ALIBABA GROUP HOLDING-SP ADR (BABA)
US01609W1027 - ADR
Overall BABA gets a fundamental rating of 5 out of 10. We evaluated BABA against 32 industry peers in the Broadline Retail industry. BABA has an average financial health and profitability rating. BABA is not valued too expensively and it also shows 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.
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 has a Return On Assets (4.87%) which is comparable to the rest of the industry.
BABA has a Return On Equity (9.00%) which is in line with its industry peers.
BABA has a Return On Invested Capital (7.07%) which is in line with its industry peers.
BABA had an Average Return On Invested Capital over the past 3 years of 6.45%. This is significantly below the industry average of 11.71%.
The 3 year average ROIC (6.45%) for BABA is below the current ROIC(7.07%), indicating increased profibility in the last year.
| 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.
With an excellent Operating Margin value of 12.07%, BABA belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Operating Margin of BABA has declined.
BABA's Gross Margin of 38.20% is in line compared to the rest of the industry. BABA outperforms 40.63% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BABA is destroying value.
Compared to 1 year ago, BABA has less shares outstanding
The number of shares outstanding for BABA has been increased 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 2.45. 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.
The Altman-Z score of BABA (2.45) is comparable to the rest of the industry.
The Debt to FCF ratio of BABA is 2.23, which is a good value as it means it would take BABA, 2.23 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BABA (2.23) is better than 68.75% of its industry peers.
BABA has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
BABA has a better Debt to Equity ratio (0.18) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.23 | ||
| Altman-Z | 2.45 |
ROIC/WACC0.99
WACC7.15%
2.3 Liquidity
A Current Ratio of 1.37 indicates that BABA should not have too much problems paying its short term obligations.
With a Current ratio value of 1.37, BABA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 1.37 indicates that BABA should not have too much problems paying 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 -3.75%.
The Earnings Per Share has been growing by 10.09% on average over the past years. This is quite good.
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)-3.75%
EPS 3Y-1.58%
EPS 5Y10.09%
EPS Q2Q%-3.65%
Revenue 1Y (TTM)5.14%
Revenue growth 3Y9.48%
Revenue growth 5Y20.09%
Sales Q2Q%5.21%
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 1.20% on average per year.
The Revenue is expected to grow by 6.67% on average over the next years.
EPS Next Y3.3%
EPS Next 2Y7.88%
EPS Next 3Y8.3%
EPS Next 5Y1.2%
Revenue Next Year6.21%
Revenue Next 2Y7.49%
Revenue Next 3Y7.51%
Revenue Next 5Y6.67%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.90, which indicates a very decent 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 71.88% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. BABA is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.31, which indicates a very decent valuation of BABA.
75.00% 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 rather cheap valuation when compared to the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 8.31 |
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 68.75% of the companies listed in the same industry.
BABA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.87 | ||
| EV/EBITDA | 6.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BABA does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3
PEG (5Y)0.98
EPS Next 2Y7.88%
EPS Next 3Y8.3%
5. Dividend
5.1 Amount
BABA has a Yearly Dividend Yield of 1.16%. 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 5.32.
With a Dividend Yield of 1.16, BABA pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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
54.53% of the earnings are spent on dividend by BABA. This is a bit on the high side, but may be sustainable.
DP54.53%
EPS Next 2Y7.88%
EPS Next 3Y8.3%
ALIBABA GROUP HOLDING-SP ADR
NYSE:BABA (12/20/2024, 8:04:00 PM)
After market: 82.75 +0.47 (+0.57%)82.28
-2.03 (-2.41%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners15.24%
Inst Owner Change4.21%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap196.11B
Analysts82.64
Price Target124.29 (51.06%)
Short Float %2.11%
Short Ratio3.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
Dividend Growth(5Y)N/A
DP54.53%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.51%
Min EPS beat(2)-0.76%
Max EPS beat(2)5.79%
EPS beat(4)1
Avg EPS beat(4)-0.17%
Min EPS beat(4)-3.01%
Max EPS beat(4)5.79%
EPS beat(8)4
Avg EPS beat(8)5.5%
EPS beat(12)8
Avg EPS beat(12)6.01%
EPS beat(16)10
Avg EPS beat(16)4.26%
Revenue beat(2)0
Avg Revenue beat(2)-3.6%
Min Revenue beat(2)-4.25%
Max Revenue beat(2)-2.95%
Revenue beat(4)0
Avg Revenue beat(4)-2.69%
Min Revenue beat(4)-4.25%
Max Revenue beat(4)-0.97%
Revenue beat(8)1
Avg Revenue beat(8)-1.79%
Revenue beat(12)2
Avg Revenue beat(12)-1.74%
Revenue beat(16)4
Avg Revenue beat(16)-1.6%
PT rev (1m)3.23%
PT rev (3m)13.52%
EPS NQ rev (1m)1.52%
EPS NQ rev (3m)1.52%
EPS NY rev (1m)0.99%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)-0.64%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 8.31 | ||
| P/S | 1.49 | ||
| P/FCF | 15.87 | ||
| P/OCF | 9.39 | ||
| P/B | 1.51 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | 6.73 |
EPS(TTM)8.31
EY10.1%
EPS(NY)9.91
Fwd EY12.04%
FCF(TTM)5.18
FCFY6.3%
OCF(TTM)8.76
OCFY10.65%
SpS55.04
BVpS54.58
TBVpS38.42
PEG (NY)3
PEG (5Y)0.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.87% | ||
| ROE | 9% | ||
| ROCE | 8.81% | ||
| ROIC | 7.07% | ||
| ROICexc | 10.03% | ||
| ROICexgc | 14.41% | ||
| OM | 12.07% | ||
| PM (TTM) | 8.92% | ||
| GM | 38.2% | ||
| FCFM | 9.42% |
ROA(3y)4.1%
ROA(5y)6.51%
ROE(3y)7.31%
ROE(5y)11.55%
ROIC(3y)6.45%
ROIC(5y)6.42%
ROICexc(3y)10.57%
ROICexc(5y)10.27%
ROICexgc(3y)16.93%
ROICexgc(5y)17.44%
ROCE(3y)8.04%
ROCE(5y)8%
ROICexcg growth 3Y9.15%
ROICexcg growth 5Y-1.21%
ROICexc growth 3Y13.34%
ROICexc growth 5Y8.21%
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%
F-Score5
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.23 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.32% | ||
| Profit Quality | 105.56% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 2.45 |
F-Score5
WACC7.15%
ROIC/WACC0.99
Cap/Depr(3y)86.04%
Cap/Depr(5y)91.05%
Cap/Sales(3y)4.57%
Cap/Sales(5y)5.73%
Profit Quality(3y)186.71%
Profit Quality(5y)155.24%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.75%
EPS 3Y-1.58%
EPS 5Y10.09%
EPS Q2Q%-3.65%
EPS Next Y3.3%
EPS Next 2Y7.88%
EPS Next 3Y8.3%
EPS Next 5Y1.2%
Revenue 1Y (TTM)5.14%
Revenue growth 3Y9.48%
Revenue growth 5Y20.09%
Sales Q2Q%5.21%
Revenue Next Year6.21%
Revenue Next 2Y7.49%
Revenue Next 3Y7.51%
Revenue Next 5Y6.67%
EBIT growth 1Y-11.4%
EBIT growth 3Y10.68%
EBIT growth 5Y15.63%
EBIT Next Year23.75%
EBIT Next 3Y13.28%
EBIT Next 5Y12.3%
FCF growth 1Y-29.99%
FCF growth 3Y-7.42%
FCF growth 5Y8.11%
OCF growth 1Y-0.76%
OCF growth 3Y-7.64%
OCF growth 5Y3.88%