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Alibaba Group Holding Ltd (BABAF) stock analysis

BABAFOTCServices-Business Services, NECAlso trades as BABA, BBAAY
Financials through fiscal 2026, year ended Mar 31, 2026Last filing: 20-F on May 20, 2026Score 6/30
$13.46−0.33 (-2.39%)

Close on Oct 19, 2026Market cap $251.00BP/E 16.3Yield –

StockData Score

Prices as of Nov 4, 2026How the score works

Value0Growth1Performance3Health2Dividend0

Weak6 of 30 checks passed

Alibaba passes 6 of the 30 checks behind our score; 16 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
0/6
Growth
1/6
Past performance
3/6
Financial health
2/6
Dividend
0/6

What stands out

  • EPS growing 10%+ a year

    Diluted EPS grew 17.0% a year over the last three fiscal years.

  • Interest well covered

    Operating income covers interest expense 5.1 times.

  • Return on equity above the industry

    Alibaba's return on equity of 10.0% is above the Miscellaneous Business Services median of 5.8%.

  • Net margin above its 5-year average

    Net margin was 10.1% over the last twelve months, against a 5-year average of 9.5%.

What to watch

  • Return on equity under 15%

    Return on equity was 10.0% over the last twelve months and averaged 9.0% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was 5.5%, below the 10% that usually covers the cost of capital.

  • Earnings shrank over 5 years

    Net income shrank 7.2% a year on average over the last five fiscal years.

  • Revenue growing under 10% a year

    Revenue grew 5.6% a year over the last three fiscal years, short of the 10% we look for.

Valuation0/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E against the industry

    Needs positive earnings and enough profitable companies in the industry.

  • EV/EBITDA against its history

    Needs positive EBITDA and price history.

  • P/B against the industry

    Needs positive book value.

  • Price against fair value

    We could not estimate a fair value: it needs at least two valuation methods with positive inputs.

  • Margin of safety

    Depends on the fair value estimate.

Growth1/6

  • Revenue growing under 10% a year

    Revenue grew 5.6% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growing 10%+ a year

    Diluted EPS grew 17.0% a year over the last three fiscal years.

  • Earnings growth not accelerating

    Net income grew -20.4% over the last twelve months, against a 5-year average of -7.2% a year.

  • Growing slower than the industry

    Revenue grew 2.7% over the last twelve months; the Miscellaneous Business Services median is 9.7%.

  • Company guidance

    No outlook found in earnings releases from the last twelve months.

  • Gross margin slipping

    Gross margin was 39.8% over the last twelve months, against 40.0% a year earlier.

Past performance3/6

  • Return on equity under 15%

    Return on equity was 10.0% over the last twelve months and averaged 9.0% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was 5.5%, below the 10% that usually covers the cost of capital.

  • Return on equity above the industry

    Alibaba's return on equity of 10.0% is above the Miscellaneous Business Services median of 5.8%.

  • Earnings shrank over 5 years

    Net income shrank 7.2% a year on average over the last five fiscal years.

  • Net margin above its 5-year average

    Net margin was 10.1% over the last twelve months, against a 5-year average of 9.5%.

  • Net margin above the industry

    Alibaba's net margin of 10.1% is above the Miscellaneous Business Services median of 4.1%.

Financial health2/6

  • Debt level

    Needs debt and equity figures.

  • Debt trend

    Needs a balance sheet from five years ago with positive equity.

  • Debt coverage

    Needs operating cash flow.

  • Interest well covered

    Operating income covers interest expense 5.1 times.

  • Short-term assets cover short-term debts

    Current assets are 1.28 times current liabilities.

  • Bankruptcy risk (Altman Z)

    Needs market value, working capital and retained earnings.

Dividend0/6

  • No dividend

    Alibaba has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

We don't publish a fair value for Alibaba. It needs a US-dollar share price, at least two valuation methods with positive inputs (earnings, EBITDA, book value or sales) and, for companies with several share classes, classes that trade at the same price.

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$881.25M
Value traded per 1% price move
$700.36M

Downside

Medium risk

Typical loss in a bad month
23.3%
Volatility (annualized)
41%
Sharpe ratio, 1 year
-1.02
Beta to the S&P 500 (5Y)
0.94

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2012 to 2026

Gross margin

39.8%−1.5 pts over 5 years

Operating margin

4.9%−7.6 pts over 5 years

Net margin

10.1%−10.9 pts over 5 years

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