IQIYI INC-ADR (IQ) Stock Fundamental Analysis
USA - NASDAQ:IQ - US46267X1081 - ADR
2.63 USD
-0.06 (-2.23%)
2.6138 USD
-0.02 (-0.62%)
We assign a fundamental rating of 3 out of 10 to IQ. IQ was compared to 80 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 valuation in line with the averages, but on the other hand it scores bad on growth.
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.
The reported net income has been mixed in the past 5 years: IQ reported negative net income in multiple years.
In multiple years IQ reported negative operating cash flow during the last 5 years.
1.2 Ratios
IQ has a Return On Assets (0.19%) which is in line with its industry peers.
IQ has a better Return On Equity (0.65%) than 62.50% of its industry peers.
IQ has a Return On Invested Capital of 2.44%. This is in the better half of the industry: IQ outperforms 65.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IQ is below the industry average of 9.25%.
The last Return On Invested Capital (2.44%) 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 | 0.19% | ||
| ROE | 0.65% | ||
| ROIC | 2.44% |
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
IQ's Profit Margin of 0.32% is in line compared to the rest of the industry. IQ outperforms 60.00% of its industry peers.
Looking at the Operating Margin, with a value of 2.96%, IQ is in the better half of the industry, outperforming 61.25% of the companies in the same industry.
Looking at the Gross Margin, with a value of 22.88%, IQ is doing worse than 76.25% of the companies in the same industry.
IQ's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.96% | ||
| PM (TTM) | 0.32% | ||
| GM | 22.88% |
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.
Compared to 1 year ago, IQ has more shares outstanding
Compared to 5 years ago, IQ has more shares outstanding
Compared to 1 year ago, IQ has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.67, we must say that IQ is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of IQ (-0.67) is worse than 67.50% of its industry peers.
The Debt to FCF ratio of IQ is 13.91, which is on the high side as it means it would take IQ, 13.91 years of fcf income to pay off all of its debts.
IQ has a Debt to FCF ratio (13.91) which is in line with its industry peers.
A Debt/Equity ratio of 0.87 indicates that IQ is somewhat dependend on debt financing.
IQ has a worse Debt to Equity ratio (0.87) than 63.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 13.91 | ||
| Altman-Z | -0.67 |
ROIC/WACC0.45
WACC5.41%
2.3 Liquidity
IQ has a Current Ratio of 0.42. 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 Current ratio, with a value of 0.42, IQ is doing worse than 82.50% of the companies in the same industry.
IQ has a Quick Ratio of 0.42. This is a bad value and indicates that IQ is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of IQ (0.39) is worse than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
IQ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -94.77%.
IQ shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.98%.
IQ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.16% yearly.
EPS 1Y (TTM)-94.77%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-300%
Revenue 1Y (TTM)-10.98%
Revenue growth 3Y-1.47%
Revenue growth 5Y0.16%
Sales Q2Q%-10.9%
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 28.87% on average per year.
Based on estimates for the next years, IQ will show a small growth in Revenue. The Revenue will grow by 0.03% on average per year.
EPS Next Y-117.04%
EPS Next 2Y9.85%
EPS Next 3Y23.6%
EPS Next 5Y28.87%
Revenue Next Year-7.18%
Revenue Next 2Y-1.82%
Revenue Next 3Y0.19%
Revenue Next 5Y0.03%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 263.00, which means the current valuation is very expensive for IQ.
The rest of the industry has a similar Price/Earnings ratio as IQ.
When comparing the Price/Earnings ratio of IQ to the average of the S&P500 Index (27.32), we can say IQ is valued expensively.
The Price/Forward Earnings ratio is 19.65, which indicates a rather expensive current valuation of IQ.
IQ's Price/Forward Earnings ratio is rather cheap when compared to the industry. IQ is cheaper than 83.75% of the companies in the same industry.
IQ is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.89, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 263 | ||
| Fwd PE | 19.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IQ is valued cheaply inside the industry as 96.25% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, IQ is valued cheaper than 86.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.93 | ||
| EV/EBITDA | 1.7 |
4.3 Compensation for Growth
A more expensive valuation may be justified as IQ's earnings are expected to grow with 23.60% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.85%
EPS Next 3Y23.6%
5. Dividend
5.1 Amount
IQ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.63
-0.06 (-2.23%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners43.49%
Inst Owner Change-9.42%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.53B
Analysts76.43
Price Target2.55 (-3.04%)
Short Float %118.31%
Short Ratio3.9
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)28.52%
Min EPS beat(2)15.29%
Max EPS beat(2)41.75%
EPS beat(4)4
Avg EPS beat(4)50.58%
Min EPS beat(4)7.54%
Max EPS beat(4)137.76%
EPS beat(8)8
Avg EPS beat(8)59.25%
EPS beat(12)11
Avg EPS beat(12)28.15%
EPS beat(16)15
Avg EPS beat(16)31.81%
Revenue beat(2)0
Avg Revenue beat(2)-2.06%
Min Revenue beat(2)-2.61%
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)-2.49%
Revenue beat(12)1
Avg Revenue beat(12)-2%
Revenue beat(16)1
Avg Revenue beat(16)-2.12%
PT rev (1m)26.54%
PT rev (3m)23.45%
EPS NQ rev (1m)-312.5%
EPS NQ rev (3m)-403.57%
EPS NY rev (1m)-219.02%
EPS NY rev (3m)-110.51%
Revenue NQ rev (1m)-7.15%
Revenue NQ rev (3m)-9.75%
Revenue NY rev (1m)-2.02%
Revenue NY rev (3m)-6.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 263 | ||
| Fwd PE | 19.65 | ||
| P/S | 0.65 | ||
| P/FCF | 17.93 | ||
| P/OCF | 16.59 | ||
| P/B | 1.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.7 |
EPS(TTM)0.01
EY0.38%
EPS(NY)0.13
Fwd EY5.09%
FCF(TTM)0.15
FCFY5.58%
OCF(TTM)0.16
OCFY6.03%
SpS4.03
BVpS1.97
TBVpS-1.71
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.19% | ||
| ROE | 0.65% | ||
| ROCE | 3.44% | ||
| ROIC | 2.44% | ||
| ROICexc | 2.9% | ||
| ROICexgc | N/A | ||
| OM | 2.96% | ||
| PM (TTM) | 0.32% | ||
| GM | 22.88% | ||
| FCFM | 3.64% |
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 Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 13.91 | ||
| Debt/EBITDA | 0.82 | ||
| Cap/Depr | 0.6% | ||
| Cap/Sales | 0.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 7.53% | ||
| Profit Quality | 1137.36% | ||
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | -0.67 |
F-Score3
WACC5.41%
ROIC/WACC0.45
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)-94.77%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-300%
EPS Next Y-117.04%
EPS Next 2Y9.85%
EPS Next 3Y23.6%
EPS Next 5Y28.87%
Revenue 1Y (TTM)-10.98%
Revenue growth 3Y-1.47%
Revenue growth 5Y0.16%
Sales Q2Q%-10.9%
Revenue Next Year-7.18%
Revenue Next 2Y-1.82%
Revenue Next 3Y0.19%
Revenue Next 5Y0.03%
EBIT growth 1Y-70.79%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-63.05%
EBIT Next 3Y6.07%
EBIT Next 5Y38.63%
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%