Alibaba Group HoldingMEX:9988N 79 Gross Margin % is 34.51% as of Mar. 2026, which is 15% below its 10-year median of 40.62. GuruFocus rates MEX:9988N with a GF Score™ of 79/100 and a GF Value™ of MXN266.17 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,117 Retail - Cyclical companies, Alibaba Group Holding ranks better than 57.56% on this metric.
MEX:9988N's Gross Margin % is ranked better than 57.56% of 1117
companies
in the Retail - Cyclical industry
Industry Median: 36.23
vs MEX:9988N: 39.76
Alibaba Group Holding had a gross margin of 34.51% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Alibaba Group Holding was 0.30% per year.
Alibaba Group Holding (MEX:9988N) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Alibaba Group Holding had a gross margin of 34.51% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Alibaba Group Holding Gross Margin % Related Terms
Alibaba Group Holding Gross Margin % Historical Data
* Premium members only.
The historical data trend for Alibaba Group Holding's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:9988N vs PDD, MELI, DASH: Gross Margin % Comparison
For the Internet Retail subindustry, Alibaba Group Holding's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Alibaba Group Holding Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Alibaba Group Holding's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Alibaba Group Holding's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Alibaba Group Holding (MEX:9988N) has a Gross Margin % of 34.51% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Alibaba Group Holding and its competitors. This is 15% below median its historical median of 40.62. Over the past decade, Alibaba Group Holding's Gross Margin % has ranged from 36.72 to 62.42. According to the industry distribution chart, Alibaba Group Holding ranks #474 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 42.4%.
Is Alibaba Group Holding's Gross Margin % too high?
Alibaba Group Holding's current Gross Margin % of 34.51% is 15% below median its 10-year median of 40.62. Over the past 10 years, this metric has ranged from a low of 36.72 to a high of 62.42. The Retail - Cyclical industry median Gross Margin % is 36.23. Alibaba Group Holding's value of 34.51% is 4.7% below this industry median. Based on the distribution chart, Alibaba Group Holding ranks #474 out of 1117 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Alibaba Group Holding has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alibaba Group Holding's Gross Margin % compare to PDD and MELI?
According to the Retail - Cyclical industry distribution chart, Alibaba Group Holding ranks #474 out of 1117 companies for Gross Margin %. This puts Alibaba Group Holding in the upper half of its industry. The industry median Gross Margin % is 36.23. Alibaba Group Holding's value of 34.51% is 4.7% below this benchmark. Historically, Alibaba Group Holding's own Gross Margin % has ranged from 36.72 to 62.42 over the past decade. While the company's 10-year median is 40.62 vs. the industry median of 36.23, Alibaba Group Holding has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.23, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alibaba Group Holding's current Gross Margin % of 34.51% is 4.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Alibaba Group Holding and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alibaba Group Holding's current Gross Margin % is 34.51%, which is 15% below median its own 10-year median of 40.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alibaba Group Holding stock overvalued right now?
Based on GuruFocus' analysis, Alibaba Group Holding (MEX:9988N) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN266.17, compared to a current price of MXN223.22 — trading 16.1% below its estimated fair value. The current Gross Margin % is 34.51%, which is 15% below median its 10-year median of 40.62 and 4.7% below the Retail - Cyclical industry median of 36.23. Alibaba Group Holding's overall GF Score™ is 79/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Alibaba Group Holding (MEX:9988N), the current Gross Margin % is 34.51% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Alibaba Group Holding (MEX:9988N) Overvalued in 2026?
Based on GuruFocus' analysis, Alibaba Group Holding stock appears to be undervalued.
The current stock price of MXN223.22 is trading 16.1% below its estimated GF Value™ of MXN266.17.
GuruFocus considers Alibaba Group Holding to be Modestly Undervalued.
Key valuation signals for MEX:9988N:
Gross Margin %: 34.51% (15% below median its 10-year median of 40.62)
GF Value™: MXN266.17 vs. price of MXN223.22 (16.1% below fair value)
Industry Position: 4.7% below the Retail - Cyclical median (#474 of 1117)
No single metric tells the full story. See the MEX:9988N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alibaba is the world's largest online and mobile commerce company as measured by gross merchandise volume. It operates China's online marketplaces, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer). The China retail e-commerce platform is the most valuable cash flow-generating business at Alibaba. Additional revenue sources include China wholesale e-commerce, international retail and wholesale e-commerce, local consumer services, travel services, cloud computing, digital media and entertainment, Cainiao logistics services, and other businesses.
79GF Score
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