ALIBABA GROUP HOLDING-SP ADR (BABA) Stock Fundamental Analysis
USA - NYSE:BABA - US01609W1027 - ADR
153.8 USD
-6.04 (-3.78%)
154.75 USD
+0.95 (+0.62%)
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 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.
Each year in the past 5 years BABA has been profitable.
Each year in the past 5 years BABA had a positive operating cash flow.
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.
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.
Looking at the Return On Invested Capital, with a value of 8.19%, BABA is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
BABA had an Average Return On Invested Capital over the past 3 years of 7.12%. This is below the industry average of 10.43%.
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 Profit Margin of 14.82%. This is amongst the best in the industry. BABA outperforms 93.33% of its industry peers.
BABA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 14.51%, BABA belongs to the top 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 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BABA 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.
BABA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.32 indicates that BABA is not in any danger for bankruptcy at the moment.
BABA has a Altman-Z score (3.32) which is in line with 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 50.00% 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.
With a decent Debt to Equity ratio value of 0.20, BABA is doing good in the industry, outperforming 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 3.32 |
ROIC/WACC1.01
WACC8.1%
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.
A Quick Ratio of 1.45 indicates that BABA should not have too much problems paying its short term obligations.
BABA's Quick ratio of 1.45 is fine compared to the rest of the industry. BABA outperforms 66.67% of its industry peers.
| 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.
BABA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.28% yearly.
The Revenue has been growing slightly by 5.32% in the past year.
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 8.89% 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
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.
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
Based on the Price/Earnings ratio of 17.13, the valuation of BABA can be described as rather expensive.
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 (25.89), we can say BABA is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.34, the valuation of BABA can be described as correct.
Based on the Price/Forward Earnings ratio, BABA is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
BABA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.13 | ||
| Fwd PE | 15.34 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BABA is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, BABA is valued a bit more expensive than the industry average as 63.33% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 68.54 | ||
| EV/EBITDA | 11.65 |
4.3 Compensation for Growth
The decent profitability rating of BABA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4
EPS Next 2Y4.31%
EPS Next 3Y10.17%
5. Dividend
5.1 Amount
With a yearly dividend of 0.64%, BABA is not a good candidate for dividend investing.
BABA's Dividend Yield is a higher than the industry average which is at 13.25.
Compared to an average S&P500 Dividend Yield of 2.42, BABA's dividend is way lower than the S&P500 average.
| 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 3Y10.17%
153.8
-6.04 (-3.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners12.28%
Inst Owner Change-17.43%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap366.97B
Revenue(TTM)1.00T
Net Income(TTM)148.32B
Analysts84.17
Price Target201.38 (30.94%)
Short Float %1.77%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
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)8.2%
PT rev (3m)31.73%
EPS NQ rev (1m)-25.56%
EPS NQ rev (3m)-57.48%
EPS NY rev (1m)-12.31%
EPS NY rev (3m)-29.16%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-2.06%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.13 | ||
| Fwd PE | 15.34 | ||
| P/S | 2.6 | ||
| P/FCF | 68.54 | ||
| P/OCF | 17.3 | ||
| P/B | 2.57 | ||
| P/tB | 3.53 | ||
| EV/EBITDA | 11.65 |
EPS(TTM)8.98
EY5.84%
EPS(NY)10.03
Fwd EY6.52%
FCF(TTM)2.24
FCFY1.46%
OCF(TTM)8.89
OCFY5.78%
SpS59.11
BVpS59.87
TBVpS43.59
PEG (NY)N/A
PEG (5Y)4
Graham Number109.99
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 | 3.32 |
F-Score8
WACC8.1%
ROIC/WACC1.01
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%.