ALIBABA GROUP HOLDING-SP ADR (BABA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BABA - US01609W1027 - ADR
150.96 USD
-3.51 (-2.27%)
150.82 USD
-0.14 (-0.09%)
Taking everything into account, BABA scores 5 out of 10 in our fundamental rating. BABA was compared to 30 industry peers in the Broadline Retail industry. BABA has only an average score on both its financial health and profitability. BABA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year BABA was profitable.
BABA had a positive operating cash flow in the past year.
In the past 5 years BABA has always been profitable.
In the past 5 years BABA always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.66%, BABA is doing good in the industry, outperforming 76.67% of the companies in the same industry.
BABA has a Return On Equity of 12.15%. This is in the better half of the industry: BABA outperforms 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.24%, BABA is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BABA is below the industry average of 9.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.66% | ||
| ROE | 12.15% | ||
| ROIC | 6.24% |
ROA(3y)5.28%
ROA(5y)5.68%
ROE(3y)9.41%
ROE(5y)10.16%
ROIC(3y)7.12%
ROIC(5y)6.48%
1.3 Margins
BABA has a better Profit Margin (12.39%) than 90.00% of its industry peers.
BABA's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 11.46%, BABA belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Operating Margin of BABA has declined.
The Gross Margin of BABA (41.17%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of BABA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.46% | ||
| PM (TTM) | 12.39% | ||
| GM | 41.17% |
OM growth 3Y9.62%
OM growth 5Y-4.68%
PM growth 3Y21.4%
PM growth 5Y-15%
GM growth 3Y2.73%
GM growth 5Y-2.4%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BABA is destroying value.
The number of shares outstanding for BABA has been reduced compared to 1 year ago.
The number of shares outstanding for BABA has been reduced compared to 5 years ago.
The debt/assets ratio for BABA is higher compared to a year ago.
2.2 Solvency
BABA has an Altman-Z score of 3.15. This indicates that BABA is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.15, BABA is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
BABA has a debt to FCF ratio of 106.58. This is a negative value and a sign of low solvency as BABA would need 106.58 years to pay back of all of its debts.
With a Debt to FCF ratio value of 106.58, BABA is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.25 indicates that BABA is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.25, BABA is doing good in the industry, outperforming 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 106.58 | ||
| Altman-Z | 3.15 |
ROIC/WACC0.76
WACC8.22%
2.3 Liquidity
A Current Ratio of 1.46 indicates that BABA should not have too much problems paying its short term obligations.
BABA has a Current ratio (1.46) which is in line with its industry peers.
BABA has a Quick Ratio of 1.46. This is a normal value and indicates that BABA is financially healthy and should not expect problems in meeting its short term obligations.
BABA has a Quick ratio (1.46) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The earnings per share for BABA have decreased strongly by -12.52% in the last year.
Measured over the past 5 years, BABA shows a small growth in Earnings Per Share. The EPS has been growing by 4.28% on average per year.
BABA shows a small growth in Revenue. In the last year, the Revenue has grown by 5.21%.
BABA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.35% yearly.
EPS 1Y (TTM)-12.52%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%-71.05%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%4.77%
3.2 Future
The Earnings Per Share is expected to grow by 1.11% on average over the next years.
Based on estimates for the next years, BABA will show a quite strong growth in Revenue. The Revenue will grow by 8.98% on average per year.
EPS Next Y-30.63%
EPS Next 2Y1.9%
EPS Next 3Y10.19%
EPS Next 5Y1.11%
Revenue Next Year3.92%
Revenue Next 2Y7.51%
Revenue Next 3Y8.42%
Revenue Next 5Y8.98%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.89, which indicates a rather expensive current valuation of BABA.
73.33% of the companies in the same industry are more expensive than BABA, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BABA to the average of the S&P500 Index (27.19), we can say BABA is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.52 indicates a correct valuation of BABA.
BABA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BABA is cheaper than 66.67% of the companies in the same industry.
BABA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.89 | ||
| Fwd PE | 15.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BABA indicates a somewhat cheap valuation: BABA is cheaper than 63.33% of the companies listed in the same industry.
66.67% of the companies in the same industry are cheaper than BABA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 951.91 | ||
| EV/EBITDA | 13.79 |
4.3 Compensation for Growth
The decent profitability rating of BABA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.65
EPS Next 2Y1.9%
EPS Next 3Y10.19%
5. Dividend
5.1 Amount
BABA has a yearly dividend return of 0.67%, which is pretty low.
Compared to an average industry Dividend Yield of 2.24, BABA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.67, BABA pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
5.2 History
BABA has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
BABA pays out 26.97% of its income as dividend. This is a sustainable payout ratio.
DP26.97%
EPS Next 2Y1.9%
EPS Next 3Y10.19%
150.96
-3.51 (-2.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners12.27%
Inst Owner Change0.13%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap360.19B
Revenue(TTM)1.01T
Net Income(TTM)125.43B
Analysts83.33
Price Target204.43 (35.42%)
Short Float %1.83%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend1.76
Dividend Growth(5Y)N/A
DP26.97%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.11%
Min EPS beat(2)-22.09%
Max EPS beat(2)-4.14%
EPS beat(4)1
Avg EPS beat(4)-6.1%
Min EPS beat(4)-22.09%
Max EPS beat(4)6.96%
EPS beat(8)2
Avg EPS beat(8)-3.13%
EPS beat(12)5
Avg EPS beat(12)1.63%
EPS beat(16)9
Avg EPS beat(16)2.98%
Revenue beat(2)1
Avg Revenue beat(2)-1.94%
Min Revenue beat(2)-4%
Max Revenue beat(2)0.12%
Revenue beat(4)1
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-4%
Max Revenue beat(4)0.12%
Revenue beat(8)1
Avg Revenue beat(8)-2.34%
Revenue beat(12)2
Avg Revenue beat(12)-1.85%
Revenue beat(16)3
Avg Revenue beat(16)-1.8%
PT rev (1m)0.4%
PT rev (3m)9.83%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-22.31%
EPS NY rev (1m)-1.52%
EPS NY rev (3m)-19.95%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.89 | ||
| Fwd PE | 15.52 | ||
| P/S | 2.48 | ||
| P/FCF | 951.91 | ||
| P/OCF | 19.46 | ||
| P/B | 2.44 | ||
| P/tB | 3.32 | ||
| EV/EBITDA | 13.79 |
EPS(TTM)7.59
EY5.03%
EPS(NY)9.73
Fwd EY6.44%
FCF(TTM)0.16
FCFY0.11%
OCF(TTM)7.76
OCFY5.14%
SpS60.75
BVpS61.98
TBVpS45.47
PEG (NY)N/A
PEG (5Y)4.65
Graham Number102.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.66% | ||
| ROE | 12.15% | ||
| ROCE | 8.06% | ||
| ROIC | 6.24% | ||
| ROICexc | 8.43% | ||
| ROICexgc | 11.36% | ||
| OM | 11.46% | ||
| PM (TTM) | 12.39% | ||
| GM | 41.17% | ||
| FCFM | 0.26% |
ROA(3y)5.28%
ROA(5y)5.68%
ROE(3y)9.41%
ROE(5y)10.16%
ROIC(3y)7.12%
ROIC(5y)6.48%
ROICexc(3y)11.37%
ROICexc(5y)10.26%
ROICexgc(3y)17.4%
ROICexgc(5y)16.29%
ROCE(3y)9.19%
ROCE(5y)8.36%
ROICexgc growth 3Y6.92%
ROICexgc growth 5Y-3.04%
ROICexc growth 3Y11.89%
ROICexc growth 5Y2.97%
OM growth 3Y9.62%
OM growth 5Y-4.68%
PM growth 3Y21.4%
PM growth 5Y-15%
GM growth 3Y2.73%
GM growth 5Y-2.4%
F-Score7
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 106.58 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 298.08% | ||
| Cap/Sales | 12.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.55% | ||
| Profit Quality | 2.11% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 3.15 |
F-Score7
WACC8.22%
ROIC/WACC0.76
Cap/Depr(3y)116.55%
Cap/Depr(5y)110.15%
Cap/Sales(3y)5.36%
Cap/Sales(5y)5.67%
Profit Quality(3y)158.56%
Profit Quality(5y)149.1%
High Growth Momentum
Growth
EPS 1Y (TTM)-12.52%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%-71.05%
EPS Next Y-30.63%
EPS Next 2Y1.9%
EPS Next 3Y10.19%
EPS Next 5Y1.11%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%4.77%
Revenue Next Year3.92%
Revenue Next 2Y7.51%
Revenue Next 3Y8.42%
Revenue Next 5Y8.98%
EBIT growth 1Y-0.14%
EBIT growth 3Y15.44%
EBIT growth 5Y8.99%
EBIT Next Year-14.19%
EBIT Next 3Y16.63%
EBIT Next 5Y15.73%
FCF growth 1Y-98.62%
FCF growth 3Y-4.65%
FCF growth 5Y-10.53%
OCF growth 1Y-39.43%
OCF growth 3Y4.63%
OCF growth 5Y-1.97%
ALIBABA GROUP HOLDING-SP ADR / BABA FAQ
Can you provide the ChartMill fundamental rating for ALIBABA GROUP HOLDING-SP ADR?
ChartMill assigns a fundamental rating of 5 / 10 to BABA.
What is the valuation status for BABA stock?
ChartMill assigns a valuation rating of 4 / 10 to ALIBABA GROUP HOLDING-SP ADR (BABA). This can be considered as Fairly Valued.
How profitable is ALIBABA GROUP HOLDING-SP ADR (BABA) stock?
ALIBABA GROUP HOLDING-SP ADR (BABA) has a profitability rating of 6 / 10.
What is the valuation of ALIBABA GROUP HOLDING-SP ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ALIBABA GROUP HOLDING-SP ADR (BABA) is 19.89 and the Price/Book (PB) ratio is 2.44.
What is the financial health of ALIBABA GROUP HOLDING-SP ADR (BABA) stock?
The financial health rating of ALIBABA GROUP HOLDING-SP ADR (BABA) is 5 / 10.