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

NYSE:BABA • US01609W1027

154.45 USD
+0.18 (+0.12%)
At close: Feb 20, 2026
154.542 USD
+0.09 (+0.06%)
After Hours: 2/20/2026, 8:18:02 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

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 valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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.
  • In the past 5 years BABA has always been profitable.
  • BABA had a positive operating cash flow in each of the past 5 years.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B 200B

1.2 Ratios

  • BABA has a better Return On Assets (6.66%) than 73.33% of its industry peers.
  • With a decent Return On Equity value of 12.15%, BABA is doing good in the industry, outperforming 66.67% of the companies in the same industry.
  • The Return On Invested Capital of BABA (6.24%) is better than 63.33% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for BABA is below the industry average of 9.24%.
Industry RankSector Rank
ROA 6.66%
ROE 12.15%
ROIC 6.24%
ROA(3y)5.28%
ROA(5y)5.68%
ROE(3y)9.41%
ROE(5y)10.16%
ROIC(3y)7.12%
ROIC(5y)6.48%
BABA Yearly ROA, ROE, ROICBABA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • With an excellent Profit Margin value of 12.39%, BABA belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
  • In the last couple of years the Profit Margin of BABA has declined.
  • With an excellent Operating Margin value of 11.46%, BABA belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
  • BABA's Operating Margin has declined in the last couple of years.
  • The Gross Margin of BABA (41.17%) is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of BABA has declined.
Industry RankSector Rank
OM 11.46%
PM (TTM) 12.39%
GM 41.17%
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%
BABA Yearly Profit, Operating, Gross MarginsBABA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

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
  • 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.
BABA Yearly Shares OutstandingBABA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500B 1T 1.5T

2.2 Solvency

  • BABA has an Altman-Z score of 3.17. This indicates that BABA is financially healthy and has little risk of bankruptcy at the moment.
  • BABA has a Altman-Z score of 3.17. This is in the better half of the industry: BABA outperforms 63.33% of its industry peers.
  • The Debt to FCF ratio of BABA is 106.58, which is on the high side as it means it would take BABA, 106.58 years of fcf income to pay off all of its debts.
  • With a Debt to FCF ratio value of 106.58, BABA is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
  • A Debt/Equity ratio of 0.25 indicates that BABA is not too dependend on debt financing.
  • With a decent Debt to Equity ratio value of 0.25, BABA is doing good in the industry, outperforming 63.33% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF 106.58
Altman-Z 3.17
ROIC/WACC0.74
WACC8.44%
BABA Yearly LT Debt VS Equity VS FCFBABA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200B 400B 600B 800B 1T

2.3 Liquidity

  • A Current Ratio of 1.46 indicates that BABA should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.46, BABA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
  • A Quick Ratio of 1.46 indicates that BABA should not have too much problems paying its short term obligations.
  • BABA has a Quick ratio (1.46) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.46
Quick Ratio 1.46
BABA Yearly Current Assets VS Current LiabilitesBABA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200B 400B 600B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The earnings per share for BABA have decreased strongly by -12.52% in the last year.
  • 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 5.21%.
  • The Revenue has been growing by 14.35% on average over the past years. This is quite good.
EPS 1Y (TTM)-12.52%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%-71.05%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%4.77%

3.2 Future

  • The Earnings Per Share is expected to grow by 1.11% on average over the next years.
  • Based on estimates for the next years, BABA will show a quite strong growth in Revenue. The Revenue will grow by 8.86% on average per year.
EPS Next Y-34.34%
EPS Next 2Y-1.13%
EPS Next 3Y8.17%
EPS Next 5Y1.11%
Revenue Next Year3.57%
Revenue Next 2Y7.26%
Revenue Next 3Y8.17%
Revenue Next 5Y8.86%

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.
BABA Yearly Revenue VS EstimatesBABA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 500B 1T 1.5T 2T
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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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 20.14, BABA is valued on the expensive side.
  • 70.00% of the companies in the same industry are more expensive than BABA, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of BABA to the average of the S&P500 Index (26.99), we can say BABA is valued slightly cheaper.
  • A Price/Forward Earnings ratio of 16.69 indicates a correct valuation of BABA.
  • BABA's Price/Forward Earnings ratio is in line with the industry average.
  • When comparing the Price/Forward Earnings ratio of BABA to the average of the S&P500 Index (28.06), we can say BABA is valued slightly cheaper.
Industry RankSector Rank
PE 20.14
Fwd PE 16.69
BABA Price Earnings VS Forward Price EarningsBABA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of BABA indicates a slightly more expensive valuation: BABA is more expensive than 66.67% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 964.18
EV/EBITDA 13.97
BABA Per share dataBABA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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)4.7
EPS Next 2Y-1.13%
EPS Next 3Y8.17%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.67%, BABA is not a good candidate for dividend investing.
  • BABA's Dividend Yield is a higher than the industry average which is at 1.75.
  • With a Dividend Yield of 0.67, BABA pays less dividend than the S&P500 average, which is at 1.81.
Industry RankSector 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
BABA Yearly Dividends per shareBABA Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 1 2 3

5.3 Sustainability

  • BABA pays out 26.97% of its income as dividend. This is a sustainable payout ratio.
DP26.97%
EPS Next 2Y-1.13%
EPS Next 3Y8.17%
BABA Yearly Income VS Free CF VS DividendBABA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 (2/20/2026, 8:18:02 PM)

After market: 154.542 +0.09 (+0.06%)

154.45

+0.18 (+0.12%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)02-19
Earnings (Next)05-13
Inst Owners12.27%
Inst Owner Change0.36%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap368.72B
Revenue(TTM)1.01T
Net Income(TTM)125.43B
Analysts82.92
Price Target202.39 (31.04%)
Short Float %1.71%
Short Ratio3.63
Dividend
Industry RankSector Rank
Dividend Yield 0.67%
Yearly Dividend1.78
Dividend Growth(5Y)N/A
DP26.97%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.11%
Min EPS beat(2)-22.09%
Max EPS beat(2)-4.14%
EPS beat(4)1
Avg EPS beat(4)-6.1%
Min EPS beat(4)-22.09%
Max EPS beat(4)6.96%
EPS beat(8)2
Avg EPS beat(8)-3.13%
EPS beat(12)5
Avg EPS beat(12)1.63%
EPS beat(16)9
Avg EPS beat(16)2.98%
Revenue beat(2)1
Avg Revenue beat(2)-1.94%
Min Revenue beat(2)-4%
Max Revenue beat(2)0.12%
Revenue beat(4)1
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-4%
Max Revenue beat(4)0.12%
Revenue beat(8)1
Avg Revenue beat(8)-2.34%
Revenue beat(12)2
Avg Revenue beat(12)-1.85%
Revenue beat(16)3
Avg Revenue beat(16)-1.8%
PT rev (1m)-1%
PT rev (3m)0.5%
EPS NQ rev (1m)-3.78%
EPS NQ rev (3m)-19.6%
EPS NY rev (1m)-5.36%
EPS NY rev (3m)-13.61%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)-0.97%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.04%
Valuation
Industry RankSector Rank
PE 20.14
Fwd PE 16.69
P/S 2.52
P/FCF 964.18
P/OCF 19.72
P/B 2.47
P/tB 3.36
EV/EBITDA 13.97
EPS(TTM)7.67
EY4.97%
EPS(NY)9.25
Fwd EY5.99%
FCF(TTM)0.16
FCFY0.1%
OCF(TTM)7.83
OCFY5.07%
SpS61.36
BVpS62.6
TBVpS45.93
PEG (NY)N/A
PEG (5Y)4.7
Graham Number103.94
Profitability
Industry RankSector Rank
ROA 6.66%
ROE 12.15%
ROCE 8.06%
ROIC 6.24%
ROICexc 8.43%
ROICexgc 11.36%
OM 11.46%
PM (TTM) 12.39%
GM 41.17%
FCFM 0.26%
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-Score7
Asset Turnover0.54
Health
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF 106.58
Debt/EBITDA 1.61
Cap/Depr 298.08%
Cap/Sales 12.51%
Interest Coverage 250
Cash Conversion 81.55%
Profit Quality 2.11%
Current Ratio 1.46
Quick Ratio 1.46
Altman-Z 3.17
F-Score7
WACC8.44%
ROIC/WACC0.74
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)-12.52%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%-71.05%
EPS Next Y-34.34%
EPS Next 2Y-1.13%
EPS Next 3Y8.17%
EPS Next 5Y1.11%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%4.77%
Revenue Next Year3.57%
Revenue Next 2Y7.26%
Revenue Next 3Y8.17%
Revenue Next 5Y8.86%
EBIT growth 1Y-0.14%
EBIT growth 3Y15.44%
EBIT growth 5Y8.99%
EBIT Next Year-17.45%
EBIT Next 3Y15.68%
EBIT Next 5Y15.73%
FCF growth 1Y-98.62%
FCF growth 3Y-4.65%
FCF growth 5Y-10.53%
OCF growth 1Y-39.43%
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.


What is the valuation status for BABA stock?

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.


What is the valuation of ALIBABA GROUP HOLDING-SP ADR based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ALIBABA GROUP HOLDING-SP ADR (BABA) is 20.14 and the Price/Book (PB) ratio is 2.47.


What is the financial health of ALIBABA GROUP HOLDING-SP ADR (BABA) stock?

The financial health rating of ALIBABA GROUP HOLDING-SP ADR (BABA) is 5 / 10.