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Baidu

Nasdaq:BIDU
Snowflake Description

Flawless balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BIDU
Nasdaq
$60B
Market Cap
  1. Home
  2. US
  3. Media
Company description

Baidu, Inc. provides Internet search services in China and internationally. The last earnings update was 35 days ago. More info.


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BIDU Share Price and Events
7 Day Returns
-1.2%
NasdaqGS:BIDU
1.2%
US Interactive Media and Services
0.2%
US Market
1 Year Returns
-26.4%
NasdaqGS:BIDU
7.2%
US Interactive Media and Services
6.3%
US Market
BIDU Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Baidu (BIDU) -1.2% 0.5% -0.2% -26.4% -10.3% 5%
US Interactive Media and Services 1.2% 4.6% 13.6% 7.2% 58.2% 125.3%
US Market 0.2% 2.1% 8.5% 6.3% 37.9% 45.7%
1 Year Return vs Industry and Market
  • BIDU underperformed the Interactive Media and Services industry which returned 7.2% over the past year.
  • BIDU underperformed the Market in United States of America which returned 6.3% over the past year.
Price Volatility
BIDU
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Baidu undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Baidu to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Baidu.

NasdaqGS:BIDU Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 32 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:BIDU
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Interactive Media and Services Unlevered Beta Simply Wall St/ S&P Global 1.03
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.031 (1 + (1- 25%) (16.19%))
1.105
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.105 * 5.96%)
9.31%

Discounted Cash Flow Calculation for NasdaqGS:BIDU using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Baidu is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:BIDU DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 9.31%)
2019 19,116.68 Analyst x4 17,488.01
2020 23,509.16 Analyst x7 19,674.02
2021 31,558.68 Analyst x5 24,160.33
2022 36,356.91 Est @ 15.2% 25,462.37
2023 40,524.09 Est @ 11.46% 25,962.90
2024 44,107.36 Est @ 8.84% 25,851.09
2025 47,198.68 Est @ 7.01% 25,306.13
2026 49,900.82 Est @ 5.73% 24,475.50
2027 52,309.30 Est @ 4.83% 23,470.95
2028 54,505.02 Est @ 4.2% 22,372.59
Present value of next 10 years cash flows CN¥234,223.88
NasdaqGS:BIDU DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CN¥54,505.02 × (1 + 2.73%) ÷ (9.31% – 2.73%)
CN¥850,562.85
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥850,562.85 ÷ (1 + 9.31%)10
CN¥349,129.19
NasdaqGS:BIDU Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥234,223.88 + CN¥349,129.19
CN¥583,353.07
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥583,353.07 / 349.37
CN¥1669.75
NasdaqGS:BIDU Discount to Share Price
Calculation Result
Exchange Rate CNY/USD
(Reporting currency to currency of NasdaqGS:BIDU)
0.149
Value per Share
(USD)
= Value per Share in CNY x Exchange Rate (CNY/USD)
= CN¥1669.75 x 0.149
$248.9
Value per share (USD) From above. $248.90
Current discount Discount to share price of $171.02
= -1 x ($171.02 - $248.90) / $248.90
31.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Baidu is available for.
Intrinsic value
31%
Share price is $171.02 vs Future cash flow value of $248.9
Current Discount Checks
For Baidu to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Baidu's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Baidu's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Baidu's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Baidu's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:BIDU PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥78.64
NasdaqGS:BIDU Share Price ** NasdaqGS (2019-04-18) in USD $171.02
NasdaqGS:BIDU Share Price converted to CNY reporting currency Exchange rate (USD/ CNY) 6.708 CN¥1147.27
United States of America Interactive Media and Services Industry PE Ratio Median Figure of 27 Publicly-Listed Interactive Media and Services Companies 29.27x
United States of America Market PE Ratio Median Figure of 3,081 Publicly-Listed Companies 18.15x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Baidu.

NasdaqGS:BIDU PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:BIDU Share Price ÷ EPS (both in CNY)

= 1147.27 ÷ 78.64

14.59x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Baidu is good value based on earnings compared to the US Interactive Media and Services industry average.
  • Baidu is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Baidu's expected growth come at a high price?
Raw Data
NasdaqGS:BIDU PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.59x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 32 Analysts
-1.5%per year
United States of America Interactive Media and Services Industry PEG Ratio Median Figure of 24 Publicly-Listed Interactive Media and Services Companies 1.83x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NasdaqGS:BIDU PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.59x ÷ -1.5%

-9.89x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Baidu earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Baidu's assets?
Raw Data
NasdaqGS:BIDU PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥466.29
NasdaqGS:BIDU Share Price * NasdaqGS (2019-04-18) in USD $171.02
NasdaqGS:BIDU Share Price converted to CNY reporting currency Exchange rate (USD/ CNY) 6.708 CN¥1147.27
United States of America Interactive Media and Services Industry PB Ratio Median Figure of 55 Publicly-Listed Interactive Media and Services Companies 3.18x
United States of America Market PB Ratio Median Figure of 5,178 Publicly-Listed Companies 1.91x
NasdaqGS:BIDU PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:BIDU Share Price ÷ Book Value per Share (both in CNY)

= 1147.27 ÷ 466.29

2.46x

* Primary Listing of Baidu.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Baidu is good value based on assets compared to the US Interactive Media and Services industry average.
X
Value checks
We assess Baidu's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Interactive Media and Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Interactive Media and Services industry average (and greater than 0)? (1 check)
  5. Baidu has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Baidu expected to perform in the next 1 to 3 years based on estimates from 32 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-1.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Baidu expected to grow at an attractive rate?
  • Baidu's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Baidu's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Baidu's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:BIDU Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:BIDU Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 32 Analysts -1.5%
NasdaqGS:BIDU Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 32 Analysts 14.2%
United States of America Interactive Media and Services Industry Earnings Growth Rate Market Cap Weighted Average 12.2%
United States of America Interactive Media and Services Industry Revenue Growth Rate Market Cap Weighted Average 14.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:BIDU Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 32 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:BIDU Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 159,918 50,315 27,432 16
2020-12-31 138,788 38,846 21,121 30
2019-12-31 119,402 34,826 15,861 32
NasdaqGS:BIDU Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 103,877 35,967 27,443
2018-09-30 100,937 36,857 29,714
2018-06-30 96,595 36,355 25,733
2018-03-31 90,725 23,235
2017-12-31 86,709 32,828 18,318
2017-09-30 80,666 17,540
2017-06-30 74,850 12,227
2017-03-31 71,619 22,031 10,986
2016-12-31 70,549 22,480 11,075
2016-09-30 71,036 31,952
2016-06-30 71,166 31,624
2016-03-31 69,478 21,863 32,752

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Baidu's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Baidu's revenue is expected to grow by 14.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:BIDU Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 32 Analyst Estimates (S&P Global) See Below

All data from Baidu Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:BIDU Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 76.56 88.89 59.66 9.00
2020-12-31 59.42 94.70 38.57 21.00
2019-12-31 44.03 63.97 30.68 22.00
NasdaqGS:BIDU Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 78.64
2018-09-30 85.22
2018-06-30 73.90
2018-03-31 66.86
2017-12-31 52.75
2017-09-30 50.53
2017-06-30 35.23
2017-03-31 31.66
2016-12-31 31.95
2016-09-30 92.27
2016-06-30 91.21
2016-03-31 94.13

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Baidu is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Baidu's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Baidu has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Baidu performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Baidu's growth in the last year to its industry (Interactive Media and Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Baidu's year on year earnings growth rate has been positive over the past 5 years.
  • Baidu's 1-year earnings growth exceeds its 5-year average (49.8% vs 14.2%)
  • Baidu's earnings growth has not exceeded the US Interactive Media and Services industry average in the past year (49.8% vs 55.4%).
Earnings and Revenue History
Baidu's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Baidu Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:BIDU Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 103,877.00 27,443.00 19,231.00 15,772.00
2018-09-30 100,937.00 29,714.00 16,919.00 14,946.00
2018-06-30 96,595.00 25,733.00 15,024.00 14,272.00
2018-03-31 90,725.00 23,235.00 13,453.00 13,387.00
2017-12-31 86,709.00 18,318.00 13,128.00 12,928.00
2017-09-30 80,665.78 17,540.35 12,831.57 12,196.34
2017-06-30 74,849.78 12,227.35 12,681.57 11,568.34
2017-03-31 71,619.43 10,985.54 13,942.06 10,885.29
2016-12-31 70,549.00 11,075.00 15,071.00 10,151.00
2016-09-30 71,036.01 31,951.68 16,264.25 9,666.44
2016-06-30 71,166.10 31,624.35 18,370.11 9,742.41
2016-03-31 69,477.69 32,752.17 18,065.46 9,990.14
2015-12-31 66,382.00 33,335.00 17,076.00 10,176.00
2015-09-30 61,733.16 12,072.21 16,072.94 9,824.49
2015-06-30 56,869.84 13,097.39 13,071.09 8,966.11
2015-03-31 52,280.38 13,058.34 11,330.12 7,990.65
2014-12-31 49,052.32 13,144.25 10,382.14 6,980.96
2014-09-30 44,525.00 12,709.27 8,720.74 6,109.29
2014-06-30 39,896.91 11,897.54 7,405.13 5,368.25
2014-03-31 35,471.94 10,964.13 6,334.32 4,572.80
2013-12-31 31,943.92 10,518.86 5,173.53 4,106.83
2013-09-30 28,756.36 10,551.94 4,102.94 3,544.57
2013-06-30 26,115.42 10,504.91 3,361.33 3,068.56
2013-03-31 24,010.84 10,631.28 2,870.89 2,672.35
2012-12-31 22,306.03 10,433.89 2,501.34 2,304.83
2012-09-30 20,444.77 9,693.66 2,231.41 2,017.03
2012-06-30 18,369.52 8,567.59 2,048.84 1,785.20

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Baidu has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Baidu used its assets less efficiently than the US Interactive Media and Services industry average last year based on Return on Assets.
  • Baidu's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Baidu's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Interactive Media and Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Baidu has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Baidu's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Baidu's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Baidu is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Baidu's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Baidu's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Baidu Company Filings, last reported 3 months ago.

NasdaqGS:BIDU Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 175,752.00 64,904.00 139,511.00
2018-09-30 172,844.00 49,250.00 104,491.00
2018-06-30 161,688.00 54,289.00 127,584.00
2018-03-31 138,676.00 50,573.00 110,458.00
2017-12-31 130,372.00 43,566.00 119,019.00
2017-09-30 112,304.00 58,793.00 129,583.00
2017-06-30 104,623.00 51,854.00 117,150.00
2017-03-31 99,702.44 52,413.34 106,744.98
2016-12-31 97,743.00 44,264.00 90,081.00
2016-09-30 93,363.94 39,705.68 78,361.54
2016-06-30 89,692.02 39,125.79 75,812.04
2016-03-31 86,355.13 34,961.07 71,346.14
2015-12-31 84,215.72 35,071.14 68,309.33
2015-09-30 59,628.45 37,481.30 70,143.86
2015-06-30 63,849.37 35,955.18 74,958.80
2015-03-31 57,281.09 25,854.74 58,038.27
2014-12-31 54,052.38 25,784.61 56,831.28
2014-09-30 49,915.23 24,158.90 51,347.86
2014-06-30 46,068.42 24,368.85 48,658.54
2014-03-31 42,067.39 18,104.00 39,678.79
2013-12-31 40,665.25 17,658.88 38,426.56
2013-09-30 36,343.95 17,843.94 43,300.39
2013-06-30 32,524.67 11,800.69 34,069.39
2013-03-31 29,537.16 11,897.59 33,816.77
2012-12-31 27,215.13 11,941.23 32,484.86
2012-09-30 24,223.41 2,885.23 21,287.32
2012-06-30 21,037.95 2,840.27 18,256.58
  • Baidu's level of debt (36.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (43.4% vs 36.9% today).
  • Debt is well covered by operating cash flow (55.4%, greater than 20% of total debt).
  • Baidu earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Baidu's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Baidu has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Baidu dividends. Estimated to be 0% next year.
If you bought $2,000 of Baidu shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Baidu's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Baidu's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:BIDU Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 32 Analyst Estimates (S&P Global) See Below
Global Interactive Media and Services Industry Average Dividend Yield Market Cap Weighted Average of 17 Stocks 0.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:BIDU Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.00 4.00
2020-12-31 0.00 7.00
2019-12-31 0.00 8.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Baidu has not reported any payouts.
  • Unable to verify if Baidu's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Baidu's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Baidu has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Baidu's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Baidu's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Baidu afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Baidu has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Robin Li
COMPENSATION CN¥0
AGE 49
TENURE AS CEO 15.2 years
CEO Bio

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 served as the President of Baidu, Inc. from February 2000 to December 2003. He served as an Engineer of Infoseek from July 1997 to December 1999. He served as Senior Consultant of IDD Information Services from May 1994 to June 1997. He serves as the Chairman of Baidu Venture and Baidu Capital. He has been the Chairman of iQiyi.com Inc., since 2010 and Baidu, Inc. since January 2000. He served as Chairman and Director of Qunar Cayman Islands Limited since June 2012 until January 4, 2016. Mr. Li has been an Independent Director of New Oriental Education and Technology Group since September 6, 2006. He has been a Director of Ctrip.com International Ltd. since October 26, 2015. Mr. Li served as Director at Beijing Baidu Investment Management Co., Ltd. In 1996, he was awarded a US patent by consolidating web page quality-based sequencing and interrelationship-based sequencing. In 1998, he published a book “Silicon Valley Business War” in Mainland China, based on his own working and living experiences in Silicon Valley. Mr. Li worked as a staff engineer for Infoseek, a pioneer in the internet search engine industry, from July 1997 to December 1999. Mr. Li has also been a Vice Chairman of All-China Federation of Industry & Commerce and a Member of the Chinese People’s Political Consultative Conference since December 2012 and 2013, respectively. Mr. Li holds a Bachelor of Science Degree in Information Sciencet from Peking University in 1991 and a Master of Science Degree in Computer Science from the State University of New York at Buffalo in 1994.

CEO Compensation
  • Insufficient data for Robin to compare compensation growth.
  • Robin's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Baidu management team in years:

7.8
Average Tenure
49
Average Age
  • The average tenure for the Baidu management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Robin Li

TITLE
Co-Founder
AGE
49
TENURE
15.2 yrs

Herman Yu

TITLE
Chief Financial Officer
AGE
48
TENURE
1.6 yrs

Sharon Ng

TITLE
Director of Ir

Victor Liang

TITLE
VP & General Counsel
TENURE
7.8 yrs

Hailong Xiang

TITLE
Senior VP & GM of Search and Feed Related Business
AGE
40
TENURE
7.8 yrs

Hui Lee Liu

TITLE
Senior Vice President
AGE
52

Ya-Qin Zhang

TITLE
President of New Business
AGE
52
TENURE
0.8 yrs

Haifeng Wang

TITLE
Senior Vice President
AGE
46
TENURE
0.9 yrs

Tim Gong Yu

TITLE
Chief Executive Officer of Beijing Qiyi Century Science & Technology Co.
AGE
49
TENURE
9.3 yrs
Board of Directors Tenure

Average tenure and age of the Baidu board of directors in years:

3.5
Average Tenure
53
Average Age
  • The tenure for the Baidu board of directors is about average.
Board of Directors

Robin Li

TITLE
Co-Founder
AGE
49
TENURE
19.3 yrs

Qi Lu

TITLE
Vice Chairman
AGE
56
TENURE
2.2 yrs

James Ding

TITLE
Independent Director
AGE
53
TENURE
13.7 yrs

Brent Callinicos

TITLE
Independent Director
AGE
52
TENURE
3.5 yrs

Yuanqing Yang

TITLE
Independent Director
AGE
53
TENURE
3.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Baidu's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Baidu has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Are Analysts Expecting From Baidu, Inc. (NASDAQ:BIDU) In The Year Ahead?

(NASDAQ:BIDU) released its earnings update. … analyst consensus outlook appear … with profits predicted to drop by -42% next year

Simply Wall St -

If You Had Bought Baidu (NASDAQ:BIDU) Stock A Year Ago, You'd Be Sitting On A 25% Loss, Today

One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During the unfortunate twelve months during which the Baidu share price fell, it actually saw its earnings per share (EPS) improve by 49%. … Since we can't easily explain the share price movement based on these metrics, it might be worth considering how market sentiment has changed towards the stock.

Simply Wall St -

How Do Baidu, Inc.’s (NASDAQ:BIDU) Returns On Capital Compare To Peers?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Is Now An Opportune Moment To Examine Baidu, Inc. (NASDAQ:BIDU)?

received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to $191.33 at one point, and dropping to the lows of $154.71. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … A question to answer is whether Baidu's current trading price of $165.72 reflective of the actual value of the?

Simply Wall St -

Do Institutions Own Baidu, Inc. (NASDAQ:BIDU) Shares?

Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … We'd expect to see both institutions and retail investors owning a portion of the company. … institutions own shares in the company

Simply Wall St -

Why We Think Baidu, Inc. (NASDAQ:BIDU) Could Be Worth Looking At

Help shape the future of investing tools and you could win a $250 gift card! … As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook.

Simply Wall St -

What You Must Know About Baidu, Inc.'s (NASDAQ:BIDU) Financial Health

Common characteristics for these big stocks are their strong balance sheet and high liquidity, which means there's plenty of stocks available to the public for trading. … These firms won’t be left high and dry if liquidity dries up, and they will be relatively unaffected by rises in interest rates. … Take the survey and be part of one of the most advanced studies of stock market investors to date?

Simply Wall St -

Why Baidu, Inc. (NASDAQ:BIDU) Is A Star In A Falling Market

When stocks are plummeting in price, it's hard to start buying into all the uncertainty. … And I'm not talking about buying into speculative, high-risk stocks. … provides Internet search services in China and internationally

Simply Wall St -

Baidu, Inc. (NASDAQ:BIDU) Is Trading At A 35.33% Discount

by taking the foreast future cash flows of the company and discounting them back to today's value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

With A Return On Equity Of 15%, Has Baidu, Inc.'s (NASDAQ:BIDU) Management Done Well?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.15. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Company Info

Description

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 access search, feed, and other services using mobile devices; Baidu Search to access its search and other services through its other properties and Union partners; Baidu Feed that provides users with personalized timeline based on their demographics and interests; Haokan, a short video app; and Quanmin, a flash video app for users to create and share short videos. It also provides Baidu Post Bar, a social media platform; Baidu Knows, a question-and-answer community where questions are asked, answered, and organized by users; Baidu Encyclopedia; Baidu Maps that offers locations, and intelligent routing and navigation services; Baidu Input Method Editor (IME), a Chinese-language mobile keyboard; Baidu WenKu; Baijiahao; and DuerOS, a voice assistant platform. In addition, this segment offers online marketing services, which include pay for performance (P4P), an auction-based services that allow customers to bid for priority placement of paid sponsored links and reach users who search for information related to their products or services; Non-P4P services provide display-based marketing services and other online marketing services based on performance criteria other than cost per click; Apollo, an open source autonomous driving platform; and Baidu Cloud primarily provides AI solutions, cloud infrastructure, and other services to enterprises and individuals. The iQIYI segment provides online entertainment service, including original and licensed content; membership services; and online advertising services. The company was formerly known as Baidu.com, Inc. and changed its name to Baidu, Inc. in December 2008. Baidu, Inc. was founded in 2000 and is headquartered in Beijing, China.

Details
Name: Baidu, Inc.
BIDU
Exchange: NasdaqGS
Founded: 2000
$59,748,422,822
349,365,120
Website: http://www.baidu.com
Address: Baidu, Inc.
Baidu Campus,
No 10, Shangdi 10th Street,
Beijing,
100085,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS BIDU SPON ADR REP A Nasdaq Global Select US USD 05. Aug 2005
DB B1C SPON ADR REP A Deutsche Boerse AG DE EUR 05. Aug 2005
LSE 0HL1 SPON ADR REP A London Stock Exchange GB USD 05. Aug 2005
SWX BIDU SPON ADR REP A SIX Swiss Exchange CH CHF 05. Aug 2005
WBAG BIDU SPON ADR REP A Wiener Boerse AG AT EUR 05. Aug 2005
BMV BIDU N SPON ADR REP A Bolsa Mexicana de Valores MX MXN 05. Aug 2005
Number of employees
Current staff
Staff numbers
42,267
Baidu employees.
Industry
Interactive Media and Services
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 23:54
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/03/15
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.