ALIBABA GROUP HOLDING-SP ADR (BABA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BABA - US01609W1027 - ADR
157.01 USD
-3.72 (-2.31%)
157.649 USD
+0.64 (+0.41%)
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
BABA had positive earnings in the past year.
In the past year BABA had a positive cash flow from operations.
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
BABA's Return On Assets of 8.03% is fine compared to the rest of the industry. BABA outperforms 80.00% of its industry peers.
With a decent Return On Equity value of 14.63%, BABA is doing good in the industry, outperforming 76.67% 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 70.00% 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 9.45%.
The 3 year average ROIC (7.12%) for BABA is below the current ROIC(8.19%), indicating increased profibility in the last year.
| 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 better Profit Margin (14.82%) than 93.33% of its industry peers.
In the last couple of years the Profit Margin of BABA has declined.
The Operating Margin of BABA (14.51%) is better than 90.00% of its industry peers.
In the last couple of years the Operating Margin of BABA has declined.
The Gross Margin of BABA (41.18%) 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 | 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
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 3.40. 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 3.40, BABA is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
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.
BABA has a Debt to FCF ratio (6.11) which is comparable to the rest of the industry.
BABA has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
BABA has a Debt to Equity ratio of 0.20. This is in the better half of the industry: BABA outperforms 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 3.4 |
ROIC/WACC1.02
WACC8.06%
2.3 Liquidity
A Current Ratio of 1.45 indicates that BABA should not have too much problems paying its short term obligations.
The Current ratio of BABA (1.45) 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.
BABA has a Quick ratio (1.45) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.15% over the past year.
The Earnings Per Share has been growing slightly by 4.28% on average over the past years.
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
The Earnings Per Share is expected to grow by 1.11% on average over the next years.
BABA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.89% yearly.
EPS Next Y-24%
EPS Next 2Y4.31%
EPS Next 3Y10.17%
EPS Next 5Y1.11%
Revenue Next Year3.63%
Revenue Next 2Y7.49%
Revenue Next 3Y8.18%
Revenue Next 5Y8.89%
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 17.46, which indicates a rather expensive current valuation of BABA.
Compared to the rest of the industry, the Price/Earnings ratio of BABA indicates a somewhat cheap valuation: BABA is cheaper than 73.33% of the companies listed in the same industry.
BABA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
BABA is valuated correctly with a Price/Forward Earnings ratio of 15.64.
66.67% of the companies in the same industry are more expensive than BABA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BABA to the average of the S&P500 Index (35.79), we can say BABA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.46 | ||
| Fwd PE | 15.64 |
4.2 Price Multiples
BABA's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, BABA is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 69.9 | ||
| EV/EBITDA | 12.26 |
4.3 Compensation for Growth
The decent profitability rating of BABA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.08
EPS Next 2Y4.31%
EPS Next 3Y10.17%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, BABA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 13.61, BABA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, BABA's dividend is way lower than the S&P500 average.
| 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 19.60% of its income as dividend. This is a sustainable payout ratio.
DP19.6%
EPS Next 2Y4.31%
EPS Next 3Y10.17%
157.01
-3.72 (-2.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners12.28%
Inst Owner Change-19.13%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap374.63B
Revenue(TTM)1.00T
Net Income(TTM)148.32B
Analysts84.17
Price Target197.29 (25.65%)
Short Float %1.73%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend1.73
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)6%
PT rev (3m)27.95%
EPS NQ rev (1m)-15.37%
EPS NQ rev (3m)-57.48%
EPS NY rev (1m)-5.44%
EPS NY rev (3m)-21.86%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-2.06%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.46 | ||
| Fwd PE | 15.64 | ||
| P/S | 2.65 | ||
| P/FCF | 69.9 | ||
| P/OCF | 17.64 | ||
| P/B | 2.62 | ||
| P/tB | 3.6 | ||
| EV/EBITDA | 12.26 |
EPS(TTM)8.99
EY5.73%
EPS(NY)10.04
Fwd EY6.39%
FCF(TTM)2.25
FCFY1.43%
OCF(TTM)8.9
OCFY5.67%
SpS59.17
BVpS59.93
TBVpS43.63
PEG (NY)N/A
PEG (5Y)4.08
Graham Number110.1
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
WACC8.06%
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-24%
EPS Next 2Y4.31%
EPS Next 3Y10.17%
EPS Next 5Y1.11%
Revenue 1Y (TTM)5.32%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%1.82%
Revenue Next Year3.63%
Revenue Next 2Y7.49%
Revenue Next 3Y8.18%
Revenue Next 5Y8.89%
EBIT growth 1Y25.86%
EBIT growth 3Y15.44%
EBIT growth 5Y8.99%
EBIT Next Year4.06%
EBIT Next 3Y18.45%
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%.