IQIYI INC-ADR (IQ) Stock Fundamental Analysis
NASDAQ:IQ - US46267X1081 - ADR
2.71 USD
0 (0%)
2.69 USD
-0.02 (-0.74%)
Overall IQ gets a fundamental rating of 3 out of 10. We evaluated IQ against 79 industry peers in the Entertainment industry. There are concerns on the financial health of IQ while its profitability can be described as average. IQ is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
IQ had positive earnings in the past year.
In the past year IQ had a positive cash flow from operations.
In multiple years IQ reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: IQ reported negative operating cash flow in multiple years.
1.2 Ratios
IQ's Return On Assets of 0.19% is in line compared to the rest of the industry. IQ outperforms 59.49% of its industry peers.
IQ has a better Return On Equity (0.65%) than 63.29% of its industry peers.
IQ has a Return On Invested Capital of 2.44%. This is in the better half of the industry: IQ outperforms 63.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IQ is significantly below the industry average of 20.67%.
The last Return On Invested Capital (2.44%) for IQ is well below the 3 year average (6.80%), which needs to be investigated, but indicates that IQ had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.19% | ||
| ROE | 0.65% | ||
| ROIC | 2.44% |
ROA(3y)1.9%
ROA(5y)-4.7%
ROE(3y)6.49%
ROE(5y)-35.19%
ROIC(3y)6.8%
ROIC(5y)N/A
1.3 Margins
IQ's Profit Margin of 0.32% is fine compared to the rest of the industry. IQ outperforms 60.76% of its industry peers.
With a decent Operating Margin value of 2.96%, IQ is doing good in the industry, outperforming 60.76% of the companies in the same industry.
IQ has a Gross Margin of 22.88%. This is in the lower half of the industry: IQ underperforms 77.22% of its industry peers.
In the last couple of years the Gross Margin of IQ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.96% | ||
| PM (TTM) | 0.32% | ||
| GM | 22.88% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y14.53%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), IQ is creating some value.
The number of shares outstanding for IQ has been increased compared to 1 year ago.
IQ has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, IQ has an improved debt to assets ratio.
2.2 Solvency
IQ has an Altman-Z score of -0.66. This is a bad value and indicates that IQ is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of IQ (-0.66) is worse than 68.35% of its industry peers.
IQ has a debt to FCF ratio of 13.91. This is a negative value and a sign of low solvency as IQ would need 13.91 years to pay back of all of its debts.
The Debt to FCF ratio of IQ (13.91) is comparable to the rest of the industry.
IQ has a Debt/Equity ratio of 0.87. This is a neutral value indicating IQ is somewhat dependend on debt financing.
IQ's Debt to Equity ratio of 0.87 is on the low side compared to the rest of the industry. IQ is outperformed by 64.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 13.91 | ||
| Altman-Z | -0.66 |
ROIC/WACC0.45
WACC5.45%
2.3 Liquidity
A Current Ratio of 0.42 indicates that IQ may have some problems paying its short term obligations.
IQ has a worse Current ratio (0.42) than 83.54% of its industry peers.
IQ has a Quick Ratio of 0.42. This is a bad value and indicates that IQ is not financially healthy enough and could expect problems in meeting its short term obligations.
IQ has a worse Quick ratio (0.39) than 82.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
IQ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -94.77%.
IQ shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.98%.
IQ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.16% yearly.
EPS 1Y (TTM)-94.77%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-300%
Revenue 1Y (TTM)-10.98%
Revenue growth 3Y-1.47%
Revenue growth 5Y0.16%
Sales Q2Q%-10.9%
3.2 Future
The Earnings Per Share is expected to grow by 28.87% on average over the next years. This is a very strong growth
Based on estimates for the next years, IQ will show a small growth in Revenue. The Revenue will grow by 0.03% on average per year.
EPS Next Y-85.69%
EPS Next 2Y13.83%
EPS Next 3Y25.46%
EPS Next 5Y28.87%
Revenue Next Year-5.27%
Revenue Next 2Y-0.85%
Revenue Next 3Y0.82%
Revenue Next 5Y0.03%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 271.00, the valuation of IQ can be described as expensive.
IQ's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.06, IQ is valued quite expensively.
A Price/Forward Earnings ratio of 18.90 indicates a rather expensive valuation of IQ.
Based on the Price/Forward Earnings ratio, IQ is valued cheaper than 83.54% of the companies in the same industry.
IQ is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 271 | ||
| Fwd PE | 18.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IQ is valued cheaply inside the industry as 96.20% of the companies are valued more expensively.
IQ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. IQ is cheaper than 84.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.51 | ||
| EV/EBITDA | 1.71 |
4.3 Compensation for Growth
A more expensive valuation may be justified as IQ's earnings are expected to grow with 25.46% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y13.83%
EPS Next 3Y25.46%
5. Dividend
5.1 Amount
IQ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.71
0 (0%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners44.91%
Inst Owner Change-9.42%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.61B
Analysts75.71
Price Target2.28 (-15.87%)
Short Float %87.98%
Short Ratio2.94
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)28.52%
Min EPS beat(2)15.29%
Max EPS beat(2)41.75%
EPS beat(4)4
Avg EPS beat(4)50.58%
Min EPS beat(4)7.54%
Max EPS beat(4)137.76%
EPS beat(8)8
Avg EPS beat(8)59.25%
EPS beat(12)11
Avg EPS beat(12)28.15%
EPS beat(16)15
Avg EPS beat(16)31.81%
Revenue beat(2)0
Avg Revenue beat(2)-2.06%
Min Revenue beat(2)-2.61%
Max Revenue beat(2)-1.51%
Revenue beat(4)0
Avg Revenue beat(4)-2.51%
Min Revenue beat(4)-3.04%
Max Revenue beat(4)-1.51%
Revenue beat(8)0
Avg Revenue beat(8)-2.49%
Revenue beat(12)1
Avg Revenue beat(12)-2%
Revenue beat(16)1
Avg Revenue beat(16)-2.12%
PT rev (1m)12.69%
PT rev (3m)-2.39%
EPS NQ rev (1m)-410.98%
EPS NQ rev (3m)-140.8%
EPS NY rev (1m)-48.76%
EPS NY rev (3m)-91.17%
Revenue NQ rev (1m)-8%
Revenue NQ rev (3m)-14%
Revenue NY rev (1m)-2.67%
Revenue NY rev (3m)-4.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 271 | ||
| Fwd PE | 18.9 | ||
| P/S | 0.67 | ||
| P/FCF | 18.51 | ||
| P/OCF | 17.13 | ||
| P/B | 1.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.71 |
EPS(TTM)0.01
EY0.37%
EPS(NY)0.14
Fwd EY5.29%
FCF(TTM)0.15
FCFY5.4%
OCF(TTM)0.16
OCFY5.84%
SpS4.02
BVpS1.97
TBVpS-1.7
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.19% | ||
| ROE | 0.65% | ||
| ROCE | 3.44% | ||
| ROIC | 2.44% | ||
| ROICexc | 2.9% | ||
| ROICexgc | N/A | ||
| OM | 2.96% | ||
| PM (TTM) | 0.32% | ||
| GM | 22.88% | ||
| FCFM | 3.64% |
ROA(3y)1.9%
ROA(5y)-4.7%
ROE(3y)6.49%
ROE(5y)-35.19%
ROIC(3y)6.8%
ROIC(5y)N/A
ROICexc(3y)9.03%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)10.04%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y14.53%
GM growth 5YN/A
F-Score3
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 13.91 | ||
| Debt/EBITDA | 0.82 | ||
| Cap/Depr | 0.6% | ||
| Cap/Sales | 0.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 7.53% | ||
| Profit Quality | 1137.36% | ||
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | -0.66 |
F-Score3
WACC5.45%
ROIC/WACC0.45
Cap/Depr(3y)1.33%
Cap/Depr(5y)1.72%
Cap/Sales(3y)0.62%
Cap/Sales(5y)0.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-94.77%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-300%
EPS Next Y-85.69%
EPS Next 2Y13.83%
EPS Next 3Y25.46%
EPS Next 5Y28.87%
Revenue 1Y (TTM)-10.98%
Revenue growth 3Y-1.47%
Revenue growth 5Y0.16%
Sales Q2Q%-10.9%
Revenue Next Year-5.27%
Revenue Next 2Y-0.85%
Revenue Next 3Y0.82%
Revenue Next 5Y0.03%
EBIT growth 1Y-70.79%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-38.52%
EBIT Next 3Y11.06%
EBIT Next 5Y38.63%
FCF growth 1Y-40.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-37.04%
OCF growth 3YN/A
OCF growth 5Y-11.59%