ALIBABA GROUP HOLDING-SP ADR (BABA) Stock Fundamental Analysis
USA - NYSE:BABA - US01609W1027 - ADR
164.61 USD
-2.06 (-1.24%)
We assign a fundamental rating of 5 out of 10 to BABA. 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BABA was profitable.
In the past year BABA had a positive cash flow from operations.
BABA had positive earnings in each of the past 5 years.
BABA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.03%, BABA is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
With a decent Return On Equity value of 14.63%, BABA is doing good in the industry, outperforming 73.33% of the companies in the same industry.
BABA's Return On Invested Capital of 8.19% is fine compared to the rest of the industry. BABA outperforms 63.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BABA is below the industry average of 10.42%.
The last Return On Invested Capital (8.19%) for BABA is above the 3 year average (7.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.03% | ||
| ROE | 14.63% | ||
| ROIC | 8.19% |
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 Profit Margin of 14.82%. This is amongst the best in the industry. BABA outperforms 93.33% of its industry peers.
In the last couple of years the Profit Margin of BABA has declined.
BABA's Operating Margin of 14.51% is amongst the best of the industry. BABA outperforms 90.00% of its industry peers.
BABA's Operating Margin has declined in the last couple of years.
BABA has a Gross Margin of 41.18%. This is comparable to the rest of the industry: BABA outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of BABA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.51% | ||
| PM (TTM) | 14.82% | ||
| GM | 41.18% |
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
BABA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
BABA has less shares outstanding than it did 1 year ago.
BABA has less shares outstanding than it did 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 3.42. This indicates that BABA is financially healthy and has little risk of bankruptcy at the moment.
BABA's Altman-Z score of 3.42 is in line compared to the rest of the industry. BABA outperforms 56.67% of its industry peers.
BABA has a debt to FCF ratio of 6.11. This is a slightly negative value and a sign of low solvency as BABA would need 6.11 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.11, BABA is in line with its industry, outperforming 56.67% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that BABA is not too dependend on debt financing.
BABA's Debt to Equity ratio of 0.20 is in line compared to the rest of the industry. BABA outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 3.42 |
ROIC/WACC1.02
WACC8.01%
2.3 Liquidity
BABA has a Current Ratio of 1.45. 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 Current ratio (1.45) which is comparable to the rest of the industry.
A Quick Ratio of 1.45 indicates that BABA should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.45, BABA is doing good in the industry, outperforming 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
BABA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.15%.
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 5.32%.
The Revenue has been growing by 14.35% on average over the past years. This is quite good.
EPS 1Y (TTM)4.15%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%-10.28%
Revenue 1Y (TTM)5.32%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%1.82%
3.2 Future
Based on estimates for the next years, BABA will show a small growth in Earnings Per Share. The EPS will grow by 1.11% on average per year.
The Revenue is expected to grow by 8.88% on average over the next years. This is quite good.
EPS Next Y-13.33%
EPS Next 2Y7.27%
EPS Next 3Y11.03%
EPS Next 5Y1.11%
Revenue Next Year3.8%
Revenue Next 2Y7.49%
Revenue Next 3Y8.06%
Revenue Next 5Y8.88%
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 18.39, which indicates a rather expensive current valuation of BABA.
Based on the Price/Earnings ratio, BABA is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.77. BABA is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.57, the valuation of BABA can be described as correct.
BABA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BABA is cheaper than 73.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.23. BABA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.39 | ||
| Fwd PE | 15.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BABA is valued a bit cheaper than 66.67% of the companies in the same industry.
BABA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 71.53 | ||
| EV/EBITDA | 12.44 |
4.3 Compensation for Growth
The decent profitability rating of BABA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.3
EPS Next 2Y7.27%
EPS Next 3Y11.03%
5. Dividend
5.1 Amount
With a yearly dividend of 0.62%, BABA is not a good candidate for dividend investing.
BABA's Dividend Yield is a higher than the industry average which is at 9.75.
Compared to an average S&P500 Dividend Yield of 2.36, BABA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
5.2 History
BABA has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
19.60% of the earnings are spent on dividend by BABA. This is a low number and sustainable payout ratio.
DP19.6%
EPS Next 2Y7.27%
EPS Next 3Y11.03%
NYSE:BABA (10/22/2025, 2:41:08 PM)
164.61
-2.06 (-1.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners12.28%
Inst Owner Change-14.52%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap381.73B
Revenue(TTM)1000.76B
Net Income(TTM)148.32B
Analysts84.17
Price Target186.13 (13.07%)
Short Float %1.84%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
Yearly Dividend1.78
Dividend Growth(5Y)N/A
DP19.6%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.64%
Min EPS beat(2)-5.13%
Max EPS beat(2)-4.14%
EPS beat(4)1
Avg EPS beat(4)-0.77%
Min EPS beat(4)-5.13%
Max EPS beat(4)6.96%
EPS beat(8)2
Avg EPS beat(8)-0.41%
EPS beat(12)6
Avg EPS beat(12)4.23%
EPS beat(16)9
Avg EPS beat(16)3.66%
Revenue beat(2)0
Avg Revenue beat(2)-3.14%
Min Revenue beat(2)-4%
Max Revenue beat(2)-2.29%
Revenue beat(4)0
Avg Revenue beat(4)-2.75%
Min Revenue beat(4)-4%
Max Revenue beat(4)-1.77%
Revenue beat(8)0
Avg Revenue beat(8)-2.57%
Revenue beat(12)1
Avg Revenue beat(12)-2.08%
Revenue beat(16)2
Avg Revenue beat(16)-2.06%
PT rev (1m)10.72%
PT rev (3m)21.26%
EPS NQ rev (1m)-20.33%
EPS NQ rev (3m)-50.73%
EPS NY rev (1m)-10.89%
EPS NY rev (3m)-19.22%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-2.97%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-2.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.39 | ||
| Fwd PE | 15.57 | ||
| P/S | 2.72 | ||
| P/FCF | 71.53 | ||
| P/OCF | 18.05 | ||
| P/B | 2.68 | ||
| P/tB | 3.68 | ||
| EV/EBITDA | 12.44 |
EPS(TTM)8.95
EY5.44%
EPS(NY)10.57
Fwd EY6.42%
FCF(TTM)2.3
FCFY1.4%
OCF(TTM)9.12
OCFY5.54%
SpS60.62
BVpS61.4
TBVpS44.7
PEG (NY)N/A
PEG (5Y)4.3
Graham Number111.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.03% | ||
| ROE | 14.63% | ||
| ROCE | 10.57% | ||
| ROIC | 8.19% | ||
| ROICexc | 11.76% | ||
| ROICexgc | 16.51% | ||
| OM | 14.51% | ||
| PM (TTM) | 14.82% | ||
| GM | 41.18% | ||
| FCFM | 3.8% |
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-Score8
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 6.11 | ||
| Debt/EBITDA | 1.11 | ||
| Cap/Depr | 265.09% | ||
| Cap/Sales | 11.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.24% | ||
| Profit Quality | 25.61% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 3.42 |
F-Score8
WACC8.01%
ROIC/WACC1.02
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)4.15%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%-10.28%
EPS Next Y-13.33%
EPS Next 2Y7.27%
EPS Next 3Y11.03%
EPS Next 5Y1.11%
Revenue 1Y (TTM)5.32%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%1.82%
Revenue Next Year3.8%
Revenue Next 2Y7.49%
Revenue Next 3Y8.06%
Revenue Next 5Y8.88%
EBIT growth 1Y25.86%
EBIT growth 3Y15.44%
EBIT growth 5Y8.99%
EBIT Next Year4.06%
EBIT Next 3Y17.77%
EBIT Next 5Y15.72%
FCF growth 1Y-79.1%
FCF growth 3Y-4.65%
FCF growth 5Y-10.53%
OCF growth 1Y-28.72%
OCF growth 3Y4.63%
OCF growth 5Y-1.97%