IQIYI INC-ADR (IQ)
US46267X1081 - ADR
IQ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 76 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, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year IQ was profitable.
In the past year IQ had a positive cash flow from operations.
In the past 5 years IQ reported 4 times negative net income.
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 (4.32%) than 81.58% of its industry peers.
IQ's Return On Equity of 15.93% is amongst the best of the industry. IQ outperforms 89.47% of its industry peers.
IQ's Return On Invested Capital of 9.15% is amongst the best of the industry. IQ outperforms 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 15.93% | ||
| ROIC | 9.15% |
ROA(3y)-3.52%
ROA(5y)-9.64%
ROE(3y)-35.19%
ROE(5y)-57.91%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
IQ has a better Profit Margin (6.04%) than 78.95% of its industry peers.
IQ has a better Operating Margin (9.38%) than 75.00% of its industry peers.
Looking at the Gross Margin, with a value of 27.52%, IQ is doing worse than 63.16% of the companies in the same industry.
IQ's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.38% | ||
| PM (TTM) | 6.04% | ||
| GM | 27.52% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y28.39%
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.
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 -0.07, we must say that IQ is in the distress zone and has some risk of bankruptcy.
IQ's Altman-Z score of -0.07 is on the low side compared to the rest of the industry. IQ is outperformed by 63.16% of its industry peers.
IQ has a debt to FCF ratio of 4.50. This is a neutral value as IQ would need 4.50 years to pay back of all of its debts.
IQ has a Debt to FCF ratio of 4.50. This is amongst the best in the industry. IQ outperforms 80.26% of its industry peers.
A Debt/Equity ratio of 0.98 indicates that IQ is somewhat dependend on debt financing.
IQ has a worse Debt to Equity ratio (0.98) than 61.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | -0.07 |
ROIC/WACC1.49
WACC6.13%
2.3 Liquidity
A Current Ratio of 0.57 indicates that IQ may have some problems paying its short term obligations.
IQ has a worse Current ratio (0.57) than 75.00% of its industry peers.
IQ has a Quick Ratio of 0.57. 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's Quick ratio of 0.54 is on the low side compared to the rest of the industry. IQ is outperformed by 76.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
IQ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1200.00%, which is quite impressive.
The Revenue has grown by 9.91% in the past year. This is quite good.
The Revenue has been growing slightly by 4.99% on average over the past years.
EPS 1Y (TTM)1200%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q37.14%
Revenue 1Y (TTM)9.91%
Revenue growth 3Y2.37%
Revenue growth 5Y4.99%
Revenue growth Q2Q1.5%
3.2 Future
Based on estimates for the next years, IQ will show a very strong growth in Earnings Per Share. The EPS will grow by 34.03% on average per year.
IQ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.95% yearly.
EPS Next Y52.17%
EPS Next 2Y39.21%
EPS Next 3Y31.38%
EPS Next 5Y34.03%
Revenue Next Year6.75%
Revenue Next 2Y6.64%
Revenue Next 3Y6.43%
Revenue Next 5Y5.95%
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.04, the valuation of IQ can be described as rather expensive.
80.26% of the companies in the same industry are more expensive than IQ, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.02, IQ is valued a bit cheaper.
A Price/Forward Earnings ratio of 12.35 indicates a correct valuation of IQ.
Based on the Price/Forward Earnings ratio, IQ is valued cheaply inside the industry as 92.11% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.58. IQ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.04 | ||
| Fwd PE | 12.35 |
4.2 Price Multiples
IQ's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IQ is cheaper than 92.11% of the companies in the same industry.
93.42% 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 | 11 | ||
| EV/EBITDA | 2.34 |
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.
A more expensive valuation may be justified as IQ's earnings are expected to grow with 31.38% in the coming years.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y39.21%
EPS Next 3Y31.38%
5. Dividend
5.1 Amount
IQ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
IQIYI INC-ADR
NASDAQ:IQ (5/6/2024, 7:07:57 PM)
After market: 5.14 0 (0%)5.14
+0.06 (+1.18%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.93B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.04 | ||
| Fwd PE | 12.35 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.36
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 15.93% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.38% | ||
| PM (TTM) | 6.04% | ||
| GM | 27.52% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)1200%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y52.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.91%
Revenue growth 3Y2.37%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y