2.04 USD
-0.05 (-2.39%)
2.03 USD
-0.01 (-0.49%)
Taking everything into account, IQ scores 2 out of 10 in our fundamental rating. IQ was compared to 80 industry peers in the Entertainment industry. IQ may be in some trouble as it scores bad on both profitability and health. IQ has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year IQ has reported negative net income.
- In the past year IQ has reported a negative 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
- IQ's Return On Assets of -0.85% is in line compared to the rest of the industry. IQ outperforms 55.00% of its industry peers.
- IQ has a Return On Equity (-2.92%) which is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 1.36%, IQ is in the better half of the industry, outperforming 61.25% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for IQ is in line with the industry average of 8.74%.
- The 3 year average ROIC (6.80%) for IQ is well above the current ROIC(1.36%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.85% | ||
| ROE | -2.92% | ||
| ROIC | 1.36% |
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 Operating Margin (1.69%) which is comparable to the rest of the industry.
- IQ's Gross Margin of 21.95% is on the low side compared to the rest of the industry. IQ is outperformed by 75.00% of its industry peers.
- In the last couple of years the Gross Margin of IQ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.69% | ||
| PM (TTM) | N/A | ||
| GM | 21.95% |
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.
- Compared to 1 year ago, IQ has more shares outstanding
- IQ has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for IQ has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of -0.77, we must say that IQ is in the distress zone and has some risk of bankruptcy.
- IQ has a worse Altman-Z score (-0.77) than 70.00% of its industry peers.
- IQ has a Debt/Equity ratio of 0.92. This is a neutral value indicating IQ is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.92, IQ is doing worse than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.77 |
ROIC/WACC0.27
WACC5.09%
2.3 Liquidity
- A Current Ratio of 0.44 indicates that IQ may have some problems paying its short term obligations.
- IQ has a worse Current ratio (0.44) than 81.25% of its industry peers.
- IQ has a Quick Ratio of 0.44. 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's Quick ratio of 0.41 is on the low side compared to the rest of the industry. IQ is outperformed by 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
- IQ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -127.89%.
- The Revenue for IQ has decreased by -10.58% in the past year. This is quite bad
- The Revenue has been growing slightly by 0.16% on average over the past years.
EPS 1Y (TTM)-127.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-208.33%
Revenue 1Y (TTM)-10.58%
Revenue growth 3Y-1.47%
Revenue growth 5Y0.16%
Sales Q2Q%-7.77%
3.2 Future
- Based on estimates for the next years, IQ will show a very strong growth in Earnings Per Share. The EPS will grow by 29.09% on average per year.
- IQ is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.19% yearly.
EPS Next Y-148.34%
EPS Next 2Y-5.35%
EPS Next 3Y13.94%
EPS Next 5Y29.09%
Revenue Next Year-6.86%
Revenue Next 2Y-2.19%
Revenue Next 3Y-0.36%
Revenue Next 5Y-0.19%
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 reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- The Price/Forward Earnings ratio is 20.11, which indicates a rather expensive current valuation of IQ.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of IQ indicates a rather cheap valuation: IQ is cheaper than 83.75% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. IQ is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.11 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, IQ is valued cheaper than 95.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 1.56 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as IQ's earnings are expected to grow with 13.94% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.35%
EPS Next 3Y13.94%
5. Dividend
5.1 Amount
- No dividends for IQ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
IQIYI INC-ADR / IQ FAQ
What is the fundamental rating for IQ stock?
ChartMill assigns a fundamental rating of 2 / 10 to IQ.
Can you provide the valuation status for IQIYI INC-ADR?
ChartMill assigns a valuation rating of 2 / 10 to IQIYI INC-ADR (IQ). This can be considered as Overvalued.
What is the profitability of IQ stock?
IQIYI INC-ADR (IQ) has a profitability rating of 3 / 10.
What is the financial health of IQIYI INC-ADR (IQ) stock?
The financial health rating of IQIYI INC-ADR (IQ) is 1 / 10.
What is the expected EPS growth for IQIYI INC-ADR (IQ) stock?
The Earnings per Share (EPS) of IQIYI INC-ADR (IQ) is expected to decline by -148.34% in the next year.