ALIBABA GROUP HOLDING-SP ADR (BABA) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:BABA • US01609W1027

157.74 USD
-1.4 (-0.88%)
At close: Feb 5, 2026
157.5 USD
-0.24 (-0.15%)
After Hours: 2/5/2026, 4:01:34 PM
Fundamental Rating

5

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 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.


Dividend Valuation Growth Profitability Health

6

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.
  • 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.
BABA Yearly Net Income VS EBIT VS OCF VS FCFBABA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B 200B

1.2 Ratios

  • With a decent Return On Assets value of 6.66%, BABA is doing good in the industry, outperforming 73.33% of the companies in the same industry.
  • BABA has a Return On Equity of 12.15%. This is in the better half of the industry: BABA outperforms 66.67% of its industry peers.
  • BABA has a Return On Invested Capital of 6.24%. This is in the better half of the industry: BABA outperforms 63.33% 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 9.28%.
Industry RankSector 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%
BABA Yearly ROA, ROE, ROICBABA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • BABA has a better Profit Margin (12.39%) than 90.00% of its industry peers.
  • 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's Gross Margin of 41.17% is in line compared 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 RankSector 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%
BABA Yearly Profit, Operating, Gross MarginsBABA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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5

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.
  • 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.
  • Compared to 1 year ago, BABA has a worse debt to assets ratio.
BABA Yearly Shares OutstandingBABA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
BABA Yearly Total Debt VS Total AssetsBABA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500B 1T 1.5T

2.2 Solvency

  • BABA has an Altman-Z score of 3.24. This indicates that BABA is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of BABA (3.24) is better than 70.00% of its industry peers.
  • The Debt to FCF ratio of BABA is 106.58, which is on the high side as it means it would take BABA, 106.58 years of fcf income to pay off 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.
  • With a decent Debt to Equity ratio value of 0.25, BABA is doing good in the industry, outperforming 63.33% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF 106.58
Altman-Z 3.24
ROIC/WACC0.76
WACC8.26%
BABA Yearly LT Debt VS Equity VS FCFBABA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200B 400B 600B 800B 1T

2.3 Liquidity

  • A Current Ratio of 1.46 indicates that BABA should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.46, BABA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
  • 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.
  • Looking at the Quick ratio, with a value of 1.46, BABA is in line with its industry, outperforming 56.67% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.46
Quick Ratio 1.46
BABA Yearly Current Assets VS Current LiabilitesBABA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200B 400B 600B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

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%.
  • BABA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.28% yearly.
  • BABA shows a small growth in Revenue. In the last year, the Revenue has grown by 5.21%.
  • 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)-12.52%
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

  • BABA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.11% yearly.
  • The Revenue is expected to grow by 8.98% on average over the next years. This is quite good.
EPS Next Y-34.15%
EPS Next 2Y-1.17%
EPS Next 3Y8.19%
EPS Next 5Y1.11%
Revenue Next Year3.59%
Revenue Next 2Y7.29%
Revenue Next 3Y8.23%
Revenue Next 5Y8.98%

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.
BABA Yearly Revenue VS EstimatesBABA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 500B 1T 1.5T 2T
BABA Yearly EPS VS EstimatesBABA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20 40 60 80

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3

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 20.65, which indicates a rather expensive current valuation of BABA.
  • BABA's Price/Earnings ratio is a bit cheaper when compared to the industry. BABA is cheaper than 73.33% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 28.25, BABA is valued a bit cheaper.
  • The Price/Forward Earnings ratio is 17.14, which indicates a rather expensive current valuation of BABA.
  • BABA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BABA is cheaper than 63.33% of the companies in the same industry.
  • BABA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.50, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 20.65
Fwd PE 17.14
BABA Price Earnings VS Forward Price EarningsBABA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • BABA's Enterprise Value to EBITDA is on the same level as the industry average.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of BABA indicates a slightly more expensive valuation: BABA is more expensive than 66.67% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 989.44
EV/EBITDA 14.56
BABA Per share dataBABA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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)4.82
EPS Next 2Y-1.17%
EPS Next 3Y8.19%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. Dividend

5.1 Amount

  • BABA has a yearly dividend return of 0.59%, which is pretty low.
  • Compared to an average industry Dividend Yield of 2.38, BABA pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.59, BABA pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.59%

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
BABA Yearly Dividends per shareBABA Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 1 2 3

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 2Y-1.17%
EPS Next 3Y8.19%
BABA Yearly Income VS Free CF VS DividendBABA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B
BABA Dividend Payout.BABA Dividend Payout, showing the Payout Ratio.BABA Dividend Payout.PayoutRetained Earnings

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ALIBABA GROUP HOLDING-SP ADR

NYSE:BABA (2/5/2026, 4:01:34 PM)

After market: 157.5 -0.24 (-0.15%)

157.74

-1.4 (-0.88%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)11-25
Earnings (Next)02-19
Inst Owners12.27%
Inst Owner Change-1.86%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap376.58B
Revenue(TTM)1.01T
Net Income(TTM)125.43B
Analysts83.33
Price Target200.05 (26.82%)
Short Float %1.89%
Short Ratio3.73
Dividend
Industry RankSector Rank
Dividend Yield 0.59%
Yearly Dividend1.77
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)-2.14%
PT rev (3m)-0.66%
EPS NQ rev (1m)-10.47%
EPS NQ rev (3m)-21.89%
EPS NY rev (1m)-5.08%
EPS NY rev (3m)-18.07%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-0.17%
Valuation
Industry RankSector Rank
PE 20.65
Fwd PE 17.14
P/S 2.58
P/FCF 989.44
P/OCF 20.23
P/B 2.53
P/tB 3.45
EV/EBITDA 14.56
EPS(TTM)7.64
EY4.84%
EPS(NY)9.2
Fwd EY5.83%
FCF(TTM)0.16
FCFY0.1%
OCF(TTM)7.8
OCFY4.94%
SpS61.07
BVpS62.3
TBVpS45.71
PEG (NY)N/A
PEG (5Y)4.82
Graham Number103.49
Profitability
Industry RankSector 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 RankSector 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 3.24
F-Score7
WACC8.26%
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-34.15%
EPS Next 2Y-1.17%
EPS Next 3Y8.19%
EPS Next 5Y1.11%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%4.77%
Revenue Next Year3.59%
Revenue Next 2Y7.29%
Revenue Next 3Y8.23%
Revenue Next 5Y8.98%
EBIT growth 1Y-0.14%
EBIT growth 3Y15.44%
EBIT growth 5Y8.99%
EBIT Next Year-17.45%
EBIT Next 3Y15.68%
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 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 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 20.65 and the Price/Book (PB) ratio is 2.53.


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.