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Despite its impressive fundamentals, NYSE:BABA remains undervalued.

By Mill Chart

Last update: May 16, 2024

Discover ALIBABA GROUP HOLDING-SP ADR (NYSE:BABA)—an undervalued stock our stock screener has picked out. NYSE:BABA demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

ChartMill's Evaluation of Valuation

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:BABA has achieved a 8 out of 10:

  • The Price/Earnings ratio is 9.33, which indicates a very decent valuation of BABA.
  • 87.88% of the companies in the same industry are more expensive than BABA, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of BABA to the average of the S&P500 Index (28.91), we can say BABA is valued rather cheaply.
  • A Price/Forward Earnings ratio of 9.04 indicates a reasonable valuation of BABA.
  • Based on the Price/Forward Earnings ratio, BABA is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 20.51. BABA is valued rather cheaply when compared to this.
  • BABA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BABA is cheaper than 90.91% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, BABA is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

Profitability Assessment of NYSE:BABA

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:BABA scores a 5 out of 10:

  • With a decent Return On Assets value of 5.49%, BABA is doing good in the industry, outperforming 66.67% of the companies in the same industry.
  • The last Return On Invested Capital (6.23%) for BABA is above the 3 year average (5.01%), which is a sign of increasing profitability.
  • BABA has a Profit Margin of 10.78%. This is amongst the best in the industry. BABA outperforms 90.91% of its industry peers.
  • BABA's Operating Margin of 13.41% is amongst the best of the industry. BABA outperforms 90.91% of its industry peers.

What does the Health looks like for NYSE:BABA

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:BABA, the assigned 5 reflects its health status:

  • BABA has a debt to FCF ratio of 0.98. This is a very positive value and a sign of high solvency as it would only need 0.98 years to pay back of all of its debts.
  • The Debt to FCF ratio of BABA (0.98) is better than 72.73% of its industry peers.
  • BABA has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
  • The Debt to Equity ratio of BABA (0.14) is better than 63.64% of its industry peers.
  • With a decent Quick ratio value of 1.80, BABA is doing good in the industry, outperforming 69.70% of the companies in the same industry.

Deciphering NYSE:BABA's Growth Rating

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:BABA has achieved a 5 out of 10:

  • BABA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.98%, which is quite impressive.
  • The Earnings Per Share has been growing by 10.68% on average over the past years. This is quite good.
  • Measured over the past years, BABA shows a very strong growth in Revenue. The Revenue has been growing by 28.26% on average per year.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Check the latest full fundamental report of BABA for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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ALIBABA GROUP HOLDING-SP ADR

NYSE:BABA (5/29/2024, 7:04:00 PM)

Premarket: 78.24 -0.82 (-1.04%)

79.06

-1.52 (-1.89%)

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News Image14 days ago - ChartmillDespite its impressive fundamentals, NYSE:BABA remains undervalued.

ALIBABA GROUP HOLDING-SP ADR (NYSE:BABA) appears to be flying under the radar despite its strong fundamentals.

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