ALIBABA GROUP HOLDING-SP ADR (BABA) Stock Fundamental Analysis
USA - NYSE:BABA - US01609W1027 - ADR
165.725 USD
+3.51 (+2.17%)
We assign a fundamental rating of 5 out of 10 to BABA. BABA was compared to 28 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
BABA had positive earnings in the past year.
BABA had a positive operating cash flow in the past year.
BABA had positive earnings in each of the past 5 years.
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 78.57% of the companies in the same industry.
BABA's Return On Equity of 14.63% is fine compared to the rest of the industry. BABA outperforms 71.43% of its industry peers.
With a decent Return On Invested Capital value of 8.19%, BABA is doing good in the industry, outperforming 64.29% 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 11.01%.
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's Profit Margin of 14.82% is amongst the best of the industry. BABA outperforms 89.29% of its industry peers.
BABA's Profit Margin has declined in the last couple of years.
The Operating Margin of BABA (14.51%) is better than 89.29% of its industry peers.
BABA's Operating Margin has declined in the last couple of years.
BABA's Gross Margin of 41.18% is in line compared to the rest of the industry. BABA outperforms 53.57% of its industry peers.
BABA's Gross Margin has declined in the last couple of years.
| 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
BABA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for BABA has been reduced compared to 1 year ago.
The number of shares outstanding for BABA has been reduced compared to 5 years ago.
BABA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.42 indicates that BABA is not in any danger for bankruptcy at the moment.
The Altman-Z score of BABA (3.42) is better than 60.71% of 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.
The Debt to FCF ratio of BABA (6.11) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.20 indicates that BABA is not too dependend on debt financing.
BABA's Debt to Equity ratio of 0.20 is in line compared to the rest of the industry. BABA outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 3.42 |
ROIC/WACC0.98
WACC8.39%
2.3 Liquidity
A Current Ratio of 1.45 indicates that BABA should not have too much problems paying its short term obligations.
BABA has a Current ratio of 1.45. This is comparable to the rest of the industry: BABA outperforms 50.00% of its industry peers.
A Quick Ratio of 1.45 indicates that BABA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.45, BABA is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
| 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.
Measured over the past 5 years, BABA shows a small growth in Earnings Per Share. The EPS has been growing by 4.28% on average per year.
BABA shows a small growth in Revenue. In the last year, the Revenue has grown by 5.32%.
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)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
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 6.81% on average over the next years.
EPS Next Y-2.74%
EPS Next 2Y8.31%
EPS Next 3Y9.93%
EPS Next 5Y1.11%
Revenue Next Year3.74%
Revenue Next 2Y7.29%
Revenue Next 3Y7.85%
Revenue Next 5Y6.81%
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 18.50, BABA is valued on the expensive side.
75.00% of the companies in the same industry are more expensive than BABA, based on the Price/Earnings ratio.
BABA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.20.
BABA is valuated correctly with a Price/Forward Earnings ratio of 15.37.
75.00% of the companies in the same industry are more expensive than BABA, based on the Price/Forward Earnings ratio.
BABA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.5 | ||
| Fwd PE | 15.37 |
4.2 Price Multiples
67.86% of the companies in the same industry are more expensive than BABA, based on the Enterprise Value to EBITDA ratio.
BABA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 74 | ||
| EV/EBITDA | 12.44 |
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)4.32
EPS Next 2Y8.31%
EPS Next 3Y9.93%
5. Dividend
5.1 Amount
BABA has a yearly dividend return of 0.66%, which is pretty low.
Compared to an average industry Dividend Yield of 7.95, BABA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, BABA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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
5.3 Sustainability
BABA pays out 19.60% of its income as dividend. This is a sustainable payout ratio.
DP19.6%
EPS Next 2Y8.31%
EPS Next 3Y9.93%
NYSE:BABA (9/17/2025, 10:02:10 AM)
165.725
+3.51 (+2.17%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners15.69%
Inst Owner Change-9.72%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap395.10B
Analysts85
Price Target168.11 (1.44%)
Short Float %1.49%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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)9.97%
PT rev (3m)2.73%
EPS NQ rev (1m)-28.3%
EPS NQ rev (3m)-41.6%
EPS NY rev (1m)-9.34%
EPS NY rev (3m)-16.05%
Revenue NQ rev (1m)-1.67%
Revenue NQ rev (3m)-2.28%
Revenue NY rev (1m)-1.82%
Revenue NY rev (3m)-2.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.5 | ||
| Fwd PE | 15.37 | ||
| P/S | 2.81 | ||
| P/FCF | 74 | ||
| P/OCF | 18.67 | ||
| P/B | 2.77 | ||
| P/tB | 3.81 | ||
| EV/EBITDA | 12.44 |
EPS(TTM)8.96
EY5.41%
EPS(NY)10.78
Fwd EY6.51%
FCF(TTM)2.24
FCFY1.35%
OCF(TTM)8.87
OCFY5.36%
SpS59
BVpS59.76
TBVpS43.5
PEG (NY)N/A
PEG (5Y)4.32
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%
ROICexcg growth 3Y6.92%
ROICexcg 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 | 3.42 |
F-Score8
WACC8.39%
ROIC/WACC0.98
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-2.74%
EPS Next 2Y8.31%
EPS Next 3Y9.93%
EPS Next 5Y1.11%
Revenue 1Y (TTM)5.32%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%1.82%
Revenue Next Year3.74%
Revenue Next 2Y7.29%
Revenue Next 3Y7.85%
Revenue Next 5Y6.81%
EBIT growth 1Y25.86%
EBIT growth 3Y15.44%
EBIT growth 5Y8.99%
EBIT Next Year22.36%
EBIT Next 3Y17.79%
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%