NASDAQ:BIDU appears to be flying under the radar despite its strong fundamentals.

Uncover the potential of BAIDU INC - SPON ADR (NASDAQ:BIDU) as our stock screener's choice for an undervalued stock. NASDAQ:BIDU maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Assessing Valuation Metrics for NASDAQ:BIDU

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 7 out of 10:

• Based on the Price/Earnings ratio of 7.45, the valuation of BIDU can be described as very cheap.
• Compared to the rest of the industry, the Price/Earnings ratio of BIDU indicates a rather cheap valuation: BIDU is cheaper than 91.04% of the companies listed in the same industry.
• The average S&P500 Price/Earnings ratio is at 28.32. BIDU is valued rather cheaply when compared to this.
• A Price/Forward Earnings ratio of 7.20 indicates a rather cheap valuation of BIDU.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of BIDU indicates a rather cheap valuation: BIDU is cheaper than 88.06% of the companies listed in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 20.13, BIDU is valued rather cheaply.
• BIDU's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BIDU is cheaper than 97.01% of the companies in the same industry.
• The decent profitability rating of BIDU may justify a higher PE ratio.

Analyzing Profitability Metrics

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 6 is a significant indicator of profitability:

• BIDU has a better Return On Assets (4.63%) than 76.12% of its industry peers.
• With a decent Return On Equity value of 7.75%, BIDU is doing good in the industry, outperforming 77.61% of the companies in the same industry.
• BIDU has a better Return On Invested Capital (5.10%) than 79.10% of its industry peers.
• The last Return On Invested Capital (5.10%) for BIDU is above the 3 year average (3.96%), which is a sign of increasing profitability.
• The Profit Margin of BIDU (14.24%) is better than 80.60% of its industry peers.
• BIDU's Operating Margin of 16.57% is amongst the best of the industry. BIDU outperforms 83.58% of its industry peers.

Evaluating Health: NASDAQ:BIDU

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:BIDU, the assigned 5 for health provides valuable insights:

• The Debt to FCF ratio of BIDU is 2.20, which is a good value as it means it would take BIDU, 2.20 years of fcf income to pay off all of its debts.
• With a decent Debt to FCF ratio value of 2.20, BIDU is doing good in the industry, outperforming 73.13% of the companies in the same industry.
• BIDU has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
• Even though the debt/equity ratio score it not favorable for BIDU, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
• BIDU has a Current Ratio of 2.79. This indicates that BIDU is financially healthy and has no problem in meeting its short term obligations.
• BIDU's Current ratio of 2.79 is fine compared to the rest of the industry. BIDU outperforms 62.69% of its industry peers.
• BIDU has a Quick Ratio of 2.79. This indicates that BIDU is financially healthy and has no problem in meeting its short term obligations.
• With a decent Quick ratio value of 2.79, BIDU is doing good in the industry, outperforming 62.69% of the companies in the same industry.

How We Gauge Growth for NASDAQ:BIDU

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:BIDU has earned a 5 for growth:

• The Earnings Per Share has grown by an impressive 32.22% over the past year.
• The Earnings Per Share is expected to grow by 10.44% 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.

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

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.