ALIBABA GROUP HOLDING-SP ADR (BABA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BABA - US01609W1027 - ADR
162.59 USD
+11.63 (+7.7%)
Taking everything into account, BABA scores 5 out of 10 in our fundamental rating. BABA was compared to 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
BABA had positive earnings in the past year.
In the past year BABA had a positive cash flow from operations.
BABA had positive earnings in each of the past 5 years.
BABA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BABA's Return On Assets of 6.66% is fine compared to the rest of the industry. BABA outperforms 76.67% of its industry peers.
BABA has a better Return On Equity (12.15%) than 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.24%, BABA is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BABA is below the industry average of 9.29%.
| Industry Rank | Sector 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%
1.3 Margins
Looking at the Profit Margin, with a value of 12.39%, BABA belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
BABA's Profit Margin has declined in the last couple of years.
BABA's Operating Margin of 11.46% is amongst the best of the industry. BABA outperforms 83.33% of its industry peers.
BABA's Operating Margin has declined in the last couple of years.
BABA has a Gross Margin (41.17%) which is comparable to the rest of the industry.
BABA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BABA is destroying value.
Compared to 1 year ago, BABA has less shares outstanding
BABA has less shares outstanding than it did 5 years ago.
BABA has a worse debt/assets ratio than last year.
2.2 Solvency
BABA has an Altman-Z score of 3.15. This indicates that BABA is financially healthy and has little risk of bankruptcy at the moment.
BABA has a better Altman-Z score (3.15) than 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.
BABA has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of BABA (0.25) is better than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 106.58 | ||
| Altman-Z | 3.15 |
ROIC/WACC0.76
WACC8.23%
2.3 Liquidity
A Current Ratio of 1.46 indicates that BABA should not have too much problems paying its short term obligations.
BABA's Current ratio of 1.46 is in line compared to the rest of the industry. BABA outperforms 50.00% of its industry peers.
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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
BABA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.52%.
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
Based on estimates for the next years, BABA will show a small growth in Earnings Per Share. The EPS will grow by 1.11% on average per year.
The Revenue is expected to grow by 8.98% on average over the next years. This is quite good.
EPS Next Y-30.63%
EPS Next 2Y1.9%
EPS Next 3Y10.19%
EPS Next 5Y1.11%
Revenue Next Year3.92%
Revenue Next 2Y7.51%
Revenue Next 3Y8.42%
Revenue Next 5Y8.98%
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
With a Price/Earnings ratio of 21.42, BABA is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of BABA indicates a somewhat cheap valuation: BABA is cheaper than 73.33% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, BABA is valued a bit cheaper.
A Price/Forward Earnings ratio of 16.71 indicates a correct valuation of BABA.
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.
The average S&P500 Price/Forward Earnings ratio is at 23.92. BABA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.42 | ||
| Fwd PE | 16.71 |
4.2 Price Multiples
BABA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BABA is cheaper than 63.33% of the companies in the same industry.
BABA's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. BABA is more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1025.25 | ||
| EV/EBITDA | 13.79 |
4.3 Compensation for Growth
The decent profitability rating of BABA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5
EPS Next 2Y1.9%
EPS Next 3Y10.19%
5. Dividend
5.1 Amount
BABA has a yearly dividend return of 0.67%, which is pretty low.
BABA's Dividend Yield is a higher than the industry average which is at 2.24.
Compared to an average S&P500 Dividend Yield of 1.92, BABA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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
26.97% of the earnings are spent on dividend by BABA. This is a low number and sustainable payout ratio.
DP26.97%
EPS Next 2Y1.9%
EPS Next 3Y10.19%
NYSE:BABA (1/12/2026, 10:00:09 AM)
162.59
+11.63 (+7.7%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners12.27%
Inst Owner Change0.13%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap387.94B
Revenue(TTM)1.01T
Net Income(TTM)125.43B
Analysts83.33
Price Target204.43 (25.73%)
Short Float %1.83%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend1.76
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)0.4%
PT rev (3m)9.83%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-22.31%
EPS NY rev (1m)-1.52%
EPS NY rev (3m)-19.95%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.42 | ||
| Fwd PE | 16.71 | ||
| P/S | 2.68 | ||
| P/FCF | 1025.25 | ||
| P/OCF | 20.96 | ||
| P/B | 2.62 | ||
| P/tB | 3.58 | ||
| EV/EBITDA | 13.79 |
EPS(TTM)7.59
EY4.67%
EPS(NY)9.73
Fwd EY5.98%
FCF(TTM)0.16
FCFY0.1%
OCF(TTM)7.76
OCFY4.77%
SpS60.75
BVpS61.98
TBVpS45.47
PEG (NY)N/A
PEG (5Y)5
Graham Number102.88
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 3.15 |
F-Score7
WACC8.23%
ROIC/WACC0.76
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-30.63%
EPS Next 2Y1.9%
EPS Next 3Y10.19%
EPS Next 5Y1.11%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%4.77%
Revenue Next Year3.92%
Revenue Next 2Y7.51%
Revenue Next 3Y8.42%
Revenue Next 5Y8.98%
EBIT growth 1Y-0.14%
EBIT growth 3Y15.44%
EBIT growth 5Y8.99%
EBIT Next Year-14.19%
EBIT Next 3Y16.63%
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 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.
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 21.42 and the Price/Book (PB) ratio is 2.62.
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.