Alibaba Group Holding Ltd.
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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.
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Income Statement | Q2 FY20 | Q2 FY19 |
---|---|---|
Net Sales ($mil) | 23711.08 | 15994.16 |
EBITDA ($mil) | 3609.19 | 3867.47 |
EBIT ($mil) | 2205.67 | 2790.28 |
Net Income ($mil) | 4507.96 | 10027.22 |
Balance Sheet | Q2 FY20 | Q2 FY19 |
---|---|---|
Cash & Equiv. ($mil) | 62451.51 | 35690.38 |
Total Assets ($mil) | 211119.3 | 162230.25 |
Total Debt ($mil) | 17934.8 | 20380.89 |
Equity ($mil) | 126263.28 | 84334.4 |
Profitability | Q2 FY20 | Q2 FY19 |
---|---|---|
Gross Profit Margin | 46.15 | 49.02 |
EBITDA Margin | 15.22 | 24.18 |
Operating Margin | 9.3 | 17.45 |
Sales Turnover | 0.4 | 0.4 |
Return on Assets | 9.09 | 13.55 |
Return on Equity | 15.21 | 26.08 |
Debt | Q2 FY20 | Q2 FY19 |
---|---|---|
Current Ratio | 1.99 | 1.38 |
Debt/Capital | 0.12 | 0.19 |
Interest Expense | 168.54 | 182.58 |
Interest Coverage | 13.09 | 15.28 |
Share Data | Q2 FY20 | Q2 FY19 |
---|---|---|
Shares outstanding (mil) | 2686.5 | 2587.06 |
Div / share | 0.0 | 0.0 |
EPS | 1.64 | 3.81 |
Book value / share | 47.0 | 32.6 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 2.3952088E7 | 1.3991637E7 |
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 |
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Price/Cash Flow |
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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. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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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. |
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Price/Book |
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Earnings Growth |
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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. |
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Price/Sales |
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Sales Growth |
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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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