ALIBABA GROUP HOLDING-SP ADR (BABA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BABA - US01609W1027 - ADR
158.32 USD
+0.88 (+0.56%)
158.27 USD
-0.05 (-0.03%)
We assign a fundamental rating of 4 out of 10 to BABA. 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 is quite expensive at the moment. It does show 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.
In the past 5 years BABA has always been profitable.
In the past 5 years BABA always reported a positive cash flow from operatings.
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 Return On Equity of 12.15%. This is in the better half of the industry: BABA outperforms 70.00% of its industry peers.
BABA has a Return On Invested Capital (6.24%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for BABA is below the industry average of 9.35%.
| 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 has a Profit Margin of 12.39%. This is amongst the best in 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.
In the last couple of years the Operating Margin of BABA has declined.
BABA's Gross Margin of 41.17% is in line compared to the rest of the industry. BABA outperforms 50.00% of its industry peers.
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.
BABA has less shares outstanding than it did 1 year ago.
BABA has less shares outstanding than it did 5 years ago.
BABA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.26 indicates that BABA is not in any danger for bankruptcy at the moment.
BABA has a better Altman-Z score (3.26) 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.
The Debt to FCF ratio of BABA (106.58) is worse than 63.33% of its industry peers.
BABA has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
BABA's Debt to Equity ratio of 0.25 is in line compared to the rest of the industry. BABA outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 106.58 | ||
| Altman-Z | 3.26 |
ROIC/WACC0.77
WACC8.12%
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.
With a Current ratio value of 1.46, BABA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
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.
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
The earnings per share for BABA have decreased strongly by -12.52% in the last 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.
Looking at the last year, BABA shows a small growth in Revenue. The Revenue has grown by 5.21% in the last year.
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
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-29.56%
EPS Next 2Y2.64%
EPS Next 3Y10.12%
EPS Next 5Y1.11%
Revenue Next Year4.02%
Revenue Next 2Y7.68%
Revenue Next 3Y8.5%
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.
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
A Price/Earnings ratio of 21.11 indicates a rather expensive valuation of BABA.
Compared to the rest of the industry, the Price/Earnings ratio of BABA indicates a somewhat cheap valuation: BABA is cheaper than 70.00% of the companies listed in the same industry.
BABA is valuated rather cheaply when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.25, 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 66.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.10. BABA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.11 | ||
| Fwd PE | 16.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BABA is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BABA indicates a slightly more expensive valuation: BABA is more expensive than 63.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1010.9 | ||
| EV/EBITDA | 14.77 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.93
EPS Next 2Y2.64%
EPS Next 3Y10.12%
5. Dividend
5.1 Amount
BABA has a yearly dividend return of 0.65%, which is pretty low.
Compared to an average industry Dividend Yield of 8.36, BABA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, BABA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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 2Y2.64%
EPS Next 3Y10.12%
158.32
+0.88 (+0.56%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners12.25%
Inst Owner Change-19.11%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap377.75B
Revenue(TTM)1.01T
Net Income(TTM)125.43B
Analysts84.08
Price Target203.62 (28.61%)
Short Float %1.68%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend1.74
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)1.11%
PT rev (3m)24.13%
EPS NQ rev (1m)-10.05%
EPS NQ rev (3m)-24.58%
EPS NY rev (1m)-7.31%
EPS NY rev (3m)-27.57%
Revenue NQ rev (1m)-0.87%
Revenue NQ rev (3m)-1.55%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)-1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.11 | ||
| Fwd PE | 16.25 | ||
| P/S | 2.64 | ||
| P/FCF | 1010.9 | ||
| P/OCF | 20.67 | ||
| P/B | 2.59 | ||
| P/tB | 3.53 | ||
| EV/EBITDA | 14.77 |
EPS(TTM)7.5
EY4.74%
EPS(NY)9.75
Fwd EY6.16%
FCF(TTM)0.16
FCFY0.1%
OCF(TTM)7.66
OCFY4.84%
SpS59.99
BVpS61.2
TBVpS44.9
PEG (NY)N/A
PEG (5Y)4.93
Graham Number101.63
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 | 3.26 |
F-Score7
WACC8.12%
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-29.56%
EPS Next 2Y2.64%
EPS Next 3Y10.12%
EPS Next 5Y1.11%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%4.77%
Revenue Next Year4.02%
Revenue Next 2Y7.68%
Revenue Next 3Y8.5%
Revenue Next 5Y8.85%
EBIT growth 1Y-0.14%
EBIT growth 3Y15.44%
EBIT growth 5Y8.99%
EBIT Next Year-12.97%
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%.