Investors should take notice of NASDAQ:BIDU—it offers a great deal for the fundamentals it presents.

Our stock screening tool has identified BAIDU INC - SPON ADR (NASDAQ:BIDU) as an undervalued gem with strong fundamentals. NASDAQ:BIDU boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

Assessing Valuation for NASDAQ:BIDU

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 8 for valuation:

• A Price/Earnings ratio of 10.16 indicates a reasonable valuation of BIDU.
• Compared to the rest of the industry, the Price/Earnings ratio of BIDU indicates a rather cheap valuation: BIDU is cheaper than 87.69% of the companies listed in the same industry.
• The average S&P500 Price/Earnings ratio is at 25.93. BIDU is valued rather cheaply when compared to this.
• The Price/Forward Earnings ratio is 9.43, which indicates a very decent valuation of BIDU.
• Based on the Price/Forward Earnings ratio, BIDU is valued cheaper than 87.69% of the companies in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 21.16, BIDU is valued rather cheaply.
• 95.38% of the companies in the same industry are more expensive than BIDU, based on the Price/Free Cash Flow ratio.
• The 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.
• A more expensive valuation may be justified as BIDU's earnings are expected to grow with 13.58% in the coming years.

Profitability Insights: NASDAQ:BIDU

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:

• With a decent Return On Assets value of 5.37%, BIDU is doing good in the industry, outperforming 76.92% of the companies in the same industry.
• The Return On Equity of BIDU (9.11%) is better than 83.08% of its industry peers.
• BIDU has a better Return On Invested Capital (4.47%) than 72.31% of its industry peers.
• The last Return On Invested Capital (4.47%) for BIDU is above the 3 year average (3.43%), which is a sign of increasing profitability.
• BIDU has a better Profit Margin (16.63%) than 86.15% of its industry peers.
• BIDU has a better Operating Margin (15.87%) than 83.08% of its industry peers.
• In the last couple of years the Gross Margin of BIDU has grown nicely.

A Closer Look at Health 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.
• Looking at the Debt to FCF ratio, with a value of 2.35, BIDU is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
• 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.

Analyzing Growth Metrics

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 7 for growth:

• The Earnings Per Share has grown by an impressive 34.36% over the past year.
• Based on estimates for the next years, BIDU will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.08% on average per year.
• Based on estimates for the next years, BIDU will show a very strong growth in Revenue. The Revenue will grow by 62.98% on average per year.
• 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.
• 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.

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

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.