ALIBABA GROUP HOLDING-SP ADR (BABA) Fundamental Analysis & Valuation

NYSE:BABA • US01609W1027

Current stock price

127.68 USD
+2.36 (+1.88%)
At close:
128.65 USD
+0.97 (+0.76%)
Pre-Market:

This BABA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. BABA Profitability Analysis

1.1 Basic Checks

  • BABA had positive earnings in the past year.
  • In the past year BABA had a positive cash flow from operations.
  • Each year in the past 5 years BABA has been profitable.
  • BABA had a positive operating cash flow in each of the past 5 years.
BABA Yearly Net Income VS EBIT VS OCF VS FCFBABA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B 200B

1.2 Ratios

  • The Return On Assets of BABA (4.94%) is better than 70.00% of its industry peers.
  • The Return On Equity of BABA (8.93%) is better than 63.33% of its industry peers.
  • BABA has a Return On Invested Capital (4.77%) which is comparable to the rest of the industry.
  • The Average Return On Invested Capital over the past 3 years for BABA is in line with the industry average of 8.75%.
Industry RankSector Rank
ROA 4.94%
ROE 8.93%
ROIC 4.77%
ROA(3y)5.28%
ROA(5y)5.68%
ROE(3y)9.41%
ROE(5y)10.16%
ROIC(3y)7.36%
ROIC(5y)6.62%
BABA Yearly ROA, ROE, ROICBABA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • BABA's Profit Margin of 9.13% is amongst the best of the industry. BABA outperforms 90.00% of its industry peers.
  • In the last couple of years the Profit Margin of BABA has declined.
  • The Operating Margin of BABA (8.59%) is better than 73.33% of its industry peers.
  • In the last couple of years the Operating Margin of BABA has declined.
  • Looking at the Gross Margin, with a value of 40.76%, 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 RankSector Rank
OM 8.59%
PM (TTM) 9.13%
GM 40.76%
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%
BABA Yearly Profit, Operating, Gross MarginsBABA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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4

2. BABA Health Analysis

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.
BABA Yearly Shares OutstandingBABA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
BABA Yearly Total Debt VS Total AssetsBABA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500B 1T 1.5T

2.2 Solvency

  • An Altman-Z score of 2.80 indicates that BABA is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • BABA has a better Altman-Z score (2.80) than 66.67% of its industry peers.
  • BABA has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
  • The Debt to Equity ratio of BABA (0.23) is better than 70.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF N/A
Altman-Z 2.8
ROIC/WACC0.58
WACC8.28%
BABA Yearly LT Debt VS Equity VS FCFBABA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200B 400B 600B 800B 1T

2.3 Liquidity

  • A Current Ratio of 1.33 indicates that BABA should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.33, BABA is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
  • BABA has a Quick Ratio of 1.33. 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 of 1.33. This is comparable to the rest of the industry: BABA outperforms 60.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.33
Quick Ratio 1.33
BABA Yearly Current Assets VS Current LiabilitesBABA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200B 400B 600B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. BABA Growth Analysis

3.1 Past

  • The earnings per share for BABA have decreased strongly by -38.57% in the last year.
  • The Earnings Per Share has been growing slightly by 4.28% on average over the past years.
  • BABA shows a small growth in Revenue. In the last year, the Revenue has grown by 3.56%.
  • 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)-38.57%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%-66.85%
Revenue 1Y (TTM)3.56%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%1.67%

3.2 Future

  • The Earnings Per Share is expected to grow by 1.11% on average over the next years.
  • The Revenue is expected to grow by 8.80% on average over the next years. This is quite good.
EPS Next Y-35.64%
EPS Next 2Y-1.93%
EPS Next 3Y7.62%
EPS Next 5Y1.11%
Revenue Next Year2.85%
Revenue Next 2Y6.95%
Revenue Next 3Y8.7%
Revenue Next 5Y8.8%

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.
BABA Yearly Revenue VS EstimatesBABA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 500B 1T 1.5T 2T
BABA Yearly EPS VS EstimatesBABA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20 40 60 80

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3

4. BABA Valuation Analysis

4.1 Price/Earnings Ratio

  • BABA is valuated rather expensively with a Price/Earnings ratio of 22.52.
  • Based on the Price/Earnings ratio, BABA is valued a bit cheaper than 66.67% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.91. BABA is around the same levels.
  • BABA is valuated correctly with a Price/Forward Earnings ratio of 13.87.
  • 66.67% 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 23.68.
Industry RankSector Rank
PE 22.52
Fwd PE 13.87
BABA Price Earnings VS Forward Price EarningsBABA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BABA indicates a somewhat cheap valuation: BABA is cheaper than 76.67% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.86
BABA Per share dataBABA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)5.26
EPS Next 2Y-1.93%
EPS Next 3Y7.62%

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3

5. BABA Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.84%, BABA is not a good candidate for dividend investing.
  • BABA's Dividend Yield is a higher than the industry average which is at 0.72.
  • Compared to an average S&P500 Dividend Yield of 1.89, BABA's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.84%

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 Years2
Div Non Decr Years2
BABA Yearly Dividends per shareBABA Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 1 2 3

5.3 Sustainability

  • 31.33% of the earnings are spent on dividend by BABA. This is a low number and sustainable payout ratio.
DP31.33%
EPS Next 2Y-1.93%
EPS Next 3Y7.62%
BABA Yearly Income VS Free CF VS DividendBABA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B
BABA Dividend Payout.BABA Dividend Payout, showing the Payout Ratio.BABA Dividend Payout.PayoutRetained Earnings

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BABA Fundamentals: All Metrics, Ratios and Statistics

ALIBABA GROUP HOLDING-SP ADR

NYSE:BABA (4/9/2026, 8:13:03 PM)

Premarket: 128.65 +0.97 (+0.76%)

127.68

+2.36 (+1.88%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)03-19
Earnings (Next)05-13
Inst Owners11.82%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner Change6.47%
Market Cap304.82B
Revenue(TTM)1.02T
Net Income(TTM)92.81B
Analysts82.55
Price Target190.98 (49.58%)
Short Float %1.72%
Short Ratio3.59
Dividend
Industry RankSector Rank
Dividend Yield 0.84%
Yearly Dividend1.8
Dividend Growth(5Y)N/A
DP31.33%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-31.19%
Min EPS beat(2)-40.3%
Max EPS beat(2)-22.09%
EPS beat(4)0
Avg EPS beat(4)-17.92%
Min EPS beat(4)-40.3%
Max EPS beat(4)-4.14%
EPS beat(8)2
Avg EPS beat(8)-7.79%
EPS beat(12)4
Avg EPS beat(12)-3.07%
EPS beat(16)8
Avg EPS beat(16)0.32%
Revenue beat(2)1
Avg Revenue beat(2)-1.91%
Min Revenue beat(2)-3.93%
Max Revenue beat(2)0.12%
Revenue beat(4)1
Avg Revenue beat(4)-2.53%
Min Revenue beat(4)-4%
Max Revenue beat(4)0.12%
Revenue beat(8)1
Avg Revenue beat(8)-2.51%
Revenue beat(12)2
Avg Revenue beat(12)-2.11%
Revenue beat(16)3
Avg Revenue beat(16)-1.83%
PT rev (1m)-5.64%
PT rev (3m)-6.58%
EPS NQ rev (1m)-8.98%
EPS NQ rev (3m)-14.75%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.23%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)-1.03%
Valuation
Industry RankSector Rank
PE 22.52
Fwd PE 13.87
P/S 2.05
P/FCF N/A
P/OCF 22.09
P/B 2
P/tB 2.69
EV/EBITDA 13.86
EPS(TTM)5.67
EY4.44%
EPS(NY)9.2
Fwd EY7.21%
FCF(TTM)-1.81
FCFYN/A
OCF(TTM)5.78
OCFY4.53%
SpS62.31
BVpS63.72
TBVpS47.53
PEG (NY)N/A
PEG (5Y)5.26
Graham Number90.16
Profitability
Industry RankSector Rank
ROA 4.94%
ROE 8.93%
ROCE 6.15%
ROIC 4.77%
ROICexc 6.26%
ROICexgc 8.29%
OM 8.59%
PM (TTM) 9.13%
GM 40.76%
FCFM N/A
ROA(3y)5.28%
ROA(5y)5.68%
ROE(3y)9.41%
ROE(5y)10.16%
ROIC(3y)7.36%
ROIC(5y)6.62%
ROICexc(3y)11.78%
ROICexc(5y)10.5%
ROICexgc(3y)18.04%
ROICexgc(5y)16.67%
ROCE(3y)9.49%
ROCE(5y)8.54%
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-Score5
Asset Turnover0.54
Health
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF N/A
Debt/EBITDA 1.83
Cap/Depr 291.55%
Cap/Sales 12.17%
Interest Coverage 250
Cash Conversion 72.69%
Profit Quality N/A
Current Ratio 1.33
Quick Ratio 1.33
Altman-Z 2.8
F-Score5
WACC8.28%
ROIC/WACC0.58
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)-38.57%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%-66.85%
EPS Next Y-35.64%
EPS Next 2Y-1.93%
EPS Next 3Y7.62%
EPS Next 5Y1.11%
Revenue 1Y (TTM)3.56%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%1.67%
Revenue Next Year2.85%
Revenue Next 2Y6.95%
Revenue Next 3Y8.7%
Revenue Next 5Y8.8%
EBIT growth 1Y-34.12%
EBIT growth 3Y15.44%
EBIT growth 5Y8.99%
EBIT Next Year-17.8%
EBIT Next 3Y15.56%
EBIT Next 5Y15.73%
FCF growth 1Y-117.73%
FCF growth 3Y-4.65%
FCF growth 5Y-10.53%
OCF growth 1Y-50.53%
OCF growth 3Y4.63%
OCF growth 5Y-1.97%

ALIBABA GROUP HOLDING-SP ADR / BABA Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for ALIBABA GROUP HOLDING-SP ADR?

ChartMill assigns a fundamental rating of 4 / 10 to BABA.


What is the valuation status for BABA stock?

ChartMill assigns a valuation rating of 3 / 10 to ALIBABA GROUP HOLDING-SP ADR (BABA). This can be considered as Overvalued.


Can you provide the profitability details for ALIBABA GROUP HOLDING-SP ADR?

ALIBABA GROUP HOLDING-SP ADR (BABA) has a profitability rating of 5 / 10.


Can you provide the PE and PB ratios for BABA stock?

The Price/Earnings (PE) ratio for ALIBABA GROUP HOLDING-SP ADR (BABA) is 22.52 and the Price/Book (PB) ratio is 2.


Is the dividend of ALIBABA GROUP HOLDING-SP ADR sustainable?

The dividend rating of ALIBABA GROUP HOLDING-SP ADR (BABA) is 3 / 10 and the dividend payout ratio is 31.33%.