ALIBABA GROUP HOLDING-SP ADR (BABA) Stock Fundamental Analysis
NYSE:BABA - US01609W1027 - ADR
124.19 USD
-0.16 (-0.13%)
124.5 USD
+0.31 (+0.25%)
We assign a fundamental rating of 5 out of 10 to BABA. BABA was compared to 28 industry peers in the Broadline Retail industry. Both the profitability and the financial health of BABA get a neutral evaluation. Nothing too spectacular is happening here. BABA has a decent growth rate and is not valued too expensively.
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.
In the past 5 years BABA has always been profitable.
Each year in the past 5 years BABA had a positive operating cash flow.
1.2 Ratios
BABA's Return On Assets of 7.18% is fine compared to the rest of the industry. BABA outperforms 75.00% of its industry peers.
The Return On Equity of BABA (12.82%) is better than 71.43% of its industry peers.
BABA's Return On Invested Capital of 8.29% is fine compared to the rest of the industry. BABA outperforms 64.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BABA is below the industry average of 11.00%.
The 3 year average ROIC (7.12%) for BABA is below the current ROIC(8.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 12.82% | ||
| ROIC | 8.29% |
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 better Profit Margin (12.99%) than 89.29% of its industry peers.
BABA's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 14.69%, BABA belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
BABA's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 39.95%, BABA is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of BABA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.69% | ||
| PM (TTM) | 12.99% | ||
| GM | 39.95% |
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) just above the Cost of Capital (WACC), BABA is 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.
Compared to 1 year ago, BABA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.09 indicates that BABA is not in any danger for bankruptcy at the moment.
BABA has a better Altman-Z score (3.09) than 60.71% of its industry peers.
BABA has a debt to FCF ratio of 2.98. This is a good value and a sign of high solvency as BABA would need 2.98 years to pay back of all of its debts.
BABA has a Debt to FCF ratio of 2.98. This is in the better half of the industry: BABA outperforms 67.86% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that BABA is not too dependend on debt financing.
The Debt to Equity ratio of BABA (0.21) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 3.09 |
ROIC/WACC1.01
WACC8.24%
2.3 Liquidity
BABA has a Current Ratio of 1.55. This is a normal value and indicates that BABA is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.55, BABA perfoms like the industry average, outperforming 53.57% of the companies in the same industry.
BABA has a Quick Ratio of 1.55. This is a normal value and indicates that BABA is financially healthy and should not expect problems in meeting its short term obligations.
BABA's Quick ratio of 1.55 is fine compared to the rest of the industry. BABA outperforms 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
BABA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.31%.
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 5.86%.
The Revenue has been growing by 14.35% on average over the past years. This is quite good.
EPS 1Y (TTM)5.31%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%23.47%
Revenue 1Y (TTM)5.86%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%6.57%
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 a small growth in Revenue. In the coming years, the Revenue will grow by 6.87% yearly.
EPS Next Y-2.74%
EPS Next 2Y8.31%
EPS Next 3Y9.19%
EPS Next 5Y1.11%
Revenue Next Year5.41%
Revenue Next 2Y7%
Revenue Next 3Y7.38%
Revenue Next 5Y6.87%
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
BABA is valuated correctly with a Price/Earnings ratio of 13.59.
BABA's Price/Earnings ratio is rather cheap when compared to the industry. BABA is cheaper than 82.14% of the companies in the same industry.
BABA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.08.
The Price/Forward Earnings ratio is 13.97, which indicates a correct valuation of BABA.
Based on the Price/Forward Earnings ratio, BABA is valued a bit cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.67. BABA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.59 | ||
| Fwd PE | 13.97 |
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 71.43% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BABA is valued a bit cheaper than 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.33 | ||
| EV/EBITDA | 8.7 |
4.3 Compensation for Growth
BABA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.17
EPS Next 2Y8.31%
EPS Next 3Y9.19%
5. Dividend
5.1 Amount
BABA has a yearly dividend return of 0.87%, which is pretty low.
BABA's Dividend Yield is a higher than the industry average which is at 15.00.
Compared to an average S&P500 Dividend Yield of 2.34, BABA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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 22.46% of its income as dividend. This is a sustainable payout ratio.
DP22.46%
EPS Next 2Y8.31%
EPS Next 3Y9.19%
124.19
-0.16 (-0.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners15.69%
Inst Owner Change-9.8%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap296.10B
Analysts85.11
Price Target154.19 (24.16%)
Short Float %1.43%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Yearly Dividend1.72
Dividend Growth(5Y)N/A
DP22.46%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.92%
Min EPS beat(2)-5.13%
Max EPS beat(2)6.96%
EPS beat(4)2
Avg EPS beat(4)1.71%
Min EPS beat(4)-5.13%
Max EPS beat(4)6.96%
EPS beat(8)3
Avg EPS beat(8)2.27%
EPS beat(12)7
Avg EPS beat(12)5.43%
EPS beat(16)10
Avg EPS beat(16)4.72%
Revenue beat(2)0
Avg Revenue beat(2)-2.03%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)-1.77%
Revenue beat(4)0
Avg Revenue beat(4)-2.82%
Min Revenue beat(4)-4.25%
Max Revenue beat(4)-1.77%
Revenue beat(8)1
Avg Revenue beat(8)-1.82%
Revenue beat(12)1
Avg Revenue beat(12)-1.82%
Revenue beat(16)2
Avg Revenue beat(16)-2.03%
PT rev (1m)0.45%
PT rev (3m)-5.84%
EPS NQ rev (1m)-0.55%
EPS NQ rev (3m)-10.98%
EPS NY rev (1m)-9.34%
EPS NY rev (3m)-16.05%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-1.05%
Revenue NY rev (1m)-0.85%
Revenue NY rev (3m)-1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.59 | ||
| Fwd PE | 13.97 | ||
| P/S | 2.13 | ||
| P/FCF | 27.33 | ||
| P/OCF | 12.96 | ||
| P/B | 2.1 | ||
| P/tB | 2.89 | ||
| EV/EBITDA | 8.7 |
EPS(TTM)9.14
EY7.36%
EPS(NY)8.89
Fwd EY7.16%
FCF(TTM)4.54
FCFY3.66%
OCF(TTM)9.58
OCFY7.72%
SpS58.39
BVpS59.19
TBVpS42.99
PEG (NY)N/A
PEG (5Y)3.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 12.82% | ||
| ROCE | 10.69% | ||
| ROIC | 8.29% | ||
| ROICexc | 12.06% | ||
| ROICexgc | 17.07% | ||
| OM | 14.69% | ||
| PM (TTM) | 12.99% | ||
| GM | 39.95% | ||
| FCFM | 7.78% |
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%
ROICexcg growth 3Y6.92%
ROICexcg 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 Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.98 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 202.48% | ||
| Cap/Sales | 8.63% | ||
| Interest Coverage | 16.5 | ||
| Cash Conversion | 86.62% | ||
| Profit Quality | 59.89% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | 3.09 |
F-Score7
WACC8.24%
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)5.31%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%23.47%
EPS Next Y-2.74%
EPS Next 2Y8.31%
EPS Next 3Y9.19%
EPS Next 5Y1.11%
Revenue 1Y (TTM)5.86%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%6.57%
Revenue Next Year5.41%
Revenue Next 2Y7%
Revenue Next 3Y7.38%
Revenue Next 5Y6.87%
EBIT growth 1Y18.12%
EBIT growth 3Y15.44%
EBIT growth 5Y8.99%
EBIT Next Year22.36%
EBIT Next 3Y17.72%
EBIT Next 5Y12.57%
FCF growth 1Y-48.19%
FCF growth 3Y-4.65%
FCF growth 5Y-10.53%
OCF growth 1Y-10.45%
OCF growth 3Y4.63%
OCF growth 5Y-1.97%