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

NYSE:BABA • US01609W1027

Current stock price

122.05 USD
-1.68 (-1.36%)
At close:
121.92 USD
-0.13 (-0.11%)
After Hours:

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.
  • In the past 5 years BABA has always been profitable.
  • Each year in the past 5 years BABA had a positive operating cash flow.
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

  • With a decent Return On Assets value of 4.94%, BABA is doing good in the industry, outperforming 70.00% of the companies in the same industry.
  • BABA has a Return On Equity of 8.93%. This is in the better half of the industry: BABA outperforms 63.33% of its industry peers.
  • With a Return On Invested Capital value of 4.77%, BABA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
  • BABA had an Average Return On Invested Capital over the past 3 years of 7.36%. This 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

  • Looking at the Profit Margin, with a value of 9.13%, BABA belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
  • In the last couple of years the Profit Margin of BABA has declined.
  • BABA's Operating Margin of 8.59% is fine compared to the rest of the industry. BABA outperforms 73.33% of its industry peers.
  • In the last couple of years the Operating Margin of BABA has declined.
  • BABA has a Gross Margin (40.76%) which is in line with its industry peers.
  • 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

  • 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 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 2.75. 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 2.75 is fine compared to the rest of the industry. BABA outperforms 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.
  • With a decent Debt to Equity ratio value of 0.23, BABA is doing good in the industry, outperforming 70.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF N/A
Altman-Z 2.75
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.
  • BABA has a Current ratio of 1.33. This is in the lower half of the industry: BABA underperforms 63.33% of its industry peers.
  • A Quick Ratio of 1.33 indicates that BABA should not have too much problems paying 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.
  • BABA shows a small growth in Revenue. In the last year, the Revenue has grown by 3.56%.
  • 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

  • BABA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.11% yearly.
  • 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 Year2.85%
Revenue Next 2Y6.95%
Revenue Next 3Y8.7%
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

  • BABA is valuated rather expensively with a Price/Earnings ratio of 21.76.
  • 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 25.60. BABA is around the same levels.
  • Based on the Price/Forward Earnings ratio of 13.38, the valuation of BABA can be described as correct.
  • Based on the Price/Forward Earnings ratio, BABA is valued a bit cheaper than 63.33% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.84, BABA is valued a bit cheaper.
Industry RankSector Rank
PE 21.76
Fwd PE 13.38
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 76.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.29
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)5.08
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

  • BABA has a yearly dividend return of 0.84%, which is pretty low.
  • In the last 3 months the price of BABA has falen by -21.63%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • Compared to an average industry Dividend Yield of 0.71, BABA pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.84, BABA pays less dividend than the S&P500 average, which is at 1.90.
Industry RankSector Rank
Dividend Yield 0.84%

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 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 (4/2/2026, 8:09:06 PM)

After market: 121.92 -0.13 (-0.11%)

122.05

-1.68 (-1.36%)

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 Cap291.38B
Revenue(TTM)1.02T
Net Income(TTM)92.81B
Analysts82.55
Price Target190.98 (56.48%)
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 21.76
Fwd PE 13.38
P/S 1.98
P/FCF N/A
P/OCF 21.31
P/B 1.93
P/tB 2.59
EV/EBITDA 13.29
EPS(TTM)5.61
EY4.6%
EPS(NY)9.12
Fwd EY7.47%
FCF(TTM)-1.79
FCFYN/A
OCF(TTM)5.73
OCFY4.69%
SpS61.74
BVpS63.13
TBVpS47.1
PEG (NY)N/A
PEG (5Y)5.08
Graham Number89.27
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 2.75
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 21.76 and the Price/Book (PB) ratio is 1.93.


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%.