NasdaqGS:BIDU

Stock Analysis Report

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Executive Summary

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

Rewards

Trading at 32.8% below our estimate of its fair value

Revenue is forecast to grow 11.56% per year

Became profitable this year

Risk Analysis

No risks detected for BIDU from our risk checks.


Snowflake Analysis

Flawless balance sheet and good value.


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

Stable Share Price: BIDU is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: BIDU's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-0.6%

BIDU

-4.5%

US Interactive Media and Services

-0.9%

US Market


1 Year Return

71.1%

BIDU

20.0%

US Interactive Media and Services

19.6%

US Market

Return vs Industry: BIDU exceeded the US Interactive Media and Services industry which returned 20.9% over the past year.

Return vs Market: BIDU exceeded the US Market which returned 21% over the past year.


Shareholder returns

BIDUIndustryMarket
7 Day-0.6%-4.5%-0.9%
30 Day25.5%-3.5%3.0%
90 Day83.2%8.1%11.5%
1 Year71.1%71.1%20.0%20.0%22.3%19.6%
3 Year-6.7%-6.7%42.1%42.0%45.3%35.7%
5 Year39.6%39.6%133.9%133.4%124.8%99.9%

Long-Term 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?

32.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BIDU ($238.87) is trading below our estimate of fair value ($355.66)

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 (22.6x) compared to the US Interactive Media and Services industry average (27.7x).

PE vs Market: BIDU is poor value based on its PE Ratio (22.6x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: BIDU is poor value based on its PEG Ratio (20x)


Price to Book Ratio

PB vs Industry: BIDU is good value based on its PB Ratio (3x) compared to the US Interactive Media and Services industry average (3.7x).


Next Steps

Future Growth

How is Baidu forecast to perform in the next 1 to 3 years based on estimates from 29 analysts?

1.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BIDU's forecast earnings growth (1.1% per year) is below the savings rate (2%).

Earnings vs Market: BIDU's earnings (1.1% per year) are forecast to grow slower than the US market (21.6% per year).

High Growth Earnings: BIDU's earnings are forecast to grow, but not significantly.

Revenue vs Market: BIDU's revenue (11.6% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: BIDU's revenue (11.6% 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 (10.9%).


Next Steps

Past Performance

How has Baidu performed over the past 5 years?

-18.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BIDU has high quality earnings.

Growing Profit Margin: BIDU became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: BIDU's earnings have declined by 18.7% per year over the past 5 years.

Accelerating Growth: BIDU has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BIDU has become profitable in the last year, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (-0.2%).


Return on Equity

High ROE: BIDU's Return on Equity (10.7%) is considered low.


Next Steps

Financial Health

How is Baidu's financial position?


Financial Position Analysis

Short Term Liabilities: BIDU's short term assets (CN¥163.2B) exceed its short term liabilities (CN¥61.6B).

Long Term Liabilities: BIDU's short term assets (CN¥163.2B) exceed its long term liabilities (CN¥69.4B).


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 62.1% to 37.1% over the past 5 years.

Debt Coverage: BIDU's debt is well covered by operating cash flow (44.3%).

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


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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

3.3yrs

Average management tenure


CEO

Robin Li (51 yo)

16.92yrs

Tenure

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 w...


Leadership Team

NamePositionTenureCompensationOwnership
Yanhong Li
Co-Founder16.92yrsno data20.85%
CN¥ 17.0b
Cheng-Chun Yu
Chief Financial Officer3.33yrsno datano data
Haifeng Wang
Chief Technology Officerno datano datano data
Shanshan Cui
Senior VP of HR & Administration1.67yrsno datano data
Juan Lin
Director of Investor Relationsno datano datano data
Victor Liang
VP & General Counsel9.58yrsno datano data
Hui Lee Liu
Chairman of the Cloud Business1.67yrsno datano data
Dou Shen
Executive Vice President1.67yrsno datano data
Tim Gong Yu
Chief Executive Officer of Beijing Qiyi Century Science & Technology Co.11yrsno datano data

3.3yrs

Average Tenure

49yo

Average Age

Experienced Management: BIDU's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yanhong Li
Co-Founder16.92yrsno data20.85%
CN¥ 17.0b
Jianhua Ding
Independent Director15.42yrsno datano data
Yuanqing Yang
Independent Director5.25yrsno datano data
Jixun Foo
Independent Director1.5yrsno datano data
Brent Callinicos
Independent Director5.25yrsno datano data

5.3yrs

Average Tenure

54yo

Average Age

Experienced Board: BIDU's board of directors are considered experienced (5.3 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

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$81.473b
  • Shares outstanding: 341.08m
  • 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
BIDUBVL (Bolsa de Valores de Lima)YesSPONS ADR REPR 0.10 ORD CLS'A'PEUSDAug 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 Analysis2021/01/15 23:36
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.