IQIYI INC-ADR (IQ) Stock Fundamental Analysis
NASDAQ:IQ - Nasdaq - US46267X1081 - ADR - Currency: USD
We assign a fundamental rating of 4 out of 10 to IQ. IQ was compared to 72 industry peers in the Entertainment industry. IQ has a medium profitability rating, but doesn't score so well on its financial health evaluation. IQ has a bad growth rate and is valued cheaply.
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.
The reported net income has been mixed in the past 5 years: IQ reported negative net income in multiple 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 has a Return On Assets of 1.67%. This is in the better half of the industry: IQ outperforms 73.61% of its industry peers.
IQ's Return On Equity of 5.72% is amongst the best of the industry. IQ outperforms 81.94% of its industry peers.
With a decent Return On Invested Capital value of 5.10%, IQ is doing good in the industry, outperforming 75.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IQ is significantly below the industry average of 21.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.67% | ||
| ROE | 5.72% | ||
| ROIC | 5.1% |
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
Looking at the Profit Margin, with a value of 2.61%, IQ is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
IQ's Operating Margin of 6.20% is fine compared to the rest of the industry. IQ outperforms 75.00% of its industry peers.
IQ's Gross Margin of 24.88% is on the low side compared to the rest of the industry. IQ is outperformed by 70.83% of its industry peers.
IQ's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.2% | ||
| PM (TTM) | 2.61% | ||
| GM | 24.88% |
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
IQ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
IQ has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, IQ has more shares outstanding
IQ has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.65, we must say that IQ is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.65, IQ is not doing good in the industry: 69.44% of the companies in the same industry are doing better.
IQ has a debt to FCF ratio of 7.01. This is a slightly negative value and a sign of low solvency as IQ would need 7.01 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 7.01, IQ is doing good in the industry, outperforming 68.06% of the companies in the same industry.
A Debt/Equity ratio of 0.99 indicates that IQ is somewhat dependend on debt financing.
IQ has a Debt to Equity ratio (0.99) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 7.01 | ||
| Altman-Z | -0.65 |
ROIC/WACC0.75
WACC6.78%
2.3 Liquidity
A Current Ratio of 0.44 indicates that IQ may have some problems paying its short term obligations.
With a Current ratio value of 0.44, IQ is not doing good in the industry: 76.39% of the companies in the same industry are doing better.
A Quick Ratio of 0.43 indicates that IQ may have some problems paying its short term obligations.
IQ's Quick ratio of 0.43 is on the low side compared to the rest of the industry. IQ is outperformed by 76.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The earnings per share for IQ have decreased strongly by -60.10% in the last year.
Looking at the last year, IQ shows a decrease in Revenue. The Revenue has decreased by -8.31% in the last 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)-60.1%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-141.67%
Revenue 1Y (TTM)-8.31%
Revenue growth 3Y-1.47%
Revenue growth 5Y0.16%
Sales Q2Q%-14.18%
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.
The Revenue is expected to grow by 1.18% on average over the next years.
EPS Next Y82.22%
EPS Next 2Y49.73%
EPS Next 3Y40.78%
EPS Next 5Y47.57%
Revenue Next Year-0.35%
Revenue Next 2Y1.48%
Revenue Next 3Y2.41%
Revenue Next 5Y1.18%
3.3 Evolution
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
Based on the Price/Earnings ratio of 16.95, the valuation of IQ can be described as correct.
Based on the Price/Earnings ratio, IQ is valued cheaply inside the industry as 84.72% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of IQ to the average of the S&P500 Index (28.88), we can say IQ is valued slightly cheaper.
IQ is valuated reasonably with a Price/Forward Earnings ratio of 9.41.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IQ indicates a rather cheap valuation: IQ is cheaper than 97.22% of the companies listed in the same industry.
IQ is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.95 | ||
| Fwd PE | 9.41 |
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 95.83% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, IQ is valued cheaper than 94.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.74 | ||
| EV/EBITDA | 1.12 |
4.3 Compensation for Growth
IQ's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
IQ's earnings are expected to grow with 40.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y49.73%
EPS Next 3Y40.78%
5. Dividend
5.1 Amount
No dividends for IQ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:IQ (5/1/2025, 1:03:00 PM)
1.865
+0.02 (+1.36%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners46.43%
Inst Owner Change-0.24%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.80B
Analysts77.78
Price Target2.35 (26.01%)
Short Float %75.55%
Short Ratio1.33
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)72.65%
Min EPS beat(2)7.54%
Max EPS beat(2)137.76%
EPS beat(4)4
Avg EPS beat(4)101.37%
Min EPS beat(4)7.54%
Max EPS beat(4)202.05%
EPS beat(8)8
Avg EPS beat(8)57.96%
EPS beat(12)11
Avg EPS beat(12)37.08%
EPS beat(16)15
Avg EPS beat(16)31.74%
Revenue beat(2)0
Avg Revenue beat(2)-2.96%
Min Revenue beat(2)-3.04%
Max Revenue beat(2)-2.89%
Revenue beat(4)0
Avg Revenue beat(4)-2.56%
Min Revenue beat(4)-3.04%
Max Revenue beat(4)-1.71%
Revenue beat(8)1
Avg Revenue beat(8)-2.17%
Revenue beat(12)1
Avg Revenue beat(12)-2.11%
Revenue beat(16)2
Avg Revenue beat(16)-1.82%
PT rev (1m)-10.29%
PT rev (3m)-18.86%
EPS NQ rev (1m)35.21%
EPS NQ rev (3m)1.05%
EPS NY rev (1m)-3.03%
EPS NY rev (3m)-7.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)-0.69%
Revenue NY rev (3m)-1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.95 | ||
| Fwd PE | 9.41 | ||
| P/S | 0.45 | ||
| P/FCF | 6.74 | ||
| P/OCF | 6.18 | ||
| P/B | 0.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.12 |
EPS(TTM)0.11
EY5.9%
EPS(NY)0.2
Fwd EY10.62%
FCF(TTM)0.28
FCFY14.84%
OCF(TTM)0.3
OCFY16.17%
SpS4.18
BVpS1.91
TBVpS-1.77
PEG (NY)0.21
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.67% | ||
| ROE | 5.72% | ||
| ROCE | 7.46% | ||
| ROIC | 5.1% | ||
| ROICexc | 6.06% | ||
| ROICexgc | N/A | ||
| OM | 6.2% | ||
| PM (TTM) | 2.61% | ||
| GM | 24.88% | ||
| FCFM | 6.63% |
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 Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 7.01 | ||
| Debt/EBITDA | 0.85 | ||
| Cap/Depr | 1.27% | ||
| Cap/Sales | 0.59% | ||
| Interest Coverage | 2.67 | ||
| Cash Conversion | 13.67% | ||
| Profit Quality | 253.52% | ||
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | -0.65 |
F-Score3
WACC6.78%
ROIC/WACC0.75
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)-60.1%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-141.67%
EPS Next Y82.22%
EPS Next 2Y49.73%
EPS Next 3Y40.78%
EPS Next 5Y47.57%
Revenue 1Y (TTM)-8.31%
Revenue growth 3Y-1.47%
Revenue growth 5Y0.16%
Sales Q2Q%-14.18%
Revenue Next Year-0.35%
Revenue Next 2Y1.48%
Revenue Next 3Y2.41%
Revenue Next 5Y1.18%
EBIT growth 1Y-39.41%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year34.56%
EBIT Next 3Y23.13%
EBIT Next 5Y42.97%
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%