ALIBABA GROUP HOLDING-SP ADR (BABA)
US01609W1027 - ADR
Taking everything into account, BABA scores 5 out of 10 in our fundamental rating. BABA was compared to 32 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 not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BABA was profitable.
BABA had a positive operating cash flow in the past year.
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.
1.2 Ratios
BABA's Return On Assets of 4.87% is in line compared to the rest of the industry. BABA outperforms 59.38% of its industry peers.
Looking at the Return On Equity, with a value of 9.00%, BABA is in line with its industry, outperforming 56.25% of the companies in the same industry.
The Return On Invested Capital of BABA (7.07%) is comparable to the rest of the industry.
BABA had an Average Return On Invested Capital over the past 3 years of 6.45%. This is significantly below the industry average of 11.47%.
The last Return On Invested Capital (7.07%) for BABA is above the 3 year average (6.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.87% | ||
| ROE | 9% | ||
| ROIC | 7.07% |
ROA(3y)4.1%
ROA(5y)6.51%
ROE(3y)7.31%
ROE(5y)11.55%
ROIC(3y)6.45%
ROIC(5y)6.42%
1.3 Margins
With an excellent Profit Margin value of 8.92%, BABA belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
BABA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 12.07%, BABA belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
BABA's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 38.20%, BABA perfoms like the industry average, outperforming 40.63% of the companies in the same industry.
BABA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.07% | ||
| PM (TTM) | 8.92% | ||
| GM | 38.2% |
OM growth 3Y1.1%
OM growth 5Y-3.71%
PM growth 3Y-26.05%
PM growth 5Y-18.28%
GM growth 3Y-3.16%
GM growth 5Y-3.83%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BABA is destroying value.
The number of shares outstanding for BABA has been reduced compared to 1 year ago.
BABA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BABA has a worse debt to assets ratio.
2.2 Solvency
BABA has an Altman-Z score of 2.46. 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's Altman-Z score of 2.46 is in line compared to the rest of the industry. BABA outperforms 59.38% of its industry peers.
BABA has a debt to FCF ratio of 2.23. This is a good value and a sign of high solvency as BABA would need 2.23 years to pay back of all of its debts.
BABA's Debt to FCF ratio of 2.23 is fine compared to the rest of the industry. BABA outperforms 65.63% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that BABA is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.18, BABA is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.23 | ||
| Altman-Z | 2.46 |
ROIC/WACC0.97
WACC7.26%
2.3 Liquidity
BABA has a Current Ratio of 1.37. 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 Current ratio (1.37) which is comparable to the rest of the industry.
BABA has a Quick Ratio of 1.37. 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 (1.37) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
BABA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.99%.
Measured over the past years, BABA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.09% on average per year.
The Revenue has been growing slightly by 5.14% in the past year.
Measured over the past years, BABA shows a very strong growth in Revenue. The Revenue has been growing by 20.09% on average per year.
EPS 1Y (TTM)-2.99%
EPS 3Y-1.58%
EPS 5Y10.09%
EPS Q2Q%-0.58%
Revenue 1Y (TTM)5.14%
Revenue growth 3Y9.48%
Revenue growth 5Y20.09%
Sales Q2Q%8.35%
3.2 Future
BABA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.20% yearly.
The Revenue is expected to grow by 6.64% on average over the next years.
EPS Next Y2.29%
EPS Next 2Y7.89%
EPS Next 3Y9.58%
EPS Next 5Y1.2%
Revenue Next Year6.89%
Revenue Next 2Y7.56%
Revenue Next 3Y7.82%
Revenue Next 5Y6.64%
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
The Price/Earnings ratio is 10.14, which indicates a very decent valuation of BABA.
BABA's Price/Earnings ratio is a bit cheaper when compared to the industry. BABA is cheaper than 68.75% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, BABA is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.57, the valuation of BABA can be described as reasonable.
Based on the Price/Forward Earnings ratio, BABA is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of BABA to the average of the S&P500 Index (23.82), we can say BABA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.14 | ||
| Fwd PE | 8.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BABA is valued a bit cheaper than 68.75% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BABA is valued a bit cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.38 | ||
| EV/EBITDA | 6.79 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)4.42
PEG (5Y)1
EPS Next 2Y7.89%
EPS Next 3Y9.58%
5. Dividend
5.1 Amount
BABA has a Yearly Dividend Yield of 1.13%. Purely for dividend investing, there may be better candidates out there.
BABA's Dividend Yield is a higher than the industry average which is at 4.82.
Compared to an average S&P500 Dividend Yield of 2.23, BABA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
5.2 History
BABA is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
BABA pays out 54.53% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP54.53%
EPS Next 2Y7.89%
EPS Next 3Y9.58%
ALIBABA GROUP HOLDING-SP ADR
NYSE:BABA (11/21/2024, 8:13:58 PM)
Premarket: 83.14 -2.44 (-2.85%)85.58
-1.19 (-1.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap204.96B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.14 | ||
| Fwd PE | 8.57 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.42
PEG (5Y)1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.87% | ||
| ROE | 9% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.07% | ||
| PM (TTM) | 8.92% | ||
| GM | 38.2% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-2.99%
EPS 3Y-1.58%
EPS 5Y
EPS Q2Q%
EPS Next Y2.29%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.14%
Revenue growth 3Y9.48%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y