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ALIBABA GROUP HOLDING-SP ADR (BABA) Stock Fundamental Analysis

NYSE:BABA - New York Stock Exchange, Inc. - US01609W1027 - ADR - Currency: USD

121.48  -2.11 (-1.71%)

Premarket: 121.61 +0.13 (+0.11%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to BABA. BABA was compared to 31 industry peers in the Broadline Retail industry. BABA has an average financial health and profitability rating. BABA has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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6

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.
BABA had positive earnings in 4 of the past 5 years.
Of the past 5 years BABA 4 years 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B 200B

1.2 Ratios

BABA's Return On Assets of 6.49% is fine compared to the rest of the industry. BABA outperforms 67.74% of its industry peers.
The Return On Equity of BABA (12.02%) is better than 67.74% of its industry peers.
With a decent Return On Invested Capital value of 7.60%, BABA is doing good in the industry, outperforming 64.52% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BABA is significantly below the industry average of 11.52%.
The 3 year average ROIC (6.45%) for BABA is below the current ROIC(7.60%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 6.49%
ROE 12.02%
ROIC 7.6%
ROA(3y)4.1%
ROA(5y)6.51%
ROE(3y)7.31%
ROE(5y)11.55%
ROIC(3y)6.45%
ROIC(5y)6.42%
BABA Yearly ROA, ROE, ROICBABA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

Looking at the Profit Margin, with a value of 12.26%, BABA belongs to the top of the industry, outperforming 90.32% of the companies in the same industry.
BABA's Profit Margin has declined in the last couple of years.
BABA has a Operating Margin of 13.50%. This is amongst the best in the industry. BABA outperforms 87.10% of its industry peers.
In the last couple of years the Operating Margin of BABA has declined.
BABA has a Gross Margin of 38.81%. This is comparable to the rest of the industry: BABA outperforms 41.94% of its industry peers.
BABA's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 13.5%
PM (TTM) 12.26%
GM 38.81%
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%
BABA Yearly Profit, Operating, Gross MarginsBABA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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5

2. Health

2.1 Basic Checks

BABA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
There is no outstanding debt for BABA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
BABA Yearly Shares OutstandingBABA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500B 1T 1.5T

2.2 Solvency

BABA has an Altman-Z score of 2.87. 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 (2.87) is better than 67.74% of its industry peers.
The Debt to FCF ratio of BABA is 2.69, which is a good value as it means it would take BABA, 2.69 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BABA (2.69) is better than 61.29% 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 RankSector Rank
Debt/Equity 0.21
Debt/FCF 2.69
Altman-Z 2.87
ROIC/WACC0.75
WACC10.13%
BABA Yearly LT Debt VS Equity VS FCFBABA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200B 400B 600B 800B

2.3 Liquidity

BABA has a Current Ratio of 1.48. This is a normal value and indicates that BABA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.48, BABA is in line with its industry, outperforming 45.16% of the companies in the same industry.
A Quick Ratio of 1.48 indicates that BABA should not have too much problems paying its short term obligations.
BABA's Quick ratio of 1.48 is fine compared to the rest of the industry. BABA outperforms 64.52% of its industry peers.
Industry RankSector Rank
Current Ratio 1.48
Quick Ratio 1.48
BABA Yearly Current Assets VS Current LiabilitesBABA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200B 400B 600B

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2

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 5.31% 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.
EPS 1Y (TTM)5.31%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%23.47%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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.
Based on estimates for the next years, BABA will show a small growth in Revenue. The Revenue will grow by 4.15% on average per year.
EPS Next Y15.85%
EPS Next 2Y14.75%
EPS Next 3Y14.12%
EPS Next 5Y1.11%
Revenue Next Year6.97%
Revenue Next 2Y7.71%
Revenue Next 3Y4.75%
Revenue Next 5Y4.15%

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.
BABA Yearly Revenue VS EstimatesBABA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 500B 1T 1.5T
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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6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 13.38 indicates a correct valuation of BABA.
Based on the Price/Earnings ratio, BABA is valued a bit cheaper than 77.42% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.91, BABA is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 11.55, the valuation of BABA can be described as reasonable.
Based on the Price/Forward Earnings ratio, BABA is valued cheaper than 80.65% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.85, BABA is valued a bit cheaper.
Industry RankSector Rank
PE 13.38
Fwd PE 11.55
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

Based on the Enterprise Value to EBITDA ratio, BABA is valued a bit cheaper than the industry average as 70.97% of the companies are valued more expensively.
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 RankSector Rank
P/FCF 24.28
EV/EBITDA 8.9
BABA Per share dataBABA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of BABA may justify a higher PE ratio.
BABA's earnings are expected to grow with 14.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)3.12
EPS Next 2Y14.75%
EPS Next 3Y14.12%

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3

5. Dividend

5.1 Amount

BABA has a yearly dividend return of 0.83%, which is pretty low.
BABA's Dividend Yield is a higher than the industry average which is at 7.41.
Compared to an average S&P500 Dividend Yield of 2.36, BABA's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.83%

5.2 History

BABA has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
BABA Yearly Dividends per shareBABA Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

14.91% of the earnings are spent on dividend by BABA. This is a low number and sustainable payout ratio.
DP14.91%
EPS Next 2Y14.75%
EPS Next 3Y14.12%
BABA Yearly Income VS Free CF VS DividendBABA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B
BABA Dividend Payout.BABA Dividend Payout, showing the Payout Ratio.BABA Dividend Payout.PayoutRetained Earnings

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ALIBABA GROUP HOLDING-SP ADR

NYSE:BABA (5/22/2025, 8:04:00 PM)

Premarket: 121.61 +0.13 (+0.11%)

121.48

-2.11 (-1.71%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)05-15 2025-05-15/bmo
Earnings (Next)08-13 2025-08-13/bmo
Inst Owners14.49%
Inst Owner Change11.57%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap289.71B
Analysts86.12
Price Target163.75 (34.8%)
Short Float %1.7%
Short Ratio1.69
Dividend
Industry RankSector Rank
Dividend Yield 0.83%
Yearly Dividend1
Dividend Growth(5Y)N/A
DP14.91%
Div Incr Years1
Div Non Decr Years1
Ex-Date06-12 2025-06-12 (0.95)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.1%
Min EPS beat(2)-0.76%
Max EPS beat(2)6.96%
EPS beat(4)2
Avg EPS beat(4)2.33%
Min EPS beat(4)-2.68%
Max EPS beat(4)6.96%
EPS beat(8)4
Avg EPS beat(8)4.35%
EPS beat(12)8
Avg EPS beat(12)6.4%
EPS beat(16)10
Avg EPS beat(16)4.48%
Revenue beat(2)0
Avg Revenue beat(2)-2.36%
Min Revenue beat(2)-2.95%
Max Revenue beat(2)-1.77%
Revenue beat(4)0
Avg Revenue beat(4)-2.49%
Min Revenue beat(4)-4.25%
Max Revenue beat(4)-0.97%
Revenue beat(8)1
Avg Revenue beat(8)-1.89%
Revenue beat(12)2
Avg Revenue beat(12)-1.6%
Revenue beat(16)3
Avg Revenue beat(16)-1.78%
PT rev (1m)0.59%
PT rev (3m)35.22%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)7.68%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)4.41%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 13.38
Fwd PE 11.55
P/S 2.13
P/FCF 24.28
P/OCF 13.1
P/B 2.08
P/tB 2.88
EV/EBITDA 8.9
EPS(TTM)9.08
EY7.47%
EPS(NY)10.52
Fwd EY8.66%
FCF(TTM)5
FCFY4.12%
OCF(TTM)9.27
OCFY7.63%
SpS57.14
BVpS58.27
TBVpS42.17
PEG (NY)0.84
PEG (5Y)3.12
Profitability
Industry RankSector Rank
ROA 6.49%
ROE 12.02%
ROCE 9.48%
ROIC 7.6%
ROICexc 11.25%
ROICexgc 15.92%
OM 13.5%
PM (TTM) 12.26%
GM 38.81%
FCFM 8.76%
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-Score7
Asset Turnover0.53
Health
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF 2.69
Debt/EBITDA 1.19
Cap/Depr 164.83%
Cap/Sales 7.47%
Interest Coverage 250
Cash Conversion 90%
Profit Quality 71.43%
Current Ratio 1.48
Quick Ratio 1.48
Altman-Z 2.87
F-Score7
WACC10.13%
ROIC/WACC0.75
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)5.31%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%23.47%
EPS Next Y15.85%
EPS Next 2Y14.75%
EPS Next 3Y14.12%
EPS Next 5Y1.11%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%6.57%
Revenue Next Year6.97%
Revenue Next 2Y7.71%
Revenue Next 3Y4.75%
Revenue Next 5Y4.15%
EBIT growth 1Y6.58%
EBIT growth 3Y10.68%
EBIT growth 5Y15.63%
EBIT Next Year25.85%
EBIT Next 3Y17.85%
EBIT Next 5Y12.3%
FCF growth 1Y-21.62%
FCF growth 3Y-7.42%
FCF growth 5Y8.11%
OCF growth 1Y-1.23%
OCF growth 3Y-7.64%
OCF growth 5Y3.88%