Despite its impressive fundamentals, NASDAQ:BIDU remains undervalued.

Take a closer look at BAIDU INC - SPON ADR (NASDAQ:BIDU), a remarkable value stock uncovered by our stock screener. NASDAQ:BIDU excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

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 8 out of 10:

• The Price/Earnings ratio is 7.64, which indicates a rather cheap valuation of BIDU.
• Based on the Price/Earnings ratio, BIDU is valued cheaply inside the industry as 91.55% of the companies are valued more expensively.
• The average S&P500 Price/Earnings ratio is at 29.38. BIDU is valued rather cheaply when compared to this.
• The Price/Forward Earnings ratio is 7.85, which indicates a rather cheap valuation of BIDU.
• Based on the Price/Forward Earnings ratio, BIDU is valued cheaply inside the industry as 92.96% of the companies are valued more expensively.
• When comparing the Price/Forward Earnings ratio of BIDU to the average of the S&P500 Index (23.98), we can say BIDU is valued rather cheaply.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BIDU indicates a rather cheap valuation: BIDU is cheaper than 98.59% of the companies listed in the same industry.
• BIDU's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BIDU is cheaper than 95.77% of the companies in the same industry.
• The decent profitability rating of BIDU may justify a higher PE ratio.

What does the Profitability looks like for NASDAQ:BIDU

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:BIDU has achieved a 7:

• Looking at the Return On Assets, with a value of 4.69%, BIDU is in the better half of the industry, outperforming 78.87% of the companies in the same industry.
• BIDU's Return On Equity of 7.71% is amongst the best of the industry. BIDU outperforms 81.69% of its industry peers.
• BIDU has a Return On Invested Capital of 5.32%. This is in the better half of the industry: BIDU outperforms 74.65% of its industry peers.
• The 3 year average ROIC (3.96%) for BIDU is below the current ROIC(5.32%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 14.46%, BIDU belongs to the top of the industry, outperforming 84.51% of the companies in the same industry.
• BIDU has a Operating Margin of 17.13%. This is amongst the best in the industry. BIDU outperforms 84.51% of its industry peers.

Evaluating Health: NASDAQ:BIDU

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, 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 2.15. This is a good value and a sign of high solvency as BIDU would need 2.15 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 2.15, BIDU is in the better half of the industry, outperforming 74.65% of the companies in the same industry.
• BIDU has a Debt/Equity ratio of 0.25. 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.
• BIDU has a Current Ratio of 2.32. This indicates that BIDU is financially healthy and has no problem in meeting its short term obligations.
• A Quick Ratio of 2.32 indicates that BIDU has no problem at all paying its short term obligations.

Evaluating Growth: NASDAQ:BIDU

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:BIDU scores a 5 out of 10:

• BIDU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.45%, which is quite good.
• Based on estimates for the next years, BIDU will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.44% 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.

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.

Disclaimer

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.