Alibaba Piotroski F Score

BABA -  USA Stock  

USD 87.69  0.38  0.44%

This module uses fundamental data of Alibaba Group to approximate its Piotroski F score. Alibaba Group F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of Alibaba Group Holding. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market and financial statement analysis.They believe that some of the new information about Alibaba Group financial position does not get reflected in the current market share price suggesting a possibility of arbitrage. Continue to Alibaba Group Altman Z Score, Alibaba Group Correlation, Alibaba Group Valuation, as well as analyze Alibaba Group Alpha and Beta and Alibaba Group Hype Analysis.
  
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Alibaba Group Issuance Repayment of Debt Securities is projected to based on the last few years of reporting. The past year's Issuance Repayment of Debt Securities was at 28.21 Billion. The current year Debt to Equity Ratio is expected to grow to 0.80, whereas Total Debt is forecasted to decline to about 137 B. Alibaba Group Book Value per Share is projected to increase significantly based on the last few years of reporting. The past year's Book Value per Share was at 398.94. The current year Current Ratio is expected to grow to 1.68, whereas Asset Turnover is forecasted to decline to 0.41.
At this time, it appears that Alibaba Group's Piotroski F Score is Strong. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
8.0
Piotroski F Score - Strong
1
Current Return On AssetsPositiveFocus
2
Change in Return on AssetsIncreasedFocus
3
Cash Flow Return on AssetsPositiveFocus
4
Current Quality of Earnings (accrual)ImprovingFocus
5
Asset Turnover GrowthDecreaseFocus
6
Current Ratio ChangeIncreaseFocus
7
Long Term Debt Over Assets ChangeLower LeverageFocus
8
Change In Outstending SharesDecreaseFocus
9
Change in Gross MarginIncreaseFocus

Alibaba Group Piotroski F Score Drivers

The critical factor to consider when applying the Piotroski F Score to Alibaba Group is to make sure Alibaba is not a subject of accounting manipulations and runs a healthy internal audit department. So, if Alibaba Group's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if Alibaba Group's financial numbers are properly reported.
Current ValueLast YearChange From Last Year 10 Year Trend
Weighted Average Shares24.5 B24.9 B
Fairly Down
Increasing
Slightly volatile
Weighted Average Shares Diluted25.1 B25.3 B
Slightly Down
Increasing
Slightly volatile
Net Cash Flow from Operations287.6 B266.6 B
Significantly Up
Increasing
Slightly volatile
Total Assets2097.2 B1943.8 B
Significantly Up
Increasing
Slightly volatile
Total Liabilities752.6 B697.6 B
Significantly Up
Increasing
Slightly volatile
Current Assets798.3 B739.9 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities468.2 B434 B
Significantly Up
Increasing
Slightly volatile
Total Debt137 B171.5 B
Significantly Down
Increasing
Slightly volatile
Return on Average Assets0.10.0882
Moderately Up
Decreasing
Slightly volatile
Gross Margin0.450.37
Fairly Up
Decreasing
Slightly volatile
Asset Turnover0.410.42
Fairly Down
Decreasing
Slightly volatile

Alibaba Group Holding F Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between Alibaba Group's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Alibaba Group in a much-optimized way.

About Alibaba Group Piotroski F Score

F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.

Book Value per Share

430.44

Share
Alibaba Group Book Value per Share is projected to increase significantly based on the last few years of reporting. The past year's Book Value per Share was at 398.94

Alibaba Group Current Valuation Drivers

We derive many important indicators used in calculating different scores of Alibaba Group from analyzing Alibaba Group's financial statements. These drivers represent accounts that assess Alibaba Group's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Alibaba Group's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Average Assets637.77 B876.11 B1,202.73 B1,532.07 B1,761.88 B1,900.98 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA94.65 B124.59 B195.7 B210.72 B242.33 B261.46 B
Earnings Before Interest Taxes and Depreciation Amortization USD14.97 B18.6 B27.96 B32.07 B36.88 B39.8 B
Earnings before Tax82.29 B104.44 B170 B179.86 B206.83 B223.16 B
Average Equity334.14 B441.95 B655.84 B885.16 B1,017.93 B1,098.3 B
Enterprise Value451.14 B461.37 B479.32 B585.09 B672.86 B571.47 B
Free Cash Flow106.18 B101.33 B147.87 B188.97 B217.32 B234.47 B
Invested Capital317.94 B368.52 B528.31 B777.15 B893.72 B964.28 B
Invested Capital Average273.56 B357.95 B475.97 B688.42 B791.68 B854.18 B
Market Capitalization464.24 B469.25 B511.92 B615.01 B707.26 B597.99 B
Tangible Asset Value527.51 B631.87 B975.26 B1,326.61 B1,525.61 B1,646.05 B
Working Capital121.05 B62.6 B221.05 B266 B305.9 B330.05 B

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.
Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to merchants, brands, retailers, and other businesses to engage with their users and customers in the Peoples Republic of China and internationally. The company was incorporated in 1999 and is based in Hangzhou, the Peoples Republic of China. Alibaba Group operates under Internet Retail classification in the United States and is traded on New York Stock Exchange. It employs 259316 people.

Alibaba Group Investors Sentiment

The influence of Alibaba Group's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Alibaba. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Alibaba Group Implied Volatility

    
  110.52  
Alibaba Group's implied volatility exposes the market's sentiment of Alibaba Group Holding stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Alibaba Group's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Alibaba Group stock will not fluctuate a lot when Alibaba Group's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Alibaba Group in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Alibaba Group's short interest history, or implied volatility extrapolated from Alibaba Group options trading.

Current Sentiment - BABA

Alibaba Group Holding Investor Sentiment

Majority of Macroaxis users are currently bullish on Alibaba Group Holding. What is your sentiment towards investing in Alibaba Group Holding? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish
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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.

Alibaba Group Pair Correlation

Correlation Analysis For Direct Indexing and Tax-loss Harvesting

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 equities. 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.
Pair CorrelationCorrelation Matching
Continue to Alibaba Group Altman Z Score, Alibaba Group Correlation, Alibaba Group Valuation, as well as analyze Alibaba Group Alpha and Beta and Alibaba Group Hype 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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When running Alibaba Group Holding 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 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.
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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.
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 Alibaba Group value 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.