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Alibaba (BABA) Stock Analysis

This is a peer-relative look at Alibaba (BABA): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Consumer Discretionary Distribution & Retail peers, so every number reads in context rather than in isolation.

Company Profile

Alibaba (BABA) trades as an ADR rather than ordinary local shares — read it with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile fields for Alibaba (BABA)
Profile ItemBABA
NameAlibaba Group Holding Ltd. ADR
Country/RegionChina
GICS SectorConsumer Discretionary
GICS Industry GroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
GICS Sub-IndustryBroadline Retail
Market Capitalization281.47 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateSeptember 19, 2014
Security TypeADR

Price Performance

Cumulative Growth

BABA
GSPC
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Alibaba (BABA) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Alibaba (BABA) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Alibaba (BABA) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Alibaba (BABA) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: BABAIndustry group median
Total Return (1Y)-12.71%-10.83%
Total Return (3Y, Annualized)8.19%3.54%
Total Return (5Y, Annualized)-6.71%-2.26%

Risk Profile

Drawdown History

BABA
GSPC
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Alibaba (BABA) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Alibaba (BABA) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Alibaba (BABA) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: BABAIndustry group median
Volatility (1Y, Annualized)43.82%47.66%
Beta (5Y)0.471.13
Max Drawdown (5Y)-64.46%-69.34%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. BABA is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Alibaba (BABA) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: BABAIndustry group median
Sharpe Ratio (1Y)-0.38-0.31
Sortino Ratio (1Y)-0.60-0.46

Profitability

ROE (TTM)

Alibaba (BABA) posts ROE of 6.36%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

BABA

Consumer Discretionary Distribution & Retail industry group

6.36%

Group distribution
Max
63.82%
Q3
32.42%
Median
14.20%
BABA
6.36%
Q1
5.73%
Min
-27.22%
Largest peers
HD
104.30%
TJX
62.17%
AMZN
30.56%
MELI
27.50%
PDD
22.75%
BABA
6.36%
LOW
--
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Where Alibaba (BABA) stands on ROE within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Alibaba (BABA) keeps 7.04% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

BABA

Consumer Discretionary Distribution & Retail industry group

7.04%

Group distribution
Max
20.45%
Q3
9.06%
BABA
7.04%
Median
3.37%
Q1
0.86%
Min
-10.82%
Largest peers
PDD
20.43%
AMZN
17.44%
TJX
9.73%
HD
8.41%
LOW
7.35%
BABA
7.04%
MELI
5.30%
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Where Alibaba (BABA) stands on net margin within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Alibaba (BABA) turns 7.30% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

BABA

Consumer Discretionary Distribution & Retail industry group

7.30%

Group distribution
Max
24.71%
Q3
11.23%
BABA
7.30%
Median
5.44%
Q1
2.16%
Min
-7.86%
Largest peers
PDD
24.71%
AMZN
13.69%
LOW
13.37%
HD
12.86%
TJX
10.91%
BABA
7.30%
MELI
6.72%
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Where Alibaba (BABA) stands on operating margin within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Alibaba (BABA) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: BABAIndustry group median
ROE (TTM)6.36%14.20%
ROA (TTM)1.56%5.37%
Net Margin (TTM)7.04%3.37%
Operating Margin (TTM)7.30%5.44%
Gross Margin (TTM)38.20%38.28%

Growth

Revenue Growth

Alibaba (BABA) grew revenue 2.74%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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Alibaba (BABA): Revenue Growth across different time periods, set against Consumer Discretionary Distribution & Retail industry-group medians.

EPS Growth

Alibaba (BABA) grew earnings per share -17.91%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

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Alibaba (BABA): EPS Growth across different time periods, set against Consumer Discretionary Distribution & Retail industry-group medians.

Growth Metrics

Alibaba (BABA) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: BABAIndustry group median
Revenue Growth (YoY)2.74%5.12%
Revenue Growth (3Y CAGR)5.62%3.00%
EPS Growth (YoY)-17.91%0.00%
EPS Growth (3Y CAGR)17.05%-4.99%

Financial Strength

Current Ratio (MRQ)

Alibaba (BABA) has current ratio of 1.36, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

BABA

Consumer Discretionary Distribution & Retail industry group

1.36

Group distribution
Max
3.13
Q3
1.88
Median
1.41
BABA
1.36
Q1
1.03
Min
0.49
Largest peers
PDD
2.62
BABA
1.36
TJX
1.15
MELI
1.12
LOW
1.11
HD
1.08
AMZN
1.03
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Where Alibaba (BABA) stands on current ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Alibaba (BABA) has debt-to-equity ratio of 0.24, in the lower-leverage quartile for its industry. Borrowing is modest relative to equity compared with most peers, which can leave more flexibility through a cycle.

BABA

Consumer Discretionary Distribution & Retail industry group

0.24

Group distribution
Max
3.39
Q3
1.76
Median
1.08
Q1
0.66
BABA
0.24
Min
0.01
Largest peers
HD
3.80
MELI
1.69
TJX
1.34
AMZN
0.46
BABA
0.24
PDD
0.01
LOW
--
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Where Alibaba (BABA) stands on debt-to-equity ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Alibaba (BABA) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: BABAIndustry group median
Current Ratio (MRQ)1.361.41
Debt / Equity (MRQ)0.241.08
Net Debt / EBITDA-1.202.49

Dividends

Dividend Yield (TTM)

Alibaba (BABA) has dividend yield of 6.48%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.

BABA

Consumer Discretionary Distribution & Retail industry group

6.48%

Group distribution
BABA
6.48%
Max
4.87%
Q3
2.44%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
BABA
6.48%
LOW
2.40%
HD
1.46%
TJX
1.37%
AMZN
0.00%
PDD
0.00%
MELI
0.00%
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Where Alibaba (BABA) stands on dividend yield within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Alibaba (BABA) has payout ratio of 24.04%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

BABA

Consumer Discretionary Distribution & Retail industry group

24.04%

Group distribution
Max
67.85%
Q3
31.80%
BABA
24.04%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
HD
64.80%
LOW
41.00%
TJX
32.50%
BABA
24.04%
AMZN
0.00%
PDD
0.00%
MELI
0.00%
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Where Alibaba (BABA) stands on payout ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Alibaba (BABA) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: BABAIndustry group median
Dividend Yield (TTM)6.48%0.00%
Dividend Payout Ratio (TTM)24.04%0.00%

Valuation

P/E Ratio (TTM)

Alibaba (BABA) trades at P/E ratio of 25.62, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

BABA

Consumer Discretionary Distribution & Retail industry group

25.62

Group distribution
Max
43.60
Q3
25.79
BABA
25.62
Median
17.46
Q1
12.45
Min
0.95
Largest peers
MELI
53.76
BABA
25.62
TJX
24.46
HD
22.47
AMZN
20.80
LOW
17.27
PDD
8.87
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Where Alibaba (BABA) stands on P/E ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Alibaba (BABA) trades at 0.27 on P/S ratio, in the lower sales-valuation quartile for its industry. That points to a cheaper revenue stream than most peers, with margin quality still doing the heavy lifting.

BABA

Consumer Discretionary Distribution & Retail industry group

0.27

Group distribution
Max
3.35
Q3
1.59
Median
0.73
Q1
0.28
BABA
0.27
Min
0.03
Largest peers
AMZN
3.59
MELI
2.85
TJX
2.34
HD
1.89
LOW
1.27
BABA
0.27
PDD
0.26
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Where Alibaba (BABA) stands on P/S ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Alibaba (BABA) trades at 1.69 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

BABA

Consumer Discretionary Distribution & Retail industry group

1.69

Group distribution
Max
9.86
Q3
4.94
Median
1.88
BABA
1.69
Q1
1.17
Min
-3.73
Largest peers
HD
19.28
TJX
14.03
MELI
12.80
AMZN
5.05
PDD
1.74
BABA
1.69
LOW
-15.42
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Where Alibaba (BABA) stands on P/B ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Alibaba (BABA) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: BABAIndustry group median
P/E Ratio (TTM)25.6217.46
P/S Ratio (TTM)0.270.73
P/B Ratio (MRQ)1.691.88
Free Cash Flow Yield (TTM)-29.36%3.43%