Taking everything into account, IQ scores 2 out of 10 in our fundamental rating. IQ was compared to 80 industry peers in the Entertainment industry. IQ has a bad profitability rating. Also its financial health evaluation is rather negative. IQ is valued expensive and it does not seem to be growing.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

IQ had negative earnings in the past year.
IQ had a negative 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 -0.85%, IQ is in line with its industry, outperforming 55.00% of the companies in the same industry.
IQ has a Return On Equity (-2.92%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 1.36%, IQ is in the better half of the industry, outperforming 61.25% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IQ is in line with the industry average of 8.74%.
The last Return On Invested Capital (1.36%) 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	-0.85%
ROE	-2.92%
ROIC	1.36%

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

The Operating Margin of IQ (1.69%) is comparable to the rest of the industry.
With a Gross Margin value of 21.95%, IQ is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of IQ has grown nicely.

		Industry Rank	Sector Rank
OM	1.69%
PM (TTM)	N/A
GM	21.95%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y14.53%

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
Compared to 1 year ago, IQ has an improved debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of -0.78, we must say that IQ is in the distress zone and has some risk of bankruptcy.
IQ's Altman-Z score of -0.78 is on the low side compared to the rest of the industry. IQ is outperformed by 70.00% of its industry peers.
IQ has a Debt/Equity ratio of 0.92. This is a neutral value indicating IQ is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.92, IQ is doing worse than 62.50% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.92
Debt/FCF	N/A
Altman-Z	-0.78

ROIC/WACC0.27

WACC5.11%

2.3 Liquidity

IQ has a Current Ratio of 0.44. 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 Current ratio of 0.44. This is amonst the worse of the industry: IQ underperforms 81.25% of its industry peers.
IQ has a Quick Ratio of 0.44. This is a bad value and indicates that IQ is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.41, IQ is doing worse than 81.25% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	0.44
Quick Ratio	0.41

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for IQ have decreased strongly by -127.89% in the last year.
Looking at the last year, IQ shows a very negative growth in Revenue. The Revenue has decreased by -10.58% 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)-127.89%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-208.33%

Revenue 1Y (TTM)-10.58%

Revenue growth 3Y-1.47%

Revenue growth 5Y0.16%

Sales Q2Q%-7.77%

3.2 Future

The Earnings Per Share is expected to grow by 29.09% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -0.19% on average over the next years.

EPS Next Y-148.34%

EPS Next 2Y-5.35%

EPS Next 3Y13.94%

EPS Next 5Y29.09%

Revenue Next Year-6.82%

Revenue Next 2Y-2.29%

Revenue Next 3Y-0.17%

Revenue Next 5Y-0.19%

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for IQ. In the last year negative earnings were reported.
IQ is valuated rather expensively with a Price/Forward Earnings ratio of 20.42.
Based on the Price/Forward Earnings ratio, IQ is valued cheaply inside the industry as 83.75% of the companies are valued more expensively.
IQ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.57.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	20.42

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IQ indicates a rather cheap valuation: IQ is cheaper than 96.25% of the companies listed in the same industry.