ALIBABA GROUP HOLDING-SP ADR (BABA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BABA - US01609W1027 - ADR
152.24 USD
+2.18 (+1.45%)
152.11 USD
-0.13 (-0.09%)
We assign a fundamental rating of 4 out of 10 to BABA. BABA was compared to 30 industry peers in the Broadline Retail industry. BABA has only an average score on both its financial health and profitability. While showing a medium growth rate, BABA is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year BABA was profitable.
In the past year BABA had a positive cash flow from operations.
Each year in the past 5 years BABA has been profitable.
In the past 5 years BABA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.66%, BABA is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.15%, BABA is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Return On Invested Capital of BABA (6.24%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for BABA is below the industry average of 9.38%.
| 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.
In the last couple of years the Profit Margin of BABA has declined.
BABA has a better Operating Margin (11.46%) than 83.33% 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 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BABA is destroying value.
Compared to 1 year ago, BABA has less shares outstanding
The number of shares outstanding for BABA has been reduced compared to 5 years ago.
The debt/assets ratio for BABA is higher compared to a year ago.
2.2 Solvency
BABA has an Altman-Z score of 3.15. This indicates that BABA is financially healthy and has little risk of bankruptcy at the moment.
BABA has a better Altman-Z score (3.15) 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.
BABA has a Debt to FCF ratio of 106.58. This is in the lower half of the industry: BABA underperforms 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.
Looking at the Debt to Equity ratio, with a value of 0.25, BABA is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 106.58 | ||
| Altman-Z | 3.15 |
ROIC/WACC0.77
WACC8.08%
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.
BABA has a Current ratio (1.46) which is comparable to the rest of the 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.
Looking at the Quick ratio, with a value of 1.46, BABA is in line with its industry, outperforming 56.67% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing slightly by 4.28% on average over the past years.
The Revenue has been growing slightly by 5.21% in the past year.
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)-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
The Earnings Per Share is expected to grow by 1.11% on average over the next years.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.14, the valuation of BABA can be described as rather expensive.
73.33% 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 valuation a bit cheaper than the S&P500 average which is at 26.57.
BABA is valuated correctly with a Price/Forward Earnings ratio of 15.50.
73.33% of the companies in the same industry are more expensive than BABA, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, BABA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.14 | ||
| Fwd PE | 15.5 |
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.
63.33% of the companies in the same industry are cheaper than BABA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 964.4 | ||
| EV/EBITDA | 13.76 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.7
EPS Next 2Y2.64%
EPS Next 3Y10.12%
5. Dividend
5.1 Amount
BABA has a yearly dividend return of 0.70%, which is pretty low.
Compared to an average industry Dividend Yield of 2.17, BABA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.70, BABA pays less dividend than the S&P500 average, which is at 1.88.
| 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
26.97% of the earnings are spent on dividend by BABA. This is a low number and sustainable payout ratio.
DP26.97%
EPS Next 2Y2.64%
EPS Next 3Y10.12%
152.24
+2.18 (+1.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners12.25%
Inst Owner Change-19.21%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap363.24B
Revenue(TTM)1.01T
Net Income(TTM)125.43B
Analysts84.08
Price Target203.62 (33.75%)
Short Float %1.87%
Short Ratio3.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Yearly Dividend1.75
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)21.12%
EPS NQ rev (1m)-10.05%
EPS NQ rev (3m)-21.18%
EPS NY rev (1m)-7.31%
EPS NY rev (3m)-27.57%
Revenue NQ rev (1m)-0.81%
Revenue NQ rev (3m)-1.38%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.14 | ||
| Fwd PE | 15.5 | ||
| P/S | 2.52 | ||
| P/FCF | 964.4 | ||
| P/OCF | 19.72 | ||
| P/B | 2.47 | ||
| P/tB | 3.36 | ||
| EV/EBITDA | 13.76 |
EPS(TTM)7.56
EY4.97%
EPS(NY)9.82
Fwd EY6.45%
FCF(TTM)0.16
FCFY0.1%
OCF(TTM)7.72
OCFY5.07%
SpS60.47
BVpS61.69
TBVpS45.26
PEG (NY)N/A
PEG (5Y)4.7
Graham Number102.44
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 | 3.15 |
F-Score7
WACC8.08%
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%.