IQIYI INC-ADR (IQ) Stock Fundamental Analysis
NASDAQ:IQ - Nasdaq - US46267X1081 - ADR - Currency: USD
IQ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 71 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 quite cheap, 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 has a better Return On Assets (1.67%) than 71.83% of its industry peers.
With a decent Return On Equity value of 5.72%, IQ is doing good in the industry, outperforming 78.87% of the companies in the same industry.
IQ has a Return On Invested Capital of 5.10%. This is in the better half of the industry: IQ outperforms 73.24% of its industry peers.
IQ had an Average Return On Invested Capital over the past 3 years of 6.80%. This is significantly below the industry average of 23.28%.
| 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
With a decent Profit Margin value of 2.61%, IQ is doing good in the industry, outperforming 73.24% of the companies in the same industry.
The Operating Margin of IQ (6.20%) is better than 73.24% of its industry peers.
Looking at the Gross Margin, with a value of 24.88%, IQ is doing worse than 70.42% of the companies in the same industry.
In the last couple of years the Gross Margin of IQ has grown nicely.
| 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.
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 -0.66, we must say that IQ is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of IQ (-0.66) is worse than 71.83% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 7.01, IQ is in the better half of the industry, outperforming 61.97% 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 7.01 | ||
| Altman-Z | -0.66 |
ROIC/WACC0.75
WACC6.8%
2.3 Liquidity
A Current Ratio of 0.44 indicates that IQ may have some problems paying its short term obligations.
IQ has a Current ratio of 0.44. This is in the lower half of the industry: IQ underperforms 77.46% of its industry peers.
A Quick Ratio of 0.43 indicates that IQ may have some problems paying its short term obligations.
IQ has a Quick ratio of 0.43. This is in the lower half of the industry: IQ underperforms 77.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.44 | ||
| 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 -80.29%.
IQ shows a decrease in Revenue. In the last year, the revenue decreased by -8.31%.
IQ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.16% yearly.
EPS 1Y (TTM)-80.29%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-57.61%
Revenue 1Y (TTM)-8.31%
Revenue growth 3Y-1.47%
Revenue growth 5Y0.16%
Sales Q2Q%-10.18%
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.
IQ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.18% yearly.
EPS Next Y62.1%
EPS Next 2Y42.96%
EPS Next 3Y38.87%
EPS Next 5Y47.57%
Revenue Next Year-0.36%
Revenue Next 2Y1.49%
Revenue Next 3Y2.41%
Revenue Next 5Y1.18%
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
A Price/Earnings ratio of 28.50 indicates a quite expensive valuation of IQ.
78.87% of the companies in the same industry are more expensive than IQ, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.03. IQ is around the same levels.
With a Price/Forward Earnings ratio of 7.63, the valuation of IQ can be described as very cheap.
92.96% of the companies in the same industry are more expensive than IQ, based on the Price/Forward Earnings ratio.
IQ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.5 | ||
| Fwd PE | 7.63 |
4.2 Price Multiples
IQ's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IQ is cheaper than 97.18% of the companies in the same industry.
94.37% of the companies in the same industry are more expensive than IQ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.12 | ||
| EV/EBITDA | 1.05 |
4.3 Compensation for Growth
The 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 38.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.46
PEG (5Y)N/A
EPS Next 2Y42.96%
EPS Next 3Y38.87%
5. Dividend
5.1 Amount
No dividends for IQ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.71
-0.15 (-8.06%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners46.43%
Inst Owner Change0.23%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.65B
Analysts77.78
Price Target2.33 (36.26%)
Short Float %74.93%
Short Ratio1.44
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)-12.38%
PT rev (3m)-12.47%
EPS NQ rev (1m)-38.28%
EPS NQ rev (3m)-34.89%
EPS NY rev (1m)-11.04%
EPS NY rev (3m)-3.17%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.5 | ||
| Fwd PE | 7.63 | ||
| P/S | 0.41 | ||
| P/FCF | 6.12 | ||
| P/OCF | 5.62 | ||
| P/B | 0.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.05 |
EPS(TTM)0.06
EY3.51%
EPS(NY)0.22
Fwd EY13.11%
FCF(TTM)0.28
FCFY16.33%
OCF(TTM)0.3
OCFY17.79%
SpS4.21
BVpS1.93
TBVpS-1.79
PEG (NY)0.46
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 | -0.66 |
F-Score3
WACC6.8%
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)-80.29%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-57.61%
EPS Next Y62.1%
EPS Next 2Y42.96%
EPS Next 3Y38.87%
EPS Next 5Y47.57%
Revenue 1Y (TTM)-8.31%
Revenue growth 3Y-1.47%
Revenue growth 5Y0.16%
Sales Q2Q%-10.18%
Revenue Next Year-0.36%
Revenue Next 2Y1.49%
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%