ALIBABA GROUP HOLDING-SP ADR (BABA) Fundamental Analysis & Valuation

NYSE:BABA • US01609W1027

Current stock price

123.91 USD
-0.99 (-0.79%)
Last:

This BABA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. BABA Profitability Analysis

1.1 Basic Checks

  • In the past year BABA was profitable.
  • 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.
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

  • BABA's Return On Assets of 6.66% is fine compared to the rest of the industry. BABA outperforms 76.67% of its industry peers.
  • The Return On Equity of BABA (12.15%) is better than 70.00% of its industry peers.
  • BABA has a better Return On Invested Capital (6.24%) than 66.67% of its industry peers.
  • BABA had an Average Return On Invested Capital over the past 3 years of 7.36%. This is in line with the industry average of 9.15%.
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)7.36%
ROIC(5y)6.62%
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's Profit Margin of 12.39% is amongst the best of the industry. BABA outperforms 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 86.67% 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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4

2. BABA Health Analysis

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.
  • Compared to 1 year ago, BABA has less shares outstanding
  • BABA has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for BABA is higher compared to a year ago.
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 2.83. This is not the best score and indicates that BABA is in the grey zone with still only limited risk for bankruptcy at the moment.
  • BABA has a better Altman-Z score (2.83) than 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's Debt to FCF ratio of 106.58 is on the low side compared to the rest of the industry. BABA is outperformed by 63.33% of its industry peers.
  • A Debt/Equity ratio of 0.25 indicates that BABA is not too dependend on debt financing.
  • BABA has a Debt to Equity ratio of 0.25. This is in the better half of the industry: BABA outperforms 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF 106.58
Altman-Z 2.83
ROIC/WACC0.76
WACC8.21%
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.
  • BABA has a Current ratio of 1.46. This is comparable to the rest of the industry: BABA outperforms 53.33% of its industry peers.
  • A Quick Ratio of 1.46 indicates that BABA should not have too much problems paying its short term obligations.
  • BABA's Quick ratio of 1.46 is in line compared to the rest of the industry. BABA outperforms 60.00% of its industry peers.
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. BABA Growth Analysis

3.1 Past

  • BABA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.77%.
  • BABA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.28% yearly.
  • Looking at the last year, BABA shows a small growth in Revenue. The Revenue has grown by 5.86% in the last 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)-38.77%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%-67.44%
Revenue 1Y (TTM)5.86%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%0.25%

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 8.80% on average over the next years. This is quite good.
EPS Next Y-35.64%
EPS Next 2Y-1.93%
EPS Next 3Y7.62%
EPS Next 5Y1.11%
Revenue Next Year3.55%
Revenue Next 2Y7.23%
Revenue Next 3Y8.15%
Revenue Next 5Y8.8%

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.
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. BABA Valuation Analysis

4.1 Price/Earnings Ratio

  • BABA is valuated rather expensively with a Price/Earnings ratio of 22.17.
  • Compared to the rest of the industry, the Price/Earnings ratio of BABA indicates a somewhat cheap valuation: BABA is cheaper than 66.67% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.73. BABA is around the same levels.
  • The Price/Forward Earnings ratio is 13.59, 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 63.33% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 23.72. BABA is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 22.17
Fwd PE 13.59
BABA Price Earnings VS Forward Price EarningsBABA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 70.00% of the companies listed in the same industry.
  • 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 RankSector Rank
P/FCF 772.64
EV/EBITDA 10.9
BABA Per share dataBABA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • The decent profitability rating of BABA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.18
EPS Next 2Y-1.93%
EPS Next 3Y7.62%

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

3

5. BABA Dividend Analysis

5.1 Amount

  • BABA has a yearly dividend return of 0.77%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.64, BABA pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.91, BABA's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.77%

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-1.93%
EPS Next 3Y7.62%
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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BABA Fundamentals: All Metrics, Ratios and Statistics

ALIBABA GROUP HOLDING-SP ADR

NYSE:BABA (3/20/2026, 1:06:09 PM)

123.91

-0.99 (-0.79%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)03-19
Earnings (Next)N/A
Inst Owners11.82%
Inst Owner Change1.53%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap295.82B
Revenue(TTM)996.35B
Net Income(TTM)125.43B
Analysts82.92
Price Target202.39 (63.34%)
Short Float %1.64%
Short Ratio3.24
Dividend
Industry RankSector Rank
Dividend Yield 0.77%
Yearly Dividend1.78
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)0%
PT rev (3m)-0.61%
EPS NQ rev (1m)-2.85%
EPS NQ rev (3m)-13.16%
EPS NY rev (1m)-1.97%
EPS NY rev (3m)-8.63%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.42%
Valuation
Industry RankSector Rank
PE 22.17
Fwd PE 13.59
P/S 2.02
P/FCF 772.64
P/OCF 15.8
P/B 1.98
P/tB 2.69
EV/EBITDA 10.9
EPS(TTM)5.59
EY4.51%
EPS(NY)9.12
Fwd EY7.36%
FCF(TTM)0.16
FCFY0.13%
OCF(TTM)7.84
OCFY6.33%
SpS61.43
BVpS62.67
TBVpS45.98
PEG (NY)N/A
PEG (5Y)5.18
Graham Number88.79
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)7.36%
ROIC(5y)6.62%
ROICexc(3y)11.78%
ROICexc(5y)10.5%
ROICexgc(3y)18.04%
ROICexgc(5y)16.67%
ROCE(3y)9.49%
ROCE(5y)8.54%
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 2.83
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)-38.77%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%-67.44%
EPS Next Y-35.64%
EPS Next 2Y-1.93%
EPS Next 3Y7.62%
EPS Next 5Y1.11%
Revenue 1Y (TTM)5.86%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%0.25%
Revenue Next Year3.55%
Revenue Next 2Y7.23%
Revenue Next 3Y8.15%
Revenue Next 5Y8.8%
EBIT growth 1Y-0.14%
EBIT growth 3Y15.44%
EBIT growth 5Y8.99%
EBIT Next Year-17.8%
EBIT Next 3Y15.56%
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 Fundamental Analysis 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 22.17 and the Price/Book (PB) ratio is 1.98.


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 4 / 10.