IQIYI INC-ADR (IQ) Stock Fundamental Analysis
USA - NASDAQ:IQ - US46267X1081 - ADR
2.67 USD
+0.02 (+0.75%)
2.6795 USD
+0.01 (+0.36%)
Taking everything into account, IQ scores 3 out of 10 in our fundamental rating. 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year IQ was profitable.
In the past year IQ had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: IQ reported negative net income in multiple 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
Looking at the Return On Assets, with a value of 0.19%, IQ is in line with its industry, outperforming 58.75% of the companies in the same industry.
IQ has a Return On Equity of 0.65%. This is in the better half of the industry: IQ outperforms 62.50% of its industry peers.
IQ has a better Return On Invested Capital (2.44%) than 65.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IQ is below the industry average of 9.25%.
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
Looking at the Profit Margin, with a value of 0.32%, IQ is in line with its industry, outperforming 60.00% of the companies in the same industry.
IQ has a Operating Margin of 2.96%. This is in the better half of the industry: IQ outperforms 61.25% of its industry peers.
IQ has a worse Gross Margin (22.88%) than 76.25% of its industry peers.
In the last couple of years the Gross Margin of IQ has grown nicely.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so IQ is still creating some value.
The number of shares outstanding for IQ has been increased compared to 1 year ago.
The number of shares outstanding for IQ has been increased compared to 5 years ago.
IQ has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.67, we must say that IQ is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of IQ (-0.67) is worse than 68.75% of its industry peers.
The Debt to FCF ratio of IQ is 13.91, which is on the high side as it means it would take IQ, 13.91 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 13.91, IQ perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
A Debt/Equity ratio of 0.87 indicates that IQ is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.87, IQ is doing worse than 63.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 13.91 | ||
| Altman-Z | -0.67 |
ROIC/WACC0.45
WACC5.43%
2.3 Liquidity
IQ has a Current Ratio of 0.42. 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 worse Current ratio (0.42) than 82.50% of its industry peers.
A Quick Ratio of 0.39 indicates that IQ may have some problems paying its short term obligations.
IQ has a worse Quick ratio (0.39) than 81.25% of its industry peers.
| 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.
Looking at the last year, IQ shows a very negative growth in Revenue. The Revenue has decreased by -10.98% in the last year.
Measured over the past years, IQ shows a small growth in Revenue. The Revenue has been growing by 0.16% on average per year.
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
IQ is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.87% yearly.
The Revenue is expected to grow by 0.03% on average over the next years.
EPS Next Y-85.69%
EPS Next 2Y13.83%
EPS Next 3Y25.46%
EPS Next 5Y28.87%
Revenue Next Year-7.18%
Revenue Next 2Y-1.82%
Revenue Next 3Y0.19%
Revenue Next 5Y0.03%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 267.00, which means the current valuation is very expensive for IQ.
The rest of the industry has a similar Price/Earnings ratio as IQ.
When comparing the Price/Earnings ratio of IQ to the average of the S&P500 Index (27.20), we can say IQ is valued expensively.
IQ is valuated rather expensively with a Price/Forward Earnings ratio of 18.53.
85.00% of the companies in the same industry are more expensive than IQ, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, IQ is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 267 | ||
| Fwd PE | 18.53 |
4.2 Price Multiples
96.25% of the companies in the same industry are more expensive than IQ, based on the Enterprise Value to EBITDA ratio.
IQ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. IQ is cheaper than 86.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.15 | ||
| EV/EBITDA | 1.69 |
4.3 Compensation for Growth
A more expensive valuation may be justified as IQ's earnings are expected to grow with 25.46% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y13.83%
EPS Next 3Y25.46%
5. Dividend
5.1 Amount
IQ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.67
+0.02 (+0.75%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners44.91%
Inst Owner Change-9.42%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.57B
Analysts76.43
Price Target2.55 (-4.49%)
Short Float %118.31%
Short Ratio3.9
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)26.54%
PT rev (3m)23.45%
EPS NQ rev (1m)-312.5%
EPS NQ rev (3m)-140.8%
EPS NY rev (1m)-48.76%
EPS NY rev (3m)-91.17%
Revenue NQ rev (1m)-7.15%
Revenue NQ rev (3m)-14%
Revenue NY rev (1m)-4.63%
Revenue NY rev (3m)-6.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 267 | ||
| Fwd PE | 18.53 | ||
| P/S | 0.66 | ||
| P/FCF | 18.15 | ||
| P/OCF | 16.79 | ||
| P/B | 1.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.69 |
EPS(TTM)0.01
EY0.37%
EPS(NY)0.14
Fwd EY5.4%
FCF(TTM)0.15
FCFY5.51%
OCF(TTM)0.16
OCFY5.96%
SpS4.05
BVpS1.98
TBVpS-1.71
PEG (NY)N/A
PEG (5Y)N/A
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
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-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 | -0.67 |
F-Score3
WACC5.43%
ROIC/WACC0.45
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-85.69%
EPS Next 2Y13.83%
EPS Next 3Y25.46%
EPS Next 5Y28.87%
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 5Y0.03%
EBIT growth 1Y-70.79%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-38.52%
EBIT Next 3Y11.06%
EBIT Next 5Y38.63%
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%