Alibaba Group Holding Stock Profit Margin
| BABA Stock | USD 68.88 0.06 0.09% |
Alibaba Group Holding fundamentals help investors to digest information that contributes to Alibaba Group's financial success or failures. It also enables traders to predict the movement of Alibaba Stock. The fundamental analysis module provides a way to measure Alibaba Group's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Alibaba Group stock.
| Last Reported | Projected for Next Year | ||
| Net Profit Margin | 0.26 | 0.32 |
Alibaba | Profit Margin |
Alibaba Group Holding Company Profit Margin Analysis
Alibaba Group's Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Current Alibaba Group Profit Margin | 0.11 % |
Most of Alibaba Group's fundamental indicators, such as Profit Margin, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Alibaba Group Holding is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Alibaba Profit Margin Driver Correlations
Understanding the fundamental principles of building solid financial models for Alibaba Group is extremely important. It helps to project a fair market value of Alibaba Stock properly, considering its historical fundamentals such as Profit Margin. Since Alibaba Group's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Alibaba Group's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Alibaba Group's interrelated accounts and indicators.
Alibaba Profit Margin Historical Pattern
Today, most investors in Alibaba Group Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Alibaba Group's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's profit margin growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Alibaba Group profit margin as a starting point in their analysis.
Alibaba Group Profit Margin |
| Timeline |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
| Competition |
Alibaba Pretax Profit Margin
Pretax Profit Margin |
|
Based on the latest financial disclosure, Alibaba Group Holding has a Profit Margin of 0.1081%. This is 95.71% lower than that of the Internet & Direct Marketing Retail sector and significantly higher than that of the Consumer Discretionary industry. The profit margin for all United States stocks is 108.51% lower than that of the firm.
Alibaba Profit Margin Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Alibaba Group's direct or indirect competition against its Profit Margin to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Alibaba Group could also be used in its relative valuation, which is a method of valuing Alibaba Group by comparing valuation metrics of similar companies.Alibaba Group is currently under evaluation in profit margin category among related companies.
Alibaba Group ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Alibaba Group's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Alibaba Group's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
Alibaba Fundamentals
| Return On Equity | 0.0821 | ||||
| Return On Asset | 0.0443 | ||||
| Profit Margin | 0.11 % | ||||
| Operating Margin | 0.12 % | ||||
| Current Valuation | 1.11 T | ||||
| Shares Outstanding | 2.43 B | ||||
| Shares Owned By Insiders | 0.01 % | ||||
| Shares Owned By Institutions | 14.82 % | ||||
| Number Of Shares Shorted | 41.56 M | ||||
| Price To Earning | 112.48 X | ||||
| Price To Book | 1.24 X | ||||
| Price To Sales | 0.19 X | ||||
| Revenue | 868.69 B | ||||
| Gross Profit | 314.36 B | ||||
| EBITDA | 122.39 B | ||||
| Net Income | 72.78 B | ||||
| Cash And Equivalents | 193.09 B | ||||
| Cash Per Share | 185.57 X | ||||
| Total Debt | 161.35 B | ||||
| Debt To Equity | 0.18 % | ||||
| Current Ratio | 1.77 X | ||||
| Book Value Per Share | 404.24 X | ||||
| Cash Flow From Operations | 199.75 B | ||||
| Short Ratio | 3.05 X | ||||
| Earnings Per Share | 5.35 X | ||||
| Price To Earnings To Growth | 0.55 X | ||||
| Target Price | 106.33 | ||||
| Number Of Employees | 219.26 K | ||||
| Beta | 0.46 | ||||
| Market Capitalization | 170.2 B | ||||
| Total Asset | 1.75 T | ||||
| Retained Earnings | 599.03 B | ||||
| Working Capital | 312.62 B | ||||
| Current Asset | 134.07 B | ||||
| Current Liabilities | 52.04 B | ||||
| Annual Yield | 0.01 % | ||||
| Net Asset | 1.75 T | ||||
| Last Dividend Paid | 6.87 |
About Alibaba Group Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Alibaba Group Holding's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Alibaba Group using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Alibaba Group Holding based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Alibaba Group
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Alibaba Group position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Alibaba Group will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to Alibaba Group could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Alibaba Group when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Alibaba Group - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Alibaba Group Holding to buy it.
The correlation of Alibaba Group is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Alibaba Group moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Alibaba Group Holding moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Alibaba Group can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Alibaba Group Piotroski F Score and Alibaba Group Altman Z Score analysis. Note that the Alibaba Group Holding information on this page should be used as a complementary analysis to other Alibaba Group's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Complementary Tools for Alibaba Stock analysis
When running Alibaba Group's price analysis, check to measure Alibaba Group's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Alibaba Group is operating at the current time. Most of Alibaba Group's value examination focuses on studying past and present price action to predict the probability of Alibaba Group's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Alibaba Group's price. Additionally, you may evaluate how the addition of Alibaba Group to your portfolios can decrease your overall portfolio volatility.
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stocks Directory Find actively traded stocks across global markets |
Is Alibaba Group's industry 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 (0.68) | Dividend Share 6.869 | Earnings Share 5.35 | Revenue Per Share 363.638 | Quarterly Revenue Growth 0.051 |
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.
Please note, there is a significant difference between Alibaba Group's value and its price as these two are different measures arrived at by different 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.