IQIYI INC-ADR(NASDAQ:IQ) stock Fundamental Analysis

Fundamental Rating

Overall IQ gets a fundamental rating of 3 out of 10. We evaluated IQ against 72 industry peers in the Entertainment industry. IQ has a bad profitability rating. Also its financial health evaluation is rather negative. IQ is valued correctly, but it does not seem to be growing.

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1. Profitability

1.1 Basic Checks

IQ had positive earnings in the past year.

The reported net income has been mixed in the past 5 years: IQ reported negative net income in multiple years.

IQ had negative operating cash flow in 4 of the past 5 years.

1.2 Ratios

IQ has a Return On Assets of 1.67%. This is in the better half of the industry: IQ outperforms 73.61% of its industry peers.

Looking at the Return On Equity, with a value of 5.72%, IQ belongs to the top of the industry, outperforming 81.94% of the companies in the same industry.

IQ has a better Return On Invested Capital (5.10%) than 75.00% of its industry peers.

Measured over the past 3 years, the Average Return On Invested Capital for IQ is significantly below the industry average of 82.14%.

		Industry Rank	Sector Rank
ROA	1.67%
ROE	5.72%
ROIC	5.1%

ROA(3y)1.9%

ROA(5y)-4.7%

ROE(3y)6.49%

ROE(5y)-35.19%

ROIC(3y)6.71%

ROIC(5y)N/A

1.3 Margins

IQ has a better Profit Margin (2.61%) than 75.00% of its industry peers.

The Operating Margin of IQ (6.20%) is better than 75.00% of its industry peers.

IQ's Gross Margin of 24.88% is on the low side compared to the rest of the industry. IQ is outperformed by 70.83% of its industry peers.

In the last couple of years the Gross Margin of IQ has declined.

		Industry Rank	Sector Rank
OM	6.2%
PM (TTM)	2.61%
GM	24.88%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-6.03%

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IQ is destroying value.

The debt/assets ratio for IQ has been reduced compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of -0.67, we must say that IQ is in the distress zone and has some risk of bankruptcy.

IQ's Altman-Z score of -0.67 is on the low side compared to the rest of the industry. IQ is outperformed by 69.44% of its industry peers.

A Debt/Equity ratio of 0.99 indicates that IQ is somewhat dependend on debt financing.

IQ has a Debt to Equity ratio of 0.99. This is comparable to the rest of the industry: IQ outperforms 44.44% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.99
Debt/FCF	N/A
Altman-Z	-0.67

ROIC/WACC0.74

WACC6.92%

2.3 Liquidity

A Current Ratio of 0.44 indicates that IQ may have some problems paying its short term obligations.

With a Current ratio value of 0.44, IQ is not doing good in the industry: 76.39% of the companies in the same industry are doing better.

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.

The Quick ratio of IQ (0.43) is worse than 76.39% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.44
Quick Ratio	0.43

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for IQ have decreased strongly by -60.10% in the last year.

Looking at the last year, IQ shows a decrease in Revenue. The Revenue has decreased by -8.31% in the last year.

IQ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.16% yearly.

EPS 1Y (TTM)-60.1%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-141.67%

Revenue 1Y (TTM)-8.31%

Revenue growth 3Y-1.47%

Revenue growth 5Y0.16%

Sales Q2Q%-14.18%

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.

IQ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.18% yearly.

EPS Next Y87.91%

EPS Next 2Y52.45%

EPS Next 3Y44.12%

EPS Next 5Y47.57%

Revenue Next Year-0.05%

Revenue Next 2Y1.66%

Revenue Next 3Y2.29%

Revenue Next 5Y1.18%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 15.00, IQ is valued correctly.

Based on the Price/Earnings ratio, IQ is valued cheaply inside the industry as 86.11% of the companies are valued more expensively.

IQ is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.

Based on the Price/Forward Earnings ratio of 8.11, the valuation of IQ can be described as reasonable.

Based on the Price/Forward Earnings ratio, IQ is valued cheaper than 95.83% of the companies in the same industry.

The average S&P500 Price/Forward Earnings ratio is at 21.08. IQ is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	15
Fwd PE	8.11

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	N/A

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

A more expensive valuation may be justified as IQ's earnings are expected to grow with 44.12% in the coming years.

PEG (NY)0.17

PEG (5Y)N/A

EPS Next 2Y52.45%

EPS Next 3Y44.12%

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5. Dividend

5.1 Amount

No dividends for IQ!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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IQIYI INC-ADR

NASDAQ:IQ (4/17/2025, 10:41:09 PM)

After market: 1.67 +0.02 (+1.21%)

1.65

-0.04 (-2.37%)

Chartmill FA Rating

GICS SectorCommunication Services

GICS IndustryGroupMedia & Entertainment

GICS IndustryEntertainment

Earnings (Last)02-18 2025-02-18/bmo

Earnings (Next)05-14 2025-05-14/bmo

Inst Owners46.43%

Inst Owner Change0%

Ins OwnersN/A

Ins Owner ChangeN/A

Market Cap1.59B

Analysts77.78

Price Target2.66 (61.21%)

Short Float %66.6%

Short Ratio1.75

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)72.65%

Min EPS beat(2)7.54%

Max EPS beat(2)137.76%

EPS beat(4)4

Avg EPS beat(4)101.37%

Min EPS beat(4)7.54%

Max EPS beat(4)202.05%

EPS beat(8)8

Avg EPS beat(8)57.96%

EPS beat(12)11

Avg EPS beat(12)37.08%

EPS beat(16)15

Avg EPS beat(16)31.74%

Revenue beat(2)0

Avg Revenue beat(2)-2.96%

Min Revenue beat(2)-3.04%

Max Revenue beat(2)-2.89%

Revenue beat(4)0

Avg Revenue beat(4)-2.56%

Min Revenue beat(4)-3.04%

Max Revenue beat(4)-1.71%

Revenue beat(8)1

Avg Revenue beat(8)-2.17%

Revenue beat(12)1

Avg Revenue beat(12)-2.11%

Revenue beat(16)2

Avg Revenue beat(16)-1.82%

PT rev (1m)1.75%

PT rev (3m)-7.96%

EPS NQ rev (1m)0%

EPS NQ rev (3m)-25.26%

EPS NY rev (1m)9.55%

EPS NY rev (3m)-4.87%

Revenue NQ rev (1m)0.03%

Revenue NQ rev (3m)-0.26%

Revenue NY rev (1m)-0.39%

Revenue NY rev (3m)-1.94%

Valuation

		Industry Rank	Sector Rank
PE	15
Fwd PE	8.11
P/S	0.4
P/FCF	N/A
P/OCF	N/A
P/B	0.87
P/tB	N/A
EV/EBITDA	N/A

EPS(TTM)0.11

EY6.67%

EPS(NY)0.2

Fwd EY12.33%

FCF(TTM)N/A

FCFYN/A

OCF(TTM)N/A

OCFYN/A

SpS4.16

BVpS1.9

TBVpS-1.76

PEG (NY)0.17

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	1.67%
ROE	5.72%
ROCE	7.46%
ROIC	5.1%
ROICexc	6.06%
ROICexgc	N/A
OM	6.2%
PM (TTM)	2.61%
GM	24.88%
FCFM	N/A

ROA(3y)1.9%

ROA(5y)-4.7%

ROE(3y)6.49%

ROE(5y)-35.19%

ROIC(3y)6.71%

ROIC(5y)N/A

ROICexc(3y)8.92%

ROICexc(5y)N/A

ROICexgc(3y)N/A

ROICexgc(5y)N/A

ROCE(3y)9.91%

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 3Y-6.03%

GM growth 5YN/A

F-ScoreN/A

Asset Turnover0.64

Health

		Industry Rank	Sector Rank
Debt/Equity	0.99
Debt/FCF	N/A
Debt/EBITDA	N/A
Cap/Depr	N/A
Cap/Sales	N/A
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	N/A
Current Ratio	0.44
Quick Ratio	0.43
Altman-Z	-0.67

F-ScoreN/A

WACC6.92%

ROIC/WACC0.74

Cap/Depr(3y)N/A

Cap/Depr(5y)N/A

Cap/Sales(3y)N/A

Cap/Sales(5y)N/A

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)-60.1%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-141.67%

EPS Next Y87.91%

EPS Next 2Y52.45%

EPS Next 3Y44.12%

EPS Next 5Y47.57%

Revenue 1Y (TTM)-8.31%

Revenue growth 3Y-1.47%

Revenue growth 5Y0.16%

Sales Q2Q%-14.18%

Revenue Next Year-0.05%

Revenue Next 2Y1.66%

Revenue Next 3Y2.29%

Revenue Next 5Y1.18%

EBIT growth 1Y-39.41%

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next Year34.56%

EBIT Next 3Y23.13%

EBIT Next 5Y42.97%

FCF growth 1YN/A

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1YN/A

OCF growth 3YN/A

OCF growth 5YN/A

IQIYI INC-ADR (IQ) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

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4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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