Is the business good?
How good a business is BABA?
Alibaba Group Holding Limited earns 5.1% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
5.1%
Return on invested capital · cost of capital 9.0% · 3.9 points below what the capital costs: growth destroys value
- Operating margin
- 4.9%
Operating margin · Internet Retail median 7.6% · fiscal year to FY2026
- Share count, year on year
- −0.43%
Share count, year on year · flat: no meaningful dilution
- R&D as % of revenue
- 6.5%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2021 | 13% |
| FY2022 | 8.2% |
| FY2023 | 12% |
| FY2024 | 12% |
| FY2025 | 14% |
| FY2026 | 4.9% |
Details›
- Gross marginfiscal year to FY2026
- 40%
- Operating marginfiscal year to FY2026
- 4.9%
- Net marginfiscal year to FY2026
- 10%
- R&D as % of revenue
- 6.5%
- Revenue, trailing twelve months
- $1.02T
- Net income, trailing twelve months
- $103.6B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.1%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Internet Retail
Ranks #14 of 18 by Smart Score