IQIYI INC-ADR (IQ) Stock Fundamental Analysis
USA - NASDAQ:IQ - US46267X1081 - ADR
2.18 USD
-0.02 (-0.91%)
2.17 USD
-0.01 (-0.46%)
We assign a fundamental rating of 3 out of 10 to IQ. IQ was compared to 80 industry peers in the Entertainment industry. While IQ is still in line with the averages on profitability rating, there are concerns on its financial health. IQ has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
IQ had positive earnings in the past year.
In the past year IQ had a positive cash flow from operations.
In multiple years IQ reported negative net income over the last 5 years.
In multiple years IQ reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of IQ (0.19%) is comparable to the rest of the industry.
IQ's Return On Equity of 0.65% is fine compared to the rest of the industry. IQ outperforms 61.25% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.44%, IQ is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
IQ had an Average Return On Invested Capital over the past 3 years of 6.80%. This is below the industry average of 9.23%.
The 3 year average ROIC (6.80%) for IQ is well above the current ROIC(2.44%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.19% | ||
| ROE | 0.65% | ||
| ROIC | 2.44% |
ROA(3y)1.9%
ROA(5y)-4.7%
ROE(3y)6.49%
ROE(5y)-35.19%
ROIC(3y)6.8%
ROIC(5y)N/A
1.3 Margins
IQ has a Profit Margin of 0.32%. This is comparable to the rest of the industry: IQ outperforms 58.75% of its industry peers.
The Operating Margin of IQ (2.96%) is better than 62.50% of its industry peers.
The Gross Margin of IQ (22.88%) is worse than 76.25% of its industry peers.
IQ's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.96% | ||
| PM (TTM) | 0.32% | ||
| GM | 22.88% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y14.53%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), IQ is creating some value.
The number of shares outstanding for IQ has been increased compared to 1 year ago.
IQ has more shares outstanding than it did 5 years ago.
IQ has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.73, we must say that IQ is in the distress zone and has some risk of bankruptcy.
IQ's Altman-Z score of -0.73 is on the low side compared to the rest of the industry. IQ is outperformed by 71.25% of its industry peers.
IQ has a debt to FCF ratio of 13.91. This is a negative value and a sign of low solvency as IQ would need 13.91 years to pay back of all of its debts.
IQ has a Debt to FCF ratio (13.91) which is in line with its industry peers.
IQ has a Debt/Equity ratio of 0.87. This is a neutral value indicating IQ is somewhat dependend on debt financing.
IQ has a worse Debt to Equity ratio (0.87) than 63.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 13.91 | ||
| Altman-Z | -0.73 |
ROIC/WACC0.47
WACC5.17%
2.3 Liquidity
A Current Ratio of 0.42 indicates that IQ may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.42, IQ is doing worse than 83.75% of the companies in the same industry.
A Quick Ratio of 0.39 indicates that IQ may have some problems paying its short term obligations.
With a Quick ratio value of 0.39, IQ is not doing good in the industry: 82.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
The earnings per share for IQ have decreased strongly by -94.77% in the last year.
IQ shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.98%.
The Revenue has been growing slightly by 0.16% on average over the past years.
EPS 1Y (TTM)-94.77%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-300%
Revenue 1Y (TTM)-10.98%
Revenue growth 3Y-1.47%
Revenue growth 5Y0.16%
Sales Q2Q%-10.9%
3.2 Future
The Earnings Per Share is expected to grow by 28.82% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 0.00% on average over the next years.
EPS Next Y-117.04%
EPS Next 2Y9.85%
EPS Next 3Y23.6%
EPS Next 5Y28.82%
Revenue Next Year-7.18%
Revenue Next 2Y-1.82%
Revenue Next 3Y0.19%
Revenue Next 5Y0%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
IQ is valuated quite expensively with a Price/Earnings ratio of 218.00.
IQ's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.91. IQ is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 16.29 indicates a correct valuation of IQ.
IQ's Price/Forward Earnings ratio is rather cheap when compared to the industry. IQ is cheaper than 88.75% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of IQ to the average of the S&P500 Index (22.92), we can say IQ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 218 | ||
| Fwd PE | 16.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IQ is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, IQ is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.86 | ||
| EV/EBITDA | 1.47 |
4.3 Compensation for Growth
A more expensive valuation may be justified as IQ's earnings are expected to grow with 23.60% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.85%
EPS Next 3Y23.6%
5. Dividend
5.1 Amount
No dividends for IQ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.18
-0.02 (-0.91%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners43.49%
Inst Owner Change-0.31%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.10B
Revenue(TTM)27.67B
Net Income(TTM)88.49M
Analysts76.43
Price Target2.55 (16.97%)
Short Float %119.31%
Short Ratio4.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)28.52%
Min EPS beat(2)15.29%
Max EPS beat(2)41.75%
EPS beat(4)4
Avg EPS beat(4)50.58%
Min EPS beat(4)7.54%
Max EPS beat(4)137.76%
EPS beat(8)8
Avg EPS beat(8)59.25%
EPS beat(12)11
Avg EPS beat(12)28.15%
EPS beat(16)15
Avg EPS beat(16)31.81%
Revenue beat(2)0
Avg Revenue beat(2)-2.06%
Min Revenue beat(2)-2.61%
Max Revenue beat(2)-1.51%
Revenue beat(4)0
Avg Revenue beat(4)-2.51%
Min Revenue beat(4)-3.04%
Max Revenue beat(4)-1.51%
Revenue beat(8)0
Avg Revenue beat(8)-2.49%
Revenue beat(12)1
Avg Revenue beat(12)-2%
Revenue beat(16)1
Avg Revenue beat(16)-2.12%
PT rev (1m)0%
PT rev (3m)26.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-403.57%
EPS NY rev (1m)0%
EPS NY rev (3m)-160.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 218 | ||
| Fwd PE | 16.29 | ||
| P/S | 0.54 | ||
| P/FCF | 14.86 | ||
| P/OCF | 13.75 | ||
| P/B | 1.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.47 |
EPS(TTM)0.01
EY0.46%
EPS(NY)0.13
Fwd EY6.14%
FCF(TTM)0.15
FCFY6.73%
OCF(TTM)0.16
OCFY7.27%
SpS4.03
BVpS1.97
TBVpS-1.71
PEG (NY)N/A
PEG (5Y)N/A
Graham Number0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.19% | ||
| ROE | 0.65% | ||
| ROCE | 3.44% | ||
| ROIC | 2.44% | ||
| ROICexc | 2.9% | ||
| ROICexgc | N/A | ||
| OM | 2.96% | ||
| PM (TTM) | 0.32% | ||
| GM | 22.88% | ||
| FCFM | 3.64% |
ROA(3y)1.9%
ROA(5y)-4.7%
ROE(3y)6.49%
ROE(5y)-35.19%
ROIC(3y)6.8%
ROIC(5y)N/A
ROICexc(3y)9.03%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)10.04%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y14.53%
GM growth 5YN/A
F-Score3
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 13.91 | ||
| Debt/EBITDA | 0.82 | ||
| Cap/Depr | 0.6% | ||
| Cap/Sales | 0.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 7.53% | ||
| Profit Quality | 1137.36% | ||
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | -0.73 |
F-Score3
WACC5.17%
ROIC/WACC0.47
Cap/Depr(3y)1.33%
Cap/Depr(5y)1.72%
Cap/Sales(3y)0.62%
Cap/Sales(5y)0.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-94.77%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-300%
EPS Next Y-117.04%
EPS Next 2Y9.85%
EPS Next 3Y23.6%
EPS Next 5Y28.82%
Revenue 1Y (TTM)-10.98%
Revenue growth 3Y-1.47%
Revenue growth 5Y0.16%
Sales Q2Q%-10.9%
Revenue Next Year-7.18%
Revenue Next 2Y-1.82%
Revenue Next 3Y0.19%
Revenue Next 5Y0%
EBIT growth 1Y-70.79%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-63.05%
EBIT Next 3Y6.07%
EBIT Next 5Y38.59%
FCF growth 1Y-40.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-37.04%
OCF growth 3YN/A
OCF growth 5Y-11.59%
IQIYI INC-ADR / IQ FAQ
What is the fundamental rating for IQ stock?
ChartMill assigns a fundamental rating of 3 / 10 to IQ.
What is the valuation status of IQIYI INC-ADR (IQ) stock?
ChartMill assigns a valuation rating of 5 / 10 to IQIYI INC-ADR (IQ). This can be considered as Fairly Valued.
How profitable is IQIYI INC-ADR (IQ) stock?
IQIYI INC-ADR (IQ) has a profitability rating of 4 / 10.
What is the valuation of IQIYI INC-ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for IQIYI INC-ADR (IQ) is 218 and the Price/Book (PB) ratio is 1.11.
How financially healthy is IQIYI INC-ADR?
The financial health rating of IQIYI INC-ADR (IQ) is 1 / 10.