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Alibaba Group Holding Ltd.

Find Ratings Reports
BABA : NYSE : Retail Trade
$243.46 up 0.48 | 0.20%
Today's Range: 242.15 - 246.99
Avg. Daily Volume: 18,763,600
01/15/21 - 4:10 PM ET
Rating Summary Rating Detail Financial Analysis Peer Group

Financial Analysis


ALIBABA GROUP HLDG's gross profit margin for the second quarter of its fiscal year 2020 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased.

At the same time, stockholders' equity ("net worth") has greatly increased by 49.71% from the same quarter last year.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q2 FY20 Q2 FY19
Net Sales ($mil)23711.0815994.16
EBITDA ($mil)3609.193867.47
EBIT ($mil)2205.672790.28
Net Income ($mil)4507.9610027.22


Balance Sheet Q2 FY20 Q2 FY19
Cash & Equiv. ($mil)62451.5135690.38
Total Assets ($mil)211119.3162230.25
Total Debt ($mil)17934.820380.89
Equity ($mil)126263.2884334.4


Profitability Q2 FY20 Q2 FY19
Gross Profit Margin46.1549.02
EBITDA Margin15.2224.18
Operating Margin9.317.45
Sales Turnover0.40.4
Return on Assets9.0913.55
Return on Equity15.2126.08
Debt Q2 FY20 Q2 FY19
Current Ratio1.991.38
Debt/Capital0.120.19
Interest Expense168.54182.58
Interest Coverage13.0915.28


Share Data Q2 FY20 Q2 FY19
Shares outstanding (mil)2686.52587.06
Div / share0.00.0
EPS1.643.81
Book value / share47.032.6
Institutional Own % n/a n/a
Avg Daily Volume2.3952088E71.3991637E7

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 97.01 for the Other Information Services subsector and a discount compared to the S&P 500 average of 38.33. Conducting a second comparison, its price-to-book ratio of 4.83 indicates a premium versus the S&P 500 average of 4.11 and a significant discount versus the subsector average of 17.85. The current price-to-sales ratio is well above the S&P 500 average, but below the subsector average. Upon assessment of these and other key valuation criteria, ALIBABA GROUP HLDG proves to trade at a discount to investment alternatives.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BABA 32.05 Peers 72.02   BABA 21.04 Peers 33.83

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

BABA is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

BABA is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BABA 2.79 Peers 166.37   BABA 0.04 Peers 1.23

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

BABA is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

BABA trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BABA 4.83 Peers 17.85   BABA -15.32 Peers 39.33

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

BABA is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, BABA is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BABA 7.20 Peers 7.65   BABA 30.93 Peers 32.77

Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

BABA is trading at a valuation on par with its subsector on this measurement.

 

Average. Comparing a company's sales growth to its subsector helps to determine if the company is adding or losing market share.

BABA is keeping pace with its peers on the basis of sales growth.

 

 

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