ALIBABA GROUP HOLDING-SP ADR (BABA) Stock Fundamental Analysis
USA - NYSE:BABA - US01609W1027 - ADR
181.33 USD
-5.89 (-3.15%)
182 USD
+0.67 (+0.37%)
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 an average financial health and profitability rating. While showing a medium growth rate, BABA is valued expensive at the moment.
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.
In the past 5 years BABA has always been profitable.
In the past 5 years BABA always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 8.03%, BABA is doing good in the industry, outperforming 78.57% of the companies in the same industry.
BABA's Return On Equity of 14.63% is fine compared to the rest of the industry. BABA outperforms 71.43% of its industry peers.
BABA has a better Return On Invested Capital (8.19%) than 64.29% 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 10.41%.
The last Return On Invested Capital (8.19%) for BABA is above the 3 year average (7.12%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 14.82%, BABA belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
In the last couple of years the Profit Margin of BABA has declined.
With an excellent Operating Margin value of 14.51%, BABA belongs to the best 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.
The Gross Margin of BABA (41.18%) is comparable to the rest of the industry.
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) just above the Cost of Capital (WACC), BABA is creating some value.
BABA has less shares outstanding than it did 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
An Altman-Z score of 3.66 indicates that BABA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.66, BABA is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
The Debt to FCF ratio of BABA is 6.11, which is on the high side as it means it would take BABA, 6.11 years of fcf income to pay off all of its debts.
BABA has a Debt to FCF ratio of 6.11. This is comparable to the rest of the industry: BABA outperforms 53.57% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that BABA is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.20, BABA is in the better half of the industry, outperforming 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 3.66 |
ROIC/WACC1.01
WACC8.14%
2.3 Liquidity
A Current Ratio of 1.45 indicates that BABA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.45, BABA is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 1.45 indicates that BABA should not have too much problems paying its short term obligations.
BABA has a Quick ratio of 1.45. This is in the better half of the industry: BABA outperforms 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.
Looking at the last year, BABA shows a small growth in Revenue. The Revenue has grown by 5.32% 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)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
Based on estimates for the next years, BABA will show a small growth in Earnings Per Share. The EPS will grow by 1.11% on average per year.
The Revenue is expected to grow by 8.88% on average over the next years. This is quite good.
EPS Next Y-13.33%
EPS Next 2Y7.27%
EPS Next 3Y11.03%
EPS Next 5Y1.11%
Revenue Next Year3.8%
Revenue Next 2Y7.49%
Revenue Next 3Y8.06%
Revenue Next 5Y8.88%
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
With a Price/Earnings ratio of 20.26, BABA is valued on the expensive side.
Based on the Price/Earnings ratio, BABA is valued a bit cheaper than 71.43% of the companies in the same industry.
BABA is valuated rather cheaply when we compare the Price/Earnings ratio to 27.76, which is the current average of the S&P500 Index.
BABA is valuated rather expensively with a Price/Forward Earnings ratio of 17.15.
Based on the Price/Forward Earnings ratio, BABA is valued a bit cheaper than 71.43% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.21. BABA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.26 | ||
| Fwd PE | 17.15 |
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.
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 60.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 81.03 | ||
| EV/EBITDA | 14.18 |
4.3 Compensation for Growth
The decent profitability rating of BABA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.73
EPS Next 2Y7.27%
EPS Next 3Y11.03%
5. Dividend
5.1 Amount
With a yearly dividend of 0.54%, BABA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.13, BABA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.54, BABA pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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
BABA pays out 19.60% of its income as dividend. This is a sustainable payout ratio.
DP19.6%
EPS Next 2Y7.27%
EPS Next 3Y11.03%
181.33
-5.89 (-3.15%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners12.28%
Inst Owner Change0.1%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap432.38B
Analysts84.17
Price Target186.13 (2.65%)
Short Float %1.84%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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)13.46%
PT rev (3m)14.11%
EPS NQ rev (1m)-22.23%
EPS NQ rev (3m)-43.35%
EPS NY rev (1m)-10.89%
EPS NY rev (3m)-22.07%
Revenue NQ rev (1m)-1.18%
Revenue NQ rev (3m)-2.37%
Revenue NY rev (1m)-1.53%
Revenue NY rev (3m)-2.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.26 | ||
| Fwd PE | 17.15 | ||
| P/S | 3.08 | ||
| P/FCF | 81.03 | ||
| P/OCF | 20.45 | ||
| P/B | 3.04 | ||
| P/tB | 4.17 | ||
| EV/EBITDA | 14.18 |
EPS(TTM)8.95
EY4.94%
EPS(NY)10.57
Fwd EY5.83%
FCF(TTM)2.24
FCFY1.23%
OCF(TTM)8.87
OCFY4.89%
SpS58.95
BVpS59.71
TBVpS43.47
PEG (NY)N/A
PEG (5Y)4.73
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 | 3.66 |
F-Score8
WACC8.14%
ROIC/WACC1.01
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-13.33%
EPS Next 2Y7.27%
EPS Next 3Y11.03%
EPS Next 5Y1.11%
Revenue 1Y (TTM)5.32%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%1.82%
Revenue Next Year3.8%
Revenue Next 2Y7.49%
Revenue Next 3Y8.06%
Revenue Next 5Y8.88%
EBIT growth 1Y25.86%
EBIT growth 3Y15.44%
EBIT growth 5Y8.99%
EBIT Next Year4.06%
EBIT Next 3Y17.77%
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%