• Based on the Price/Free Cash Flow ratio, BABA is valued cheaper than 81.82% of the companies in the same industry.
• The decent profitability rating of BABA may justify a higher PE ratio.

Profitability Insights: NYSE:BABA

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:BABA was assigned a score of 6 for profitability:

• The Return On Assets of BABA (4.52%) is better than 66.67% of its industry peers.
• With a decent Return On Equity value of 8.08%, BABA is doing good in the industry, outperforming 60.61% of the companies in the same industry.
• The Return On Invested Capital of BABA (7.39%) is better than 66.67% of its industry peers.
• The last Return On Invested Capital (7.39%) for BABA is above the 3 year average (6.45%), which is a sign of increasing profitability.
• BABA's Profit Margin of 8.47% is amongst the best of the industry. BABA outperforms 81.82% of its industry peers.
• BABA has a Operating Margin of 13.16%. This is amongst the best in the industry. BABA outperforms 87.88% of its industry peers.

Analyzing Health Metrics

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:BABA has achieved a 5 out of 10:

• The Debt to FCF ratio of BABA is 1.14, which is an excellent value as it means it would take BABA, only 1.14 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 1.14, BABA is in the better half of the industry, outperforming 69.70% of the companies in the same industry.
• BABA has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
• Looking at the Debt to Equity ratio, with a value of 0.14, BABA is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
• BABA's Current ratio of 1.79 is fine compared to the rest of the industry. BABA outperforms 63.64% of its industry peers.
• The Quick ratio of BABA (1.79) is better than 75.76% of its industry peers.

Assessing Growth Metrics for NYSE:BABA

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:BABA scores a 5 out of 10:

• The Earnings Per Share has grown by an nice 13.82% over the past year.
• Measured over the past years, BABA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.09% on average per year.
• The Revenue has grown by 8.34% in the past year. This is quite good.
• Measured over the past years, BABA shows a very strong growth in Revenue. The Revenue has been growing by 20.09% on average per year.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Our latest full fundamental report of BABA contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.