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.

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.

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.

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.

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.

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.