NasdaqGS:IQ

Stock Analysis Report

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Executive Summary

iQIYI, Inc., together with its subsidiaries, provides online entertainment services under the iQIYI brand in the People’s Republic of China. More Details


Snowflake Analysis

Slightly overvalued 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: IQ has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.8%

IQ

-2.6%

US Entertainment

-1.4%

US Market


1 Year Return

32.6%

IQ

42.4%

US Entertainment

17.8%

US Market

Return vs Industry: IQ underperformed the US Entertainment industry which returned 42.4% over the past year.

Return vs Market: IQ exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

IQIndustryMarket
7 Day2.8%-2.6%-1.4%
30 Day-2.7%0.7%4.7%
90 Day12.8%7.0%8.2%
1 Year32.6%32.6%43.0%42.4%20.5%17.8%
3 Yearn/a76.4%72.8%42.2%32.7%
5 Yearn/a95.7%86.8%83.4%62.7%

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

Valuation

Is iQIYI 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: IQ ($23.02) is trading below our estimate of fair value ($168.68)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: IQ is overvalued based on its PB Ratio (18.5x) compared to the US Entertainment industry average (3.3x).


Next Steps

Future Growth

How is iQIYI forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

48.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: IQ's revenue (13.7% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: IQ's revenue (13.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has iQIYI performed over the past 5 years?

-17.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IQ is currently unprofitable.

Growing Profit Margin: IQ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IQ is unprofitable, and losses have increased over the past 5 years at a rate of 17.4% per year.

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

Earnings vs Industry: IQ is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (44.6%).


Return on Equity

High ROE: IQ has a negative Return on Equity (-167.16%), as it is currently unprofitable.


Next Steps

Financial Health

How is iQIYI's financial position?


Financial Position Analysis

Short Term Liabilities: IQ's short term assets (CN¥17.7B) do not cover its short term liabilities (CN¥20.5B).

Long Term Liabilities: IQ's short term assets (CN¥17.7B) exceed its long term liabilities (CN¥15.6B).


Debt to Equity History and Analysis

Debt Level: IQ's debt to equity ratio (282.1%) is considered high.

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


Balance Sheet


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 IQ has enough cash runway based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate IQ'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 IQ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IQ'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 IQ'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?

4.8yrs

Average management tenure


CEO

Tim Gong Yu (51 yo)

10.75yrs

Tenure

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
Founder10.75yrsno data0.13%
CN¥ 21.2m
Xiaodong Wang
Chief Financial Officer7.75yrsno datano data
Wenfeng Liu
Chief Technology Officer2.5yrsno datano data
Dahlia Wei
Director of Investor Relationsno datano datano data
Xiangjun Wang
Chief Marketing Officerno datano datano data
Kris Wu
Chief Experience Officer3.08yrsno datano data
Xiaohui Wang
Chief Content Officer4.75yrsno datano data
Xianghua Yang
President of Membership & Overseas Business Groupno datano datano data
Youqiao Duan
Senior Vice Presidentno datano datano data

4.8yrs

Average Tenure

45yo

Average Age

Experienced Management: IQ's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tim Gong Yu
Founder10.75yrsno data0.13%
CN¥ 21.2m
Yanhong Li
Chairman of the Board10.75yrsno datano data
Hanhui Sun
Independent Director2.58yrsno datano data
Jie Sun
Independent Director2.33yrsno datano data
Cheng-Chun Yu
Director3.75yrsno datano data
Chuan Wang
Director6.75yrsno datano data
Haifeng Wang
Director2.33yrsno datano data
Dou Shen
Director1.08yrsno datano data

2.6yrs

Average Tenure

49.5yo

Average Age

Experienced Board: IQ's board of directors are not considered experienced ( 2.6 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: iQIYI, Inc.
  • Ticker: IQ
  • Exchange: NasdaqGS
  • Founded: 2009
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: US$16.889b
  • Shares outstanding: 733.65m
  • Website: https://www.iqiyi.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IQNasdaqGS (Nasdaq Global Select)YesSPONSORED ADSUSUSDMar 2018
0XWGLSE (London Stock Exchange)YesSPONSORED ADSGBUSDMar 2018
IQ8DB (Deutsche Boerse AG)YesSPONSORED ADSDEEURMar 2018

Biography

iQIYI, Inc., together with its subsidiaries, provides online entertainment services under the iQIYI brand in the People’s Republic of China. The company offers internet video, online games, live broadcasti ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 00:59
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
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.