Shareholder returns and stock trends
Alibaba (BABA) has returned -1.9% in the last month and 76.3% in the last 12 months. The company’s stock has fallen 2.1% in the last five days. In the last 12 months, peers PayPal (PYPL), eBay (EBAY), Yelp (YELP), and Amazon (AMZN) have returned 83.1%, 22.8%, 29.7%, and 83.9%, respectively, to investors.
On March 26, 2018, Alibaba closed the trading day at $190.50. Based on this figure, here’s how the stock was trading in terms of its moving averages:
- 3.0% above its 100-day moving average of $185
- 0.79% above its 50-day moving average of $189
- 0.26% above its 20-day moving average of $190
A look at Alibaba’s debt position
Alibaba’s balance sheet reflects short-term debt and long-term debt of $0.9 billion and $18.9 billion, respectively, bringing its total debt to $19.9 billion. As the company reported total capital of $85.9 billion, its total-debt-to-total-capital ratio is 23.1%.
The company’s debt-to-assets, debt-to-equity, and debt-to-EBITDA (earnings before interest, tax, depreciation, and amortization) ratios work out to 0.18, 36.9, and 1.5, respectively. Its interest coverage ratio is 89.6x, and its debt-to-EV[1.enterprise value] ratio is 4%.
Of the 47 analysts covering Alibaba, 46 have recommended “buy,” and one has recommended “hold.” There were no “sell” recommendations, Analysts’ stock price target for the company is $223.40, and their median price target is $224.50.
Examining Alibaba’s cash flow metrics
Alibaba has $34.4 billion in cash in hand. Its price-to-cash-flow and price-to-free-cash-flow ratios are 25.3x and 25.3x, respectively. In the last 12 months, the company has had an EV-to-cash-flow ratio of 25.2x and an EV-to-free-cash-flow ratio of 26.1x.
Alibaba is the second-largest Internet player in terms of market capitalization, at ~$ 487.9 billion, In comparison, peers PayPal, eBay, Yelp, and Amazon have market caps of ~$94.8 billion, ~$86.5 billion, ~$41.5 billion, and ~$753.2 billion, respectively.