ALIBABA GROUP HOLDING-SP ADR (BABA) Stock Fundamental Analysis
NYSE:BABA - New York Stock Exchange, Inc. - US01609W1027 - ADR - Currency: USD
Overall BABA gets a fundamental rating of 4 out of 10. We evaluated BABA against 28 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
In the past year BABA was profitable.
BABA had positive earnings in each of the past 5 years.
Of the past 5 years BABA 4 years had a positive operating cash flow.
1.2 Ratios
BABA has a better Return On Assets (7.18%) than 67.86% of its industry peers.
BABA's Return On Equity of 12.82% is fine compared to the rest of the industry. BABA outperforms 71.43% of its industry peers.
The Return On Invested Capital of BABA (8.29%) is better than 67.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BABA is below the industry average of 11.59%.
The 3 year average ROIC (7.11%) for BABA is below the current ROIC(8.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 12.82% | ||
| ROIC | 8.29% |
ROA(3y)5.28%
ROA(5y)5.68%
ROE(3y)9.41%
ROE(5y)10.16%
ROIC(3y)7.11%
ROIC(5y)6.48%
1.3 Margins
BABA's Profit Margin of 12.99% is amongst the best of the industry. BABA outperforms 89.29% of its industry peers.
In the last couple of years the Profit Margin of BABA has declined.
Looking at the Operating Margin, with a value of 14.69%, BABA belongs to the top of the industry, outperforming 89.29% of the companies in the same industry.
BABA's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 39.95%, BABA is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of BABA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.69% | ||
| PM (TTM) | 12.99% | ||
| GM | 39.95% |
OM growth 3Y9.46%
OM growth 5Y-4.76%
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) below the Cost of Capital (WACC), BABA is destroying value.
BABA has less shares outstanding than it did 1 year ago.
BABA has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BABA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.92 indicates that BABA is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of BABA (2.92) is better than 64.29% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that BABA is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.21, BABA perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.92 |
ROIC/WACC0.95
WACC8.68%
2.3 Liquidity
BABA has a Current Ratio of 1.55. 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 of 1.55. This is comparable to the rest of the industry: BABA outperforms 50.00% of its industry peers.
BABA has a Quick Ratio of 1.55. 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 better Quick ratio (1.55) than 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.31% 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 5.86%.
BABA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.35% yearly.
EPS 1Y (TTM)5.31%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%23.47%
Revenue 1Y (TTM)5.86%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%6.57%
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 a small growth in Revenue. In the coming years, the Revenue will grow by 5.40% yearly.
EPS Next Y11.22%
EPS Next 2Y12.55%
EPS Next 3Y12.42%
EPS Next 5Y1.11%
Revenue Next Year6.34%
Revenue Next 2Y7.21%
Revenue Next 3Y7.77%
Revenue Next 5Y5.4%
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 11.92, the valuation of BABA can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of BABA indicates a somewhat cheap valuation: BABA is cheaper than 78.57% of the companies listed in the same industry.
BABA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
A Price/Forward Earnings ratio of 10.71 indicates a reasonable valuation of BABA.
Based on the Price/Forward Earnings ratio, BABA is valued a bit cheaper than 75.00% of the companies in the same industry.
BABA is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.92 | ||
| Fwd PE | 10.71 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
BABA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as BABA's earnings are expected to grow with 12.42% in the coming years.
PEG (NY)1.06
PEG (5Y)2.78
EPS Next 2Y12.55%
EPS Next 3Y12.42%
5. Dividend
5.1 Amount
BABA has a yearly dividend return of 0.90%, which is pretty low.
BABA's Dividend Yield is a higher than the industry average which is at 11.83.
With a Dividend Yield of 0.90, BABA pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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
DP0%
EPS Next 2Y12.55%
EPS Next 3Y12.42%
108.7
-2.01 (-1.82%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners15.65%
Inst Owner Change12.77%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap259.26B
Analysts86.12
Price Target163.11 (50.06%)
Short Float %1.17%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend1
Dividend Growth(5Y)N/A
DP0%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.92%
Min EPS beat(2)-5.13%
Max EPS beat(2)6.96%
EPS beat(4)2
Avg EPS beat(4)1.71%
Min EPS beat(4)-5.13%
Max EPS beat(4)6.96%
EPS beat(8)3
Avg EPS beat(8)2.27%
EPS beat(12)7
Avg EPS beat(12)5.43%
EPS beat(16)10
Avg EPS beat(16)4.72%
Revenue beat(2)0
Avg Revenue beat(2)-2.03%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)-1.77%
Revenue beat(4)0
Avg Revenue beat(4)-2.82%
Min Revenue beat(4)-4.25%
Max Revenue beat(4)-1.77%
Revenue beat(8)1
Avg Revenue beat(8)-1.82%
Revenue beat(12)1
Avg Revenue beat(12)-1.82%
Revenue beat(16)2
Avg Revenue beat(16)-2.03%
PT rev (1m)-0.39%
PT rev (3m)2.01%
EPS NQ rev (1m)0.85%
EPS NQ rev (3m)-8.42%
EPS NY rev (1m)-4%
EPS NY rev (3m)-4.66%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-1.51%
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.92 | ||
| Fwd PE | 10.71 | ||
| P/S | 1.87 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.84 | ||
| P/tB | 2.53 | ||
| EV/EBITDA | N/A |
EPS(TTM)9.12
EY8.39%
EPS(NY)10.15
Fwd EY9.33%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS58.27
BVpS59.06
TBVpS42.89
PEG (NY)1.06
PEG (5Y)2.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 12.82% | ||
| ROCE | 10.69% | ||
| ROIC | 8.29% | ||
| ROICexc | 12.06% | ||
| ROICexgc | 17.07% | ||
| OM | 14.69% | ||
| PM (TTM) | 12.99% | ||
| GM | 39.95% | ||
| FCFM | N/A |
ROA(3y)5.28%
ROA(5y)5.68%
ROE(3y)9.41%
ROE(5y)10.16%
ROIC(3y)7.11%
ROIC(5y)6.48%
ROICexc(3y)11.36%
ROICexc(5y)10.25%
ROICexgc(3y)17.38%
ROICexgc(5y)16.27%
ROCE(3y)9.18%
ROCE(5y)8.35%
ROICexcg growth 3Y6.77%
ROICexcg growth 5Y-3.12%
ROICexc growth 3Y11.73%
ROICexc growth 5Y2.88%
OM growth 3Y9.46%
OM growth 5Y-4.76%
PM growth 3Y21.4%
PM growth 5Y-15%
GM growth 3Y2.73%
GM growth 5Y-2.4%
F-ScoreN/A
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | 2.92 |
F-ScoreN/A
WACC8.68%
ROIC/WACC0.95
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.31%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%23.47%
EPS Next Y11.22%
EPS Next 2Y12.55%
EPS Next 3Y12.42%
EPS Next 5Y1.11%
Revenue 1Y (TTM)5.86%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%6.57%
Revenue Next Year6.34%
Revenue Next 2Y7.21%
Revenue Next 3Y7.77%
Revenue Next 5Y5.4%
EBIT growth 1Y18.12%
EBIT growth 3Y15.27%
EBIT growth 5Y8.9%
EBIT Next Year37.87%
EBIT Next 3Y21.96%
EBIT Next 5Y12.57%
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A