BAIDU INC - SPON ADR (BIDU) Stock Fundamental Analysis
NASDAQ:BIDU - Nasdaq - US0567521085 - ADR - Currency: USD
BIDU gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 71 industry peers in the Interactive Media & Services industry. BIDU has an excellent profitability rating, but there are some minor concerns on its financial health. BIDU may be a bit undervalued, certainly considering the very reasonable score on growth This makes BIDU very considerable for value investing!
1. Profitability
1.1 Basic Checks
BIDU had positive earnings in the past year.
In the past year BIDU had a positive cash flow from operations.
Each year in the past 5 years BIDU has been profitable.
Each year in the past 5 years BIDU had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.42%, BIDU is doing good in the industry, outperforming 76.06% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.79%, BIDU belongs to the top of the industry, outperforming 81.69% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.06%, BIDU is in the better half of the industry, outperforming 74.65% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BIDU is significantly below the industry average of 11.33%.
The last Return On Invested Capital (5.06%) for BIDU is above the 3 year average (4.93%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.42% | ||
| ROE | 8.79% | ||
| ROIC | 5.06% |
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 (17.41%) than 87.32% of its industry peers.
In the last couple of years the Profit Margin of BIDU has grown nicely.
BIDU has a Operating Margin of 15.98%. This is amongst the best in the industry. BIDU outperforms 83.10% of its industry peers.
In the last couple of years the Operating Margin of BIDU has grown nicely.
The Gross Margin of BIDU (50.35%) is worse than 61.97% of its industry peers.
BIDU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.98% | ||
| PM (TTM) | 17.41% | ||
| GM | 50.35% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BIDU is destroying value.
BIDU has about the same amout of shares outstanding than it did 1 year ago.
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 an Altman-Z score of 2.09. This is not the best score and indicates that BIDU is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of BIDU (2.09) is better than 66.20% of its industry peers.
The Debt to FCF ratio of BIDU is 5.48, which is a neutral value as it means it would take BIDU, 5.48 years of fcf income to pay off all of its debts.
BIDU has a Debt to FCF ratio of 5.48. This is comparable to the rest of the industry: BIDU outperforms 52.11% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that BIDU is not too dependend on debt financing.
BIDU has a Debt to Equity ratio of 0.24. This is comparable to the rest of the industry: BIDU outperforms 49.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 5.48 | ||
| Altman-Z | 2.09 |
ROIC/WACC0.7
WACC7.27%
2.3 Liquidity
BIDU has a Current Ratio of 2.09. This indicates that BIDU is financially healthy and has no problem in meeting its short term obligations.
BIDU has a Current ratio (2.09) which is comparable to the rest of the industry.
A Quick Ratio of 2.09 indicates that BIDU has no problem at all paying its short term obligations.
BIDU has a Quick ratio (2.09) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 2.09 |
3. Growth
3.1 Past
The earnings per share for BIDU have decreased strongly by -11.01% in the last year.
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.
Looking at the last year, BIDU shows a decrease in Revenue. The Revenue has decreased by -1.09% in the last year.
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)-1.09%
Revenue growth 3Y2.26%
Revenue growth 5Y4.39%
Sales Q2Q%2.98%
3.2 Future
The Earnings Per Share is expected to grow by 11.33% on average over the next years. This is quite good.
Based on estimates for the next years, BIDU will show a small growth in Revenue. The Revenue will grow by 5.54% on average per year.
EPS Next Y-2.14%
EPS Next 2Y3.96%
EPS Next 3Y5.91%
EPS Next 5Y11.33%
Revenue Next Year3.24%
Revenue Next 2Y4.55%
Revenue Next 3Y4.94%
Revenue Next 5Y5.54%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.03 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 25.91, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.30, the valuation of BIDU can be described as very cheap.
Based on the Price/Forward Earnings ratio, BIDU is valued cheaper than 90.14% of the companies in the same industry.
BIDU's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.03 | ||
| Fwd PE | 7.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BIDU is valued cheaply inside the industry as 94.37% of the companies are valued more expensively.
BIDU's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BIDU is cheaper than 60.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.37 | ||
| EV/EBITDA | 1.02 |
4.3 Compensation for Growth
The excellent profitability rating of BIDU may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.99
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 |
84.07
-1.41 (-1.65%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners26.36%
Inst Owner Change5.44%
Ins Owners2.48%
Ins Owner ChangeN/A
Market Cap29.48B
Analysts76.84
Price Target117.56 (39.84%)
Short Float %23.04%
Short Ratio1.66
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)1
Avg EPS beat(2)19.06%
Min EPS beat(2)-7.11%
Max EPS beat(2)45.24%
EPS beat(4)3
Avg EPS beat(4)18.37%
Min EPS beat(4)-7.11%
Max EPS beat(4)45.24%
EPS beat(8)7
Avg EPS beat(8)21.55%
EPS beat(12)11
Avg EPS beat(12)28.59%
EPS beat(16)15
Avg EPS beat(16)25.86%
Revenue beat(2)1
Avg Revenue beat(2)-0.6%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)0.4%
Revenue beat(4)1
Avg Revenue beat(4)-0.76%
Min Revenue beat(4)-1.6%
Max Revenue beat(4)0.4%
Revenue beat(8)3
Avg Revenue beat(8)-0.56%
Revenue beat(12)6
Avg Revenue beat(12)-0.29%
Revenue beat(16)8
Avg Revenue beat(16)-0.22%
PT rev (1m)-0.13%
PT rev (3m)1.92%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)21.72%
EPS NY rev (1m)0.11%
EPS NY rev (3m)3.56%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)1.47%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.03 | ||
| Fwd PE | 7.3 | ||
| P/S | 1.6 | ||
| P/FCF | 16.37 | ||
| P/OCF | 10 | ||
| P/B | 0.81 | ||
| P/tB | 0.97 | ||
| EV/EBITDA | 1.02 |
EPS(TTM)10.47
EY12.45%
EPS(NY)11.52
Fwd EY13.71%
FCF(TTM)5.14
FCFY6.11%
OCF(TTM)8.41
OCFY10%
SpS52.7
BVpS104.35
TBVpS86.54
PEG (NY)N/A
PEG (5Y)0.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.42% | ||
| ROE | 8.79% | ||
| ROCE | 6.13% | ||
| ROIC | 5.06% | ||
| ROICexc | 7.86% | ||
| ROICexgc | 9.77% | ||
| OM | 15.98% | ||
| PM (TTM) | 17.41% | ||
| GM | 50.35% | ||
| FCFM | 9.75% |
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-Score5
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 5.48 | ||
| Debt/EBITDA | 1.5 | ||
| Cap/Depr | 40.25% | ||
| Cap/Sales | 6.2% | ||
| Interest Coverage | 9.51 | ||
| Cash Conversion | 50.81% | ||
| Profit Quality | 55.99% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 2.09 | ||
| Altman-Z | 2.09 |
F-Score5
WACC7.27%
ROIC/WACC0.7
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 5Y11.33%
Revenue 1Y (TTM)-1.09%
Revenue growth 3Y2.26%
Revenue growth 5Y4.39%
Sales Q2Q%2.98%
Revenue Next Year3.24%
Revenue Next 2Y4.55%
Revenue Next 3Y4.94%
Revenue Next 5Y5.54%
EBIT growth 1Y-2.68%
EBIT growth 3Y26.43%
EBIT growth 5Y27.52%
EBIT Next Year22.09%
EBIT Next 3Y15.04%
EBIT Next 5Y11.56%
FCF growth 1Y-48.76%
FCF growth 3Y13.47%
FCF growth 5Y6.8%
OCF growth 1Y-42.01%
OCF growth 3Y1.81%
OCF growth 5Y-5.69%