ALIBABA GROUP HOLDING-SP ADR (BABA) Stock Fundamental Analysis
USA - NYSE:BABA - US01609W1027 - ADR
157.91 USD
-2.89 (-1.8%)
164.3 USD
+6.39 (+4.05%)
Taking everything into account, BABA scores 5 out of 10 in our fundamental rating. BABA was compared to 30 industry peers in the Broadline Retail industry. BABA has an average financial health and profitability rating. BABA has a decent growth rate and is not valued too expensively.
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.
In the past 5 years BABA always reported a positive cash flow from operatings.
1.2 Ratios
BABA has a Return On Assets of 8.03%. This is in the better half of the industry: BABA outperforms 80.00% of its industry peers.
With a decent Return On Equity value of 14.63%, BABA is doing good in the industry, outperforming 73.33% of the companies in the same industry.
BABA's Return On Invested Capital of 8.19% is fine compared to the rest of the industry. BABA outperforms 63.33% of its industry peers.
BABA had an Average Return On Invested Capital over the past 3 years of 7.12%. This is below the industry average of 10.39%.
The last Return On Invested Capital (8.19%) for BABA is above the 3 year average (7.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.03% | ||
| ROE | 14.63% | ||
| ROIC | 8.19% |
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
Looking at the Profit Margin, with a value of 14.82%, BABA belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
In the last couple of years the Profit Margin of BABA has declined.
BABA has a better Operating Margin (14.51%) than 90.00% 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 41.18%, 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 | 14.51% | ||
| PM (TTM) | 14.82% | ||
| GM | 41.18% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BABA is still creating some value.
The number of shares outstanding for BABA has been reduced compared to 1 year ago.
BABA has less shares outstanding than it did 5 years ago.
BABA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.41 indicates that BABA is not in any danger for bankruptcy at the moment.
The Altman-Z score of BABA (3.41) is comparable to the rest of the industry.
The Debt to FCF ratio of BABA is 6.11, which is on the high side as it means it would take BABA, 6.11 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BABA (6.11) is comparable to the rest of the industry.
BABA has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.20, BABA perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 3.41 |
ROIC/WACC1.01
WACC8.11%
2.3 Liquidity
A Current Ratio of 1.45 indicates that BABA should not have too much problems paying its short term obligations.
BABA has a Current ratio of 1.45. This is comparable to the rest of the industry: BABA outperforms 46.67% of its industry peers.
BABA has a Quick Ratio of 1.45. 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 of 1.45. This is in the better half of the industry: BABA outperforms 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.15% over the past year.
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 5.32% 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)4.15%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%-10.28%
Revenue 1Y (TTM)5.32%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%1.82%
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.
BABA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.89% yearly.
EPS Next Y-24%
EPS Next 2Y4.31%
EPS Next 3Y10.17%
EPS Next 5Y1.11%
Revenue Next Year3.63%
Revenue Next 2Y7.49%
Revenue Next 3Y8.18%
Revenue Next 5Y8.89%
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.
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
A Price/Earnings ratio of 17.64 indicates a rather expensive 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 66.67% of the companies listed in the same industry.
BABA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.34.
With a Price/Forward Earnings ratio of 15.79, BABA is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BABA indicates a somewhat cheap valuation: BABA is cheaper than 66.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.43, BABA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.64 | ||
| Fwd PE | 15.79 |
4.2 Price Multiples
BABA's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BABA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 70.6 | ||
| EV/EBITDA | 12.33 |
4.3 Compensation for Growth
The decent profitability rating of BABA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.12
EPS Next 2Y4.31%
EPS Next 3Y10.17%
5. Dividend
5.1 Amount
With a yearly dividend of 0.61%, BABA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 11.26, BABA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.61, BABA pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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
BABA pays out 19.60% of its income as dividend. This is a sustainable payout ratio.
DP19.6%
EPS Next 2Y4.31%
EPS Next 3Y10.17%
157.91
-2.89 (-1.8%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners12.28%
Inst Owner Change-17.43%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap376.77B
Revenue(TTM)1.00T
Net Income(TTM)148.32B
Analysts84.17
Price Target201.38 (27.53%)
Short Float %1.77%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Yearly Dividend1.73
Dividend Growth(5Y)N/A
DP19.6%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.64%
Min EPS beat(2)-5.13%
Max EPS beat(2)-4.14%
EPS beat(4)1
Avg EPS beat(4)-0.77%
Min EPS beat(4)-5.13%
Max EPS beat(4)6.96%
EPS beat(8)2
Avg EPS beat(8)-0.41%
EPS beat(12)6
Avg EPS beat(12)4.23%
EPS beat(16)9
Avg EPS beat(16)3.66%
Revenue beat(2)0
Avg Revenue beat(2)-3.14%
Min Revenue beat(2)-4%
Max Revenue beat(2)-2.29%
Revenue beat(4)0
Avg Revenue beat(4)-2.75%
Min Revenue beat(4)-4%
Max Revenue beat(4)-1.77%
Revenue beat(8)0
Avg Revenue beat(8)-2.57%
Revenue beat(12)1
Avg Revenue beat(12)-2.08%
Revenue beat(16)2
Avg Revenue beat(16)-2.06%
PT rev (1m)8.2%
PT rev (3m)31.73%
EPS NQ rev (1m)-38.13%
EPS NQ rev (3m)-57.39%
EPS NY rev (1m)-12.31%
EPS NY rev (3m)-29.16%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-2.32%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.64 | ||
| Fwd PE | 15.79 | ||
| P/S | 2.68 | ||
| P/FCF | 70.6 | ||
| P/OCF | 17.82 | ||
| P/B | 2.65 | ||
| P/tB | 3.63 | ||
| EV/EBITDA | 12.33 |
EPS(TTM)8.95
EY5.67%
EPS(NY)10
Fwd EY6.33%
FCF(TTM)2.24
FCFY1.42%
OCF(TTM)8.86
OCFY5.61%
SpS58.92
BVpS59.68
TBVpS43.45
PEG (NY)N/A
PEG (5Y)4.12
Graham Number109.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.03% | ||
| ROE | 14.63% | ||
| ROCE | 10.57% | ||
| ROIC | 8.19% | ||
| ROICexc | 11.76% | ||
| ROICexgc | 16.51% | ||
| OM | 14.51% | ||
| PM (TTM) | 14.82% | ||
| GM | 41.18% | ||
| FCFM | 3.8% |
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-Score8
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 6.11 | ||
| Debt/EBITDA | 1.11 | ||
| Cap/Depr | 265.09% | ||
| Cap/Sales | 11.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.24% | ||
| Profit Quality | 25.61% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 3.41 |
F-Score8
WACC8.11%
ROIC/WACC1.01
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)4.15%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%-10.28%
EPS Next Y-24%
EPS Next 2Y4.31%
EPS Next 3Y10.17%
EPS Next 5Y1.11%
Revenue 1Y (TTM)5.32%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%1.82%
Revenue Next Year3.63%
Revenue Next 2Y7.49%
Revenue Next 3Y8.18%
Revenue Next 5Y8.89%
EBIT growth 1Y25.86%
EBIT growth 3Y15.44%
EBIT growth 5Y8.99%
EBIT Next Year4.06%
EBIT Next 3Y18.45%
EBIT Next 5Y15.72%
FCF growth 1Y-79.1%
FCF growth 3Y-4.65%
FCF growth 5Y-10.53%
OCF growth 1Y-28.72%
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 5 / 10 to BABA.
Can you provide the valuation status for ALIBABA GROUP HOLDING-SP ADR?
ChartMill assigns a valuation rating of 4 / 10 to ALIBABA GROUP HOLDING-SP ADR (BABA). This can be considered as Fairly Valued.
How profitable is ALIBABA GROUP HOLDING-SP ADR (BABA) stock?
ALIBABA GROUP HOLDING-SP ADR (BABA) has a profitability rating of 6 / 10.
Can you provide the financial health for BABA stock?
The financial health rating of ALIBABA GROUP HOLDING-SP ADR (BABA) is 5 / 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 19.6%.