Alibaba Group Holding Limited
Alibaba Group Holding Limited Fundamental Analysis
Alibaba Group Holding Limited (2RR.F) shows weak financial fundamentals with a PE ratio of 21.64, profit margin of 8.92%, and ROE of 8.82%. The company generates $1041.5B in annual revenue with moderate year-over-year growth of 5.86%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 2RR.F's fundamental strength across five key dimensions:
Efficiency Score
Weak2RR.F struggles to generate sufficient returns from assets.
Valuation Score
Excellent2RR.F trades at attractive valuation levels.
Growth Score
Excellent2RR.F delivers strong and consistent growth momentum.
Financial Health Score
Excellent2RR.F maintains a strong and stable balance sheet.
Profitability Score
Weak2RR.F struggles to sustain strong margins.
Key Financial Metrics
Is 2RR.F Expensive or Cheap?
P/E Ratio
2RR.F trades at 21.64 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 2RR.F's PEG of -0.11 indicates potential undervaluation.
Price to Book
The market values Alibaba Group Holding Limited at 1.88 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 14.50 times EBITDA. This signals the market has high growth expectations.
How Well Does 2RR.F Make Money?
Net Profit Margin
For every $100 in sales, Alibaba Group Holding Limited keeps $8.92 as profit after all expenses.
Operating Margin
Core operations generate 8.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.82 in profit for every $100 of shareholder equity.
ROA
Alibaba Group Holding Limited generates $4.81 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Alibaba Group Holding Limited produces operating cash flow of $133.14B, showing steady but balanced cash generation.
Free Cash Flow
Alibaba Group Holding Limited generates weak or negative free cash flow of $-27.89B, restricting financial flexibility.
FCF Per Share
Each share generates $-1.46 in free cash annually.
FCF Yield
2RR.F converts -1.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.64
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.99
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.33
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How 2RR.F Stacks Against Its Sector Peers
| Metric | 2RR.F Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.64 | 23.80 | Neutral |
| ROE | 8.82% | 1105.00% | Weak |
| Net Margin | 8.92% | -512.00% (disorted) | Weak |
| Debt/Equity | 0.25 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 1.33 | 2.64 | Neutral |
| ROA | 4.81% | -8048.00% (disorted) | Weak |
2RR.F outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Alibaba Group Holding Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
118.63%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-2.62%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-0.47%
Industry Style: Cyclical, Growth, Discretionary
Declining