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%)
BABA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 30 industry peers in the Broadline Retail industry. BABA has only an average score on both its financial health and profitability. BABA is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Each year in the past 5 years BABA has been profitable.
Each year in the past 5 years BABA had a positive operating cash flow.
1.2 Ratios
BABA has a better Return On Assets (6.66%) than 76.67% of its industry peers.
With a decent Return On Equity value of 12.15%, BABA is doing good in the industry, outperforming 70.00% of the companies in the same industry.
BABA has a Return On Invested Capital of 6.24%. This is comparable to the rest of the industry: BABA outperforms 60.00% of its industry peers.
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
BABA has a better Profit Margin (12.39%) than 90.00% of its industry peers.
BABA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 11.46%, BABA belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
BABA's Operating Margin has declined in the last couple of years.
BABA has a Gross Margin of 41.17%. This is comparable to the rest of the industry: BABA outperforms 50.00% of 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
BABA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
BABA has less shares outstanding than it did 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
An Altman-Z score of 3.25 indicates that BABA is not in any danger for bankruptcy at the moment.
BABA's Altman-Z score of 3.25 is fine compared to the rest of the industry. BABA outperforms 63.33% of its industry peers.
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 has a Debt to FCF ratio of 106.58. This is in the lower half of the industry: BABA underperforms 63.33% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that BABA is not too dependend on debt financing.
The Debt to Equity ratio of BABA (0.25) 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/WACC0.78
WACC8.05%
2.3 Liquidity
A Current Ratio of 1.46 indicates that BABA should not have too much problems paying its short term obligations.
BABA has a Current ratio (1.46) which is comparable to the rest of the industry.
A Quick Ratio of 1.46 indicates that BABA should not have too much problems paying its short term obligations.
BABA has a Quick ratio (1.46) which is in line with its industry peers.
| 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%.
BABA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.28% yearly.
The Revenue has been growing slightly by 5.21% in the past year.
Measured over the past years, BABA shows a quite strong growth in Revenue. The Revenue has been growing by 14.35% on average per year.
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
The Earnings Per Share is expected to grow by 1.11% on average over the next years.
BABA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.85% yearly.
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.
BABA's Price/Earnings ratio is a bit cheaper when compared to the industry. BABA is 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.
The Price/Forward Earnings ratio is 15.66, which indicates a correct valuation of BABA.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, BABA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.03 | ||
| Fwd PE | 15.66 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BABA is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, BABA is valued a bit more expensive than 63.33% of the companies in the same industry.
| 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.
With a Dividend Yield of 0.65, BABA pays less dividend than the S&P500 average, which is at 2.40.
| 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
26.97% of the earnings are spent on dividend by BABA. This is a low number and 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
WACC8.05%
ROIC/WACC0.78
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%.