BAIDU INC - SPON ADR (BIDU) Stock Fundamental Analysis
NASDAQ:BIDU - Nasdaq - US0567521085 - ADR - Currency: USD
BIDU gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 71 industry peers in the Interactive Media & Services industry. BIDU scores excellent on profitability, but there are some minor concerns on its financial health. BIDU is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BIDU was profitable.
In the past year BIDU had a positive cash flow from operations.
BIDU had positive earnings in each of the past 5 years.
Each year in the past 5 years BIDU had a positive operating cash flow.
1.2 Ratios
BIDU has a better Return On Assets (5.60%) than 74.65% of its industry peers.
BIDU has a Return On Equity of 9.43%. This is amongst the best in the industry. BIDU outperforms 80.28% of its industry peers.
BIDU's Return On Invested Capital of 4.48% is fine compared to the rest of the industry. BIDU outperforms 73.24% of its industry peers.
BIDU had an Average Return On Invested Capital over the past 3 years of 4.93%. This is significantly below the industry average of 12.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.6% | ||
| ROE | 9.43% | ||
| ROIC | 4.48% |
ROA(3y)4.01%
ROA(5y)4.27%
ROE(3y)6.65%
ROE(5y)7.37%
ROIC(3y)4.93%
ROIC(5y)4.52%
1.3 Margins
BIDU has a better Profit Margin (18.98%) than 87.32% of its industry peers.
BIDU's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 15.14%, BIDU belongs to the best of the industry, outperforming 80.28% of the companies in the same industry.
BIDU's Operating Margin has improved in the last couple of years.
BIDU has a worse Gross Margin (49.06%) than 61.97% of its industry peers.
BIDU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.14% | ||
| PM (TTM) | 18.98% | ||
| GM | 49.06% |
OM growth 3Y23.64%
OM growth 5Y22.17%
PM growth 3Y29.94%
PM growth 5Y56.68%
GM growth 3Y-3.75%
GM growth 5Y3.95%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BIDU is destroying value.
The number of shares outstanding for BIDU remains at a similar level compared to 1 year ago.
BIDU has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BIDU has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of BIDU is 10.37, which is on the high side as it means it would take BIDU, 10.37 years of fcf income to pay off all of its debts.
BIDU's Debt to FCF ratio of 10.37 is in line compared to the rest of the industry. BIDU outperforms 54.93% of its industry peers.
BIDU has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.31, BIDU perfoms like the industry average, outperforming 40.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 10.37 | ||
| Altman-Z | N/A |
ROIC/WACC0.74
WACC6.04%
2.3 Liquidity
BIDU has a Current Ratio of 2.29. This indicates that BIDU is financially healthy and has no problem in meeting its short term obligations.
BIDU has a Current ratio (2.29) which is in line with its industry peers.
BIDU has a Quick Ratio of 2.29. This indicates that BIDU is financially healthy and has no problem in meeting its short term obligations.
BIDU's Quick ratio of 2.29 is in line compared to the rest of the industry. BIDU outperforms 52.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.29 | ||
| Quick Ratio | 2.29 |
3. Growth
3.1 Past
BIDU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.01%.
Measured over the past years, BIDU shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.10% on average per year.
BIDU shows a decrease in Revenue. In the last year, the revenue decreased by -0.67%.
The Revenue has been growing slightly by 4.39% on average over the past years.
EPS 1Y (TTM)-11.01%
EPS 3Y12.5%
EPS 5Y8.1%
EPS Q2Q%-6.88%
Revenue 1Y (TTM)-0.67%
Revenue growth 3Y2.26%
Revenue growth 5Y4.39%
Sales Q2Q%2.98%
3.2 Future
Based on estimates for the next years, BIDU will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.52% on average per year.
The Revenue is expected to grow by 5.13% on average over the next years.
EPS Next Y-2.14%
EPS Next 2Y3.96%
EPS Next 3Y5.91%
EPS Next 5Y12.52%
Revenue Next Year1.57%
Revenue Next 2Y3.79%
Revenue Next 3Y5.02%
Revenue Next 5Y5.13%
3.3 Evolution
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.18 indicates a reasonable valuation of BIDU.
BIDU's Price/Earnings ratio is rather cheap when compared to the industry. BIDU is cheaper than 90.14% of the companies in the same industry.
BIDU is valuated cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.43, which indicates a rather cheap valuation of BIDU.
BIDU's Price/Forward Earnings ratio is rather cheap when compared to the industry. BIDU is cheaper than 87.32% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BIDU to the average of the S&P500 Index (22.13), we can say BIDU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.18 | ||
| Fwd PE | 7.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BIDU indicates a rather cheap valuation: BIDU is cheaper than 97.18% of the companies listed in the same industry.
BIDU's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.01 | ||
| EV/EBITDA | 1.77 |
4.3 Compensation for Growth
The decent profitability rating of BIDU may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.01
EPS Next 2Y3.96%
EPS Next 3Y5.91%
5. Dividend
5.1 Amount
No dividends for BIDU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
86
-1.81 (-2.06%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners28.77%
Inst Owner Change5.41%
Ins Owners3.18%
Ins Owner ChangeN/A
Market Cap30.16B
Analysts76.76
Price Target108.4 (26.05%)
Short Float %24.65%
Short Ratio2.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.29%
Min EPS beat(2)23.35%
Max EPS beat(2)45.24%
EPS beat(4)3
Avg EPS beat(4)18.31%
Min EPS beat(4)-7.11%
Max EPS beat(4)45.24%
EPS beat(8)7
Avg EPS beat(8)21.13%
EPS beat(12)11
Avg EPS beat(12)21.85%
EPS beat(16)15
Avg EPS beat(16)26.52%
Revenue beat(2)2
Avg Revenue beat(2)1.68%
Min Revenue beat(2)0.4%
Max Revenue beat(2)2.95%
Revenue beat(4)2
Avg Revenue beat(4)0.22%
Min Revenue beat(4)-1.6%
Max Revenue beat(4)2.95%
Revenue beat(8)3
Avg Revenue beat(8)-0.43%
Revenue beat(12)6
Avg Revenue beat(12)-0.06%
Revenue beat(16)8
Avg Revenue beat(16)-0.12%
PT rev (1m)-7.76%
PT rev (3m)-6.43%
EPS NQ rev (1m)-20.18%
EPS NQ rev (3m)-20.32%
EPS NY rev (1m)0.11%
EPS NY rev (3m)2.07%
Revenue NQ rev (1m)-2.88%
Revenue NQ rev (3m)-3.02%
Revenue NY rev (1m)-1.68%
Revenue NY rev (3m)-1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.18 | ||
| Fwd PE | 7.43 | ||
| P/S | 1.61 | ||
| P/FCF | 24.01 | ||
| P/OCF | 24.01 | ||
| P/B | 0.8 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 1.77 |
EPS(TTM)10.51
EY12.22%
EPS(NY)11.57
Fwd EY13.45%
FCF(TTM)3.58
FCFY4.16%
OCF(TTM)3.58
OCFY4.16%
SpS53.28
BVpS107.2
TBVpS82.92
PEG (NY)N/A
PEG (5Y)1.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.6% | ||
| ROE | 9.43% | ||
| ROCE | 5.38% | ||
| ROIC | 4.48% | ||
| ROICexc | 7.1% | ||
| ROICexgc | 9.48% | ||
| OM | 15.14% | ||
| PM (TTM) | 18.98% | ||
| GM | 49.06% | ||
| FCFM | 6.72% |
ROA(3y)4.01%
ROA(5y)4.27%
ROE(3y)6.65%
ROE(5y)7.37%
ROIC(3y)4.93%
ROIC(5y)4.52%
ROICexc(3y)10%
ROICexc(5y)9.89%
ROICexgc(3y)13.82%
ROICexgc(5y)14.23%
ROCE(3y)5.95%
ROCE(5y)5.43%
ROICexcg growth 3Y-1.65%
ROICexcg growth 5Y6.18%
ROICexc growth 3Y4.43%
ROICexc growth 5Y7.99%
OM growth 3Y23.64%
OM growth 5Y22.17%
PM growth 3Y29.94%
PM growth 5Y56.68%
GM growth 3Y-3.75%
GM growth 5Y3.95%
F-Score3
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 10.37 | ||
| Debt/EBITDA | 2.03 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 22.08% | ||
| Profit Quality | 35.43% | ||
| Current Ratio | 2.29 | ||
| Quick Ratio | 2.29 | ||
| Altman-Z | N/A |
F-Score3
WACC6.04%
ROIC/WACC0.74
Cap/Depr(3y)44.89%
Cap/Depr(5y)41.77%
Cap/Sales(3y)7.13%
Cap/Sales(5y)7.08%
Profit Quality(3y)146.77%
Profit Quality(5y)122.91%
High Growth Momentum
Growth
EPS 1Y (TTM)-11.01%
EPS 3Y12.5%
EPS 5Y8.1%
EPS Q2Q%-6.88%
EPS Next Y-2.14%
EPS Next 2Y3.96%
EPS Next 3Y5.91%
EPS Next 5Y12.52%
Revenue 1Y (TTM)-0.67%
Revenue growth 3Y2.26%
Revenue growth 5Y4.39%
Sales Q2Q%2.98%
Revenue Next Year1.57%
Revenue Next 2Y3.79%
Revenue Next 3Y5.02%
Revenue Next 5Y5.13%
EBIT growth 1Y-9.24%
EBIT growth 3Y26.43%
EBIT growth 5Y27.52%
EBIT Next Year12.15%
EBIT Next 3Y12.69%
EBIT Next 5Y11.17%
FCF growth 1Y-70.09%
FCF growth 3Y13.47%
FCF growth 5Y6.8%
OCF growth 1Y-70.09%
OCF growth 3Y1.81%
OCF growth 5Y-5.69%