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NASDAQ:BIDU, an undervalued stock with good fundamentals.

By Mill Chart

Last update: Feb 22, 2024

Discover BAIDU INC - SPON ADR (NASDAQ:BIDU)—an undervalued stock our stock screener has picked out. NASDAQ:BIDU demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

How do we evaluate the Valuation 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:

  • Based on the Price/Earnings ratio of 10.36, the valuation of BIDU can be described as reasonable.
  • Based on the Price/Earnings ratio, BIDU is valued cheaply inside the industry as 89.23% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 26.00. BIDU is valued rather cheaply when compared to this.
  • BIDU is valuated reasonably with a Price/Forward Earnings ratio of 9.62.
  • 86.15% of the companies in the same industry are more expensive than BIDU, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of BIDU to the average of the S&P500 Index (21.38), we can say BIDU is valued rather cheaply.
  • Based on the Price/Free Cash Flow ratio, BIDU is valued cheaper than 95.38% of the companies 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.
  • BIDU has a very decent profitability rating, which 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.

A Closer Look at Profitability for NASDAQ:BIDU

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:

  • The Return On Assets of BIDU (5.37%) is better than 76.92% of its industry peers.
  • The Return On Equity of BIDU (9.11%) is better than 83.08% of its industry peers.
  • BIDU's Return On Invested Capital of 4.47% is fine compared to the rest of the industry. BIDU outperforms 72.31% of its industry peers.
  • The 3 year average ROIC (3.43%) for BIDU is below the current ROIC(4.47%), indicating increased profibility in the last year.
  • BIDU has a Profit Margin of 16.63%. This is amongst the best in the industry. BIDU outperforms 84.62% of its industry peers.
  • The Operating Margin of BIDU (15.87%) is better than 83.08% of its industry peers.
  • In the last couple of years the Gross Margin of BIDU has grown nicely.

Understanding NASDAQ:BIDU's Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:BIDU has earned a 5 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.
  • With a decent Debt to FCF ratio value of 2.35, BIDU is doing good in the industry, outperforming 76.92% of the companies in the same industry.
  • BIDU has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
  • Although BIDU does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
  • BIDU has a Current Ratio of 2.82. This indicates that BIDU is financially healthy and has no problem in meeting its short term obligations.
  • A Quick Ratio of 2.82 indicates that BIDU has no problem at all paying its short term obligations.

Assessing Growth for NASDAQ:BIDU

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:BIDU has earned a 6 for growth:

  • The Earnings Per Share has grown by an impressive 34.36% over the past year.
  • The Earnings Per Share is expected to grow by 17.08% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 9.62% on average over the next years. This is quite good.
  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of BIDU

Keep in mind

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.



NASDAQ:BIDU (4/22/2024, 4:20:00 PM)

After market: 97.24 0 (0%)


+2.19 (+2.3%)


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