ALIBABA GROUP HOLDING-SP ADR (BABA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BABA - US01609W1027 - ADR
152.24 USD
+2.18 (+1.45%)
152.11 USD
-0.13 (-0.09%)
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. While showing a medium growth rate, BABA is valued expensive at the moment.
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.
Each year in the past 5 years BABA had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BABA (6.66%) is better than 76.67% of its industry peers.
Looking at the Return On Equity, with a value of 12.15%, BABA is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
BABA has a Return On Invested Capital of 6.24%. This is in the better half of the industry: BABA outperforms 63.33% of its industry peers.
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
The Profit Margin of BABA (12.39%) is better than 90.00% of its industry peers.
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.
In the last couple of years the Operating Margin of BABA has declined.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BABA is destroying value.
The number of shares outstanding for BABA has been reduced compared to 1 year ago.
Compared to 5 years ago, BABA has less shares outstanding
BABA has a worse debt/assets ratio than last year.
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's Altman-Z score of 3.17 is fine compared to the rest of the industry. BABA outperforms 63.33% of its industry peers.
BABA has a debt to FCF ratio of 106.58. This is a negative value and a sign of low solvency as BABA would need 106.58 years to pay back of 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.
BABA has a better Debt to Equity ratio (0.25) than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 106.58 | ||
| Altman-Z | 3.17 |
ROIC/WACC0.77
WACC8.07%
2.3 Liquidity
BABA has a Current Ratio of 1.46. This is a normal value and indicates that BABA is financially healthy and should not expect problems in meeting 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.
BABA has a Quick Ratio of 1.46. This is a normal value and indicates that BABA is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.46, BABA perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
| 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.
The Revenue has been growing slightly by 5.21% in the past year.
Measured over the past years, BABA shows a quite strong growth in Revenue. The Revenue has been growing by 14.35% on average per year.
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
BABA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.11% yearly.
Based on estimates for the next years, BABA will show a quite strong growth in Revenue. The Revenue will grow by 8.85% on average per year.
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 5Y8.85%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.14, BABA is valued on the expensive side.
73.33% of the companies in the same industry are more expensive than BABA, based on the Price/Earnings ratio.
BABA is valuated rather cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.72 indicates a correct valuation of BABA.
Based on the Price/Forward Earnings ratio, BABA is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.46. BABA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.14 | ||
| Fwd PE | 15.72 |
4.2 Price Multiples
BABA's Enterprise Value to EBITDA ratio is in line with the industry average.
66.67% of the companies in the same industry are cheaper than BABA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 964.4 | ||
| EV/EBITDA | 14 |
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 2Y1.9%
EPS Next 3Y10.19%
5. Dividend
5.1 Amount
With a yearly dividend of 0.69%, BABA is not a good candidate for dividend investing.
BABA's Dividend Yield is a higher than the industry average which is at 2.32.
Compared to an average S&P500 Dividend Yield of 2.00, BABA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
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 26.97% of its income as dividend. This is a sustainable payout ratio.
DP26.97%
EPS Next 2Y1.9%
EPS Next 3Y10.19%
152.24
+2.18 (+1.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners12.25%
Inst Owner Change-19.21%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap363.24B
Revenue(TTM)1.01T
Net Income(TTM)125.43B
Analysts84.08
Price Target204.43 (34.28%)
Short Float %1.87%
Short Ratio3.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend1.76
Dividend Growth(5Y)N/A
DP26.97%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)3.62%
PT rev (3m)21.6%
EPS NQ rev (1m)-10.2%
EPS NQ rev (3m)-21.31%
EPS NY rev (1m)-8.72%
EPS NY rev (3m)-19.95%
Revenue NQ rev (1m)-0.89%
Revenue NQ rev (3m)-1.47%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.14 | ||
| Fwd PE | 15.72 | ||
| P/S | 2.52 | ||
| P/FCF | 964.4 | ||
| P/OCF | 19.72 | ||
| P/B | 2.47 | ||
| P/tB | 3.36 | ||
| EV/EBITDA | 14 |
EPS(TTM)7.56
EY4.97%
EPS(NY)9.68
Fwd EY6.36%
FCF(TTM)0.16
FCFY0.1%
OCF(TTM)7.72
OCFY5.07%
SpS60.47
BVpS61.69
TBVpS45.26
PEG (NY)N/A
PEG (5Y)4.7
Graham Number102.44
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 | 3.17 |
F-Score7
WACC8.07%
ROIC/WACC0.77
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 5Y8.85%
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 4 / 10 to BABA.
Can you provide the valuation status for ALIBABA GROUP HOLDING-SP ADR?
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 5 / 10.
Can you provide the financial health for BABA stock?
The financial health rating of ALIBABA GROUP HOLDING-SP ADR (BABA) is 4 / 10.
Can you provide the dividend sustainability for BABA stock?
The dividend rating of ALIBABA GROUP HOLDING-SP ADR (BABA) is 3 / 10 and the dividend payout ratio is 26.97%.