Don't overlook NASDAQ:BIDU—it's a hidden gem with strong fundamentals and an attractive price tag.

Uncover the hidden value in BAIDU INC - SPON ADR (NASDAQ:BIDU) as our stock screening tool recommends it as an undervalued choice. NASDAQ:BIDU maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Valuation Examination for NASDAQ:BIDU

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:BIDU boasts a 9 out of 10:

• BIDU is valuated reasonably with a Price/Earnings ratio of 10.99.
• BIDU's Price/Earnings ratio is rather cheap when compared to the industry. BIDU is cheaper than 89.23% of the companies in the same industry.
• BIDU is valuated cheaply when we compare the Price/Earnings ratio to 25.74, which is the current average of the S&P500 Index.
• BIDU is valuated reasonably with a Price/Forward Earnings ratio of 10.26.
• 86.15% of the companies in the same industry are more expensive than BIDU, based on the Price/Forward Earnings ratio.
• The average S&P500 Price/Forward Earnings ratio is at 21.31. BIDU is valued rather cheaply when compared to this.
• Based on the Enterprise Value to EBITDA ratio, BIDU is valued cheaper than 90.77% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, BIDU is valued cheaply inside the industry as 95.38% of the companies are valued more expensively.
• 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 13.30% in the coming years. This may justify a more expensive valuation.

Profitability Assessment of NASDAQ:BIDU

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:BIDU, the assigned 7 is noteworthy for profitability:

• BIDU has a better Return On Assets (5.37%) than 76.92% of its industry peers.
• Looking at the Return On Equity, with a value of 9.11%, BIDU belongs to the top of the industry, outperforming 83.08% of the companies in the same industry.
• The Return On Invested Capital of BIDU (4.47%) is better than 72.31% of its industry peers.
• The 3 year average ROIC (3.43%) for BIDU is below the current ROIC(4.47%), indicating increased profibility in the last year.
• BIDU's Profit Margin of 16.63% is amongst the best of the industry. BIDU outperforms 86.15% of its industry peers.
• With an excellent Operating Margin value of 15.87%, BIDU belongs to the best of the industry, outperforming 83.08% of the companies in the same industry.
• BIDU's Gross Margin has improved in the last couple of years.

Health Examination for NASDAQ:BIDU

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:BIDU has earned a 5 out of 10:

• BIDU has a debt to FCF ratio of 2.35. This is a good value and a sign of high solvency as BIDU would need 2.35 years to pay back of all of its debts.
• The Debt to FCF ratio of BIDU (2.35) is better than 78.46% of its industry peers.
• A Debt/Equity ratio of 0.29 indicates that BIDU is not too dependend on debt financing.
• Although BIDU does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
• BIDU has a Current Ratio of 2.82. This indicates that BIDU is financially healthy and has no problem in meeting its short term obligations.
• A Quick Ratio of 2.82 indicates that BIDU has no problem at all paying its short term obligations.

How We Gauge 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 34.36%, which is quite impressive.
• The Earnings Per Share is expected to grow by 17.08% on average over the next years. This is quite good.
• Based on estimates for the next years, BIDU will show a quite strong growth in Revenue. The Revenue will grow by 9.62% on average per year.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
• 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.

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

For an up to date full fundamental analysis you can check the fundamental report of BIDU

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.