NASDAQ:BIDU is an undervalued gem with solid fundamentals.

Last update: Jan 16, 2025

Uncover the hidden value in BAIDU INC - SPON ADR (NASDAQ:BIDU) as our stock screening tool recommends it as an undervalued choice. NASDAQ:BIDU maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Valuation Analysis 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:

BIDU is valuated cheaply with a Price/Earnings ratio of 7.52.
Based on the Price/Earnings ratio, BIDU is valued cheaper than 90.91% of the companies in the same industry.
BIDU is valuated cheaply when we compare the Price/Earnings ratio to 27.63, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.99, which indicates a rather cheap valuation of BIDU.
Based on the Price/Forward Earnings ratio, BIDU is valued cheaper than 89.39% of the companies in the same industry.
BIDU is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.76, which is the current average of the S&P500 Index.
98.48% of the companies in the same industry are more expensive than BIDU, based on the Enterprise Value to EBITDA ratio.
93.94% of the companies in the same industry are more expensive than BIDU, based on the Price/Free Cash Flow ratio.
The decent profitability rating of BIDU may justify a higher PE ratio.

Profitability Examination for NASDAQ:BIDU

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:BIDU, the assigned 7 is noteworthy for profitability:

BIDU has a better Return On Assets (4.90%) than 77.27% of its industry peers.
BIDU has a better Return On Equity (7.88%) than 81.82% of its industry peers.
BIDU's Return On Invested Capital of 5.19% is fine compared to the rest of the industry. BIDU outperforms 71.21% 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 Profit Margin of 15.27%. This is amongst the best in the industry. BIDU outperforms 83.33% of its industry peers.
With an excellent Operating Margin value of 16.98%, BIDU belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.

Analyzing Health Metrics

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:BIDU scores 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 72.73% of the companies in the same industry.
BIDU has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
A Current Ratio of 2.19 indicates that BIDU has no problem at all paying its short term obligations.
A Quick Ratio of 2.19 indicates that BIDU has no problem at all paying its short term obligations.

Evaluating Growth: NASDAQ:BIDU

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:BIDU, the assigned 4 reflects its growth potential:

BIDU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.62% yearly.
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.

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

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

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.