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 72 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 on the other hand it scores bad on growth.
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
The Return On Assets of IQ (0.62%) is better than 66.67% of its industry peers.
IQ has a Return On Equity of 2.13%. This is in the better half of the industry: IQ outperforms 70.83% of its industry peers.
With a decent Return On Invested Capital value of 3.55%, IQ is doing good in the industry, outperforming 69.44% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for IQ is significantly below the industry average of 23.07%.
| 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
The Profit Margin of IQ (1.02%) is better than 68.06% of its industry peers.
IQ has a better Operating Margin (4.24%) than 69.44% of its industry peers.
Looking at the Gross Margin, with a value of 23.72%, IQ is doing worse than 72.22% of the companies in the same industry.
IQ's Gross Margin has improved in the last couple of years.
| 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
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
Based on the Altman-Z score of -0.69, we must say that IQ is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.69, IQ is not doing good in the industry: 73.61% of the companies in the same industry are doing better.
IQ has a debt to FCF ratio of 10.18. This is a negative value and a sign of low solvency as IQ would need 10.18 years to pay back of all of its debts.
IQ has a Debt to FCF ratio (10.18) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.86 indicates that IQ is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.86, IQ is not doing good in the industry: 61.11% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 10.18 | ||
| Altman-Z | -0.69 |
ROIC/WACC0.7
WACC5.04%
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 81.94% of its industry peers.
A Quick Ratio of 0.43 indicates that IQ may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.43, IQ is doing worse than 80.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The earnings per share for IQ have decreased strongly by -85.15% in the last year.
The Revenue has decreased by -9.43% in the past year.
IQ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.16% yearly.
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
IQ is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.57% yearly.
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-0.97%
Revenue Next 2Y1.14%
Revenue Next 3Y1.86%
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
The Price/Earnings ratio is 49.00, which means the current valuation is very expensive for IQ.
Based on the Price/Earnings ratio, IQ is valued a bit cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.50. IQ is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 11.08, 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 90.28% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of IQ to the average of the S&P500 Index (36.44), we can say IQ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49 | ||
| Fwd PE | 11.08 |
4.2 Price Multiples
95.83% of the companies in the same industry are more expensive than IQ, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IQ indicates a rather cheap valuation: IQ is cheaper than 87.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.52 | ||
| EV/EBITDA | 1.24 |
4.3 Compensation for Growth
IQ's earnings are expected to grow with 28.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y26.76%
EPS Next 3Y28.38%
5. Dividend
5.1 Amount
IQ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.96
+0.07 (+3.7%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners45.09%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.89B
Analysts75.71
Price Target2.02 (3.06%)
Short Float %93.09%
Short Ratio3.63
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)-2.32%
PT rev (3m)-24.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-154.96%
EPS NY rev (1m)0%
EPS NY rev (3m)-84.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49 | ||
| Fwd PE | 11.08 | ||
| P/S | 0.48 | ||
| P/FCF | 9.52 | ||
| P/OCF | 8.96 | ||
| P/B | 0.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.24 |
EPS(TTM)0.04
EY2.04%
EPS(NY)0.18
Fwd EY9.02%
FCF(TTM)0.21
FCFY10.5%
OCF(TTM)0.22
OCFY11.15%
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 | -0.69 |
F-Score4
WACC5.04%
ROIC/WACC0.7
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-0.97%
Revenue Next 2Y1.14%
Revenue Next 3Y1.86%
Revenue Next 5Y1.68%
EBIT growth 1Y-60.71%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-22.21%
EBIT Next 3Y14.15%
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%