NYSE:BABA

Stock Analysis Report

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.

Snowflake

Fundamentals

Outstanding track record with flawless balance sheet.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

BABA

-1.4%

US Online Retail

0.7%

US Market


1 Year Return

24.0%

BABA

14.9%

US Online Retail

13.7%

US Market

Return vs Industry: BABA exceeded the US Online Retail industry which returned 14.9% over the past year.

Return vs Market: BABA exceeded the US Market which returned 13.7% over the past year.


Shareholder returns

BABAIndustryMarket
7 Day-0.7%-1.4%0.7%
30 Day9.7%2.1%4.7%
90 Day4.7%-1.1%6.1%
1 Year24.0%24.0%14.9%14.9%16.2%13.7%
3 Year98.6%98.6%92.7%92.4%48.8%39.2%
5 Year62.8%62.8%147.3%137.4%62.5%44.5%

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?

22.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BABA ($185.49) is trading above our estimate of fair value ($142.29)

Significantly Below Fair Value: BABA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BABA is good value based on its PE Ratio (22x) compared to the Online Retail industry average (28x).

PE vs Market: BABA is poor value based on its PE Ratio (22x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: BABA is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: BABA is overvalued based on its PB Ratio (5.6x) compared to the US Online Retail industry average (2.9x).


Next Steps

Future Growth

How is Alibaba Group Holding forecast to perform in the next 1 to 3 years based on estimates from 43 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BABA's forecast earnings growth (11.2% per year) is above the savings rate (2.7%).

Earnings vs Market: BABA's earnings (11.2% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: BABA's revenue (21% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: BABA's revenue (21% per year) is forecast to grow faster 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 (18.3%).


Next Steps

Past Performance

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

22.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BABA has high quality earnings.

Growing Profit Margin: BABA's current net profit margins (34.3%) are higher than last year (19.4%).


Past Earnings Growth Analysis

Earnings Trend: BABA's earnings have grown significantly by 22.7% per year over the past 5 years.

Accelerating Growth: BABA's earnings growth over the past year (153%) exceeds its 5-year average (22.7% per year).

Earnings vs Industry: BABA earnings growth over the past year (153%) exceeded the Online Retail industry 8.2%.


Return on Equity

High ROE: BABA's Return on Equity (20%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Alibaba Group Holding's financial position?


Financial Position Analysis

Short Term Liabilities: BABA's short term assets (CN¥335.7B) exceeds its short term liabilities (CN¥243.9B)

Long Term Liabilities: BABA's short term assets (CN¥335.7B) exceeds its long term liabilities (195.4B)


Debt to Equity History and Analysis

Debt Level: BABA's debt to equity ratio (19.9%) is considered satisfactory.

Reducing Debt: BABA's debt to equity ratio has reduced from 49.3% to 19.9% over the past 5 years.

Debt Coverage: BABA's debt is well covered by operating cash flow (115.5%).

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


Balance Sheet

Inventory Level: BABA has a low level of unsold assets or inventory.

Debt Coverage by Assets: BABA's debt is covered by short term assets (assets are 2.3x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry

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

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

What is the CEO of Alibaba Group Holding's salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average management tenure


CEO

Daniel Zhang (47yo)

4.5yrs

Tenure

0

Mr. Yong Zhang, also known as Daniel, has been the Chief Executive Officer of Alibaba Group Holding Limited since May 2015. Mr. Zhang has been an Executive Chairman of Alibaba Group Holding Limited since  ...


Management Age and Tenure

4.5yrs

Average Tenure

53yo

Average Age

Experienced Management: BABA's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

5.2yrs

Average Tenure

55.5yo

Average Age

Experienced Board: BABA's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

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.


Management Team

  • Jack Ma (55yo)

    • Tenure: 20.8yrs
  • Joseph, Joe Tsai (55yo)

    Executive Vice Chairman

    • Tenure: 6.5yrs
  • Tim Steinert (59yo)

    General Counsel & Corporate Secretary

    • Tenure: 12.3yrs
  • Daniel Zhang (47yo)

    CEO & Executive Chairman

    • Tenure: 4.5yrs
  • Robert Lin

    Investor Relations

    • Tenure: 0yrs
  • Maggie Wu (51yo)

    CFO & Head of Strategic Investments

    • Tenure: 6.5yrs
  • Mike Evans (61yo)

    President & Director

    • Tenure: 5.2yrs
  • Jeff Zhang (46yo)

    Chief Technology Officer

    • Tenure: 3.6yrs
  • Jennifer Kuperman (46yo)

    Head of International Corporate Communications

    • Tenure: 3.8yrs
  • Michael Yao

    Senior VP & Head of Corporate Finance

    • Tenure: 0yrs

Board Members

  • Masa Son (62yo)

    Director

    • Tenure: 19.8yrs
  • Jerry Yang (50yo)

    Independent Director

    • Tenure: 5.2yrs
  • E. Ekholm (56yo)

    Independent Director

    • Tenure: 4.4yrs
  • Jack Ma (55yo)

    • Tenure: 20.8yrs
  • Joseph, Joe Tsai (55yo)

    Executive Vice Chairman

    • Tenure: 6.5yrs
  • Daniel Zhang (47yo)

    CEO & Executive Chairman

    • Tenure: 4.5yrs
  • Walter Kwauk (66yo)

    Independent Director

    • Tenure: 5.2yrs
  • Mike Evans (61yo)

    President & Director

    • Tenure: 5.2yrs
  • Eddie Wu (44yo)

    Chairman of Alibaba Health

    • Tenure: 0yrs
  • Chee Tung (82yo)

    Independent Director

    • Tenure: 5.2yrs

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$484.286b
  • Shares outstanding: 2.61b
  • Website: https://www.alibabagroup.com

Number of Employees


Location

  • Alibaba Group Holding Limited
  • 969 West Wen Yi Road
  • Yu Hang District
  • Hangzhou
  • 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

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 in four segments: Core Commerce, C ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/18 01:05
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.