ALIBABA GROUP HOLDING-SP ADR (BABA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BABA - US01609W1027 - ADR
146.75 USD
-4.15 (-2.75%)
146.86 USD
+0.11 (+0.07%)
Overall BABA gets a fundamental rating of 5 out of 10. We evaluated BABA against 30 industry peers in the Broadline Retail industry. BABA has an average financial health and profitability rating. BABA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
BABA had positive earnings in the past year.
In the past year BABA had a positive cash flow from operations.
In the past 5 years BABA has always been profitable.
BABA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BABA has a Return On Assets of 6.66%. This is in the better half of the industry: BABA outperforms 76.67% of its industry peers.
BABA has a better Return On Equity (12.15%) than 66.67% of its industry peers.
With a decent Return On Invested Capital value of 6.24%, BABA is doing good in the industry, outperforming 63.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BABA is below the industry average of 9.29%.
| 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.
In the last couple of years the Profit Margin of BABA has declined.
With an excellent Operating Margin value of 11.46%, BABA belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Operating Margin of BABA has declined.
BABA has a Gross Margin (41.17%) which is in line with its industry peers.
BABA's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BABA is destroying 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.
The debt/assets ratio for BABA is higher compared to a year ago.
2.2 Solvency
BABA has an Altman-Z score of 3.15. This indicates that BABA is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.15, BABA is doing good in the industry, outperforming 63.33% of the companies in the same industry.
BABA has a debt to FCF ratio of 106.58. This is a negative value and a sign of low solvency as BABA would need 106.58 years to pay back of 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 66.67% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that BABA is not too dependend on debt financing.
BABA has a better Debt to Equity ratio (0.25) than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 106.58 | ||
| Altman-Z | 3.15 |
ROIC/WACC0.76
WACC8.21%
2.3 Liquidity
A Current Ratio of 1.46 indicates that BABA should not have too much problems paying its short term obligations.
BABA's Current ratio of 1.46 is in line compared to the rest of the industry. BABA outperforms 50.00% of its industry peers.
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.
With a Quick ratio value of 1.46, BABA perfoms like the industry average, outperforming 56.67% of the companies in the same 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 -12.52%.
The Earnings Per Share has been growing slightly by 4.28% on average over the past years.
BABA shows a small growth in Revenue. In the last year, the Revenue has grown by 5.21%.
BABA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.35% yearly.
EPS 1Y (TTM)-12.52%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%-71.05%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%4.77%
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 quite strong growth in Revenue. The Revenue will grow by 8.85% on average per year.
EPS Next Y-30.63%
EPS Next 2Y1.9%
EPS Next 3Y10.19%
EPS Next 5Y1.11%
Revenue Next Year3.92%
Revenue Next 2Y7.51%
Revenue Next 3Y8.42%
Revenue Next 5Y8.85%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 19.39, BABA is valued on the expensive side.
Based on the Price/Earnings ratio, BABA is valued a bit cheaper than 73.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.92, BABA is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.13, the valuation of BABA can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BABA indicates a somewhat cheap valuation: BABA is cheaper than 70.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BABA to the average of the S&P500 Index (23.57), we can say BABA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.39 | ||
| Fwd PE | 15.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BABA is valued a bit cheaper than 63.33% of the companies in the same industry.
66.67% 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 | 927.85 | ||
| EV/EBITDA | 13.82 |
4.3 Compensation for Growth
The decent profitability rating of BABA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.53
EPS Next 2Y1.9%
EPS Next 3Y10.19%
5. Dividend
5.1 Amount
BABA has a yearly dividend return of 0.70%, which is pretty low.
BABA's Dividend Yield is a higher than the industry average which is at 2.28.
Compared to an average S&P500 Dividend Yield of 1.94, BABA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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 2Y1.9%
EPS Next 3Y10.19%
146.75
-4.15 (-2.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners12.27%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap350.14B
Revenue(TTM)1.01T
Net Income(TTM)125.43B
Analysts84.08
Price Target204.43 (39.3%)
Short Float %1.83%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Yearly Dividend1.76
Dividend Growth(5Y)N/A
DP26.97%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.11%
Min EPS beat(2)-22.09%
Max EPS beat(2)-4.14%
EPS beat(4)1
Avg EPS beat(4)-6.1%
Min EPS beat(4)-22.09%
Max EPS beat(4)6.96%
EPS beat(8)2
Avg EPS beat(8)-3.13%
EPS beat(12)5
Avg EPS beat(12)1.63%
EPS beat(16)9
Avg EPS beat(16)2.98%
Revenue beat(2)1
Avg Revenue beat(2)-1.94%
Min Revenue beat(2)-4%
Max Revenue beat(2)0.12%
Revenue beat(4)1
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-4%
Max Revenue beat(4)0.12%
Revenue beat(8)1
Avg Revenue beat(8)-2.34%
Revenue beat(12)2
Avg Revenue beat(12)-1.85%
Revenue beat(16)3
Avg Revenue beat(16)-1.8%
PT rev (1m)3.62%
PT rev (3m)9.83%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-22.31%
EPS NY rev (1m)-1.52%
EPS NY rev (3m)-19.95%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.39 | ||
| Fwd PE | 15.13 | ||
| P/S | 2.42 | ||
| P/FCF | 927.85 | ||
| P/OCF | 18.97 | ||
| P/B | 2.37 | ||
| P/tB | 3.24 | ||
| EV/EBITDA | 13.82 |
EPS(TTM)7.57
EY5.16%
EPS(NY)9.7
Fwd EY6.61%
FCF(TTM)0.16
FCFY0.11%
OCF(TTM)7.73
OCFY5.27%
SpS60.59
BVpS61.81
TBVpS45.35
PEG (NY)N/A
PEG (5Y)4.53
Graham Number102.61
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 | 3.15 |
F-Score7
WACC8.21%
ROIC/WACC0.76
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)-12.52%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%-71.05%
EPS Next Y-30.63%
EPS Next 2Y1.9%
EPS Next 3Y10.19%
EPS Next 5Y1.11%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%4.77%
Revenue Next Year3.92%
Revenue Next 2Y7.51%
Revenue Next 3Y8.42%
Revenue Next 5Y8.85%
EBIT growth 1Y-0.14%
EBIT growth 3Y15.44%
EBIT growth 5Y8.99%
EBIT Next Year-14.19%
EBIT Next 3Y16.63%
EBIT Next 5Y15.73%
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 5 / 10 to BABA.
What is the valuation status for BABA stock?
ChartMill assigns a valuation rating of 4 / 10 to ALIBABA GROUP HOLDING-SP ADR (BABA). This can be considered as Fairly Valued.
How profitable is ALIBABA GROUP HOLDING-SP ADR (BABA) stock?
ALIBABA GROUP HOLDING-SP ADR (BABA) has a profitability rating of 6 / 10.
What is the valuation of ALIBABA GROUP HOLDING-SP ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ALIBABA GROUP HOLDING-SP ADR (BABA) is 19.39 and the Price/Book (PB) ratio is 2.37.
What is the financial health of ALIBABA GROUP HOLDING-SP ADR (BABA) stock?
The financial health rating of ALIBABA GROUP HOLDING-SP ADR (BABA) is 5 / 10.