NasdaqGS:BIDU

Stock Analysis Report

Executive Summary

Baidu, Inc. provides Internet search services in China and internationally.

Snowflake

Fundamentals

Very undervalued with flawless balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-3.3%

BIDU

-0.4%

US Interactive Media and Services

0.4%

US Market


1 Year Return

-45.3%

BIDU

15.3%

US Interactive Media and Services

11.4%

US Market

Return vs Industry: BIDU underperformed the US Interactive Media and Services industry which returned 15.3% over the past year.

Return vs Market: BIDU underperformed the US Market which returned 11.4% over the past year.


Shareholder returns

BIDUIndustryMarket
7 Day-3.3%-0.4%0.4%
30 Day6.7%0.9%0.3%
90 Day-8.8%1.0%-1.2%
1 Year-45.3%-45.3%15.4%15.3%13.9%11.4%
3 Year-40.5%-40.5%44.7%44.7%47.2%37.6%
5 Year-56.1%-56.1%96.1%95.9%62.4%44.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BIDU ($104.15) is trading below our estimate of fair value ($216.83)

Significantly Below Fair Value: BIDU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BIDU is good value based on its PE Ratio (15.6x) compared to the Interactive Media and Services industry average (25.4x).

PE vs Market: BIDU is good value based on its PE Ratio (15.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: BIDU is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: BIDU is good value based on its PB Ratio (1.5x) compared to the US Interactive Media and Services industry average (3.2x).


Next Steps

Future Growth

How is Baidu forecast to perform in the next 1 to 3 years based on estimates from 31 analysts?

32.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BIDU's forecast earnings growth (32.8% per year) is above the savings rate (2.7%).

Earnings vs Market: BIDU's earnings (32.8% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BIDU's revenue (12.7% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: BIDU's revenue (12.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BIDU's Return on Equity is forecast to be low in 3 years time (8.9%).


Next Steps

Past Performance

How has Baidu performed over the past 5 years?

8.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BIDU's earnings have grown by 8.1% per year over the past 5 years.

Accelerating Growth: BIDU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BIDU had negative earnings growth (-36.1%) over the past year, making it difficult to compare to the Interactive Media and Services industry average (7.5%).


Return on Equity

High ROE: BIDU's Return on Equity (7.1%) is considered low.


Return on Assets

ROA vs Industry: BIDU's Return on Assets is below or equal to the Interactive Media and Services industry average last year.


Return on Capital Employed

ROCE Improving: BIDU's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Baidu's financial position?


Financial Position Analysis

Short Term Liabilities: BIDU's short term assets (CN¥155.3B) exceeds its short term liabilities (CN¥59.5B)

Long Term Liabilities: BIDU's short term assets (155.3B) exceeds its long term liabilities (70.9B)


Debt to Equity History and Analysis

Debt Level: BIDU's debt to equity ratio (37.1%) is considered satisfactory

Reducing Debt: BIDU's debt to equity ratio has reduced from 52.5% to 37.1% over the past 5 years.

Debt Coverage: BIDU's debt is well covered by operating cash flow (54.4%).

Interest Coverage: BIDU earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: BIDU's debt is covered by short term assets (assets are 2.3x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage0.4%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if BIDU'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 BIDU's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Baidu's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

Robin Li (51yo)

15.7yrs

Tenure

0

Mr. Yanhong Li, also known as Robin, Co-Founded Baidu, Inc. in January 2000 and has been its Chief Executive Officer since February, 2004 and oversees its overall strategy and business operations. Mr. Li s ...


Management Age and Tenure

1.4yrs

Average Tenure

50yo

Average Age

Experienced Management: BIDU's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

4.0yrs

Average Tenure

53yo

Average Age

Experienced Board: BIDU's board of directors are considered experienced (4 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Robin Li (51yo)

    Co-Founder

    • Tenure: 15.7yrs
  • Herman Yu (49yo)

    Chief Financial Officer

    • Tenure: 2.1yrs
  • Tim Gong Yu (50yo)

    Chief Executive Officer of Beijing Qiyi Century Science & Technology Co.

    • Tenure: 9.8yrs
  • Ya-Qin Zhang (53yo)

    President of New Business

    • Tenure: 1.3yrs
  • Hui Lee Liu (53yo)

    Chairman of the Cloud Business

    • Tenure: 0.4yrs
  • Victor Liang

    VP & General Counsel

    • Tenure: 8.3yrs
  • Sharon Ng

    Director of Ir

    • Tenure: 0yrs
  • Haifeng Wang (47yo)

    Senior Vice President

    • Tenure: 1.4yrs
  • Dou Shen (43yo)

    Senior Vice President

    • Tenure: 0.4yrs
  • Shanshan Cui

    Vice President of Human Resources

    • Tenure: 0.5yrs

Board Members

  • James Ding (54yo)

    Independent Director

    • Tenure: 14.2yrs
  • Yuanqing Yang (54yo)

    Independent Director

    • Tenure: 4yrs
  • Jixun Foo (51yo)

    Director

    • Tenure: 0.3yrs
  • Robin Li (51yo)

    Co-Founder

    • Tenure: 15.7yrs
  • Brent Callinicos (53yo)

    Independent Director

    • Tenure: 4yrs

Company Information

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


Key Information

  • Name: Baidu, Inc.
  • Ticker: BIDU
  • Exchange: NasdaqGS
  • Founded: 2000
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: US$36.301b
  • Shares outstanding: 348.54m
  • Website: https://www.baidu.com

Number of Employees


Location

  • Baidu, Inc.
  • Baidu Campus
  • No 10, Shangdi 10th Street
  • Beijing
  • 100085
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BIDUNasdaqGS (Nasdaq Global Select)YesSPONS ADR REPR 0.10 ORD CLS'A'USUSDAug 2005
B1CDB (Deutsche Boerse AG)YesSPONS ADR REPR 0.10 ORD CLS'A'DEEURAug 2005
BIDU NBMV (Bolsa Mexicana de Valores)YesSPONS ADR REPR 0.10 ORD CLS'A'MXMXNAug 2005
BIDUSWX (SIX Swiss Exchange)YesSPONS ADR REPR 0.10 ORD CLS'A'CHCHFAug 2005
BIDUWBAG (Wiener Boerse AG)YesSPONS ADR REPR 0.10 ORD CLS'A'ATEURAug 2005
0HL1LSE (London Stock Exchange)YesSPONS ADR REPR 0.10 ORD CLS'A'GBUSDAug 2005

Biography

Baidu, Inc. provides Internet search services in China and internationally. It operates through two segments, Baidu Core and iQIYI. The Baidu Core segment offers products for uses, including Baidu App to a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/24 00:02
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
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.