Alibaba Group Holding Limited
Alibaba Group Holding Limited Fundamental Analysis
Alibaba Group Holding Limited (AHLA.F) shows moderate financial fundamentals with a PE ratio of 21.51, profit margin of 11.38%, and ROE of 8.83%. The company generates $817.0B 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 30.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AHLA.F's fundamental strength across five key dimensions:
Efficiency Score
WeakAHLA.F struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAHLA.F trades at attractive valuation levels.
Growth Score
ExcellentAHLA.F delivers strong and consistent growth momentum.
Financial Health Score
ExcellentAHLA.F maintains a strong and stable balance sheet.
Profitability Score
WeakAHLA.F struggles to sustain strong margins.
Key Financial Metrics
Is AHLA.F Expensive or Cheap?
P/E Ratio
AHLA.F trades at 21.51 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AHLA.F's PEG of -0.10 indicates potential undervaluation.
Price to Book
The market values Alibaba Group Holding Limited at 1.87 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 16.00 times EBITDA. This signals the market has high growth expectations.
How Well Does AHLA.F Make Money?
Net Profit Margin
For every $100 in sales, Alibaba Group Holding Limited keeps $11.38 as profit after all expenses.
Operating Margin
Core operations generate 7.10 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.83 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 $132.92B, showing steady but balanced cash generation.
Free Cash Flow
Alibaba Group Holding Limited generates weak or negative free cash flow of $-27.58B, restricting financial flexibility.
FCF Per Share
Each share generates $-11.55 in free cash annually.
FCF Yield
AHLA.F converts -1.34% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.51
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.87
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.52
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
0.04
vs 25 benchmark
How AHLA.F Stacks Against Its Sector Peers
| Metric | AHLA.F Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.51 | 23.80 | Neutral |
| ROE | 8.83% | 1105.00% | Weak |
| Net Margin | 11.38% | -512.00% (disorted) | Strong |
| Debt/Equity | 0.25 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 1.33 | 2.64 | Neutral |
| ROA | 4.81% | -8048.00% (disorted) | Weak |
AHLA.F outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, 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