Alibaba Group Holding Ltd (NYSE: BABA)

Sector: Consumer Cyclical Industry: Internet Retail CIK: 0001577552
Market Cap 395.87 Bn
P/B 2.73
P/E 22.47
P/S 2.79
ROIC (Qtr) 48.65
Div Yield % 0.00
Rev 1y % (Qtr) 4.77
Total Debt (Qtr) 39.55 Bn
Debt/Equity (Qtr) 0.27

About

Alibaba Group Holding Ltd, commonly known as Alibaba, is a multinational conglomerate company with a diverse range of businesses in e-commerce, retail, logistics, digital media, and entertainment. Its full name is Alibaba Group Holding Limited, and it is publicly traded on the New York Stock Exchange (NYSE) and the Hong Kong Stock Exchange (HKEX) under the ticker symbol BABA. Alibaba's main business activities include e-commerce, retail, and digital media. The company operates several e-commerce platforms, including Taobao and Tmall, which are...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 18.15B provides robust 0.46x coverage of total debt 39.55B, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 18.97B provide 5.14x coverage of short-term debt 3.69B, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 225.97B provides 5.71x coverage of total debt 39.55B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 18.15B provides exceptional 12.95x coverage of interest expenses 1.40B, showing strong debt service capability.
  • Operating cash flow of 18.15B provides strong 10.53x coverage of stock compensation 1.72B, indicating sustainable incentive practices.

Bear case

  • Operating cash flow of 18.15B barely covers its investment activities of (28.35B), with a coverage ratio of -0.64, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (28.35B) provide weak support for R&D spending of 8.66B, which is -3.27x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Long-term investments of 86.91B represent a high 2.51x of fixed assets 34.63B, indicating potential overexposure to financial assets versus operational capabilities.
  • Retained earnings of 93.65B provide limited buffer against comprehensive income items of (219.24M), which is -427.15x, indicating elevated exposure to market risks.
  • Operating cash flow of 18.15B shows concerning coverage of minority interest expenses of (274.30M), which is -66.16x, suggesting complex corporate structure risks.

Collaborative Arrangement and Arrangement Other than Collaborative Breakdown of Revenue (2025)

Collaborative Arrangement and Arrangement Other than Collaborative Breakdown of Revenue (2025)

Peer comparison

Companies in the Internet Retail
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 AMZN Amazon Com Inc 2,526.56 Bn 33.03 3.65 135.42 Bn
2 BABA Alibaba Group Holding Ltd 395.87 Bn 22.47 2.79 39.55 Bn
3 PDD PDD Holdings Inc. 149.89 Bn 10.44 2.55 1.50 Bn
4 MELI Mercadolibre Inc 106.40 Bn 51.23 4.06 9.88 Bn
5 DASH DoorDash, Inc. 88.88 Bn 103.00 7.03 3.26 Bn
6 SE Sea Ltd 73.28 Bn 51.67 3.48 4.24 Bn
7 EBAY Ebay Inc 64.91 Bn 5.04 6.46 7.02 Bn
8 JD JD.com, Inc. 42.35 Bn 9.36 0.23 15.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.15 1.64
EV to Cash from Ops. EV/CFO 2.22 10.76
EV to Debt EV to Debt 1.02 18.39
EV to EBIT EV/EBIT 1.73 20.59
EV to EBITDA EV/EBITDA 1.88 20.75
EV to Free Cash Flow [EV/FCF] EV/FCF 6.27 16.58
EV to Market Cap EV to Market Cap 0.10 -3.15
EV to Revenue EV/Rev 0.28 -4.05
Price to Book Value [P/B] P/B 2.73 5.50
Price to Earnings [P/E] P/E 22.47 36.85
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -93.84
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -203.90
Dividend per Basic Share Div per Share (Qtr) 0.00 0.08
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -3.46
Interest Coverage Int. cover (Qtr) 16.61 -1,581.43
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -163.43 -39.45
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -26.19 53.91
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 41.02 37.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.89 -62.59
EBIT Growth (1y) % EBIT 1y % (Qtr) 34.30 8.33
EBT Growth (1y) % EBT 1y % (Qtr) 36.05 -10.66
EPS Growth (1y) % EPS 1y % (Qtr) 50.11 13.44
FCF Growth (1y) % FCF 1y % (Qtr) -62.39 -46.02
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 13.38 23.19
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.08 1.17
Cash Payout Ratio Cash Payout Ratio 0.00 -0.04
Cash Ratio Cash Ratio (Qtr) 0.30 2.14
Current Ratio Curr Ratio (Qtr) 1.46 3.56
Debt to Equity Ratio Debt/Equity (Qtr) 0.27 0.52
Interest Cover Ratio Int Coverage (Qtr) 16.61 -1,581.43
Times Interest Earned Times Interest Earned (Qtr) 16.61 -1,581.43
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 20.60 4.40
EBIT Margin % EBIT Margin % (Qtr) 116.61 -36.99
EBT Margin % EBT Margin % (Qtr) 15.39 -40.80
Gross Margin % Gross Margin % (Qtr) 41.20 44.74
Net Profit Margin % Net Margin % (Qtr) 12.40 -40.62