BABA Alibaba Group Holding Limited - Fundamental Analysis
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BABA Stock | Fundamental Analysis & Investment Insights
NYSE
Consumer Cyclical
Internet Retail
Current Price
Live
$173.23
Analyst Target
$196.49
+13.4%
Upside
52W High
$192.67
52W Low
$89.22
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
65%
Analysis Accuracy
The Advanced Deterministic Scorecard reveals a mixed financial profile for Alibaba (BABA), with a weak Piotroski F-Score of 4/9 indicating suboptimal financial health, and no available Altman Z-Score limiting distress risk assessment. While valuation metrics appear favorable relative to peers—especially a Price/Sales of 0.41 and Forward P/E of 19.50—earnings growth is sharply negative (YoY EPS down 71%), and recent quarterly beats have reversed into consistent misses over the last four quarters. Strong insider sentiment and a bullish analyst consensus (strong_buy) contrast with deteriorating profitability and weak technical trends (10/100). The stock trades significantly above the Graham Number ($102.68) and intrinsic value estimate ($51.38), suggesting overvaluation unless growth rebounds materially.
Key Strengths
Attractive valuation multiples relative to sector: P/E (23.60) and Price/Sales (0.41) well below sector averages (Avg P/E: 49.05, Avg P/S: N/A but implied high)
Low debt burden with Debt/Equity of 0.27, well below sector average of 1.63, providing financial flexibility
Strong gross margin of 41.17%, reflecting pricing power and operational efficiency in core e-commerce
High cash conversion with ROE of 11.19% and ROA of 4.03%, above sector average ROE (9.52%) despite recent earnings decline
Bullish analyst sentiment: 42 analysts rate it 'strong_buy', suggesting confidence in turnaround or recovery
Key Risks
Weak Piotroski F-Score of 4/9 signals deteriorating financial health—penalizes health score per instructions
Earnings in freefall: YoY EPS growth down 71.0%, Q/Q down 70.4%, with last four quarters missing estimates by an average of -10.5%
Operating margin collapsed to 2.17%, indicating severe pressure in profitability despite stable gross margins
Technical trend is deeply bearish (10/100), suggesting negative momentum and weak near-term price action
Missing key financial data (EV, shares outstanding, cash/debt, ROIC, FCF) limits confidence in full health assessment
AI Fair Value Estimate
Based on comprehensive analysis
$102.68
-40.7% below current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare BABA against industry averages and similar companies
Insider Trading & Analyst Ratings
Track insider transactions and Wall Street analyst recommendations
Past News Coverage
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