DB:IQ8

Stock Analysis Report

Executive Summary

iQIYI, Inc., together with its subsidiaries, provides online entertainment services under the iQIYI brand in China.


Snowflake Analysis

Imperfect balance sheet with concerning outlook.


Similar Companies

Share Price & News

How has iQIYI's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IQ8's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-11.8%

IQ8

1.0%

DE Entertainment

-0.9%

DE Market


1 Year Return

-5.8%

IQ8

38.9%

DE Entertainment

12.8%

DE Market

Return vs Industry: IQ8 underperformed the German Entertainment industry which returned 38.9% over the past year.

Return vs Market: IQ8 underperformed the German Market which returned 12.8% over the past year.


Shareholder returns

IQ8IndustryMarket
7 Day-11.8%1.0%-0.9%
30 Day8.7%-2.1%-0.4%
90 Day28.0%8.6%2.3%
1 Year-5.8%-5.8%40.7%38.9%16.3%12.8%
3 Yearn/a44.5%37.5%15.8%5.7%
5 Yearn/a114.9%97.8%19.7%3.3%

Price Volatility Vs. Market

How volatile is iQIYI's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is iQIYI undervalued compared to its fair value and its price relative to the market?

10.28x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate IQ8's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate IQ8's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: IQ8 is unprofitable, so we can't compare its PE Ratio to the Entertainment industry average.

PE vs Market: IQ8 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate IQ8's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IQ8 is overvalued based on its PB Ratio (10.3x) compared to the DE Entertainment industry average (1.4x).


Next Steps

Future Growth

How is iQIYI forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

42.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IQ8 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: IQ8 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: IQ8 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: IQ8's revenue (16.2% per year) is forecast to grow faster than the German market (5.2% per year).

High Growth Revenue: IQ8's revenue (16.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IQ8 is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has iQIYI performed over the past 5 years?

-7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IQ8 is currently unprofitable.

Growing Profit Margin: IQ8 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IQ8 is unprofitable, and losses have increased over the past 5 years at a rate of -7.8% per year.

Accelerating Growth: Unable to compare IQ8's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: IQ8 is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (14.9%).


Return on Equity

High ROE: IQ8 has a negative Return on Equity (-92.21%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is iQIYI's financial position?


Financial Position Analysis

Short Term Liabilities: IQ8's short term assets (CN¥22.6B) exceed its short term liabilities (CN¥21.5B).

Long Term Liabilities: IQ8's short term assets (CN¥22.6B) exceed its long term liabilities (CN¥14.6B).


Debt to Equity History and Analysis

Debt Level: IQ8's debt to equity ratio (140%) is considered high.

Reducing Debt: Insufficient data to determine if IQ8's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: IQ8 has a low level of unsold assets or inventory.

Debt Coverage by Assets: IQ8's debt is covered by short term assets (assets are 1.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if IQ8 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if IQ8 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is iQIYI's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage1.1%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate IQ8's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate IQ8's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IQ8's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IQ8's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IQ8's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Tim Gong Yu (50yo)

10.1yrs

Tenure

0

Mr. Tim Gong Yu has been the Founder and Chief Executive Officer of iQiyi.com Inc. at Baidu, Inc. since January 2010. Prior to founding iQIYI, Dr. Gong was the president and chief operating officer of umes ...


Leadership Team

NamePositionTenureCompensationOwnership
Tim Gong Yu
Founder10.1yrsno data0.27% CN¥44.2m
Xiaodong Wang
Chief Financial Officer7.1yrsno datano data
Wenfeng Liu
Chief Technology Officer1.8yrsno datano data
Dahlia Wei
Director of Investor Relations0yrsno datano data
Xiangjun Wang
Chief Marketing Officer0yrsno datano data
Kris Wu
Chief Experience Officer2.4yrsno datano data
Xiaohui Wang
Chief Content Officer4.1yrsno datano data
Xianghua Yang
Senior Vice President0yrsno datano data
Youqiao Duan
Senior Vice President0yrsno datano data

4.1yrs

Average Tenure

44yo

Average Age

Experienced Management: IQ8's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tim Gong Yu
Founder10.1yrsno data0.27% CN¥44.2m
Yanhong Li
Chairman of the Board10.1yrsno datano data
Hanhui Sun
Independent Director1.9yrsno datano data
Jane Jie Sun
Independent Director1.7yrsno datano data
Cheng-Chun Yu
Director3.1yrsno datano data
Chuan Wang
Director6.1yrsno datano data
Haifeng Wang
Director1.7yrsno datano data
Dou Shen
Director0.4yrsno datano data

1.9yrs

Average Tenure

49yo

Average Age

Experienced Board: IQ8's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 89.9%.


Top Shareholders

Company Information

iQIYI, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: iQIYI, Inc.
  • Ticker: IQ8
  • Exchange: DB
  • Founded: 2009
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: US$17.475b
  • Listing Market Cap: US$16.088b
  • Shares outstanding: 725.12m
  • Website: https://www.iqiyi.com

Number of Employees


Location

  • iQIYI, Inc.
  • iQIYI Innovation Building
  • 9th Floor
  • Beijing
  • 100080
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IQNasdaqGS (Nasdaq Global Select)YesADR EACH REP 7 SHS SPON AUSUSDMar 2018
0XWGLSE (London Stock Exchange)YesADR EACH REP 7 SHS SPON AGBUSDMar 2018
IQ8DB (Deutsche Boerse AG)YesADR EACH REP 7 SHS SPON ADEEURMar 2018

Biography

iQIYI, Inc., together with its subsidiaries, provides online entertainment services under the iQIYI brand in China. It operates a platform that provides a collection of Internet video content, including professionally-produced content licensed from professional content providers and self-produced content. The company also provides membership, content distribution, online advertising, live broadcasting, and online gaming and literature services. In addition, it operates iQIYI Mall, an e-commerce platform that offers products, such as VR glasses to users through direct sale and third-party merchants; and a talent agency. iQIYI, Inc. has a strategic partnership agreement with Astro Malaysia Holdings Bhd for content channel business in Malaysia. The company was formerly known as Qiyi.com, Inc. and changed its name to iQIYI, Inc. in November 2017. iQIYI, Inc. has strategic partnership with China United Network Communications Limited. iQIYI, Inc. was incorporated in 2009 and is based in Beijing, China. iQIYI, Inc. is a subsidiary of Baidu Holdings Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 00:30
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.