Alibaba Group Holding Limited (NYSE:BABA) has a beta of 0.80, a 12-month trailing P/E ratio of 25.40, and a growth ratio of 6.83. The stock’s Relative Strength Index (RSI) is 46.92, with weekly volatility at 1.33% and ATR at 4.55. The BABA stock’s 52-week price range has touched low of $204.39 and a $319.32 high. Its shares traded lower over the last trading session, losing -0.97% on 06/07/21. The shares fell to a low of $215.69 before closing at $216.90. Intraday shares traded counted 9.83 million, which was 40.61% higher than its 30-day average trading volume of 16.55M. BABA’s previous close was $219.02 while the outstanding shares total 2.71B.
Investors have identified the Internet Retail company Alibaba Group Holding Limited as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $582.73 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Alibaba Group Holding Limited (BABA) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For BABA, the company has in raw cash 50.35 billion on their books with 2.31 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 91.61 billion total, with 54.89 billion as their total liabilities.
BABA were able to record 31.82 billion as free cash flow during the 08/19/2021 quarter of the year, this saw their quarterly net cash flow reduce by -2.67 billion. In cash movements, the company had a total of 31.82 billion as operating cash flow.
Potential earnings growth for Alibaba Group Holding Limited (BABA)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/19/2021 quarter of the year, Alibaba Group Holding Limited recorded a total of 33.88 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 31.55% coming in sequential stages and their sales for the 08/19/2021 quarter increasing by 32.6%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 18.59 billion trying to sell their products during the last quarter, with the result yielding a gross income of 15.3 billion. This allows shareholders to hold on to 2.71B with the recently reported earning now reading 4.40 cents per share. This is a figure that compared to analyst’s prediction for their 08/19/2021 (1.10 cents a share).
Having a look at the company’s valuation, the company is expected to record 12.85 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on BABA sounds very interesting.
Is the stock of BABA attractive?
In the last 6 months, insiders have changed their ownership in shares of company stock by 10.20%.
49 out of 56 analysts covering the stock have rated it a Buy, while 1 have maintained a Hold recommendation on Alibaba Group Holding Limited. 0 analysts has assigned a Sell rating on the BABA stock. The 12-month mean consensus price target for the company’s shares has been set at $297.81.