BIDU Stock Overview
Baidu, Inc. offers internet search services in China.
No risks detected for BIDU from our risk checks.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$128.33|
|52 Week High||US$182.60|
|52 Week Low||US$101.62|
|1 Month Change||-9.87%|
|3 Month Change||3.10%|
|1 Year Change||-6.55%|
|3 Year Change||21.70%|
|5 Year Change||-42.93%|
|Change since IPO||947.25%|
Recent News & Updates
Baidu: A Golden Era May Lie Ahead
Even though Baidu dominates China's search market, with more than 70% market share, it is so much more than just a search engine. It is making progress on cloud computing and chips, and has established a global leadership position in AI and self-driving technology through Apollo (includes robotaxis and robobuses). Jidu, its JV with Geely, is said to be valued ~$3.5 billion based on a new funding round, as it seeks to launch its first commercial vehicle in 2023. It also plans to sell all its holdings in iQIYI for ~$7 billion. The balance sheet is already flooded with cash. Cash & short-term investments represent almost 60% of Baidu's current market cap. Despite the turbulent markets, operating cash flow remains resilient, which will further strengthen the balance sheet. Eventually, Baidu is set to rerate at much higher levels, especially if it can demonstrate strength in its AI, electric vehicle and robotaxi businesses. Baidu (BIDU), along with other prominent Chinese tech stocks such as Alibaba (BABA), has been under severe scrutiny over the past decade. However, even in these challenging times, the company has proven to be highly resilient; not only has it weathered the storm, it is in a terrific position to thrive. Specifically, Baidu has demonstrated tremendous strength on two important metrics, namely 1) underlying operating cash flow generation and 2) balance sheet strength (more on this below). So far this year, the markets are going through a manic-depressive phase. Market sentiment is fragile and the general market indices have come under substantial pressure, as the headlines are flooded with negative news. In addition to high inflation, interest rate hikes, supply chain disruptions, ongoing COVID-19 issues, a potential 2022 monkeypox outbreak, and the war in Ukraine, we now also have concerns about Taiwan, exacerbated by Nancy Pelosi's visit to the island. As a result, in June, the S&P 500 entered bear market territory, dropping more than 20% from its highs. This is the worst performance since the early days of COVID-19 (March 2020). The good news is that, as of July, sentiment has improved materially. In fact, July was the best month since 2020. So, in just a couple of months, we went from experiencing the worst performance since March 2020 to also experiencing the best performance since 2020. Moreover, positive momentum is continuing to build in August, as U.S. inflation eased in July and wholesale inflation actually fell (due to a slide in energy prices), another sign that prices increases are slowing. Improving inflation data has sparked a stock market rally. Earlier this year, mostly in Q1 and in June/July, Baidu was actually faring much better relative to the major U.S. indices, in part due to the gradual easing of the Chinese tech crackdown. BIDU data by YCharts However, the sentiment in China is starting to look gloomy again, especially after Pelosi's visit to Taiwan, which adds even more pressure to the already strained US-Chinese relations. Even so, and despite the recent rally in the U.S. markets, on a year-to-date basis, Baidu is still outperforming the tech-heavy Nasdaq and S&P 500, which are down 16.6% and 10.2%, respectively, and has delivered similar performance to the Dow Jones, which is down 5.61%. Not only has Baidu outperformed most major U.S. indices, it has also outperformed all of its Chinese tech peers, by a wide margin: BIDU data by YCharts Baidu reported solid Q1 2022 results, despite challenges posed by the COVID-19 resurgence in China. Results topped expectations, thanks to continued strength in its core business, particularly non-online marketing revenue and cloud services, with non-ad revenues increasing by 35% year over year, driven by Baidu AI Cloud, which grew 45% year over year. All in all, Baidu remains extremely profitable, delivering an adjusted EPS of $1.77 on $4.48 billion in revenue (compared to estimates of 83 cents per share and $4.16 billion in revenue), underlying operating cash flow generation remains stable, and the balance sheet is flooded with cash. It is important to emphasise that the resilience in Baidu's operating cash flow, and ability to hoard cash, is not a recent phenomenon. In fact, this has been the case for more way more than a decade. BIDU Cash and Short Term Investments (Annual) data by YCharts The cash balance has skyrocketed at a very rapid pace, to almost $30 billion, largely due to strong and consistent operating cash flows. Of importance, the cash balance has increased at a much faster rate versus long term debt. However, despite the massive cash balance and ability to generate substantial operating cash flows, Baidu's market cap remains depressed, below $50 billion. To put things into context: cash & short term investments represent almost 60% of Baidu's current market cap net debt is negative, as the company has more cash than long term debt net cash represents more than 30% of the current market cap
Baidu secures China's first-ever permits for commercial fully driverless robotaxi services
Chinese tech giant, Baidu (NASDAQ:BIDU) has secured the first permits in China to offer commercial fully driverless robotaxi services to the public on open roads. Apollo Go, Baidu's autonomous ride-hailing service, is now authorized to collect fares for robotaxi rides - completely without human drivers in the car - in Chongqing and Wuhan, two of China's largest megacities. This comes few months after the company scored a permit to provide driverless ride-hailing services to the public on open roads in Beijing. “This is a tremendous qualitative change,” said Wei Dong, vice president and chief safety operation officer of Baidu’s Intelligent Driving Group, in a statement. “We believe these permits are a key milestone on the path to the inflection point when the industry can finally roll out fully autonomous driving services at scale.” In Wuhan, robotaxi service will operate from 9 a.m. to 5 p.m and cover a 13 square kilometer area in the city’s Economic and Technological Development zone, which is known as China’s ‘Auto City.’ Chongqing’s service will run from 9:30 a.m. to 4:30 p.m. in a 30 square kilometer area in Yongchuan District. Each city will have a fleet of five Apollo 5th generation robotaxis, according to Baidu. Last month, the company revealed the designs for its sixth generation electric robotaxi, the Apollo RT6 EV. Apollo Go also has a presence in Shanghai, Shenzhen, Guangzhou, Changsha, Cangzhou, Yangquan and Wuzhen. By the end of 2022, the company expects to add another 300 Apollo 5th gen robotaxis to its existing fleet and plans to expand its ride-hailing service to 65 cities by 2025 and 100 cities by 2030. Read the most recent analysis on the stock here.
Baidu (NASDAQ:BIDU) May Have Issues Allocating Its Capital
To find a multi-bagger stock, what are the underlying trends we should look for in a business? In a perfect world, we'd...
|BIDU||US Interactive Media and Services||US Market|
Return vs Industry: BIDU exceeded the US Interactive Media and Services industry which returned -28.3% over the past year.
Return vs Market: BIDU exceeded the US Market which returned -9% over the past year.
|BIDU Average Weekly Movement||7.4%|
|Interactive Media and Services Industry Average Movement||10.3%|
|Market Average Movement||7.6%|
|10% most volatile stocks in US Market||17.1%|
|10% least volatile stocks in US Market||3.1%|
Stable Share Price: BIDU is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: BIDU's weekly volatility (7%) has been stable over the past year.
About the Company
Baidu, Inc. offers internet search services in China. It operates through Baidu Core and iQIYI segments. The company offers Baidu App to access search, feed, and other services using mobile devices; Baidu Search to access its search and other services; Baidu Feed that provides users with personalized timeline based on their demographics and interests; and Haokan, a short video app.
Baidu Fundamentals Summary
|BIDU fundamental statistics|
Is BIDU overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|BIDU income statement (TTM)|
|Cost of Revenue||CN¥64.69b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
Aug 30, 2022
|Earnings per share (EPS)||-48.22|
|Net Profit Margin||-13.35%|
How did BIDU perform over the long term?See historical performance and comparison
Is BIDU undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 4/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for BIDU?
Other financial metrics that can be useful for relative valuation.
|What is BIDU's n/a Ratio?|
Price to Sales Ratio vs Peers
How does BIDU's PS Ratio compare to its peers?
|BIDU PS Ratio vs Peers|
|Company||PS||Estimated Growth||Market Cap|
Price-To-Sales vs Peers: BIDU is good value based on its Price-To-Sales Ratio (2.4x) compared to the peer average (6.6x).
Price to Earnings Ratio vs Industry
How does BIDU's PE Ratio compare vs other companies in the US Interactive Media and Services Industry?
Price-To-Sales vs Industry: BIDU is expensive based on its Price-To-Sales Ratio (2.4x) compared to the US Interactive Media and Services industry average (1.8x)
Price to Sales Ratio vs Fair Ratio
What is BIDU's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PS Ratio||2.4x|
|Fair PS Ratio||4.3x|
Price-To-Sales vs Fair Ratio: BIDU is good value based on its Price-To-Sales Ratio (2.4x) compared to the estimated Fair Price-To-Sales Ratio (4.3x).
Share Price vs Fair Value
What is the Fair Price of BIDU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: BIDU ($128.33) is trading below our estimate of fair value ($189.33)
Significantly Below Fair Value: BIDU is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.
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How is Baidu forecast to perform in the next 1 to 3 years based on estimates from 40 analysts?
Future Growth Score4/6
Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BIDU is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).
Earnings vs Market: BIDU is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: BIDU is expected to become profitable in the next 3 years.
Revenue vs Market: BIDU's revenue (12% per year) is forecast to grow faster than the US market (7.8% per year).
High Growth Revenue: BIDU's revenue (12% 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 (7.9%).
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How has Baidu performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BIDU is currently unprofitable.
Growing Profit Margin: BIDU is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: BIDU is unprofitable, and losses have increased over the past 5 years at a rate of 4.6% per year.
Accelerating Growth: Unable to compare BIDU's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: BIDU is unprofitable, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (8.5%).
Return on Equity
High ROE: BIDU has a negative Return on Equity (-8.08%), as it is currently unprofitable.
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How is Baidu's financial position?
Financial Health Score6/6
Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: BIDU's short term assets (CN¥211.5B) exceed its short term liabilities (CN¥68.2B).
Long Term Liabilities: BIDU's short term assets (CN¥211.5B) exceed its long term liabilities (CN¥82.2B).
Debt to Equity History and Analysis
Debt Level: BIDU has more cash than its total debt.
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 (21.4%).
Interest Coverage: BIDU earns more interest than it pays, so coverage of interest payments is not a concern.
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What is Baidu current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
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.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as BIDU has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Robin Li (53 yo)
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 wa...
Experienced Management: BIDU's management team is considered experienced (3.3 years average tenure).
Experienced Board: BIDU's board of directors are considered experienced (6.8 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Baidu, Inc.'s employee growth, exchange listings and data sources
- Name: Baidu, Inc.
- Ticker: BIDU
- Exchange: NasdaqGS
- Founded: 2000
- Industry: Interactive Media and Services
- Sector: Media
- Implied Market Cap: US$44.343b
- Shares outstanding: 345.54m
- Website: https://www.baidu.com
Number of Employees
- Baidu, Inc.
- Baidu Campus
- No. 10 Shangdi 10th Street
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/08/18 00:00|
|End of Day Share Price||2022/08/18 00:00|
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.