ALIBABA GROUP HOLDING-SP ADR (BABA) Stock Fundamental Analysis
USA - NYSE:BABA - US01609W1027 - ADR
162.21 USD
+4.17 (+2.64%)
162.51 USD
+0.3 (+0.18%)
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 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.
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's Return On Assets of 8.03% is fine compared to the rest of the industry. BABA outperforms 78.57% of its industry peers.
Looking at the Return On Equity, with a value of 14.63%, BABA is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.19%, BABA is in the better half of the industry, outperforming 64.29% 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 11.01%.
The 3 year average ROIC (7.12%) for BABA is below the current ROIC(8.19%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.03% | ||
| ROE | 14.63% | ||
| ROIC | 8.19% |
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 Profit Margin of 14.82%. This is amongst the best in the industry. BABA outperforms 89.29% of its industry peers.
In the last couple of years the Profit Margin of BABA has declined.
Looking at the Operating Margin, with a value of 14.51%, 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 Operating Margin of BABA has declined.
BABA has a Gross Margin (41.18%) which is in line with its industry peers.
In the last couple of years the Gross Margin of BABA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.51% | ||
| PM (TTM) | 14.82% | ||
| GM | 41.18% |
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.
The number of shares outstanding for BABA has been reduced compared to 1 year ago.
Compared to 5 years ago, BABA has less shares outstanding
Compared to 1 year ago, BABA has a worse debt to assets ratio.
2.2 Solvency
BABA has an Altman-Z score of 3.37. This indicates that BABA is financially healthy and has little risk of bankruptcy at the moment.
BABA has a Altman-Z score of 3.37. This is in the better half of the industry: BABA outperforms 60.71% of its industry peers.
BABA has a debt to FCF ratio of 6.11. This is a slightly negative value and a sign of low solvency as BABA would need 6.11 years to pay back of all of its debts.
BABA's Debt to FCF ratio of 6.11 is in line compared to the rest of the industry. BABA outperforms 50.00% of its industry peers.
BABA has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
BABA's Debt to Equity ratio of 0.20 is in line compared to the rest of the industry. BABA outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 3.37 |
ROIC/WACC0.98
WACC8.39%
2.3 Liquidity
A Current Ratio of 1.45 indicates that BABA should not have too much problems paying its short term obligations.
With a Current ratio value of 1.45, BABA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
BABA has a Quick Ratio of 1.45. This is a normal value and indicates that BABA is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of BABA (1.45) is better than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.15% 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.
The Revenue has been growing slightly by 5.32% in the past year.
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)4.15%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%-10.28%
Revenue 1Y (TTM)5.32%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%1.82%
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.
Based on estimates for the next years, BABA will show a small growth in Revenue. The Revenue will grow by 6.81% on average per year.
EPS Next Y-2.74%
EPS Next 2Y8.31%
EPS Next 3Y9.93%
EPS Next 5Y1.11%
Revenue Next Year3.74%
Revenue Next 2Y7.29%
Revenue Next 3Y7.85%
Revenue Next 5Y6.81%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 18.12, the valuation of BABA can be described as rather expensive.
75.00% of the companies in the same industry are more expensive than BABA, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.20, BABA is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.06, which indicates a correct valuation of BABA.
Based on the Price/Forward Earnings ratio, BABA is valued a bit cheaper than 78.57% of the companies in the same industry.
BABA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.12 | ||
| Fwd PE | 15.06 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BABA indicates a somewhat cheap valuation: BABA is cheaper than 67.86% of the companies listed in the same industry.
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 | 72.49 | ||
| EV/EBITDA | 12.08 |
4.3 Compensation for Growth
BABA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.23
EPS Next 2Y8.31%
EPS Next 3Y9.93%
5. Dividend
5.1 Amount
With a yearly dividend of 0.66%, BABA is not a good candidate for dividend investing.
BABA's Dividend Yield is a higher than the industry average which is at 7.95.
Compared to an average S&P500 Dividend Yield of 2.38, BABA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
BABA has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
19.60% of the earnings are spent on dividend by BABA. This is a low number and sustainable payout ratio.
DP19.6%
EPS Next 2Y8.31%
EPS Next 3Y9.93%
162.21
+4.17 (+2.64%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners15.69%
Inst Owner Change-9.72%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap386.72B
Analysts85
Price Target168.11 (3.64%)
Short Float %1.49%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend1.73
Dividend Growth(5Y)N/A
DP19.6%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.64%
Min EPS beat(2)-5.13%
Max EPS beat(2)-4.14%
EPS beat(4)1
Avg EPS beat(4)-0.77%
Min EPS beat(4)-5.13%
Max EPS beat(4)6.96%
EPS beat(8)2
Avg EPS beat(8)-0.41%
EPS beat(12)6
Avg EPS beat(12)4.23%
EPS beat(16)9
Avg EPS beat(16)3.66%
Revenue beat(2)0
Avg Revenue beat(2)-3.14%
Min Revenue beat(2)-4%
Max Revenue beat(2)-2.29%
Revenue beat(4)0
Avg Revenue beat(4)-2.75%
Min Revenue beat(4)-4%
Max Revenue beat(4)-1.77%
Revenue beat(8)0
Avg Revenue beat(8)-2.57%
Revenue beat(12)1
Avg Revenue beat(12)-2.08%
Revenue beat(16)2
Avg Revenue beat(16)-2.06%
PT rev (1m)9.97%
PT rev (3m)2.73%
EPS NQ rev (1m)-28.3%
EPS NQ rev (3m)-41.6%
EPS NY rev (1m)-9.34%
EPS NY rev (3m)-16.05%
Revenue NQ rev (1m)-1.67%
Revenue NQ rev (3m)-2.28%
Revenue NY rev (1m)-1.82%
Revenue NY rev (3m)-2.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.12 | ||
| Fwd PE | 15.06 | ||
| P/S | 2.75 | ||
| P/FCF | 72.49 | ||
| P/OCF | 18.29 | ||
| P/B | 2.72 | ||
| P/tB | 3.73 | ||
| EV/EBITDA | 12.08 |
EPS(TTM)8.95
EY5.52%
EPS(NY)10.77
Fwd EY6.64%
FCF(TTM)2.24
FCFY1.38%
OCF(TTM)8.87
OCFY5.47%
SpS58.94
BVpS59.7
TBVpS43.46
PEG (NY)N/A
PEG (5Y)4.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.03% | ||
| ROE | 14.63% | ||
| ROCE | 10.57% | ||
| ROIC | 8.19% | ||
| ROICexc | 11.76% | ||
| ROICexgc | 16.51% | ||
| OM | 14.51% | ||
| PM (TTM) | 14.82% | ||
| GM | 41.18% | ||
| FCFM | 3.8% |
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-Score8
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 6.11 | ||
| Debt/EBITDA | 1.11 | ||
| Cap/Depr | 265.09% | ||
| Cap/Sales | 11.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.24% | ||
| Profit Quality | 25.61% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 3.37 |
F-Score8
WACC8.39%
ROIC/WACC0.98
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)4.15%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%-10.28%
EPS Next Y-2.74%
EPS Next 2Y8.31%
EPS Next 3Y9.93%
EPS Next 5Y1.11%
Revenue 1Y (TTM)5.32%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%1.82%
Revenue Next Year3.74%
Revenue Next 2Y7.29%
Revenue Next 3Y7.85%
Revenue Next 5Y6.81%
EBIT growth 1Y25.86%
EBIT growth 3Y15.44%
EBIT growth 5Y8.99%
EBIT Next Year22.36%
EBIT Next 3Y17.79%
EBIT Next 5Y15.72%
FCF growth 1Y-79.1%
FCF growth 3Y-4.65%
FCF growth 5Y-10.53%
OCF growth 1Y-28.72%
OCF growth 3Y4.63%
OCF growth 5Y-1.97%