NYSE:BABA

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Alibaba Group Holding

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


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


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 +/- 7% a week.

Volatility Over Time: BABA's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

7.1%

BABA

2.1%

US Online Retail

0.6%

US Market


1 Year Return

8.5%

BABA

57.6%

US Online Retail

21.0%

US Market

Return vs Industry: BABA underperformed the US Online Retail industry which returned 58.4% over the past year.

Return vs Market: BABA underperformed the US Market which returned 22% over the past year.


Shareholder returns

BABAIndustryMarket
7 Day7.1%2.1%0.6%
30 Day-4.8%1.8%4.2%
90 Day-20.9%-0.3%12.4%
1 Year8.5%8.5%57.8%57.6%23.7%21.0%
3 Year31.8%31.8%88.8%88.6%47.4%37.6%
5 Year243.6%243.6%313.8%313.0%131.6%105.9%

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?

10.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BABA ($242.98) is trading below our estimate of fair value ($270.65)

Significantly Below Fair Value: BABA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BABA is poor value based on its PE Ratio (31.9x) compared to the US Online Retail industry average (30.9x).

PE vs Market: BABA is poor value based on its PE Ratio (31.9x) compared to the US market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: BABA is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: BABA's PB Ratio (5x) is in line with the US Online Retail industry average.


Next Steps

Future Growth

How is Alibaba Group Holding forecast to perform in the next 1 to 3 years based on estimates from 50 analysts?

21.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BABA's forecast earnings growth (21% per year) is above the savings rate (2%).

Earnings vs Market: BABA's earnings (21% per year) are forecast to grow slower than the US market (21.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BABA's revenue (19.5% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: BABA's revenue (19.5% 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 (18.1%).


Next Steps

Past Performance

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

27.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BABA has high quality earnings.

Growing Profit Margin: BABA's current net profit margins (22.6%) are lower than last year (34.3%).


Past Earnings Growth Analysis

Earnings Trend: BABA's earnings have grown significantly by 27.1% 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 (-13.8%) over the past year, making it difficult to compare to the Online Retail industry average (38.5%).


Return on Equity

High ROE: BABA's Return on Equity (12.7%) is considered low.


Next Steps

Financial Health

How is Alibaba Group Holding's financial position?


Financial Position Analysis

Short Term Liabilities: BABA's short term assets (CN¥522.9B) exceed its short term liabilities (CN¥262.9B).

Long Term Liabilities: BABA's short term assets (CN¥522.9B) exceed its long term liabilities (CN¥197.5B).


Debt to Equity History and Analysis

Debt Level: BABA's debt to equity ratio (12.2%) is considered satisfactory.

Reducing Debt: BABA's debt to equity ratio has reduced from 24.2% to 12.2% over the past 5 years.

Debt Coverage: BABA's debt is well covered by operating cash flow (170.6%).

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


Balance Sheet


Next Steps

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?

5.0yrs

Average management tenure


CEO

Daniel Zhang (48 yo)

5.67yrs

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

NamePositionTenureCompensationOwnership
Joseph C. Tsai
Executive Vice Chairman7.67yrsno data0.90%
CN¥ 5.9b
Yong Zhang
CEO & Executive Chairman5.67yrsno datano data
J. Michael Evans
President & Director6.33yrsno datano data
Wei Wu
CFO, Head of Strategic Investments & Director0.33yrno datano data
Joan Zhou
Investment Directorno datano datano data
Michael Yao
Senior VP & Head of Corporate Financeno datano datano data
Li Cheng
Chief Technology Officer1.08yrsno datano data
Robert Lin
Investor Relationsno datano datano data
Siying Yu
General Counsel0.75yrno datano data
Jennifer Kuperman Johnson
Head of International Corporate Communications5yrsno datano data
Pen Hung Tung
Chief Marketing Officer5yrsno datano data
Wenhong Tong
Chief People Officer4yrsno datano data

5.0yrs

Average Tenure

50yo

Average Age

Experienced Management: BABA's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joseph C. Tsai
Executive Vice Chairman7.67yrsno data0.90%
CN¥ 5.9b
Yong Zhang
CEO & Executive Chairman5.67yrsno datano data
J. Michael Evans
President & Director6.33yrsno datano data
Wei Wu
CFO, Head of Strategic Investments & Director0.33yrno datano data
Chih-Yuan Yang
Independent Director6.33yrsno datano data
E. Ekholm
Independent Director5.58yrsno datano data
Wan Martello
Independent Director5.33yrsno datano data
Kabir Misra
Director0.33yrno datano data
Teh Ming Kwauk
Independent Director6.33yrsno datano data
Lei Peng
Lazada Group Chairwomanno datano datano data
Chee Hwa Tung
Independent Director6.33yrsno datano data
Xiandong Jing
Director4.33yrsno datano data

5.6yrs

Average Tenure

54yo

Average Age

Experienced Board: BABA's board of directors are considered experienced (5.6 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$657.416b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BABANYSE (New York Stock Exchange)YesADS EACH REPR 1 ORD SHS (SPON) (CDI)USUSDSep 2014
AHLAXTRA (XETRA Trading Platform)YesADS EACH REPR 1 ORD SHS (SPON) (CDI)DEEURSep 2014
AHLADB (Deutsche Boerse AG)YesADS EACH REPR 1 ORD SHS (SPON) (CDI)DEEURSep 2014
BABASWX (SIX Swiss Exchange)YesADS EACH REPR 1 ORD SHS (SPON) (CDI)CHCHFSep 2014
BABA NBMV (Bolsa Mexicana de Valores)YesADS EACH REPR 1 ORD SHS (SPON) (CDI)MXMXNSep 2014
24409862SWX (SIX Swiss Exchange)YesADS EACH REPR 1 ORD SHS (SPON) (CDI)CHCHFSep 2014
0HCILSE (London Stock Exchange)YesADS EACH REPR 1 ORD SHS (SPON) (CDI)GBUSDSep 2014
AHLADBATS-CHIXE (BATS 'Chi-X Europe')YesADS EACH REPR 1 ORD SHS (SPON) (CDI)GBEURSep 2014
AHLAWBAG (Wiener Boerse AG)YesADS EACH REPR 1 ORD SHS (SPON) (CDI)ATEURSep 2014
9988SEHK (The Stock Exchange of Hong Kong Ltd.)Ordinary SharesHKHKDNov 2019
BABA.FOTCPK (Pink Sheets LLC)Ordinary SharesUSUSDNov 2019
2RRDB (Deutsche Boerse AG)Ordinary SharesDEEURNov 2019

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 Analysis2021/01/14 23:22
End of Day Share Price2021/01/14 00:00
Earnings2020/09/30
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.