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BABA

Alibaba Group HoldingNYSE:BABA Stock Report

Last Price

US$128.60

Market Cap

US$348.6b

7D

-2.7%

1Y

-48.9%

Updated

19 Jan, 2022

Data

Company Financials +
BABA fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance2/6
Financial Health6/6
Dividends0/6

BABA Stock Overview

Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally.

Alibaba Group Holding Competitors

Amazon.com

NasdaqGS:AMZN

US$1.6t

JD.com

NasdaqGS:JD

US$113.8b

Pinduoduo

NasdaqGS:PDD

US$75.7b

MercadoLibre

NasdaqGS:MELI

US$56.7b

Price History & Performance

Summary of all time highs, changes and price drops for Alibaba Group Holding
Historical stock prices
Current Share PriceUS$128.60
52 Week HighUS$274.29
52 Week LowUS$108.70
Beta0.89
1 Month Change5.32%
3 Month Change-27.42%
1 Year Change-48.90%
3 Year Change-15.48%
5 Year Change26.79%
Change since IPO36.97%

Recent News & Updates

Jan 17

Alibaba Has Become Cheaper Amid Delisting Fears

Delisting pressures come from both the Chinese government and the US government. We analyze the possibility of a delisting forced by US government through the SEC. We don’t believe the SEC will delist Alibaba shares because its auditing seems to be conforming with desired standards. The Hong Kong listing provides a backup exchange under a worst-case scenario. Institutional investors do not seem worried about delisting. All key valuation metrics have become cheaper and provide downside protection for the investment. P/E, EV/EBITDA, and EV/FCF have compressed to near all-time lows.

Jan 10

Alibaba: Digital Yuan Is An Existential Threat To Ant Group

People's Bank of China is about to launch digital yuan on a wide scale. Digital yuan has numerous advantages against traditional payment systems such as Alipay, which generates income for Ant Group, in which Alibaba has a 32.65% stake. Due to the political nature of the digital yuan, the political establishment of China will likely accelerate its adoption across the mainland, which will likely negatively affect Alibaba’s financials.

Jan 04

Alibaba: You Might Regret Passing Up On This Rare Opportunity

Despite growth rates slowing down in the last quarter, Alibaba is still growing its revenue 30% year-over-year. Alibaba is facing the risk of the Chinese economy slowing down as well as the risk of a delisting. However, Alibaba seems so extremely undervalued that a bet could make sense from a risk-reward perspective.

Dec 26

Alibaba Has Fallen, But Has Not Become Cheaper

Alibaba has dropped 50% from its 2021 high. But has the stock actually become cheaper? We analyze the primary reason we stayed out and why that is more applicable today. A shorter term bounce may materialize still and we go over a good way to play it.

Dec 21
Does Alibaba Group Holding (NYSE:BABA) Have A Healthy Balance Sheet?

Does Alibaba Group Holding (NYSE:BABA) Have A Healthy Balance Sheet?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Dec 20

Alibaba: Why We Are Lowering The Price Target Again

Alibaba has lost more than 60% of its market value in the last 14 months, and has continued on a rapid decline due to mounting regulatory and macro headwinds. The stock is currently trading at 30% lower than our initial price target of $152 set in July, which had only accounted for downward valuation pressures due to regulatory risks. But combined with consideration of recent macroeconomic turmoil in China, we expect the related impact on Alibaba's fundamentals to drive further declines on the stock in the near-term. Despite management's efforts to partially offset related downside risks by redirecting Alibaba's growth strategy to cloud and international e-commerce, the stock is poised for further volatility ahead.

Shareholder Returns

BABAUS Online RetailUS Market
7D-2.7%0.5%-0.3%
1Y-48.9%-17.7%13.7%

Return vs Industry: BABA underperformed the US Online Retail industry which returned -17.7% over the past year.

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

Price Volatility

Is BABA's price volatile compared to industry and market?
BABA volatility
BABA Average Weekly Movement8.1%
Online Retail Industry Average Movement10.4%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

Stable Share Price: BABA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: BABA's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1999258,578Daniel Zhanghttps://www.alibabagroup.com

Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally. It operates through four segments: Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives and Others. The company operates Taobao Marketplace, a social commerce platform; Tmall, a third-party online and mobile commerce platform for brands and retailers; Alimama, a monetization platform; 1688.com and Alibaba.com, which are online wholesale marketplaces; AliExpress, a retail marketplace; Lazada, Trendyol, and Daraz that are e-commerce platforms; and Tmall Global and Kaola, which are import e-commerce platforms.

Alibaba Group Holding Fundamentals Summary

How do Alibaba Group Holding's earnings and revenue compare to its market cap?
BABA fundamental statistics
Market CapCN¥2.21t
Earnings (TTM)CN¥124.46b
Revenue (TTM)CN¥814.91b

17.8x

P/E Ratio

2.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BABA income statement (TTM)
RevenueCN¥814.91b
Cost of RevenueCN¥498.88b
Gross ProfitCN¥316.03b
ExpensesCN¥191.57b
EarningsCN¥124.46b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)45.91
Gross Margin38.78%
Net Profit Margin15.27%
Debt/Equity Ratio13.8%

How did BABA perform over the long term?

See historical performance and comparison

Valuation

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

30.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BABA ($131.57) is trading below our estimate of fair value ($189.83)

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 (18.2x) compared to the US Online Retail industry average (20.1x).

PE vs Market: BABA is poor value based on its PE Ratio (18.2x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: BABA is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: BABA is good value based on its PB Ratio (2.4x) compared to the US Online Retail industry average (3.1x).


Future Growth

How is Alibaba Group Holding forecast to perform in the next 1 to 3 years based on estimates from 52 analysts?

14.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BABA's forecast earnings growth (14.7% per year) is above the savings rate (2%).

Earnings vs Market: BABA's earnings (14.7% per year) are forecast to grow faster than the US market (13% per year).

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

Revenue vs Market: BABA's revenue (14.4% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: BABA's revenue (14.4% 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 (10.8%).


Past Performance

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

28.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BABA has high quality earnings.

Growing Profit Margin: BABA's current net profit margins (15.3%) are lower than last year (22.6%).


Past Earnings Growth Analysis

Earnings Trend: BABA's earnings have grown significantly by 28% 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 (-5.6%) over the past year, making it difficult to compare to the Online Retail industry average (78.8%).


Return on Equity

High ROE: BABA's Return on Equity (10.6%) 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¥638.0B) exceed its short term liabilities (CN¥387.9B).

Long Term Liabilities: BABA's short term assets (CN¥638.0B) exceed its long term liabilities (CN¥239.9B).


Debt to Equity History and Analysis

Debt Level: BABA has more cash than its total debt.

Reducing Debt: BABA's debt to equity ratio has reduced from 30.5% to 13.8% over the past 5 years.

Debt Coverage: BABA's debt is well covered by operating cash flow (129.7%).

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?

0.005%

Forecast Dividend Yield


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?

6.0yrs

Average management tenure


CEO

Daniel Zhang (49 yo)

6.67yrs

Tenure

Mr. Yong Zhang, also known as Daniel, is Director at Beijing Xiaoju Science & Technology Co, Ltd. since April 2018. He served as a Director of DiDi Global Inc. since April 2018 until December 2021.Mr. Zha...


Leadership Team

Experienced Management: BABA's management team is seasoned and experienced (6 years average tenure).


Board Members

Experienced Board: BABA's board of directors are considered experienced (7.3 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 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
  • Implied Market Cap: US$348.623b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 00:06
End of Day Share Price2022/01/18 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.