Is Alibaba Group Stock a Good Investment?
Alibaba Group Investment Advice | BABA |
- Examine Alibaba Group's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Alibaba Group's leadership team and their track record. Good management can help Alibaba Group navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Broadline Retail space and any emerging trends that could impact Alibaba Group's business and its evolving consumer preferences.
- Compare Alibaba Group's performance and market position to its competitors. Analyze how Alibaba Group is positioned in terms of product offerings, innovation, and market share.
- Check if Alibaba Group pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Alibaba Group's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Alibaba Group Holding stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Alibaba Group Holding is a good investment.
Sell | Buy |
Sell
Market Performance | Insignificant | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Alibaba Group Stock
Researching Alibaba Group's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 16.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.54. Some equities with similar Price to Book (P/B) outperform the market in the long run. Alibaba Group Holding has Price/Earnings To Growth (PEG) ratio of 0.62. The entity last dividend was issued on the 13th of June 2024.
To determine if Alibaba Group is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Alibaba Group's research are outlined below:
| Latest headline from gurufocus.com: Alibaba and Baidu Lead Gains in Mixed Performance of Chinese Stocks |
Alibaba Group Quarterly Liabilities And Stockholders Equity |
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Alibaba Group uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Alibaba Group Holding. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Alibaba Group's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 7th of February 2024 Upcoming Quarterly Report | View | |
| 16th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 16th of May 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of March 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Alibaba Group's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Alibaba Group's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2015-05-07 | 2015-03-31 | 0.42 | 0.48 | 0.06 | 14 | ||
2016-11-02 | 2016-09-30 | 4.68 | 5.26 | 0.58 | 12 | ||
2016-05-05 | 2016-03-31 | 3.6 | 3.02 | -0.58 | 16 | ||
2016-01-28 | 2015-12-31 | 5.78 | 6.43 | 0.65 | 11 | ||
2016-08-11 | 2016-06-30 | 4.16 | 4.9 | 0.74 | 17 | ||
2017-01-24 | 2016-12-31 | 7.74 | 9.02 | 1.28 | 16 | ||
2023-05-18 | 2023-03-31 | 9.42 | 10.71 | 1.29 | 13 | ||
2022-08-04 | 2022-06-30 | 10.39 | 11.68 | 1.29 | 12 |
Know Alibaba Group's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Alibaba Group is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Alibaba Group Holding backward and forwards among themselves. Alibaba Group's institutional investor refers to the entity that pools money to purchase Alibaba Group's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Hillhouse Capital Advisors, Ltd. | 2024-09-30 | 8.8 M | T. Rowe Price Associates, Inc. | 2024-06-30 | 8.6 M | Jane Street Group Llc | 2024-06-30 | 8.6 M | Assenagon Asset Management Sa | 2024-09-30 | 6.1 M | Norges Bank | 2024-06-30 | 5.6 M | H&h International Investment, Llc | 2024-09-30 | 5.4 M | Loomis, Sayles & Company Lp | 2024-06-30 | 5.1 M | Fisher Asset Management, Llc | 2024-09-30 | 5 M | Alyeska Investment Group, L.p. | 2024-09-30 | 3.9 M | Primecap Management Company | 2024-09-30 | 21.9 M | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 21.5 M |
Alibaba Group's market capitalization trends
The company currently falls under 'Mega-Cap' category with a current market capitalization of 204.69 B.Market Cap |
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Alibaba Group's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.05 | 0.12 | |
| Return On Capital Employed | 0.08 | 0.24 | |
| Return On Assets | 0.05 | 0.12 | |
| Return On Equity | 0.08 | 0.26 |
Determining Alibaba Group's profitability involves analyzing its financial statements and using various financial metrics to determine if Alibaba Group is a good buy. For example, gross profit margin measures Alibaba Group's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Alibaba Group's profitability and make more informed investment decisions.
Please note, the presentation of Alibaba Group's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Alibaba Group's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Alibaba Group's management manipulating its earnings.
Evaluate Alibaba Group's management efficiency
Alibaba Group Holding has return on total asset (ROA) of 0.0468 % which means that it generated a profit of $0.0468 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.0567 %, meaning that it created $0.0567 on every $100 dollars invested by stockholders. Alibaba Group's management efficiency ratios could be used to measure how well Alibaba Group manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Tangible Assets is expected to grow to 0.12. The current year's Return On Capital Employed is expected to grow to 0.24. At present, Alibaba Group's Total Assets are projected to increase significantly based on the last few years of reporting. The current year's Non Current Assets Total is expected to grow to about 1.1 T, whereas Non Currrent Assets Other are forecasted to decline to about 26.3 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 434.48 | 1.15 | |
| Tangible Book Value Per Share | 322.55 | 1.03 | |
| Enterprise Value Over EBITDA | 8.02 | 1,767 | |
| Price Book Value Ratio | 1.38 | 542.13 | |
| Enterprise Value Multiple | 8.02 | 1,767 | |
| Price Fair Value | 1.38 | 542.13 | |
| Enterprise Value | 1.3 T | 3.1 T |
Alibaba Group's management has consistently demonstrated strong leadership, driving both financial growth and operational excellence. By analyzing current market trends and future growth opportunities, we assess the stock's true value and potential for investors.
Dividend Yield 0.0221 | Forward Dividend Yield 0.0221 | Forward Dividend Rate 2 | Beta 0.349 |
Basic technical analysis of Alibaba Stock
As of the 28th of November, Alibaba Group shows the Mean Deviation of 2.03, downside deviation of 2.43, and Risk Adjusted Performance of 0.0346. Alibaba Group Holding technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Alibaba Group's Outstanding Corporate Bonds
Alibaba Group issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Alibaba Group Holding uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Alibaba bonds can be classified according to their maturity, which is the date when Alibaba Group Holding has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| BABA 325 09 FEB 61 Corp BondUS01609WBA99 | View | |
| BABA 315 09 FEB 51 Corp BondUS01609WAZ59 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| BABA 27 09 FEB 41 Corp BondUS01609WAY84 | View | |
| BABA 2125 09 FEB 31 Corp BondUS01609WAX02 | View | |
| ALIBABA GROUP HLDG Corp BondUS01609WAW29 | View | |
| ALIBABA GROUP HLDG Corp BondUS01609WAV46 | View | |
| ALIBABA GROUP HLDG Corp BondUS01609WAT99 | View |
Understand Alibaba Group's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Alibaba Group's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0346 | |||
| Market Risk Adjusted Performance | 0.2054 | |||
| Mean Deviation | 2.03 | |||
| Semi Deviation | 2.37 | |||
| Downside Deviation | 2.43 | |||
| Coefficient Of Variation | 2795.73 | |||
| Standard Deviation | 2.81 | |||
| Variance | 7.89 | |||
| Information Ratio | (0.01) | |||
| Jensen Alpha | 0.0347 | |||
| Total Risk Alpha | (0.35) | |||
| Sortino Ratio | (0.01) | |||
| Treynor Ratio | 0.1954 | |||
| Maximum Drawdown | 16.74 | |||
| Value At Risk | (3.81) | |||
| Potential Upside | 4.82 | |||
| Downside Variance | 5.89 | |||
| Semi Variance | 5.62 | |||
| Expected Short fall | (2.33) | |||
| Skewness | 0.7442 | |||
| Kurtosis | 2.56 |
| Risk Adjusted Performance | 0.0346 | |||
| Market Risk Adjusted Performance | 0.2054 | |||
| Mean Deviation | 2.03 | |||
| Semi Deviation | 2.37 | |||
| Downside Deviation | 2.43 | |||
| Coefficient Of Variation | 2795.73 | |||
| Standard Deviation | 2.81 | |||
| Variance | 7.89 | |||
| Information Ratio | (0.01) | |||
| Jensen Alpha | 0.0347 | |||
| Total Risk Alpha | (0.35) | |||
| Sortino Ratio | (0.01) | |||
| Treynor Ratio | 0.1954 | |||
| Maximum Drawdown | 16.74 | |||
| Value At Risk | (3.81) | |||
| Potential Upside | 4.82 | |||
| Downside Variance | 5.89 | |||
| Semi Variance | 5.62 | |||
| Expected Short fall | (2.33) | |||
| Skewness | 0.7442 | |||
| Kurtosis | 2.56 |
Consider Alibaba Group's intraday indicators
Alibaba Group intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Alibaba Group stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Alibaba Group Corporate Filings
6K | 22nd of November 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges. | ViewVerify |
13A | 14th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
Alibaba Stock media impact
Far too much social signal, news, headlines, and media speculation about Alibaba Group that are available to investors today. That information is available publicly through Alibaba media outlets and privately through word of mouth or via Alibaba internal channels. However, regardless of the origin, that massive amount of Alibaba data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Alibaba Group news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Alibaba Group relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Alibaba Group's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Alibaba Group alpha.
Alibaba Group Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Alibaba Group can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Alibaba Group Holding Historical Investor Sentiment
Investor biases related to Alibaba Group's public news can be used to forecast risks associated with an investment in Alibaba. The trend in average sentiment can be used to explain how an investor holding Alibaba can time the market purely based on public headlines and social activities around Alibaba Group Holding. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Alibaba Group's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Alibaba Group and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Alibaba Group news discussions. The higher the estimate score, the more favorable the investor's outlook on Alibaba Group.
Alibaba Group Corporate Directors
| Wan Martello | Independent Director | Profile | |
| TehMing Kwauk | Independent Director | Profile | |
| Xiandong Jing | Director | Profile | |
| ChihYuan Yang | Independent Director | Profile |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Alibaba Group Holding. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Is Broadline Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Alibaba Group. If investors know Alibaba will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Alibaba Group listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.26) | Earnings Share 4.86 | Revenue Per Share 382.182 | Quarterly Revenue Growth 0.039 | Return On Assets 0.0468 |
The market value of Alibaba Group Holding is measured differently than its book value, which is the value of Alibaba that is recorded on the company's balance sheet. Investors also form their own opinion of Alibaba Group's value that differs from its market value or its book value, called intrinsic value, which is Alibaba Group's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Alibaba Group's market value can be influenced by many factors that don't directly affect Alibaba Group's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Alibaba Group's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Alibaba Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alibaba Group's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.