ALIBABA GROUP HOLDING-SP ADR (BABA)
US01609W1027 - ADR
Overall BABA gets a fundamental rating of 6 out of 10. We evaluated BABA against 34 industry peers in the Broadline Retail industry. BABA has an average financial health and profitability rating. BABA may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make BABA suitable for value investing!
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 each of the past 5 years.
Each year in the past 5 years BABA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.49%, BABA is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
With a decent Return On Equity value of 9.89%, BABA is doing good in the industry, outperforming 60.61% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.23%, BABA is doing good in the industry, outperforming 63.64% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BABA is significantly below the industry average of 11.22%.
The 3 year average ROIC (5.01%) for BABA is below the current ROIC(6.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.49% | ||
| ROE | 9.89% | ||
| ROIC | 6.23% |
ROA(3y)5.56%
ROA(5y)7.43%
ROE(3y)9.96%
ROE(5y)13.49%
ROIC(3y)5.01%
ROIC(5y)5.32%
1.3 Margins
Looking at the Profit Margin, with a value of 10.78%, BABA belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.
BABA's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 13.41%, BABA belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
BABA's Operating Margin has declined in the last couple of years.
BABA's Gross Margin of 37.78% is in line compared to the rest of the industry. BABA outperforms 42.42% of its industry peers.
In the last couple of years the Gross Margin of BABA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.41% | ||
| PM (TTM) | 10.78% | ||
| GM | 37.78% |
OM growth 3Y-13.82%
OM growth 5Y-15.72%
PM growth 3Y-34.19%
PM growth 5Y-20.06%
GM growth 3Y-6.53%
GM growth 5Y-8.53%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BABA is destroying value.
BABA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, BABA has about the same amount of shares outstanding.
BABA has a worse debt/assets ratio than last year.
2.2 Solvency
BABA has an Altman-Z score of 2.40. 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.
BABA has a better Altman-Z score (2.40) than 63.64% of its industry peers.
The Debt to FCF ratio of BABA is 0.98, which is an excellent value as it means it would take BABA, only 0.98 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BABA (0.98) is better than 75.76% 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.
BABA's Debt to Equity ratio of 0.14 is fine compared to the rest of the industry. BABA outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.98 | ||
| Altman-Z | 2.4 |
ROIC/WACC0.77
WACC8.08%
2.3 Liquidity
A Current Ratio of 1.80 indicates that BABA should not have too much problems paying its short term obligations.
BABA has a Current ratio (1.80) which is comparable to the rest of the industry.
BABA has a Quick Ratio of 1.80. 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 better Quick ratio (1.80) than 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.8 |
3. Growth
3.1 Past
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.
BABA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.68% yearly.
BABA shows a small growth in Revenue. In the last year, the Revenue has grown by 7.28%.
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.
EPS 1Y (TTM)20.98%
EPS 3Y0.95%
EPS 5Y10.68%
EPS growth Q2Q-1.51%
Revenue 1Y (TTM)7.28%
Revenue growth 3Y19.45%
Revenue growth 5Y28.26%
Revenue growth Q2Q5.08%
3.2 Future
BABA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.13% yearly.
Based on estimates for the next years, BABA will show a small growth in Revenue. The Revenue will grow by 7.25% on average per year.
EPS Next Y17.92%
EPS Next 2Y8.87%
EPS Next 3Y10.07%
EPS Next 5Y7.13%
Revenue Next Year8.15%
Revenue Next 2Y8.04%
Revenue Next 3Y7.88%
Revenue Next 5Y7.25%
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.
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
The Price/Earnings ratio is 8.61, which indicates a very decent valuation of BABA.
Compared to the rest of the industry, the Price/Earnings ratio of BABA indicates a rather cheap valuation: BABA is cheaper than 90.91% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BABA to the average of the S&P500 Index (25.20), we can say BABA is valued rather cheaply.
A Price/Forward Earnings ratio of 8.34 indicates a reasonable valuation of BABA.
BABA's Price/Forward Earnings ratio is rather cheap when compared to the industry. BABA is cheaper than 84.85% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, BABA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.61 | ||
| Fwd PE | 8.34 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than BABA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BABA is valued cheaply inside the industry as 87.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.74 | ||
| EV/EBITDA | 2.75 |
4.3 Compensation for Growth
BABA's 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.
PEG (NY)0.48
PEG (5Y)0.81
EPS Next 2Y8.87%
EPS Next 3Y10.07%
5. Dividend
5.1 Amount
BABA has a Yearly Dividend Yield of 1.42%. Purely for dividend investing, there may be better candidates out there.
BABA's Dividend Yield is a higher than the industry average which is at 4.41.
Compared to an average S&P500 Dividend Yield of 2.45, BABA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
5.2 History
BABA does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y8.87%
EPS Next 3Y10.07%
ALIBABA GROUP HOLDING-SP ADR
NYSE:BABA (4/24/2024, 1:37:04 PM)
74.45
+1.94 (+2.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap181.18B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.61 | ||
| Fwd PE | 8.34 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.48
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.49% | ||
| ROE | 9.89% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.41% | ||
| PM (TTM) | 10.78% | ||
| GM | 37.78% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.8 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)20.98%
EPS 3Y0.95%
EPS 5Y
EPS growth Q2Q
EPS Next Y17.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.28%
Revenue growth 3Y19.45%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y