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For those who appreciate value investing, NASDAQ:BIDU is a compelling option with its solid fundamentals.

By Mill Chart

Last update: Nov 29, 2023

Our stock screener has spotted BAIDU INC - SPON ADR (NASDAQ:BIDU) as an undervalued stock with solid fundamentals. NASDAQ:BIDU shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Valuation Assessment of NASDAQ:BIDU

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:BIDU was assigned a score of 8 for valuation:

  • Based on the Price/Earnings ratio of 11.50, the valuation of BIDU can be described as reasonable.
  • BIDU's Price/Earnings ratio is rather cheap when compared to the industry. BIDU is cheaper than 87.30% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 24.46. BIDU is valued rather cheaply when compared to this.
  • The Price/Forward Earnings ratio is 10.57, which indicates a very decent valuation of BIDU.
  • BIDU's Price/Forward Earnings ratio is rather cheap when compared to the industry. BIDU is cheaper than 80.95% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 19.59. BIDU is valued slightly cheaper when compared to this.
  • Based on the Enterprise Value to EBITDA ratio, BIDU is valued cheaply inside the industry as 93.65% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of BIDU indicates a rather cheap valuation: BIDU is cheaper than 98.41% of the companies listed in the same industry.
  • BIDU's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of BIDU may justify a higher PE ratio.
  • BIDU's earnings are expected to grow with 14.19% in the coming years. This may justify a more expensive valuation.

Exploring NASDAQ:BIDU's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:BIDU, the assigned 7 is a significant indicator of profitability:

  • With a decent Return On Assets value of 5.37%, BIDU is doing good in the industry, outperforming 79.37% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 9.11%, BIDU belongs to the top of the industry, outperforming 84.13% of the companies in the same industry.
  • With a decent Return On Invested Capital value of 4.47%, BIDU is doing good in the industry, outperforming 73.02% of the companies in the same industry.
  • The 3 year average ROIC (3.43%) for BIDU is below the current ROIC(4.47%), indicating increased profibility in the last year.
  • The Profit Margin of BIDU (16.63%) is better than 87.30% of its industry peers.
  • Looking at the Operating Margin, with a value of 15.87%, BIDU belongs to the top of the industry, outperforming 84.13% of the companies in the same industry.
  • BIDU's Gross Margin has improved in the last couple of years.

Health Analysis for NASDAQ:BIDU

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:BIDU has achieved a 6 out of 10:

  • BIDU has a debt to FCF ratio of 2.35. This is a good value and a sign of high solvency as BIDU would need 2.35 years to pay back of all of its debts.
  • BIDU has a better Debt to FCF ratio (2.35) than 80.95% of its industry peers.
  • A Debt/Equity ratio of 0.29 indicates that BIDU is not too dependend on debt financing.
  • Even though the debt/equity ratio score it not favorable for BIDU, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
  • A Current Ratio of 2.82 indicates that BIDU has no problem at all paying its short term obligations.
  • BIDU has a Current ratio of 2.82. This is in the better half of the industry: BIDU outperforms 61.90% of its industry peers.
  • A Quick Ratio of 2.82 indicates that BIDU has no problem at all paying its short term obligations.
  • BIDU has a better Quick ratio (2.82) than 61.90% of its industry peers.

Exploring NASDAQ:BIDU's Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:BIDU boasts a 6 out of 10:

  • The Earnings Per Share has grown by an impressive 34.36% over the past year.
  • The Earnings Per Share is expected to grow by 15.39% on average over the next years. This is quite good.
  • BIDU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.94% yearly.
  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Check the latest full fundamental report of BIDU for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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BAIDU INC - SPON ADR

NASDAQ:BIDU (2/23/2024, 7:00:01 PM)

After market: 111.58 +0.22 (+0.2%)

111.36

+0.77 (+0.7%)

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