Now trading at a price of $83.13, Alibaba has moved -2.9% so far today.
Alibaba returned gains of 7.2% last year, with its stock price reaching a high of $117.82 and a low of $66.63. Over the same period, the stock underperformed the S&P 500 index by -24.0%. The company's 50-day average price was $98.42. Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally. Based in Hangzhou, China, the Large-Cap Consumer Discretionary company has 198,162 full time employees. Alibaba has not offered a dividend during the last year.
Generally Positive Cash Flows but a Declining EPS Growth Trend:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $56,152 | $45,483 | $109,480 | $134,567 | $126,491 | $130,350 |
| Operating Margins | 15% | 16% | 13% | 8% | 12% | 12% |
| Net Margins | 23% | 25% | 21% | 7% | 8% | 9% |
| Net Income (M) | $13,095 | $11,254 | $22,983 | $9,820 | $10,598 | $11,081 |
| Net Interest Expense (M) | $773 | $328 | $683 | $774 | $862 | $1,101 |
| Depreciation & Amort. (M) | $14,818 | $1,432 | $3,284 | $3,195 | $2,787 | $2,474 |
| Diluted Shares (M) | 21,084 | 21,943 | 21,982 | 21,787 | 21,114 | 20,359 |
| Earnings Per Share | $4.97 | $4.1 | $8.36 | $3.61 | $4.02 | $4.35 |
| EPS Growth | n/a | -17.51% | 103.9% | -56.82% | 11.36% | 8.21% |
| Free Cash Flow (M) | $17,678 | $11,657 | $39,406 | $26,906 | $33,133 | $25,289 |
| CAPEX (M) | $4,818 | $3,719 | $4,028 | $4,386 | $4,047 | n/a |
| Current Ratio | 1.3 | 1.99 | 1.7 | 1.66 | 1.81 | 1.79 |
an Exceptionally Low P/B Ratio but Priced at a Premium:
Alibaba has a trailing twelve month P/E ratio of 20.3, compared to an average of 22.6 for the Consumer Discretionary sector. Based on its EPS guidance of $9.87, the company has a forward P/E ratio of 10.0. The 10.3% compound average growth rate of Alibaba's historical and projected earnings per share yields a PEG ratio of 1.97. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Alibaba in terms of its equity because its P/B ratio is 0.21 while the sector average is 3.19. The company's shares are currently trading 224.3% below their Graham number.
Analysts Give Alibaba an Average Rating of Buy:
The 43 analysts following Alibaba have set target prices ranging from $612.952 to $1054.519 per share, for an average of $870.9 with a buy rating. The company is trading -90.5% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Alibaba has an average amount of shares sold short because 3.1% of the company's shares are sold short. Institutions own 16.1% of the company's shares, and the insider ownership rate stands at 0.01%, suggesting a small amount of insider investors. The largest shareholder is Primecap Management Company, whose 1% stake in the company is worth $1,822,006,037.
