Alibaba Group Holding Limited
Alibaba Group Holding Limited Fundamental Analysis
Alibaba Group Holding Limited (BABA.SW) shows weak financial fundamentals with a PE ratio of 31.03, profit margin of 13.60%, and ROE of 10.35%. The company generates $39.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BABA.SW's fundamental strength across five key dimensions:
Efficiency Score
WeakBABA.SW struggles to generate sufficient returns from assets.
Valuation Score
WeakBABA.SW trades at a premium to fair value.
Growth Score
ModerateBABA.SW shows steady but slowing expansion.
Financial Health Score
ExcellentBABA.SW maintains a strong and stable balance sheet.
Profitability Score
WeakBABA.SW struggles to sustain strong margins.
Key Financial Metrics
Is BABA.SW Expensive or Cheap?
P/E Ratio
BABA.SW trades at 31.03 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BABA.SW's PEG of 5.81 indicates potential overvaluation.
Price to Book
The market values Alibaba Group Holding Limited at 3.43 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.76 times EBITDA. This is generally considered low.
How Well Does BABA.SW Make Money?
Net Profit Margin
For every $100 in sales, Alibaba Group Holding Limited keeps $13.60 as profit after all expenses.
Operating Margin
Core operations generate 14.54 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.35 in profit for every $100 of shareholder equity.
ROA
Alibaba Group Holding Limited generates $6.07 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 $5.25B, showing steady but balanced cash generation.
Free Cash Flow
Alibaba Group Holding Limited produces free cash flow of $2.30B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.31 in free cash annually.
FCF Yield
BABA.SW converts 3.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.81
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.81
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.45
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How BABA.SW Stacks Against Its Sector Peers
| Metric | BABA.SW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.03 | 23.86 | Worse (Expensive) |
| ROE | 10.35% | 1107.00% | Weak |
| Net Margin | 13.60% | -612.00% (disorted) | Strong |
| Debt/Equity | 0.23 | 0.72 | Strong (Low Leverage) |
| Current Ratio | 1.45 | 2.66 | Neutral |
| ROA | 6.07% | -30467.00% (disorted) | Weak |
BABA.SW outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
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
N/A
Industry Style: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary