Skip to Content

Alibaba Group Holding Ltd ADR BABA

Morningstar Rating
$79.65 +1.13 (1.44%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Alibaba May Increase Dividend Payout to Improve Capital Return to Shareholders

Alibaba is losing market share to PDD Holdings, or PDD, and Douyin in the China e-commerce business, and we don't see a quick fix in the near term. Alibaba's number of annual active consumers in the China retail marketplace was surpassed by PDD in the fiscal year ended March 2021. Meanwhile, Douyin has gained share from Alibaba especially in the beauty and apparel categories in recent years, and entered the traditional search-based e-commerce space, competing directly with Alibaba. The number of annual active consumers at Alibaba is close to the ceiling in China. Alibaba's gross merchandise volume to China's online retail sales of goods ratio was 62% in the year ended March 2023 at Alibaba, down from 72% in the year-ago period. We believe Alibaba's marketplace monetization rates will decline in the long run, due to mix-shift toward Taobao which has lower take rate compared with Tmall, and more competition.

Price vs Fair Value

BABA is trading at a 186% premium.
Price
$79.65
Fair Value
$87.00
Uncertainty
High
1-Star Price
$224.60
5-Star Price
$89.20
Economic Moat
Mhy
Capital Allocation
Txbtgxfd

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.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if BABA is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$78.52
Day Range
$79.4381.01
52-Week Range
$66.63102.50
Bid/Ask
$79.68 / $79.74
Market Cap
$189.25 Bil
Volume/Avg
14.9 Mil / 16.4 Mil

Key Statistics

Price/Earnings (Normalized)
9.17
Price/Sales
1.54
Dividend Yield (Trailing)
2.51%
Dividend Yield (Forward)
2.51%
Total Yield
8.95%

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
BABA
00700
03690
Price/Earnings (Normalized)
9.1721.6629.82
Price/Book Value
1.404.004.54
Price/Sales
1.545.662.51
Price/Cash Flow
7.3818.0326.20
Price/Earnings
BABA
00700
03690

Financial Strength

Metric
BABA
00700
03690
Quick Ratio
1.551.301.57
Current Ratio
1.791.471.82
Interest Coverage
6.6713.4110.27
Quick Ratio
BABA
00700
03690

Profitability

Metric
BABA
00700
03690
Return on Assets (Normalized)
4.42%10.08%8.68%
Return on Equity (Normalized)
7.83%20.37%16.49%
Return on Invested Capital (Normalized)
7.04%12.97%11.89%
Return on Assets
BABA
00700
03690
See how this stock stacks up to its competitors with Morningstar Investor

Internet Retail Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Amazon.com Inc
AMZN
PdxxjfhpgfLgxl$2.0 Tril
PDD Holdings Inc ADR
PDD
MsldzcmySrxpcxt$197.8 Bil
MercadoLibre Inc
MELI
XyymdcmyTyjt$89.3 Bil
JD.com Inc ADR
JD
QwswlphcNlg$43.9 Bil
Sea Ltd ADR
SE
JgttypwcTxz$42.4 Bil
eBay Inc
EBAY
YvdjrgnFrqgm$27.2 Bil
Chewy Inc
CHWY
NrkfsxqffDjnyq$11.6 Bil
Maplebear Inc
CART
QcswhfhgHbd$9.2 Bil
Etsy Inc
ETSY
KdmkxqkwJzzp$7.1 Bil

Sponsor Center