ALIBABA GROUP HOLDING-SP ADR (BABA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BABA - US01609W1027 - ADR
154.47 USD
+7.72 (+5.26%)
154.29 USD
-0.18 (-0.12%)
BABA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 30 industry peers in the Broadline Retail industry. BABA has an average financial health and profitability rating. BABA has a decent growth rate and is not valued too expensively.
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 has a Return On Assets of 6.66%. This is in the better half 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.
BABA's Return On Invested Capital of 6.24% is fine compared to the rest of the industry. BABA outperforms 63.33% of its industry peers.
BABA had an Average Return On Invested Capital over the past 3 years of 7.12%. This 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
BABA's Profit Margin of 12.39% is amongst the best of the industry. BABA outperforms 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.
BABA's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 41.17%, BABA is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Gross Margin of BABA has declined.
| 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
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
Compared to 5 years ago, BABA has less shares outstanding
BABA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.10 indicates that BABA is not in any danger for bankruptcy at the moment.
The Altman-Z score of BABA (3.10) is better than 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.
Looking at the Debt to FCF ratio, with a value of 106.58, BABA is doing worse than 66.67% of the companies in the same industry.
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 | 3.1 |
ROIC/WACC0.76
WACC8.21%
2.3 Liquidity
A Current Ratio of 1.46 indicates that BABA should not have too much problems paying its short term obligations.
The Current ratio of BABA (1.46) is comparable to the rest of the 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 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.
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
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.
BABA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.85% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 20.38, 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.
When comparing the Price/Earnings ratio of BABA to the average of the S&P500 Index (27.00), we can say BABA is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.90, the valuation of BABA can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BABA indicates a somewhat cheap valuation: BABA is cheaper than 70.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BABA to the average of the S&P500 Index (23.70), we can say BABA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.38 | ||
| Fwd PE | 15.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BABA is valued a bit cheaper than 63.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BABA is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 975.29 | ||
| EV/EBITDA | 13.36 |
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)4.76
EPS Next 2Y1.9%
EPS Next 3Y10.19%
5. Dividend
5.1 Amount
With a yearly dividend of 0.70%, BABA is not a good candidate for dividend investing.
BABA's Dividend Yield is a higher than the industry average which is at 2.28.
Compared to an average S&P500 Dividend Yield of 1.94, BABA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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%
154.47
+7.72 (+5.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners12.27%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap368.56B
Revenue(TTM)1.01T
Net Income(TTM)125.43B
Analysts84.08
Price Target204.43 (32.34%)
Short Float %1.83%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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)3.62%
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 | 20.38 | ||
| Fwd PE | 15.9 | ||
| P/S | 2.55 | ||
| P/FCF | 975.29 | ||
| P/OCF | 19.94 | ||
| P/B | 2.5 | ||
| P/tB | 3.4 | ||
| EV/EBITDA | 13.36 |
EPS(TTM)7.58
EY4.91%
EPS(NY)9.72
Fwd EY6.29%
FCF(TTM)0.16
FCFY0.1%
OCF(TTM)7.75
OCFY5.01%
SpS60.67
BVpS61.9
TBVpS45.41
PEG (NY)N/A
PEG (5Y)4.76
Graham Number102.75
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 | 3.1 |
F-Score7
WACC8.21%
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 5Y8.85%
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 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 20.38 and the Price/Book (PB) ratio is 2.5.
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.