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

NYSE:BABA - New York Stock Exchange, Inc. - US01609W1027 - ADR - Currency: USD

114.82  +4.67 (+4.24%)

Fundamental Rating

6

Taking everything into account, BABA scores 6 out of 10 in our fundamental rating. BABA was compared to 31 industry peers in the Broadline Retail industry. BABA has an average financial health and profitability rating. BABA has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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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.
Each year in the past 5 years BABA has been profitable.
In the past 5 years BABA always reported a positive cash flow from operatings.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B 200B

1.2 Ratios

BABA has a better Return On Assets (6.49%) than 70.97% of its industry peers.
Looking at the Return On Equity, with a value of 12.02%, BABA is in the better half of the industry, outperforming 67.74% of the companies in the same industry.
BABA has a better Return On Invested Capital (7.60%) than 64.52% of its industry peers.
BABA had an Average Return On Invested Capital over the past 3 years of 6.45%. This is significantly below the industry average of 11.67%.
The last Return On Invested Capital (7.60%) for BABA is above the 3 year average (6.45%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.49%
ROE 12.02%
ROIC 7.6%
ROA(3y)4.1%
ROA(5y)6.51%
ROE(3y)7.31%
ROE(5y)11.55%
ROIC(3y)6.45%
ROIC(5y)6.42%
BABA Yearly ROA, ROE, ROICBABA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

BABA has a Profit Margin of 12.26%. This is amongst the best in the industry. BABA outperforms 90.32% of its industry peers.
BABA's Profit Margin has declined in the last couple of years.
BABA has a better Operating Margin (13.50%) than 87.10% of its industry peers.
In the last couple of years the Operating Margin of BABA has declined.
BABA has a Gross Margin (38.81%) which is comparable to the rest of the industry.
BABA's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 13.5%
PM (TTM) 12.26%
GM 38.81%
OM growth 3Y1.1%
OM growth 5Y-3.71%
PM growth 3Y-26.05%
PM growth 5Y-18.28%
GM growth 3Y-3.16%
GM growth 5Y-3.83%
BABA Yearly Profit, Operating, Gross MarginsBABA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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6

2. Health

2.1 Basic Checks

BABA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, BABA has less shares outstanding
Compared to 5 years ago, BABA has less shares outstanding
The debt/assets ratio for BABA is higher compared to a year ago.
BABA Yearly Shares OutstandingBABA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500B 1T 1.5T

2.2 Solvency

BABA has an Altman-Z score of 2.75. This is not the best score and indicates that BABA is in the grey zone with still only limited risk for bankruptcy at the moment.
BABA has a better Altman-Z score (2.75) than 67.74% of its industry peers.
BABA has a debt to FCF ratio of 2.69. This is a good value and a sign of high solvency as BABA would need 2.69 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.69, BABA is in the better half of the industry, outperforming 74.19% of the companies in the same industry.
BABA has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of BABA (0.21) is better than 61.29% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF 2.69
Altman-Z 2.75
ROIC/WACC0.8
WACC9.54%
BABA Yearly LT Debt VS Equity VS FCFBABA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200B 400B 600B 800B

2.3 Liquidity

BABA has a Current Ratio of 1.48. 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 (1.48) which is in line with its industry peers.
BABA has a Quick Ratio of 1.48. 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 1.48, BABA is in the better half of the industry, outperforming 64.52% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.48
Quick Ratio 1.48
BABA Yearly Current Assets VS Current LiabilitesBABA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200B 400B 600B

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5

3. Growth

3.1 Past

BABA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.56%.
The Earnings Per Share has been growing by 10.09% on average over the past years. This is quite good.
BABA shows a small growth in Revenue. In the last year, the Revenue has grown by 5.85%.
Measured over the past years, BABA shows a very strong growth in Revenue. The Revenue has been growing by 20.09% on average per year.
EPS 1Y (TTM)0.56%
EPS 3Y-1.58%
EPS 5Y10.09%
EPS Q2Q%12.76%
Revenue 1Y (TTM)5.85%
Revenue growth 3Y9.48%
Revenue growth 5Y20.09%
Sales Q2Q%7.61%

3.2 Future

The Earnings Per Share is expected to grow by 1.20% on average over the next years.
The Revenue is expected to grow by 3.77% on average over the next years.
EPS Next Y8.12%
EPS Next 2Y11.35%
EPS Next 3Y11.55%
EPS Next 5Y1.2%
Revenue Next Year6.22%
Revenue Next 2Y6.67%
Revenue Next 3Y7.34%
Revenue Next 5Y3.77%

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.
BABA Yearly Revenue VS EstimatesBABA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 500B 1T 1.5T
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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6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 13.29, the valuation of BABA can be described as correct.
BABA's Price/Earnings ratio is a bit cheaper when compared to the industry. BABA is cheaper than 70.97% of the companies in the same industry.
BABA is valuated cheaply when we compare the Price/Earnings ratio to 27.63, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.88, the valuation of BABA can be described as reasonable.
Based on the Price/Forward Earnings ratio, BABA is valued cheaply inside the industry as 80.65% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of BABA to the average of the S&P500 Index (20.85), we can say BABA is valued slightly cheaper.
Industry RankSector Rank
PE 13.29
Fwd PE 10.88
BABA Price Earnings VS Forward Price EarningsBABA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

BABA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BABA is cheaper than 77.42% of the companies in the same industry.
64.52% of the companies in the same industry are more expensive than BABA, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 23.27
EV/EBITDA 7.95
BABA Per share dataBABA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of BABA may justify a higher PE ratio.
PEG (NY)1.64
PEG (5Y)1.32
EPS Next 2Y11.35%
EPS Next 3Y11.55%

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2

5. Dividend

5.1 Amount

With a yearly dividend of 0.90%, BABA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.43, BABA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.51, BABA's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.9%

5.2 History

BABA is new to the dividend game and has less than 3 years of track record.
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 0.5 1 1.5 2 2.5

5.3 Sustainability

14.91% of the earnings are spent on dividend by BABA. This is a low number and sustainable payout ratio.
DP14.91%
EPS Next 2Y11.35%
EPS Next 3Y11.55%
BABA Yearly Income VS Free CF VS DividendBABA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B
BABA Dividend Payout.BABA Dividend Payout, showing the Payout Ratio.BABA Dividend Payout.PayoutRetained Earnings

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ALIBABA GROUP HOLDING-SP ADR

NYSE:BABA (4/22/2025, 11:59:10 AM)

114.82

+4.67 (+4.24%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)02-20 2025-02-20/bmo
Earnings (Next)05-14 2025-05-14/amc
Inst Owners14.49%
Inst Owner Change-0.71%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap274.15B
Analysts85.71
Price Target162.79 (41.78%)
Short Float %2.09%
Short Ratio1.64
Dividend
Industry RankSector Rank
Dividend Yield 0.9%
Yearly Dividend0.99
Dividend Growth(5Y)N/A
DP14.91%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.1%
Min EPS beat(2)-0.76%
Max EPS beat(2)6.96%
EPS beat(4)2
Avg EPS beat(4)2.33%
Min EPS beat(4)-2.68%
Max EPS beat(4)6.96%
EPS beat(8)4
Avg EPS beat(8)4.35%
EPS beat(12)8
Avg EPS beat(12)6.4%
EPS beat(16)10
Avg EPS beat(16)4.48%
Revenue beat(2)0
Avg Revenue beat(2)-2.36%
Min Revenue beat(2)-2.95%
Max Revenue beat(2)-1.77%
Revenue beat(4)0
Avg Revenue beat(4)-2.49%
Min Revenue beat(4)-4.25%
Max Revenue beat(4)-0.97%
Revenue beat(8)1
Avg Revenue beat(8)-1.89%
Revenue beat(12)2
Avg Revenue beat(12)-1.6%
Revenue beat(16)3
Avg Revenue beat(16)-1.78%
PT rev (1m)3.54%
PT rev (3m)31.03%
EPS NQ rev (1m)-1.19%
EPS NQ rev (3m)3.94%
EPS NY rev (1m)4.83%
EPS NY rev (3m)4.71%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)-1.49%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.06%
Valuation
Industry RankSector Rank
PE 13.29
Fwd PE 10.88
P/S 2.04
P/FCF 23.27
P/OCF 12.56
P/B 2
P/tB 2.76
EV/EBITDA 7.95
EPS(TTM)8.64
EY7.52%
EPS(NY)10.55
Fwd EY9.19%
FCF(TTM)4.93
FCFY4.3%
OCF(TTM)9.14
OCFY7.96%
SpS56.35
BVpS57.46
TBVpS41.58
PEG (NY)1.64
PEG (5Y)1.32
Profitability
Industry RankSector Rank
ROA 6.49%
ROE 12.02%
ROCE 9.48%
ROIC 7.6%
ROICexc 11.25%
ROICexgc 15.92%
OM 13.5%
PM (TTM) 12.26%
GM 38.81%
FCFM 8.76%
ROA(3y)4.1%
ROA(5y)6.51%
ROE(3y)7.31%
ROE(5y)11.55%
ROIC(3y)6.45%
ROIC(5y)6.42%
ROICexc(3y)10.57%
ROICexc(5y)10.27%
ROICexgc(3y)16.93%
ROICexgc(5y)17.44%
ROCE(3y)8.04%
ROCE(5y)8%
ROICexcg growth 3Y9.15%
ROICexcg growth 5Y-1.21%
ROICexc growth 3Y13.34%
ROICexc growth 5Y8.21%
OM growth 3Y1.1%
OM growth 5Y-3.71%
PM growth 3Y-26.05%
PM growth 5Y-18.28%
GM growth 3Y-3.16%
GM growth 5Y-3.83%
F-Score7
Asset Turnover0.53
Health
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF 2.69
Debt/EBITDA 1.19
Cap/Depr 164.83%
Cap/Sales 7.47%
Interest Coverage 250
Cash Conversion 90%
Profit Quality 71.43%
Current Ratio 1.48
Quick Ratio 1.48
Altman-Z 2.75
F-Score7
WACC9.54%
ROIC/WACC0.8
Cap/Depr(3y)86.04%
Cap/Depr(5y)91.05%
Cap/Sales(3y)4.57%
Cap/Sales(5y)5.73%
Profit Quality(3y)186.71%
Profit Quality(5y)155.24%
High Growth Momentum
Growth
EPS 1Y (TTM)0.56%
EPS 3Y-1.58%
EPS 5Y10.09%
EPS Q2Q%12.76%
EPS Next Y8.12%
EPS Next 2Y11.35%
EPS Next 3Y11.55%
EPS Next 5Y1.2%
Revenue 1Y (TTM)5.85%
Revenue growth 3Y9.48%
Revenue growth 5Y20.09%
Sales Q2Q%7.61%
Revenue Next Year6.22%
Revenue Next 2Y6.67%
Revenue Next 3Y7.34%
Revenue Next 5Y3.77%
EBIT growth 1Y6.58%
EBIT growth 3Y10.68%
EBIT growth 5Y15.63%
EBIT Next Year25.85%
EBIT Next 3Y17.85%
EBIT Next 5Y12.3%
FCF growth 1Y-21.62%
FCF growth 3Y-7.42%
FCF growth 5Y8.11%
OCF growth 1Y-1.23%
OCF growth 3Y-7.64%
OCF growth 5Y3.88%