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Alibaba Group Holding Ltd Ordinary Shares 09988

Morningstar Rating
HKD 77.10 0.00 (0.00%)
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Company Report

Alibaba Earnings: More Positive Outlook Despite Mixed Results; Raising Fair Value Estimate by 2%

Alibaba Group’s March-quarter revenue beat our estimate by 1% but missed our adjusted EBITA by 2%. We find management’s fiscal 2025 (ending March) outlook on gross merchandise volume, or GMV, growth, take rate (customer management revenue/GMV), and cloud revenue encouraging. We think the 6% share price correction during US trading hours after the results was due to the 5% year-on-year decline in adjusted EBITA amid higher investments. That said, we expect these investments to bring positive returns to Alibaba in the longer term.

Price vs Fair Value

09988 is trading at a 819% premium.
Price
HKD 76.95
Fair Value
HKD 91.00
Uncertainty
High
1-Star Price
HKD 755.12
5-Star Price
HKD 31.70
Economic Moat
Qxv
Capital Allocation
Cdcbblgx

Bulls Say, Bears Say

Bulls

Alibaba is able to maintain or increase its gross merchandise volume share in China's e-commerce space, demonstrating its ability to execute its turnaround strategy.

Bears

Alibaba's gross merchandise volume share in China decreases faster than our expectation as competitors such as Douyin successfully enter the search-based e-commerce business.

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News

Trading Information

Previous Close Price
HKD 77.10
Day Range
HKD 76.9078.10
52-Week Range
HKD 64.60100.00
Bid/Ask
HKD 77.05 / HKD 77.10
Market Cap
HKD 1.49 Tril
Volume/Avg
46.0 Mil / 54.2 Mil

Key Statistics

Price/Earnings (Normalized)
9.07
Price/Sales
1.52
Dividend Yield (Trailing)
1.27%
Dividend Yield (Forward)
1.27%
Total Yield
7.72%

Company Profile

Alibaba is the world’s largest online and mobile commerce company as measured by gross merchandise volume. It operates China’s online marketplaces, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer). The China commerce retail division is the most valuable cash flow-generating business at Alibaba. Additional revenue sources include China commerce wholesale, international commerce retail/wholesale, local consumer services, cloud computing, digital media and entertainment platforms, Cainiao logistics services, and innovation initiatives/other.
Sector
Consumer Cyclical
Industry
Internet Retail
Stock Style Box
Large Value
Total Number of Employees
204,891

Competitors

Valuation

Metric
09988
00700
BIDU
Price/Earnings (Normalized)
9.0720.828.25
Price/Book Value
1.384.030.98
Price/Sales
1.525.441.79
Price/Cash Flow
7.3117.336.70
Price/Earnings
09988
00700
BIDU

Financial Strength

Metric
09988
00700
BIDU
Quick Ratio
1.711.302.47
Current Ratio
1.801.472.79
Interest Coverage
93.0213.414.83
Quick Ratio
09988
00700
BIDU

Profitability

Metric
09988
00700
BIDU
Return on Assets (Normalized)
4.42%10.08%4.44%
Return on Equity (Normalized)
7.83%20.37%7.55%
Return on Invested Capital (Normalized)
7.04%12.97%3.95%
Return on Assets
09988
00700
BIDU
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