ALIBABA GROUP HOLDING-SP ADR (BABA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BABA - US01609W1027 - ADR
157.6 USD
+0.59 (+0.38%)
157.3 USD
-0.3 (-0.19%)
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. While showing a medium growth rate, BABA is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year BABA was profitable.
BABA had a positive operating cash flow in the past year.
Each year in the past 5 years BABA has been profitable.
BABA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BABA has a better Return On Assets (8.03%) than 80.00% of its industry peers.
Looking at the Return On Equity, with a value of 14.63%, BABA is in the better half of 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 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's Profit Margin of 14.82% is amongst the best of the industry. BABA outperforms 93.33% of its industry peers.
In the last couple of years the Profit Margin of BABA has declined.
With an excellent Operating Margin value of 14.51%, BABA belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
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.
BABA has less shares outstanding than it did 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.
2.2 Solvency
An Altman-Z score of 3.35 indicates that BABA is not in any danger for bankruptcy at the moment.
BABA's Altman-Z score of 3.35 is fine compared to the rest of the industry. BABA outperforms 66.67% of its industry peers.
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 53.33% 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.
The Debt to Equity ratio of BABA (0.20) is better than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 3.35 |
ROIC/WACC1.02
WACC8.06%
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 in line with its industry peers.
BABA has a Quick 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.
Looking at the Quick ratio, with a value of 1.45, BABA is in line with its industry, outperforming 56.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
The earnings per share for BABA have decreased strongly by -12.58% in the last 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 5.86%.
The Revenue has been growing by 14.35% on average over the past years. This is quite good.
EPS 1Y (TTM)-12.58%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%-71.3%
Revenue 1Y (TTM)5.86%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%4.29%
3.2 Future
The Earnings Per Share is expected to grow by 1.11% on average over the next years.
The Revenue is expected to grow by 8.85% on average over the next years. This is quite good.
EPS Next Y-24%
EPS Next 2Y4.31%
EPS Next 3Y9.51%
EPS Next 5Y1.11%
Revenue Next Year3.63%
Revenue Next 2Y7.49%
Revenue Next 3Y8.13%
Revenue Next 5Y8.85%
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 21.07, which indicates a rather expensive current valuation of BABA.
Based on the Price/Earnings ratio, BABA is valued a bit cheaper than 70.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of BABA to the average of the S&P500 Index (26.15), we can say BABA is valued inline with the index average.
BABA is valuated correctly with a Price/Forward Earnings ratio of 15.69.
66.67% of the companies in the same industry are more expensive than BABA, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.12. BABA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.07 | ||
| Fwd PE | 15.69 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BABA.
60.00% 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 | 70.13 | ||
| EV/EBITDA | 11.92 |
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)4.92
EPS Next 2Y4.31%
EPS Next 3Y9.51%
5. Dividend
5.1 Amount
With a yearly dividend of 0.64%, BABA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 13.62, BABA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.64, BABA pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
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
BABA pays out 19.60% of its income as dividend. This is a sustainable payout ratio.
DP19.6%
EPS Next 2Y4.31%
EPS Next 3Y9.51%
157.6
+0.59 (+0.38%)
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 Cap376.03B
Revenue(TTM)996.35B
Net Income(TTM)148.32B
Analysts84.17
Price Target197.29 (25.18%)
Short Float %1.73%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Yearly Dividend1.74
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 | 21.07 | ||
| Fwd PE | 15.69 | ||
| P/S | 2.66 | ||
| P/FCF | 70.13 | ||
| P/OCF | 17.7 | ||
| P/B | 2.63 | ||
| P/tB | 3.61 | ||
| EV/EBITDA | 11.92 |
EPS(TTM)7.48
EY4.75%
EPS(NY)10.04
Fwd EY6.37%
FCF(TTM)2.25
FCFY1.43%
OCF(TTM)8.9
OCFY5.65%
SpS59.2
BVpS59.96
TBVpS43.65
PEG (NY)N/A
PEG (5Y)4.92
Graham Number100.46
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 | 3.35 |
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)-12.58%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%-71.3%
EPS Next Y-24%
EPS Next 2Y4.31%
EPS Next 3Y9.51%
EPS Next 5Y1.11%
Revenue 1Y (TTM)5.86%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%4.29%
Revenue Next Year3.63%
Revenue Next 2Y7.49%
Revenue Next 3Y8.13%
Revenue Next 5Y8.85%
EBIT growth 1Y25.86%
EBIT growth 3Y15.44%
EBIT growth 5Y8.99%
EBIT Next Year4.06%
EBIT Next 3Y18.49%
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 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.
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%.