ALIBABA GROUP HOLDING-SP ADR (BABA) Stock Fundamental Analysis
USA - NYSE:BABA - US01609W1027 - ADR
164.82 USD
+0.52 (+0.32%)
165.8 USD
+0.98 (+0.59%)
BABA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 30 industry peers in the Broadline Retail industry. Both the profitability and the financial health of BABA get a neutral evaluation. Nothing too spectacular is happening here. 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.
BABA had a positive operating cash flow in the past year.
In the past 5 years BABA has always been profitable.
Each year in the past 5 years BABA had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BABA (8.03%) is better than 80.00% of its industry peers.
BABA has a Return On Equity of 14.63%. This is in the better half of the industry: BABA outperforms 73.33% of its industry peers.
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.
The Average Return On Invested Capital over the past 3 years for BABA is below the industry average of 10.38%.
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
Looking at the Profit Margin, with a value of 14.82%, BABA belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
BABA's Profit Margin has declined in the last couple of years.
BABA has a Operating Margin of 14.51%. This is amongst the best in the industry. BABA outperforms 90.00% of its industry peers.
BABA's Operating Margin has declined in the last couple of years.
BABA's Gross Margin of 41.18% is in line compared 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BABA is still creating some value.
Compared to 1 year ago, BABA has less shares outstanding
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
An Altman-Z score of 3.40 indicates that BABA is not in any danger for bankruptcy at the moment.
BABA has a Altman-Z score (3.40) which is comparable to the rest of the industry.
The Debt to FCF ratio of BABA is 6.11, which is on the high side as it means it would take BABA, 6.11 years of fcf income to pay off 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.
BABA has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
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 | 3.4 |
ROIC/WACC1.02
WACC8.05%
2.3 Liquidity
A Current Ratio of 1.45 indicates that BABA should not have too much problems paying its short term obligations.
BABA has a Current ratio (1.45) which is in line with its industry peers.
A Quick Ratio of 1.45 indicates that BABA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.45, BABA is in the better half of 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%.
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 5.32%.
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)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
BABA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.11% yearly.
BABA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.88% yearly.
EPS Next Y-19.63%
EPS Next 2Y5.29%
EPS Next 3Y10.23%
EPS Next 5Y1.11%
Revenue Next Year3.77%
Revenue Next 2Y7.48%
Revenue Next 3Y8.46%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.44, which indicates a rather expensive current valuation of BABA.
BABA's Price/Earnings ratio is a bit cheaper when compared to the industry. BABA is cheaper than 73.33% of the companies in the same industry.
BABA is valuated rather cheaply when we compare the Price/Earnings ratio to 26.13, which is the current average of the S&P500 Index.
BABA is valuated correctly with a Price/Forward Earnings ratio of 16.19.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BABA indicates a somewhat cheap valuation: BABA is cheaper than 66.67% of the companies listed in the same industry.
BABA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.44 | ||
| Fwd PE | 16.19 |
4.2 Price Multiples
BABA's Enterprise Value to EBITDA ratio is in line with the industry average.
BABA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 71.69 | ||
| EV/EBITDA | 12.24 |
4.3 Compensation for Growth
The decent profitability rating of BABA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.31
EPS Next 2Y5.29%
EPS Next 3Y10.23%
5. Dividend
5.1 Amount
With a yearly dividend of 0.59%, 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 2.39, BABA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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 2Y5.29%
EPS Next 3Y10.23%
164.82
+0.52 (+0.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners12.28%
Inst Owner Change-16.4%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap382.22B
Revenue(TTM)1000.76B
Net Income(TTM)148.32B
Analysts84.17
Price Target201.38 (22.18%)
Short Float %1.77%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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)19.79%
PT rev (3m)31.2%
EPS NQ rev (1m)-34.47%
EPS NQ rev (3m)-54.87%
EPS NY rev (1m)-7.27%
EPS NY rev (3m)-25.09%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-2.32%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.44 | ||
| Fwd PE | 16.19 | ||
| P/S | 2.72 | ||
| P/FCF | 71.69 | ||
| P/OCF | 18.09 | ||
| P/B | 2.69 | ||
| P/tB | 3.69 | ||
| EV/EBITDA | 12.24 |
EPS(TTM)8.94
EY5.42%
EPS(NY)10.18
Fwd EY6.17%
FCF(TTM)2.3
FCFY1.39%
OCF(TTM)9.11
OCFY5.53%
SpS60.57
BVpS61.35
TBVpS44.66
PEG (NY)N/A
PEG (5Y)4.31
Graham Number111.09
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 | 3.4 |
F-Score8
WACC8.05%
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-19.63%
EPS Next 2Y5.29%
EPS Next 3Y10.23%
EPS Next 5Y1.11%
Revenue 1Y (TTM)5.32%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%1.82%
Revenue Next Year3.77%
Revenue Next 2Y7.48%
Revenue Next 3Y8.46%
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%
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.
Can you provide the valuation status for ALIBABA GROUP HOLDING-SP ADR?
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.
Can you provide the financial health for BABA stock?
The financial health rating of ALIBABA GROUP HOLDING-SP ADR (BABA) is 5 / 10.
Can you provide the dividend sustainability for BABA stock?
The dividend rating of ALIBABA GROUP HOLDING-SP ADR (BABA) is 3 / 10 and the dividend payout ratio is 19.6%.