NASDAQ:BIDU is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Oct 16, 2023

BAIDU INC - SPON ADR (NASDAQ:BIDU) was identified as a decent value stock by our stock screener. NASDAQ:BIDU scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Evaluating Valuation: NASDAQ:BIDU

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:BIDU has achieved a 8 out of 10:

Based on the Price/Earnings ratio, BIDU is valued cheaply inside the industry as 85.29% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.60. BIDU is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 11.34, the valuation of BIDU can be described as very reasonable.
Based on the Price/Forward Earnings ratio, BIDU is valued cheaper than 83.82% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BIDU to the average of the S&P500 Index (18.74), we can say BIDU is valued slightly cheaper.
92.65% of the companies in the same industry are more expensive than BIDU, based on the Enterprise Value to EBITDA ratio.
89.71% of the companies in the same industry are more expensive than BIDU, based on the Price/Free Cash Flow ratio.
BIDU's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BIDU has a very decent profitability rating, which may justify a higher PE ratio.
BIDU's earnings are expected to grow with 14.55% in the coming years. This may justify a more expensive valuation.

Looking at the Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:BIDU, the assigned 7 is a significant indicator of profitability:

BIDU has a Return On Assets of 3.75%. This is in the better half of the industry: BIDU outperforms 75.00% of its industry peers.
With an excellent Return On Equity value of 6.47%, BIDU belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
The Return On Invested Capital of BIDU (4.36%) is better than 76.47% of its industry peers.
The last Return On Invested Capital (4.36%) for BIDU is above the 3 year average (3.43%), which is a sign of increasing profitability.
BIDU has a Profit Margin of 11.66%. This is in the better half of the industry: BIDU outperforms 77.94% of its industry peers.
With an excellent Operating Margin value of 15.36%, BIDU belongs to the best of the industry, outperforming 85.29% of the companies in the same industry.
In the last couple of years the Gross Margin of BIDU has grown nicely.

Unpacking NASDAQ:BIDU's Health Rating

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:BIDU scores a 5 out of 10:

The Debt to FCF ratio of BIDU is 2.53, which is a good value as it means it would take BIDU, 2.53 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.53, BIDU belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
A Debt/Equity ratio of 0.30 indicates that BIDU is not too dependend on debt financing.
A Current Ratio of 2.83 indicates that BIDU has no problem at all paying its short term obligations.
BIDU has a better Current ratio (2.83) than 61.76% of its industry peers.
A Quick Ratio of 2.83 indicates that BIDU has no problem at all paying its short term obligations.
BIDU's Quick ratio of 2.83 is fine compared to the rest of the industry. BIDU outperforms 61.76% of its industry peers.

How We Gauge Growth for NASDAQ:BIDU

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:BIDU has achieved a 6 out of 10:

The Earnings Per Share has grown by an impressive 33.31% over the past year.
The Earnings Per Share is expected to grow by 13.33% on average over the next years. This is quite good.
BIDU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.04% yearly.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of BIDU for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.