ALIBABA GROUP HOLDING-SP ADR (BABA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BABA - US01609W1027 - ADR
157.3 USD
-0.3 (-0.19%)
157.05 USD
-0.25 (-0.16%)
Taking everything into account, BABA scores 4 out of 10 in our fundamental rating. BABA was compared to 30 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. While showing a medium growth rate, BABA is valued expensive at the moment.
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.
In the past 5 years BABA has always been profitable.
In the past 5 years BABA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.66%, BABA is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
The Return On Equity of BABA (12.15%) is better than 70.00% of its industry peers.
With a Return On Invested Capital value of 6.24%, BABA perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
BABA had an Average Return On Invested Capital over the past 3 years of 7.12%. This is below the industry average of 9.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.66% | ||
| ROE | 12.15% | ||
| ROIC | 6.24% |
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
With an excellent Profit Margin value of 12.39%, BABA belongs to the best of the industry, outperforming 90.00% 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 11.46%. This is amongst the best in the industry. BABA outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of BABA has declined.
With a Gross Margin value of 41.17%, BABA perfoms like the industry average, 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 | 11.46% | ||
| PM (TTM) | 12.39% | ||
| GM | 41.17% |
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) below the Cost of Capital (WACC), 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.
The debt/assets ratio for BABA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.25 indicates that BABA is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.25, BABA is doing good in the industry, outperforming 63.33% of the companies in the same industry.
The Debt to FCF ratio of BABA is 106.58, which is on the high side as it means it would take BABA, 106.58 years of fcf income to pay off all of its debts.
BABA's Debt to FCF ratio of 106.58 is on the low side compared to the rest of the industry. BABA is outperformed by 63.33% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that BABA is not too dependend on debt financing.
BABA has a Debt to Equity ratio (0.25) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 106.58 | ||
| Altman-Z | 3.25 |
ROIC/WACC0.77
WACC8.07%
2.3 Liquidity
BABA has a Current Ratio of 1.46. This is a normal value and indicates that BABA is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of BABA (1.46) is comparable to the rest of the industry.
BABA has a Quick Ratio of 1.46. 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 (1.46) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
BABA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.58%.
The Earnings Per Share has been growing slightly by 4.28% on average over the past years.
The Revenue has been growing slightly by 5.21% 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)-12.58%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%-71.3%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%4.29%
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.
The Revenue is expected to grow by 8.85% on average over the next years. This is quite good.
EPS Next Y-24%
EPS Next 2Y4.31%
EPS Next 3Y9.51%
EPS Next 5Y1.11%
Revenue Next Year3.63%
Revenue Next 2Y7.49%
Revenue Next 3Y8.13%
Revenue Next 5Y8.85%
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 21.03 indicates a rather expensive valuation of BABA.
Based on the Price/Earnings ratio, BABA is valued a bit cheaper than 70.00% of the companies in the same industry.
BABA is valuated rather cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
BABA is valuated correctly with a Price/Forward Earnings ratio of 15.66.
BABA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BABA is cheaper than 70.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BABA to the average of the S&P500 Index (36.59), we can say BABA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.03 | ||
| Fwd PE | 15.66 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BABA.
63.33% of the companies in the same industry are cheaper than BABA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1006.25 | ||
| EV/EBITDA | 14.72 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.91
EPS Next 2Y4.31%
EPS Next 3Y9.51%
5. Dividend
5.1 Amount
BABA has a yearly dividend return of 0.65%, which is pretty low.
BABA's Dividend Yield is a higher than the industry average which is at 13.47.
Compared to an average S&P500 Dividend Yield of 2.40, BABA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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
5.3 Sustainability
BABA pays out 26.97% of its income as dividend. This is a sustainable payout ratio.
DP26.97%
EPS Next 2Y4.31%
EPS Next 3Y9.51%
157.3
-0.3 (-0.19%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners12.28%
Inst Owner Change-19.13%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap375.32B
Revenue(TTM)1.01T
Net Income(TTM)125.43B
Analysts84.17
Price Target197.29 (25.42%)
Short Float %1.73%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend1.74
Dividend Growth(5Y)N/A
DP26.97%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.45%
Min EPS beat(2)-22.76%
Max EPS beat(2)-4.14%
EPS beat(4)1
Avg EPS beat(4)-6.27%
Min EPS beat(4)-22.76%
Max EPS beat(4)6.96%
EPS beat(8)2
Avg EPS beat(8)-3.22%
EPS beat(12)5
Avg EPS beat(12)1.58%
EPS beat(16)9
Avg EPS beat(16)2.94%
Revenue beat(2)0
Avg Revenue beat(2)-2.18%
Min Revenue beat(2)-4%
Max Revenue beat(2)-0.35%
Revenue beat(4)0
Avg Revenue beat(4)-2.1%
Min Revenue beat(4)-4%
Max Revenue beat(4)-0.35%
Revenue beat(8)0
Avg Revenue beat(8)-2.4%
Revenue beat(12)1
Avg Revenue beat(12)-1.89%
Revenue beat(16)2
Avg Revenue beat(16)-1.83%
PT rev (1m)6%
PT rev (3m)27.95%
EPS NQ rev (1m)-15.37%
EPS NQ rev (3m)-57.48%
EPS NY rev (1m)-5.44%
EPS NY rev (3m)-21.86%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-2.06%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.03 | ||
| Fwd PE | 15.66 | ||
| P/S | 2.63 | ||
| P/FCF | 1006.25 | ||
| P/OCF | 20.58 | ||
| P/B | 2.57 | ||
| P/tB | 3.51 | ||
| EV/EBITDA | 14.72 |
EPS(TTM)7.48
EY4.76%
EPS(NY)10.05
Fwd EY6.39%
FCF(TTM)0.16
FCFY0.1%
OCF(TTM)7.64
OCFY4.86%
SpS59.88
BVpS61.09
TBVpS44.82
PEG (NY)N/A
PEG (5Y)4.91
Graham Number101.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.66% | ||
| ROE | 12.15% | ||
| ROCE | 8.06% | ||
| ROIC | 6.24% | ||
| ROICexc | 8.43% | ||
| ROICexgc | 11.36% | ||
| OM | 11.46% | ||
| PM (TTM) | 12.39% | ||
| GM | 41.17% | ||
| FCFM | 0.26% |
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-Score7
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 106.58 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 298.08% | ||
| Cap/Sales | 12.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.55% | ||
| Profit Quality | 2.11% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 3.25 |
F-Score7
WACC8.07%
ROIC/WACC0.77
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)-12.58%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%-71.3%
EPS Next Y-24%
EPS Next 2Y4.31%
EPS Next 3Y9.51%
EPS Next 5Y1.11%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%4.29%
Revenue Next Year3.63%
Revenue Next 2Y7.49%
Revenue Next 3Y8.13%
Revenue Next 5Y8.85%
EBIT growth 1Y-0.14%
EBIT growth 3Y15.44%
EBIT growth 5Y8.99%
EBIT Next Year4.06%
EBIT Next 3Y18.49%
EBIT Next 5Y15.72%
FCF growth 1Y-98.62%
FCF growth 3Y-4.65%
FCF growth 5Y-10.53%
OCF growth 1Y-39.43%
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 4 / 10 to BABA.
Can you provide the valuation status for ALIBABA GROUP HOLDING-SP ADR?
ChartMill assigns a valuation rating of 3 / 10 to ALIBABA GROUP HOLDING-SP ADR (BABA). This can be considered as Overvalued.
How profitable is ALIBABA GROUP HOLDING-SP ADR (BABA) stock?
ALIBABA GROUP HOLDING-SP ADR (BABA) has a profitability rating of 5 / 10.
Can you provide the financial health for BABA stock?
The financial health rating of ALIBABA GROUP HOLDING-SP ADR (BABA) is 4 / 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 26.97%.