ALIBABA GROUP HOLDING-SP ADR (BABA) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:BABA • US01609W1027

162.51 USD
+4.75 (+3.01%)
At close: Feb 6, 2026
162.64 USD
+0.13 (+0.08%)
After Hours: 2/6/2026, 8:18:52 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall BABA gets a fundamental rating of 5 out of 10. We evaluated BABA against 30 industry peers in the Broadline Retail industry. BABA has an average financial health and profitability rating. BABA is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

6

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.
BABA Yearly Net Income VS EBIT VS OCF VS FCFBABA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B 200B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 6.66%, BABA is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
  • BABA's Return On Equity of 12.15% is fine compared to the rest of the industry. BABA outperforms 66.67% of its industry peers.
  • BABA's Return On Invested Capital of 6.24% is fine compared to the rest of the industry. BABA outperforms 63.33% of its industry peers.
  • BABA had an Average Return On Invested Capital over the past 3 years of 7.12%. This is below the industry average of 9.24%.
Industry RankSector 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%
BABA Yearly ROA, ROE, ROICBABA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • BABA has a Profit Margin of 12.39%. This is amongst the best in the industry. BABA outperforms 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.
  • BABA's Operating Margin has declined in the last couple of years.
  • BABA has a Gross Margin (41.17%) which is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of BABA has declined.
Industry RankSector 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%
BABA Yearly Profit, Operating, Gross MarginsBABA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

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.
  • Compared to 1 year ago, BABA has a worse debt to assets ratio.
BABA Yearly Shares OutstandingBABA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
BABA Yearly Total Debt VS Total AssetsBABA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500B 1T 1.5T

2.2 Solvency

  • BABA has an Altman-Z score of 3.27. 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 3.27, BABA is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
  • The Debt to FCF ratio of BABA is 106.58, which is on the high side as it means it would take BABA, 106.58 years of fcf income to pay off 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.
  • BABA has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
  • 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 RankSector Rank
Debt/Equity 0.25
Debt/FCF 106.58
Altman-Z 3.27
ROIC/WACC0.76
WACC8.23%
BABA Yearly LT Debt VS Equity VS FCFBABA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200B 400B 600B 800B 1T

2.3 Liquidity

  • BABA has a Current 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.
  • Looking at the Current ratio, with a value of 1.46, BABA is in line with its industry, outperforming 50.00% of the companies in the same industry.
  • 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's Quick ratio of 1.46 is in line compared to the rest of the industry. BABA outperforms 56.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.46
Quick Ratio 1.46
BABA Yearly Current Assets VS Current LiabilitesBABA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200B 400B 600B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • BABA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.52%.
  • BABA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.28% yearly.
  • BABA shows a small growth in Revenue. In the last year, the Revenue has grown by 5.21%.
  • Measured over the past years, BABA shows a quite strong growth in Revenue. The Revenue has been growing by 14.35% on average per year.
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-34.34%
EPS Next 2Y-1.13%
EPS Next 3Y8.17%
EPS Next 5Y1.11%
Revenue Next Year3.59%
Revenue Next 2Y7.29%
Revenue Next 3Y8.23%
Revenue Next 5Y8.98%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
BABA Yearly Revenue VS EstimatesBABA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 500B 1T 1.5T 2T
BABA Yearly EPS VS EstimatesBABA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20 40 60 80

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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • BABA is valuated rather expensively with a Price/Earnings ratio of 21.27.
  • 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 (27.93), we can say BABA is valued slightly cheaper.
  • BABA is valuated rather expensively with a Price/Forward Earnings ratio of 17.64.
  • Based on the Price/Forward Earnings ratio, BABA is valued a bit cheaper than 63.33% of the companies in the same industry.
  • BABA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.77, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 21.27
Fwd PE 17.64
BABA Price Earnings VS Forward Price EarningsBABA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • BABA's Enterprise Value to EBITDA is on the same level as the industry average.
  • Based on the Price/Free Cash Flow ratio, BABA is valued a bit more expensive than 66.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF 1018.95
EV/EBITDA 14.9
BABA Per share dataBABA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • BABA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.97
EPS Next 2Y-1.13%
EPS Next 3Y8.17%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. Dividend

5.1 Amount

  • BABA has a yearly dividend return of 0.65%, which is pretty low.
  • Compared to an average industry Dividend Yield of 2.42, BABA pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.65, BABA pays less dividend than the S&P500 average, which is at 1.81.
Industry RankSector Rank
Dividend Yield 0.65%

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
BABA Yearly Dividends per shareBABA Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 1 2 3

5.3 Sustainability

  • BABA pays out 26.97% of its income as dividend. This is a sustainable payout ratio.
DP26.97%
EPS Next 2Y-1.13%
EPS Next 3Y8.17%
BABA Yearly Income VS Free CF VS DividendBABA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B
BABA Dividend Payout.BABA Dividend Payout, showing the Payout Ratio.BABA Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

ALIBABA GROUP HOLDING-SP ADR

NYSE:BABA (2/6/2026, 8:18:52 PM)

After market: 162.64 +0.13 (+0.08%)

162.51

+4.75 (+3.01%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)11-25
Earnings (Next)02-19
Inst Owners12.27%
Inst Owner Change0.96%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap387.96B
Revenue(TTM)1.01T
Net Income(TTM)125.43B
Analysts83.33
Price Target202.39 (24.54%)
Short Float %1.89%
Short Ratio3.73
Dividend
Industry RankSector Rank
Dividend Yield 0.65%
Yearly Dividend1.77
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)-1%
PT rev (3m)0.5%
EPS NQ rev (1m)-10.47%
EPS NQ rev (3m)-19.6%
EPS NY rev (1m)-5.36%
EPS NY rev (3m)-13.61%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.88%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-0.04%
Valuation
Industry RankSector Rank
PE 21.27
Fwd PE 17.64
P/S 2.66
P/FCF 1018.95
P/OCF 20.84
P/B 2.61
P/tB 3.55
EV/EBITDA 14.9
EPS(TTM)7.64
EY4.7%
EPS(NY)9.21
Fwd EY5.67%
FCF(TTM)0.16
FCFY0.1%
OCF(TTM)7.8
OCFY4.8%
SpS61.09
BVpS62.33
TBVpS45.73
PEG (NY)N/A
PEG (5Y)4.97
Graham Number103.51
Profitability
Industry RankSector 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 RankSector 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 3.27
F-Score7
WACC8.23%
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-34.34%
EPS Next 2Y-1.13%
EPS Next 3Y8.17%
EPS Next 5Y1.11%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%4.77%
Revenue Next Year3.59%
Revenue Next 2Y7.29%
Revenue Next 3Y8.23%
Revenue Next 5Y8.98%
EBIT growth 1Y-0.14%
EBIT growth 3Y15.44%
EBIT growth 5Y8.99%
EBIT Next Year-17.45%
EBIT Next 3Y15.68%
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 3 / 10 to ALIBABA GROUP HOLDING-SP ADR (BABA). This can be considered as Overvalued.


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 21.27 and the Price/Book (PB) ratio is 2.61.


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.