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 70 industry peers in the Interactive Media & Services industry. While BIDU has a great profitability rating, there are some minor concerns on its financial health. BIDU is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
In the past 5 years BIDU has always been profitable.
BIDU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BIDU's Return On Assets of 5.60% is fine compared to the rest of the industry. BIDU outperforms 74.29% of its industry peers.
Looking at the Return On Equity, with a value of 9.43%, BIDU is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.48%, BIDU is doing good in the industry, outperforming 72.86% of the companies in the same industry.
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's Profit Margin of 18.98% is amongst the best of the industry. BIDU outperforms 87.14% of its industry peers.
In the last couple of years the Profit Margin of BIDU has grown nicely.
With a decent Operating Margin value of 15.14%, BIDU is doing good in the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Operating Margin of BIDU has grown nicely.
BIDU's Gross Margin of 49.06% is on the low side compared to the rest of the industry. BIDU is outperformed by 62.86% of its industry peers.
In the last couple of years the Gross Margin of BIDU has grown nicely.
| 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
BIDU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
BIDU has about the same amout of shares outstanding than it did 1 year ago.
BIDU has more shares outstanding than it did 5 years ago.
BIDU has a better debt/assets ratio than last year.
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 has a Debt to FCF ratio (10.37) which is comparable to the rest of the industry.
BIDU has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
BIDU has a Debt to Equity ratio of 0.31. This is in the lower half of the industry: BIDU underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 10.37 | ||
| Altman-Z | N/A |
ROIC/WACC0.74
WACC6.06%
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 comparable to the rest of the industry.
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 51.43% 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%.
BIDU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.39% yearly.
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
BIDU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.46% yearly.
Based on estimates for the next years, BIDU will show a small growth in Revenue. The Revenue will grow by 5.07% on average per year.
EPS Next Y-11.21%
EPS Next 2Y-0.92%
EPS Next 3Y3.9%
EPS Next 5Y12.46%
Revenue Next Year1.45%
Revenue Next 2Y3.52%
Revenue Next 3Y4.81%
Revenue Next 5Y5.07%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.26, which indicates a very decent valuation of BIDU.
88.57% of the companies in the same industry are more expensive than BIDU, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.41, BIDU is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.26, the valuation of BIDU can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BIDU indicates a rather cheap valuation: BIDU is cheaper than 90.00% of the companies listed in the same industry.
BIDU is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.26 | ||
| Fwd PE | 8.26 |
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 97.14% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BIDU is valued a bit cheaper than the industry average as 61.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.24 | ||
| EV/EBITDA | 1.71 |
4.3 Compensation for Growth
The decent profitability rating of BIDU may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.02
EPS Next 2Y-0.92%
EPS Next 3Y3.9%
5. Dividend
5.1 Amount
BIDU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
86.93
-1.51 (-1.71%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners28.77%
Inst Owner Change0%
Ins Owners3.18%
Ins Owner ChangeN/A
Market Cap30.48B
Analysts76.76
Price Target108.13 (24.39%)
Short Float %17.51%
Short Ratio2.1
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)-0.25%
PT rev (3m)-8.14%
EPS NQ rev (1m)-2.95%
EPS NQ rev (3m)-22.54%
EPS NY rev (1m)-9.27%
EPS NY rev (3m)-9.42%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)-2.78%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-1.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.26 | ||
| Fwd PE | 8.26 | ||
| P/S | 1.63 | ||
| P/FCF | 24.24 | ||
| P/OCF | 24.24 | ||
| P/B | 0.81 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 1.71 |
EPS(TTM)10.53
EY12.11%
EPS(NY)10.52
Fwd EY12.1%
FCF(TTM)3.59
FCFY4.13%
OCF(TTM)3.59
OCFY4.13%
SpS53.34
BVpS107.32
TBVpS83.02
PEG (NY)N/A
PEG (5Y)1.02
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
WACC6.06%
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-11.21%
EPS Next 2Y-0.92%
EPS Next 3Y3.9%
EPS Next 5Y12.46%
Revenue 1Y (TTM)-0.67%
Revenue growth 3Y2.26%
Revenue growth 5Y4.39%
Sales Q2Q%2.98%
Revenue Next Year1.45%
Revenue Next 2Y3.52%
Revenue Next 3Y4.81%
Revenue Next 5Y5.07%
EBIT growth 1Y-9.24%
EBIT growth 3Y26.43%
EBIT growth 5Y27.52%
EBIT Next Year12.15%
EBIT Next 3Y12.69%
EBIT Next 5Y11.1%
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%