Taking everything into account, BIDU scores 4 out of 10 in our fundamental rating. BIDU was compared to 70 industry peers in the Interactive Media & Services industry. While BIDU is still in line with the averages on profitability rating, there are concerns on its financial health. BIDU is valied quite expensively at the moment, while it does show a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

BIDU had positive earnings in the past year.
In the past year BIDU has reported a negative cash flow from operations.
Each year in the past 5 years BIDU has been profitable.
In the past 5 years BIDU always reported a positive cash flow from operatings.

1.2 Ratios

BIDU has a Return On Assets (1.89%) which is comparable to the rest of the industry.
The Return On Equity of BIDU (3.18%) is better than 62.86% of its industry peers.
BIDU has a better Return On Invested Capital (2.96%) than 61.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BIDU is significantly below the industry average of 13.53%.

		Industry Rank	Sector Rank
ROA	1.89%
ROE	3.18%
ROIC	2.96%

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

With a decent Profit Margin value of 6.45%, BIDU is doing good in the industry, outperforming 70.00% of the companies in the same industry.
BIDU's Profit Margin has improved in the last couple of years.
The Operating Margin of BIDU (9.81%) is better than 71.43% of its industry peers.
BIDU's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 44.68%, BIDU is doing worse than 67.14% of the companies in the same industry.
In the last couple of years the Gross Margin of BIDU has grown nicely.

		Industry Rank	Sector Rank
OM	9.81%
PM (TTM)	6.45%
GM	44.68%

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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BIDU is still creating some value.
Compared to 1 year ago, BIDU has about the same amount of shares outstanding.
The number of shares outstanding for BIDU has been increased compared to 5 years ago.
The debt/assets ratio for BIDU has been reduced compared to a year ago.

2.2 Solvency

BIDU has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.26, BIDU perfoms like the industry average, outperforming 48.57% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.26
Debt/FCF	N/A
Altman-Z	N/A

ROIC/WACC0.63

WACC4.67%

2.3 Liquidity

BIDU has a Current Ratio of 1.91. This is a normal value and indicates that BIDU is financially healthy and should not expect problems in meeting its short term obligations.
BIDU has a Current ratio (1.91) which is comparable to the rest of the industry.
BIDU has a Quick Ratio of 1.91. This is a normal value and indicates that BIDU is financially healthy and should not expect problems in meeting its short term obligations.
BIDU has a Quick ratio of 1.91. This is comparable to the rest of the industry: BIDU outperforms 57.14% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.91
Quick Ratio	1.91

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

BIDU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.30%.
The Earnings Per Share has been growing by 8.10% on average over the past years. This is quite good.
Looking at the last year, BIDU shows a decrease in Revenue. The Revenue has decreased by -2.60% in the last year.
Measured over the past years, BIDU shows a small growth in Revenue. The Revenue has been growing by 4.39% on average per year.

EPS 1Y (TTM)-21.3%

EPS 3Y12.5%

EPS 5Y8.1%

EPS Q2Q%-33.01%

Revenue 1Y (TTM)-2.6%

Revenue growth 3Y2.26%

Revenue growth 5Y4.39%

Sales Q2Q%-7.1%

3.2 Future

BIDU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.86% yearly.
The Revenue is expected to grow by 4.92% on average over the next years.

EPS Next Y-28.77%

EPS Next 2Y-12.26%

EPS Next 3Y-3.83%

EPS Next 5Y10.86%

Revenue Next Year-2.7%

Revenue Next 2Y0.8%

Revenue Next 3Y2.48%

Revenue Next 5Y4.92%

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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 17.02, BIDU is valued on the expensive side.
BIDU's Price/Earnings ratio is a bit cheaper when compared to the industry. BIDU is cheaper than 67.14% of the companies in the same industry.
When comparing the Price/Earnings ratio of BIDU to the average of the S&P500 Index (28.32), we can say BIDU is valued slightly cheaper.
With a Price/Forward Earnings ratio of 18.00, BIDU is valued on the expensive side.
BIDU's Price/Forward Earnings ratio is in line with the industry average.
BIDU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	17.02
Fwd PE	18

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BIDU indicates a somewhat cheap valuation: BIDU is cheaper than 78.57% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	7.36

4.3 Compensation for Growth

BIDU has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as BIDU's earnings are expected to decrease with -3.83% in the coming years.