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

Last update: Dec 4, 2024

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.

Deciphering NASDAQ:BIDU's Valuation Rating

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:BIDU was assigned a score of 8 for valuation:

Based on the Price/Earnings ratio of 7.89, the valuation of BIDU can be described as very cheap.
BIDU's Price/Earnings ratio is rather cheap when compared to the industry. BIDU is cheaper than 88.89% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.61. BIDU is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.99, the valuation of BIDU can be described as very cheap.
Based on the Price/Forward Earnings ratio, BIDU is valued cheaper than 91.67% of the companies in the same industry.
BIDU's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.09.
BIDU's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BIDU is cheaper than 98.61% of the companies in the same industry.
BIDU's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BIDU is cheaper than 95.83% of the companies in the same industry.
BIDU has a very decent profitability rating, which may justify a higher PE ratio.

Analyzing Profitability Metrics

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:

BIDU's Return On Assets of 4.90% is fine compared to the rest of the industry. BIDU outperforms 79.17% of its industry peers.
BIDU has a Return On Equity of 7.88%. This is amongst the best in the industry. BIDU outperforms 83.33% of its industry peers.
BIDU has a Return On Invested Capital of 5.19%. This is in the better half of the industry: BIDU outperforms 73.61% of its industry peers.
The 3 year average ROIC (3.96%) for BIDU is below the current ROIC(5.19%), indicating increased profibility in the last year.
BIDU has a better Profit Margin (15.27%) than 84.72% of its industry peers.
The Operating Margin of BIDU (16.98%) is better than 84.72% of its industry peers.

How do we evaluate the Health 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:

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's Debt to FCF ratio of 2.35 is fine compared to the rest of the industry. BIDU outperforms 73.61% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that BIDU is not too dependend on debt financing.
BIDU has a Current Ratio of 2.19. This indicates that BIDU is financially healthy and has no problem in meeting its short term obligations.
BIDU has a Quick Ratio of 2.19. This indicates that BIDU is financially healthy and has no problem in meeting its short term obligations.

Unpacking NASDAQ:BIDU's Growth Rating

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:

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.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.