NASDAQ:BIDU is probably undervalued for the fundamentals it is displaying.

Last update: Nov 7, 2023

BAIDU INC - SPON ADR (NASDAQ:BIDU) has caught the attention of our stock screener as a great value stock. NASDAQ:BIDU excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Deciphering NASDAQ:BIDU's Valuation Rating

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:BIDU scores a 8 out of 10:

A Price/Earnings ratio of 11.12 indicates a reasonable valuation of BIDU.
84.38% of the companies in the same industry are more expensive than BIDU, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 23.48. BIDU is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.74, which indicates a very decent valuation of BIDU.
Based on the Price/Forward Earnings ratio, BIDU is valued cheaply inside the industry as 85.94% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of BIDU to the average of the S&P500 Index (18.84), we can say BIDU is valued slightly cheaper.
Based on the Enterprise Value to EBITDA ratio, BIDU is valued cheaper than 95.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BIDU is valued cheaper than 96.88% of the companies in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of BIDU may justify a higher PE ratio.
BIDU's earnings are expected to grow with 14.19% in the coming years. This may justify a more expensive valuation.

How do we evaluate the Profitability for NASDAQ:BIDU?

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:BIDU scores a 6 out of 10:

BIDU has a Return On Assets of 3.75%. This is in the better half of the industry: BIDU outperforms 73.44% of its industry peers.
The Return On Equity of BIDU (6.47%) is better than 81.25% of its industry peers.
With a decent Return On Invested Capital value of 4.36%, BIDU is doing good in the industry, outperforming 75.00% of the companies in the same industry.
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 better Profit Margin (11.66%) than 76.56% of its industry peers.
The Operating Margin of BIDU (15.36%) is better than 82.81% of its industry peers.
BIDU's Gross Margin has improved in the last couple of years.

A Closer Look at Health for NASDAQ:BIDU

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.
BIDU has a Debt to FCF ratio of 2.53. This is amongst the best in the industry. BIDU outperforms 81.25% of its industry peers.
BIDU has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
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 60.94% of its industry peers.
A Quick Ratio of 2.83 indicates that BIDU has no problem at all paying its short term obligations.
BIDU has a better Quick ratio (2.83) than 60.94% of its industry peers.

How do we evaluate the Growth for NASDAQ:BIDU?

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:BIDU was assigned a score of 6 for growth:

BIDU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.31%, which is quite impressive.
The Earnings Per Share is expected to grow by 15.39% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.94% on average over the next years. This is quite good.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Our latest full fundamental report of BIDU contains the most current fundamental analsysis.

Keep in mind

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.