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In the world of growth stocks, NASDAQ:BIDU shines as a value proposition.

By Mill Chart

Last update: Feb 1, 2024

Uncover the potential of BAIDU INC - SPON ADR (NASDAQ:BIDU), a growth stock that our stock screener found to be reasonably priced. NASDAQ:BIDU is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

Growth Insights: NASDAQ:BIDU

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:BIDU has received a 7 out of 10:

  • The Earnings Per Share has grown by an impressive 34.36% over the past year.
  • BIDU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.08% yearly.
  • The Revenue is expected to grow by 62.98% on average over the next years. This is a very strong growth
  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Valuation Examination for NASDAQ:BIDU

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:BIDU has received a 8 out of 10:

  • With a Price/Earnings ratio of 10.16, the valuation of BIDU can be described as very reasonable.
  • 87.69% of the companies in the same industry are more expensive than BIDU, based on the Price/Earnings ratio.
  • BIDU's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.93.
  • With a Price/Forward Earnings ratio of 9.43, the valuation of BIDU can be described as very reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of BIDU indicates a rather cheap valuation: BIDU is cheaper than 87.69% of the companies listed in the same industry.
  • BIDU's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.16.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of BIDU indicates a rather cheap valuation: BIDU is cheaper than 95.38% of the companies listed in the same industry.
  • The 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.
  • A more expensive valuation may be justified as BIDU's earnings are expected to grow with 13.58% in the coming years.

Assessing Health Metrics for NASDAQ:BIDU

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:BIDU, the assigned 5 for health provides valuable insights:

  • The Debt to FCF ratio of BIDU is 2.35, which is a good value as it means it would take BIDU, 2.35 years of fcf income to pay off all of its debts.
  • BIDU's Debt to FCF ratio of 2.35 is fine compared to the rest of the industry. BIDU outperforms 76.92% 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 Quick Ratio of 2.82. This indicates that BIDU is financially healthy and has no problem in meeting its short term obligations.

What does the Profitability looks like for NASDAQ:BIDU

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:BIDU scores a 7 out of 10:

  • BIDU has a better Return On Assets (5.37%) than 76.92% of its industry peers.
  • With an excellent Return On Equity value of 9.11%, BIDU belongs to the best of the industry, outperforming 83.08% of the companies in the same industry.
  • The Return On Invested Capital of BIDU (4.47%) is better than 72.31% of its industry peers.
  • The last Return On Invested Capital (4.47%) for BIDU is above the 3 year average (3.43%), which is a sign of increasing profitability.
  • BIDU has a better Profit Margin (16.63%) than 86.15% of its industry peers.
  • BIDU's Operating Margin of 15.87% is amongst the best of the industry. BIDU outperforms 83.08% of its industry peers.
  • BIDU's Gross Margin has improved in the last couple of years.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Our latest full fundamental report of BIDU contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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BAIDU INC - SPON ADR

NASDAQ:BIDU (4/26/2024, 7:00:00 PM)

After market: 100.75 +0.23 (+0.23%)

100.52

+0.62 (+0.62%)

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