IQIYI INC-ADR (IQ) Stock Fundamental Analysis
NASDAQ:IQ - Nasdaq - US46267X1081 - ADR - Currency: USD
IQ gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 72 industry peers in the Entertainment industry. IQ has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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
In the past year IQ was profitable.
IQ had a positive operating cash flow in the past year.
In multiple years IQ reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: IQ reported negative operating cash flow in multiple years.
1.2 Ratios
IQ has a Return On Assets of 0.62%. This is in the better half of the industry: IQ outperforms 66.67% of its industry peers.
With a decent Return On Equity value of 2.13%, IQ is doing good in the industry, outperforming 70.83% of the companies in the same industry.
IQ's Return On Invested Capital of 3.55% is fine compared to the rest of the industry. IQ outperforms 69.44% of its industry peers.
IQ had an Average Return On Invested Capital over the past 3 years of 6.80%. This is significantly below the industry average of 23.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.62% | ||
| ROE | 2.13% | ||
| ROIC | 3.55% |
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
Looking at the Profit Margin, with a value of 1.02%, IQ is in the better half of the industry, outperforming 68.06% of the companies in the same industry.
Looking at the Operating Margin, with a value of 4.24%, IQ is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
IQ has a worse Gross Margin (23.72%) than 72.22% of its industry peers.
IQ's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.24% | ||
| PM (TTM) | 1.02% | ||
| GM | 23.72% |
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
IQ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
IQ has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, IQ has more shares outstanding
IQ has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.70, we must say that IQ is in the distress zone and has some risk of bankruptcy.
IQ has a Altman-Z score of -0.70. This is in the lower half of the industry: IQ underperforms 75.00% of its industry peers.
The Debt to FCF ratio of IQ is 10.18, which is on the high side as it means it would take IQ, 10.18 years of fcf income to pay off all of its debts.
IQ has a Debt to FCF ratio of 10.18. This is comparable to the rest of the industry: IQ outperforms 59.72% of its industry peers.
IQ has a Debt/Equity ratio of 0.86. This is a neutral value indicating IQ is somewhat dependend on debt financing.
IQ has a Debt to Equity ratio of 0.86. This is in the lower half of the industry: IQ underperforms 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 10.18 | ||
| Altman-Z | -0.7 |
ROIC/WACC0.71
WACC4.99%
2.3 Liquidity
A Current Ratio of 0.46 indicates that IQ may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.46, IQ is doing worse than 81.94% of the companies in the same industry.
IQ has a Quick Ratio of 0.46. This is a bad value and indicates that IQ is not financially healthy enough and could expect problems in meeting its short term obligations.
IQ has a Quick ratio of 0.43. This is amonst the worse of the industry: IQ underperforms 80.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The earnings per share for IQ have decreased strongly by -85.15% in the last year.
IQ shows a decrease in Revenue. In the last year, the revenue decreased by -9.43%.
The Revenue has been growing slightly by 0.16% on average over the past years.
EPS 1Y (TTM)-85.15%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-72.06%
Revenue 1Y (TTM)-9.43%
Revenue growth 3Y-1.47%
Revenue growth 5Y0.16%
Sales Q2Q%-9.35%
3.2 Future
IQ is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.57% yearly.
Based on estimates for the next years, IQ will show a small growth in Revenue. The Revenue will grow by 1.68% on average per year.
EPS Next Y-72.06%
EPS Next 2Y26.76%
EPS Next 3Y28.38%
EPS Next 5Y47.57%
Revenue Next Year-0.97%
Revenue Next 2Y1.14%
Revenue Next 3Y1.86%
Revenue Next 5Y1.68%
3.3 Evolution
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 46.50, the valuation of IQ can be described as expensive.
Based on the Price/Earnings ratio, IQ is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
IQ is valuated expensively when we compare the Price/Earnings ratio to 27.18, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.51 indicates a reasonable valuation of IQ.
Based on the Price/Forward Earnings ratio, IQ is valued cheaply inside the industry as 90.28% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.34, IQ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.5 | ||
| Fwd PE | 10.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IQ indicates a rather cheap valuation: IQ is cheaper than 95.83% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IQ indicates a rather cheap valuation: IQ is cheaper than 88.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.03 | ||
| EV/EBITDA | 1.19 |
4.3 Compensation for Growth
A more expensive valuation may be justified as IQ's earnings are expected to grow with 28.38% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y26.76%
EPS Next 3Y28.38%
5. Dividend
5.1 Amount
No dividends for IQ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.86
+0.07 (+3.91%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners45.09%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.79B
Analysts75.71
Price Target2.02 (8.6%)
Short Float %93.09%
Short Ratio3.63
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)1
Avg EPS beat(2)0.47%
Min EPS beat(2)-6.6%
Max EPS beat(2)7.54%
EPS beat(4)3
Avg EPS beat(4)85.19%
Min EPS beat(4)-6.6%
Max EPS beat(4)202.05%
EPS beat(8)7
Avg EPS beat(8)52.07%
EPS beat(12)10
Avg EPS beat(12)25.77%
EPS beat(16)14
Avg EPS beat(16)29.32%
Revenue beat(2)0
Avg Revenue beat(2)-2.28%
Min Revenue beat(2)-3.04%
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)-2.52%
Revenue beat(12)1
Avg Revenue beat(12)-2.05%
Revenue beat(16)1
Avg Revenue beat(16)-1.99%
PT rev (1m)-2.32%
PT rev (3m)-24.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-154.96%
EPS NY rev (1m)-82.76%
EPS NY rev (3m)-85.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.04%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.5 | ||
| Fwd PE | 10.51 | ||
| P/S | 0.45 | ||
| P/FCF | 9.03 | ||
| P/OCF | 8.5 | ||
| P/B | 0.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.19 |
EPS(TTM)0.04
EY2.15%
EPS(NY)0.18
Fwd EY9.51%
FCF(TTM)0.21
FCFY11.08%
OCF(TTM)0.22
OCFY11.76%
SpS4.12
BVpS1.98
TBVpS-1.64
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.62% | ||
| ROE | 2.13% | ||
| ROCE | 5.15% | ||
| ROIC | 3.55% | ||
| ROICexc | 4.41% | ||
| ROICexgc | N/A | ||
| OM | 4.24% | ||
| PM (TTM) | 1.02% | ||
| GM | 23.72% | ||
| FCFM | 5% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score4
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 10.18 | ||
| Debt/EBITDA | 0.8 | ||
| Cap/Depr | 0.65% | ||
| Cap/Sales | 0.31% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 10.19% | ||
| Profit Quality | 489.23% | ||
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | -0.7 |
F-Score4
WACC4.99%
ROIC/WACC0.71
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)-85.15%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-72.06%
EPS Next Y-72.06%
EPS Next 2Y26.76%
EPS Next 3Y28.38%
EPS Next 5Y47.57%
Revenue 1Y (TTM)-9.43%
Revenue growth 3Y-1.47%
Revenue growth 5Y0.16%
Sales Q2Q%-9.35%
Revenue Next Year-0.97%
Revenue Next 2Y1.14%
Revenue Next 3Y1.86%
Revenue Next 5Y1.68%
EBIT growth 1Y-60.71%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-22.21%
EBIT Next 3Y14.15%
EBIT Next 5Y43.43%
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%