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Alibaba Group Holding

Market Cap

US$605.4b

Last Updated

2021/04/10 22:15 UTC

Data Sources

Company Financials +

Executive Summary

Alibaba Group Holding Limited, through its subsidiaries, provides online and mobile commerce businesses in the People's Republic of China and internationally. More Details

Rewards

Trading at 28.2% below our estimate of its fair value

Earnings are forecast to grow 13% per year

Risk Analysis

No risks detected for BABA from our risk checks.


Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

Share Price & News

How has Alibaba Group Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BABA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BABA's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-0.5%

BABA

2.5%

US Online Retail

1.6%

US Market


1 Year Return

13.7%

BABA

59.4%

US Online Retail

55.3%

US Market

Return vs Industry: BABA underperformed the US Online Retail industry which returned 59.4% over the past year.

Return vs Market: BABA underperformed the US Market which returned 55.3% over the past year.


Shareholder returns

BABAIndustryMarket
7 Day-0.5%2.5%1.6%
30 Day-7.3%2.1%4.1%
90 Day-5.5%-1.3%5.5%
1 Year13.7%13.7%59.6%59.4%58.1%55.3%
3 Year29.8%29.8%89.8%89.7%63.8%53.3%
5 Year182.8%182.8%301.8%301.1%120.2%95.7%

Long-Term Price Volatility Vs. Market

How volatile is Alibaba Group Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Alibaba Group Holding undervalued compared to its fair value and its price relative to the market?

28.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BABA ($223.31) is trading below our estimate of fair value ($310.85)

Significantly Below Fair Value: BABA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BABA is good value based on its PE Ratio (24.8x) compared to the US Online Retail industry average (39.3x).

PE vs Market: BABA is poor value based on its PE Ratio (24.8x) compared to the US market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: BABA is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: BABA is good value based on its PB Ratio (4.2x) compared to the US Online Retail industry average (5.7x).


Future Growth

How is Alibaba Group Holding forecast to perform in the next 1 to 3 years based on estimates from 48 analysts?

13.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BABA's forecast earnings growth (13% per year) is above the savings rate (2%).

Earnings vs Market: BABA's earnings (13% per year) are forecast to grow slower than the US market (18.7% per year).

High Growth Earnings: BABA's earnings are forecast to grow, but not significantly.

Revenue vs Market: BABA's revenue (18.1% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: BABA's revenue (18.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BABA's Return on Equity is forecast to be low in 3 years time (15.5%).


Past Performance

How has Alibaba Group Holding performed over the past 5 years?

28.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BABA has high quality earnings.

Growing Profit Margin: BABA's current net profit margins (24.7%) are lower than last year (35.1%).


Past Earnings Growth Analysis

Earnings Trend: BABA's earnings have grown significantly by 28.7% per year over the past 5 years.

Accelerating Growth: BABA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BABA had negative earnings growth (-7.4%) over the past year, making it difficult to compare to the Online Retail industry average (66.3%).


Return on Equity

High ROE: BABA's Return on Equity (14.1%) is considered low.


Financial Health

How is Alibaba Group Holding's financial position?


Financial Position Analysis

Short Term Liabilities: BABA's short term assets (CN¥597.7B) exceed its short term liabilities (CN¥358.2B).

Long Term Liabilities: BABA's short term assets (CN¥597.7B) exceed its long term liabilities (CN¥203.2B).


Debt to Equity History and Analysis

Debt Level: BABA's debt to equity ratio (10.7%) is considered satisfactory.

Reducing Debt: BABA's debt to equity ratio has reduced from 22.8% to 10.7% over the past 5 years.

Debt Coverage: BABA's debt is well covered by operating cash flow (182.5%).

Interest Coverage: BABA earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Alibaba Group Holding current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate BABA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BABA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BABA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BABA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BABA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Daniel Zhang (48 yo)

5.92yrs

Tenure

Mr. Yong Zhang, also known as Daniel, has been the Chief Executive Officer of Alibaba Group Holding Limited since May 2015 and also had been its Chief Operating Officer since 2020 until August 2020. Mr. Zh...


Leadership Team

Experienced Management: BABA's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: BABA's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Alibaba Group Holding Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alibaba Group Holding Limited
  • Ticker: BABA
  • Exchange: NYSE
  • Founded: 1999
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: US$605.420b
  • Shares outstanding: 2.71b
  • Website: https://www.alibabagroup.com

Number of Employees


Location

  • Alibaba Group Holding Limited
  • 969 West Wen Yi Road
  • Yu Hang District
  • Hangzhou
  • Zhejiang Province
  • 311121
  • China

Listings


Biography

Alibaba Group Holding Limited, through its subsidiaries, provides online and mobile commerce businesses in the People's Republic of China and internationally. It operates through four segments: Core Commer...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/10 22:15
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.