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

Discover BAIDU INC - SPON ADR (NASDAQ:BIDU), an undervalued stock highlighted by our stock screener. NASDAQ:BIDU showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Unpacking NASDAQ:BIDU's Valuation Rating

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:BIDU has earned a 9 for valuation:

• BIDU is valuated reasonably with a Price/Earnings ratio of 11.16.
• 86.15% of the companies in the same industry are more expensive than BIDU, based on the Price/Earnings ratio.
• BIDU's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.92.
• With a Price/Forward Earnings ratio of 10.41, the valuation of BIDU can be described as very reasonable.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of BIDU indicates a rather cheap valuation: BIDU is cheaper than 86.15% of the companies listed in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 20.83, BIDU is valued rather cheaply.
• 90.77% of the companies in the same industry are more expensive than BIDU, based on the Enterprise Value to EBITDA ratio.
• 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.
• BIDU's 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.
• A more expensive valuation may be justified as BIDU's earnings are expected to grow with 13.30% in the coming years.

Exploring NASDAQ:BIDU's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:BIDU has earned a 7 out of 10:

• BIDU has a better Return On Assets (5.37%) than 76.92% of its industry peers.
• BIDU has a Return On Equity of 9.11%. This is amongst the best in the industry. BIDU outperforms 83.08% of its industry peers.
• BIDU has a Return On Invested Capital of 4.47%. This is in the better half of the industry: BIDU outperforms 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.
• Looking at the Profit Margin, with a value of 16.63%, BIDU belongs to the top of the industry, outperforming 86.15% of the companies in the same industry.
• 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.
• In the last couple of years the Gross Margin of BIDU has grown nicely.

Health Examination for NASDAQ:BIDU

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:BIDU has achieved a 5 out of 10:

• The Debt to FCF ratio of BIDU is 2.35, which is a good value as it means it would take BIDU, 2.35 years of fcf income to pay off all of its debts.
• BIDU has a Debt to FCF ratio of 2.35. This is in the better half of the industry: BIDU outperforms 76.92% of its industry peers.
• BIDU has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
• 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.
• A Current Ratio of 2.82 indicates that BIDU has no problem at all paying its short term obligations.
• A Quick Ratio of 2.82 indicates that BIDU has no problem at all paying its short term obligations.

Evaluating Growth: NASDAQ:BIDU

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:BIDU has received a 6 out of 10:

• 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.
• BIDU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.08% yearly.
• The Revenue is expected to grow by 9.62% on average over the next years. This is quite good.
• 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.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

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.