ALIBABA GROUP HOLDING-SP ADR (BABA) Stock Fundamental Analysis
NYSE:BABA - New York Stock Exchange, Inc. - US01609W1027 - ADR - Currency: USD
Overall BABA gets a fundamental rating of 5 out of 10. We evaluated BABA against 28 industry peers in the Broadline Retail industry. BABA has only an average score on both its financial health and profitability. BABA has a correct valuation and a medium 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.
BABA had positive earnings in each of the past 5 years.
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 7.18%, BABA is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
BABA has a better Return On Equity (12.82%) than 71.43% of its industry peers.
BABA has a Return On Invested Capital of 8.29%. This is in the better half of the industry: BABA outperforms 67.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BABA is below the industry average of 11.38%.
The last Return On Invested Capital (8.29%) for BABA is above the 3 year average (7.12%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 12.99%, BABA belongs to the top of the industry, outperforming 89.29% of the companies in the same industry.
In the last couple of years the Profit Margin of BABA has declined.
The Operating Margin of BABA (14.69%) is better than 89.29% of its industry peers.
In the last couple of years the Operating Margin of BABA has declined.
BABA has a Gross Margin of 39.95%. This is in the lower half of the industry: BABA underperforms 67.86% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BABA is still creating some 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.
Compared to 1 year ago, BABA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.01 indicates that BABA is not in any danger for bankruptcy at the moment.
BABA has a better Altman-Z score (3.01) than 60.71% of its industry peers.
The Debt to FCF ratio of BABA is 2.98, which is a good value as it means it would take BABA, 2.98 years of fcf income to pay off 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 64.29% of its industry peers.
BABA has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
BABA has a Debt to Equity ratio of 0.21. This is comparable to the rest of the industry: BABA outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 3.01 |
ROIC/WACC1.07
WACC7.71%
2.3 Liquidity
A Current Ratio of 1.55 indicates that BABA should not have too much problems paying its short term obligations.
With a Current ratio value of 1.55, BABA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 1.55 indicates that BABA should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.55, BABA is doing good in the industry, outperforming 67.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 |
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.
Looking at the last year, BABA shows a small growth in Revenue. The Revenue has grown by 5.86% in the last year.
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
The Earnings Per Share is expected to grow by 1.11% on average over the next years.
The Revenue is expected to grow by 5.40% on average over the next years.
EPS Next Y7.29%
EPS Next 2Y11.17%
EPS Next 3Y11%
EPS Next 5Y1.11%
Revenue Next Year5.66%
Revenue Next 2Y7.08%
Revenue Next 3Y7.52%
Revenue Next 5Y5.4%
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
With a Price/Earnings ratio of 12.90, BABA is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of BABA indicates a rather cheap valuation: BABA is cheaper than 82.14% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.24. BABA is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 12.02, which indicates a correct valuation of BABA.
Based on the Price/Forward Earnings ratio, BABA is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
BABA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.9 | ||
| Fwd PE | 12.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BABA is valued a bit cheaper than the industry average as 67.86% 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.94 | ||
| EV/EBITDA | 8.11 |
4.3 Compensation for Growth
BABA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BABA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.77
PEG (5Y)3.01
EPS Next 2Y11.17%
EPS Next 3Y11%
5. Dividend
5.1 Amount
BABA has a yearly dividend return of 0.88%, which is pretty low.
BABA's Dividend Yield is a higher than the industry average which is at 14.51.
With a Dividend Yield of 0.88, BABA pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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
22.46% of the earnings are spent on dividend by BABA. This is a low number and sustainable payout ratio.
DP22.46%
EPS Next 2Y11.17%
EPS Next 3Y11%
117.5
+0.43 (+0.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners15.65%
Inst Owner Change11.91%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap280.23B
Analysts85.11
Price Target153.49 (30.63%)
Short Float %1.27%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend1.71
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)-5.9%
PT rev (3m)-5.57%
EPS NQ rev (1m)-10.94%
EPS NQ rev (3m)-18.86%
EPS NY rev (1m)-3.53%
EPS NY rev (3m)-8.87%
Revenue NQ rev (1m)-0.99%
Revenue NQ rev (3m)-2.84%
Revenue NY rev (1m)-0.64%
Revenue NY rev (3m)-1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.9 | ||
| Fwd PE | 12.02 | ||
| P/S | 2.02 | ||
| P/FCF | 25.94 | ||
| P/OCF | 12.3 | ||
| P/B | 1.99 | ||
| P/tB | 2.74 | ||
| EV/EBITDA | 8.11 |
EPS(TTM)9.11
EY7.75%
EPS(NY)9.78
Fwd EY8.32%
FCF(TTM)4.53
FCFY3.86%
OCF(TTM)9.55
OCFY8.13%
SpS58.22
BVpS59.01
TBVpS42.85
PEG (NY)1.77
PEG (5Y)3.01
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 | 3.01 |
F-Score7
WACC7.71%
ROIC/WACC1.07
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 Y7.29%
EPS Next 2Y11.17%
EPS Next 3Y11%
EPS Next 5Y1.11%
Revenue 1Y (TTM)5.86%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%6.57%
Revenue Next Year5.66%
Revenue Next 2Y7.08%
Revenue Next 3Y7.52%
Revenue Next 5Y5.4%
EBIT growth 1Y18.12%
EBIT growth 3Y15.44%
EBIT growth 5Y8.99%
EBIT Next Year37.87%
EBIT Next 3Y21.96%
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%