IQIYI INC-ADR (IQ) Stock Fundamental Analysis
NASDAQ:IQ - Nasdaq - US46267X1081 - ADR - Currency: USD
IQ gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 73 industry peers in the Entertainment industry. While IQ is still in line with the averages on profitability rating, there are concerns on its financial health. IQ has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
IQ had positive earnings in the past year.
IQ had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 0.62%, IQ is in the better half of the industry, outperforming 67.12% of the companies in the same industry.
The Return On Equity of IQ (2.13%) is better than 71.23% of its industry peers.
IQ has a Return On Invested Capital of 3.55%. This is in the better half of the industry: IQ outperforms 69.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IQ is significantly below the industry average of 23.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.62% | ||
| ROE | 2.13% | ||
| ROIC | 3.55% |
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 has a better Profit Margin (1.02%) than 68.49% of its industry peers.
With a decent Operating Margin value of 4.24%, IQ is doing good in the industry, outperforming 69.86% of the companies in the same industry.
The Gross Margin of IQ (23.72%) is worse than 71.23% of its industry peers.
In the last couple of years the Gross Margin of IQ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.24% | ||
| PM (TTM) | 1.02% | ||
| GM | 23.72% |
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.
Compared to 1 year ago, IQ has more shares outstanding
The number of shares outstanding for IQ has been increased compared to 5 years ago.
The debt/assets ratio for IQ has been reduced compared to a year ago.
2.2 Solvency
IQ has an Altman-Z score of -0.71. 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 (-0.71) is worse than 73.97% of its industry peers.
The Debt to FCF ratio of IQ is 10.18, which is on the high side as it means it would take IQ, 10.18 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of IQ (10.18) is better than 60.27% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that IQ is somewhat dependend on debt financing.
IQ's Debt to Equity ratio of 0.86 is in line compared to the rest of the industry. IQ outperforms 41.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 10.18 | ||
| Altman-Z | -0.71 |
ROIC/WACC0.71
WACC4.98%
2.3 Liquidity
A Current Ratio of 0.46 indicates that IQ may have some problems paying its short term obligations.
IQ has a worse Current ratio (0.46) than 78.08% of its industry peers.
IQ has a Quick Ratio of 0.46. 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 Quick ratio of 0.43. This is in the lower half of the industry: IQ underperforms 76.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
IQ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -85.15%.
Looking at the last year, IQ shows a decrease in Revenue. The Revenue has decreased by -9.43% in the last year.
Measured over the past years, IQ shows a small growth in Revenue. The Revenue has been growing by 0.16% on average per year.
EPS 1Y (TTM)-85.15%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-72.06%
Revenue 1Y (TTM)-9.43%
Revenue growth 3Y-1.47%
Revenue growth 5Y0.16%
Sales Q2Q%-9.35%
3.2 Future
The Earnings Per Share is expected to grow by 47.57% 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 1.68% on average per year.
EPS Next Y-72.06%
EPS Next 2Y26.76%
EPS Next 3Y28.38%
EPS Next 5Y47.57%
Revenue Next Year-2.67%
Revenue Next 2Y0.15%
Revenue Next 3Y1.32%
Revenue Next 5Y1.68%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 46.00, the valuation of IQ can be described as expensive.
IQ's Price/Earnings ratio is a bit cheaper when compared to the industry. IQ is cheaper than 75.34% of the companies in the same industry.
IQ is valuated expensively when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.41, the valuation of IQ can be described as very reasonable.
Based on the Price/Forward Earnings ratio, IQ is valued cheaply inside the industry as 90.41% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of IQ to the average of the S&P500 Index (34.04), we can say IQ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46 | ||
| Fwd PE | 10.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IQ is valued cheaper than 95.89% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IQ is valued cheaper than 89.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.94 | ||
| EV/EBITDA | 1.18 |
4.3 Compensation for Growth
A more expensive valuation may be justified as IQ's earnings are expected to grow with 28.38% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y26.76%
EPS Next 3Y28.38%
5. Dividend
5.1 Amount
No dividends for IQ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.84
-0.01 (-0.54%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners44.91%
Inst Owner Change-1.06%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.77B
Analysts75.71
Price Target2.02 (9.78%)
Short Float %89.95%
Short Ratio3.23
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)0.47%
Min EPS beat(2)-6.6%
Max EPS beat(2)7.54%
EPS beat(4)3
Avg EPS beat(4)85.19%
Min EPS beat(4)-6.6%
Max EPS beat(4)202.05%
EPS beat(8)7
Avg EPS beat(8)52.07%
EPS beat(12)10
Avg EPS beat(12)25.77%
EPS beat(16)14
Avg EPS beat(16)29.32%
Revenue beat(2)0
Avg Revenue beat(2)-2.28%
Min Revenue beat(2)-3.04%
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)-2.52%
Revenue beat(12)1
Avg Revenue beat(12)-2.05%
Revenue beat(16)1
Avg Revenue beat(16)-1.99%
PT rev (1m)-0.12%
PT rev (3m)-14.02%
EPS NQ rev (1m)1.83%
EPS NQ rev (3m)-153.95%
EPS NY rev (1m)0%
EPS NY rev (3m)-84.67%
Revenue NQ rev (1m)-5.31%
Revenue NQ rev (3m)-6.3%
Revenue NY rev (1m)-1.72%
Revenue NY rev (3m)-2.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46 | ||
| Fwd PE | 10.41 | ||
| P/S | 0.45 | ||
| P/FCF | 8.94 | ||
| P/OCF | 8.42 | ||
| P/B | 0.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.18 |
EPS(TTM)0.04
EY2.17%
EPS(NY)0.18
Fwd EY9.6%
FCF(TTM)0.21
FCFY11.18%
OCF(TTM)0.22
OCFY11.87%
SpS4.12
BVpS1.97
TBVpS-1.64
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.62% | ||
| ROE | 2.13% | ||
| ROCE | 5.15% | ||
| ROIC | 3.55% | ||
| ROICexc | 4.41% | ||
| ROICexgc | N/A | ||
| OM | 4.24% | ||
| PM (TTM) | 1.02% | ||
| GM | 23.72% | ||
| FCFM | 5% |
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-Score4
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 10.18 | ||
| Debt/EBITDA | 0.8 | ||
| Cap/Depr | 0.65% | ||
| Cap/Sales | 0.31% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 10.19% | ||
| Profit Quality | 489.23% | ||
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | -0.71 |
F-Score4
WACC4.98%
ROIC/WACC0.71
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)-85.15%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-72.06%
EPS Next Y-72.06%
EPS Next 2Y26.76%
EPS Next 3Y28.38%
EPS Next 5Y47.57%
Revenue 1Y (TTM)-9.43%
Revenue growth 3Y-1.47%
Revenue growth 5Y0.16%
Sales Q2Q%-9.35%
Revenue Next Year-2.67%
Revenue Next 2Y0.15%
Revenue Next 3Y1.32%
Revenue Next 5Y1.68%
EBIT growth 1Y-60.71%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-38.52%
EBIT Next 3Y11.06%
EBIT Next 5Y43.43%
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%