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

NYSE:BABA • US01609W1027

Current stock price

125.46 USD
+3.48 (+2.85%)
At close:
125.46 USD
0 (0%)
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.
  • 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.
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 66.67% of its industry peers.
  • BABA has a better Return On Equity (8.93%) than 63.33% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 4.77%, BABA is in line with its industry, outperforming 50.00% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for BABA is in line with the industry average of 8.84%.
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 has a Profit Margin of 9.13%. This is amongst the best in the industry. BABA outperforms 86.67% of its industry peers.
  • In the last couple of years the Profit Margin of BABA has declined.
  • BABA has a Operating Margin of 8.59%. This is in the better half of the industry: BABA outperforms 73.33% of its industry peers.
  • In the last couple of years the Operating Margin of BABA has declined.
  • The Gross Margin of BABA (40.76%) is comparable to the rest of the industry.
  • BABA's Gross Margin has declined in the last couple of years.
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.
  • BABA has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for BABA has been reduced compared to 5 years ago.
  • Compared to 1 year ago, BABA has a worse debt to assets ratio.
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

  • BABA has an Altman-Z score of 2.79. This is not the best score and indicates that BABA is in the grey zone with still only limited risk for bankruptcy at the moment.
  • BABA has a Altman-Z score of 2.79. This is in the better half of the industry: BABA outperforms 66.67% of its industry peers.
  • A Debt/Equity ratio of 0.23 indicates that BABA is not too dependend on debt financing.
  • BABA has a better Debt to Equity ratio (0.23) than 70.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF N/A
Altman-Z 2.79
ROIC/WACC0.58
WACC8.27%
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

  • BABA has a Current 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.
  • Looking at the Current ratio, with a value of 1.33, BABA is doing worse than 63.33% of the companies in the same industry.
  • 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 (1.33) which is in line with 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

  • BABA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.57%.
  • 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.
  • The Revenue has been growing slightly by 3.56% in the past year.
  • The Revenue has been growing by 14.35% on average over the past years. This is quite good.
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

  • 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.
  • Based on estimates for the next years, BABA will show a quite strong growth in Revenue. The Revenue will grow by 8.80% on average per year.
EPS Next Y-35.64%
EPS Next 2Y-1.93%
EPS Next 3Y7.62%
EPS Next 5Y1.11%
Revenue Next Year3.55%
Revenue Next 2Y7.23%
Revenue Next 3Y8.15%
Revenue Next 5Y8.8%

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.
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

  • A Price/Earnings ratio of 22.36 indicates a rather expensive valuation of BABA.
  • 63.33% 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 similar valuation than the S&P500 average which is at 25.35.
  • A Price/Forward Earnings ratio of 13.76 indicates a correct valuation of BABA.
  • 63.33% of the companies in the same industry are more expensive than BABA, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of BABA to the average of the S&P500 Index (22.61), we can say BABA is valued slightly cheaper.
Industry RankSector Rank
PE 22.36
Fwd PE 13.76
BABA Price Earnings VS Forward Price EarningsBABA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • BABA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BABA is cheaper than 70.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.73
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)5.22
EPS Next 2Y-1.93%
EPS Next 3Y7.62%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. BABA Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.82%, BABA is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.67, BABA pays a bit more dividend than its industry peers.
  • 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 0.82%

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
BABA Yearly Dividends per shareBABA Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 1 2 3

5.3 Sustainability

  • BABA pays out 31.33% of its income as dividend. This is a 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 (3/31/2026, 8:20:34 PM)

Premarket: 125.46 0 (0%)

125.46

+3.48 (+2.85%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)03-19
Earnings (Next)05-13
Inst Owners11.82%
Inst Owner Change1.54%
Ins OwnersN/A
Ins Owner Change0.84%
Market Cap299.52B
Revenue(TTM)1.02T
Net Income(TTM)92.81B
Analysts82.92
Price Target190.98 (52.22%)
Short Float %1.72%
Short Ratio3.59
Dividend
Industry RankSector Rank
Dividend Yield 0.82%
Yearly Dividend1.79
Dividend Growth(5Y)N/A
DP31.33%
Div Incr Years1
Div Non Decr Years1
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)-3.7%
EPS NQ rev (3m)-8.51%
EPS NY rev (1m)-1.97%
EPS NY rev (3m)-7.23%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.67%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.36%
Valuation
Industry RankSector Rank
PE 22.36
Fwd PE 13.76
P/S 2.03
P/FCF N/A
P/OCF 21.91
P/B 1.99
P/tB 2.66
EV/EBITDA 13.73
EPS(TTM)5.61
EY4.47%
EPS(NY)9.12
Fwd EY7.27%
FCF(TTM)-1.79
FCFYN/A
OCF(TTM)5.73
OCFY4.56%
SpS61.72
BVpS63.11
TBVpS47.08
PEG (NY)N/A
PEG (5Y)5.22
Graham Number89.25
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 2.79
F-Score5
WACC8.27%
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 Year3.55%
Revenue Next 2Y7.23%
Revenue Next 3Y8.15%
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 22.36 and the Price/Book (PB) ratio is 1.99.


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%.