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NASDAQ:BIDU appears to be flying under the radar despite its strong fundamentals.

By Mill Chart

Last update: Jun 12, 2024

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.


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How do we evaluate the Valuation for NASDAQ:BIDU?

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:BIDU scores a 7 out of 10:

  • With a Price/Earnings ratio of 8.04, the valuation of BIDU can be described as very reasonable.
  • Based on the Price/Earnings ratio, BIDU is valued cheaply inside the industry as 89.55% of the companies are valued more expensively.
  • BIDU's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.24.
  • Based on the Price/Forward Earnings ratio of 7.76, the valuation of BIDU can be described as very cheap.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of BIDU indicates a rather cheap valuation: BIDU is cheaper than 85.07% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 19.93. BIDU is valued rather cheaply when compared to this.
  • 97.01% of the companies in the same industry are more expensive than BIDU, based on the Price/Free Cash Flow ratio.
  • The decent profitability rating of BIDU may justify a higher PE ratio.

Looking at the Profitability

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 6 out of 10:

  • BIDU has a Return On Assets of 4.63%. This is in the better half of the industry: BIDU outperforms 76.12% of its industry peers.
  • BIDU has a Return On Equity of 7.75%. This is in the better half of the industry: BIDU outperforms 79.10% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 5.10%, BIDU is in the better half of the industry, outperforming 79.10% of the companies in the same industry.
  • The 3 year average ROIC (3.96%) for BIDU is below the current ROIC(5.10%), indicating increased profibility in the last year.
  • BIDU's Profit Margin of 14.24% is amongst the best of the industry. BIDU outperforms 80.60% of its industry peers.
  • BIDU has a Operating Margin of 16.57%. This is amongst the best in the industry. BIDU outperforms 83.58% of its industry peers.

A Closer Look at Health for NASDAQ:BIDU

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:BIDU was assigned a score of 5 for health:

  • The Debt to FCF ratio of BIDU is 2.20, which is a good value as it means it would take BIDU, 2.20 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 2.20, BIDU is in the better half of the industry, outperforming 73.13% of the companies in the same industry.
  • A Debt/Equity ratio of 0.29 indicates that BIDU is not too dependend on debt financing.
  • 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 2.79. This indicates that BIDU is financially healthy and has no problem in meeting its short term obligations.
  • BIDU has a better Current ratio (2.79) than 62.69% of its industry peers.
  • A Quick Ratio of 2.79 indicates that BIDU has no problem at all paying its short term obligations.
  • BIDU has a better Quick ratio (2.79) than 62.69% of its industry peers.

Growth Assessment of 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 6 out of 10:

  • BIDU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.22%, which is quite impressive.
  • BIDU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.65% yearly.
  • Based on estimates for the next years, BIDU will show a quite strong growth in Revenue. The Revenue will grow by 10.19% on average per year.
  • 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.
  • 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.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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BAIDU INC - SPON ADR

NASDAQ:BIDU (7/12/2024, 5:40:31 PM)

After market: 99.3 +0.23 (+0.23%)

99.07

-1.6 (-1.59%)

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