NasdaqGS:SOHU

Stock Analysis Report

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Executive Summary

Sohu.com Limited provides online media, search, and game services on personal computers (PCs) and mobile devices in the People’s Republic of China. More Details


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Sohu.com's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SOHU's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.6%

SOHU

0.1%

US Interactive Media and Services

-0.8%

US Market


1 Year Return

67.9%

SOHU

26.1%

US Interactive Media and Services

13.8%

US Market

Return vs Industry: SOHU exceeded the US Interactive Media and Services industry which returned 26.1% over the past year.

Return vs Market: SOHU exceeded the US Market which returned 13.8% over the past year.


Shareholder returns

SOHUIndustryMarket
7 Day-7.6%0.1%-0.8%
30 Day-19.3%-10.8%-5.0%
90 Day90.4%10.6%10.1%
1 Year67.9%67.9%26.2%26.1%16.4%13.8%
3 Yearn/a38.9%38.8%36.9%27.8%
5 Yearn/a124.2%123.7%85.0%64.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sohu.com undervalued compared to its fair value and its price relative to the market?

28.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SOHU ($17.06) is trading below our estimate of fair value ($23.71)

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


Price To Earnings Ratio

PE vs Industry: SOHU is unprofitable, so we can't compare its PE Ratio to the US Interactive Media and Services industry average.

PE vs Market: SOHU 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 SOHU's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SOHU's PB Ratio (2.3x) is in line with the US Interactive Media and Services industry average.


Next Steps

Future Growth

How is Sohu.com forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

109.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOHU is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: SOHU is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SOHU's is expected to become profitable in the next 3 years.

Revenue vs Market: SOHU's revenue (4.6% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: SOHU's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SOHU's Return on Equity is forecast to be low in 3 years time (7.8%).


Next Steps

Past Performance

How has Sohu.com performed over the past 5 years?

-6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOHU is currently unprofitable.

Growing Profit Margin: SOHU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SOHU is unprofitable, and losses have increased over the past 5 years at a rate of 6.3% per year.

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

Earnings vs Industry: SOHU is unprofitable, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (-22.8%).


Return on Equity

High ROE: SOHU has a negative Return on Equity (-4.16%), as it is currently unprofitable.


Next Steps

Financial Health

How is Sohu.com's financial position?


Financial Position Analysis

Short Term Liabilities: SOHU's short term assets ($1.9B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: SOHU's short term assets ($1.9B) exceed its long term liabilities ($471.8M).


Debt to Equity History and Analysis

Debt Level: SOHU's debt to equity ratio (21.3%) is considered satisfactory.

Reducing Debt: SOHU's debt to equity ratio has increased from 21.2% to 21.3% 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: Whilst unprofitable SOHU has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SOHU is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 12.3% per year.


Next Steps

Dividend

What is Sohu.com current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

6.8yrs

Average management tenure


CEO

Chaoyang Zhang (56 yo)

24.08yrs

Tenure

Dr. Charles Zhang, also known as Chaoyang, is Founder, Chairman and Chief Executive Officer of Board of Sohu.com Limited since August 1996. He is Chairman of the Board at Sogou Inc. Dr. Zhang also served a ...


CEO Compensation Analysis

Compensation vs Market: Chaoyang's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD3.05M).

Compensation vs Earnings: Chaoyang's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Charles Zhang
Chairman & CEO24.08yrsno data0.68%
$ 4.6m
Yanfeng Lu
Chief Financial Officer2.67yrsno datano data
Xuemei Zhang
Vice President of Operations & Human Resources3.67yrsno datano data
Linda Bergkamp
Investor Relations Professionalno datano datano data
Lili Cui
Vice President of Sales9.67yrsno datano data
Yi Zeng
Vice President of Marketing4yrsno datano data
Timothy Bancroft
Secretaryno datano datano data
Xiaochuan Wang
Chief Executive Officer of Sogou Inc10.08yrsno data0.18%
$ 1.2m
Dewen Chen
Chief Executive Officer of Changyou.Com Limitedno datano datano data
Xiaojian Hong
Chief Operating Officer of Changyou.Comno datano datano data
Eric Yuan
Director of Investor Relationsno datano datano data
Pu Huang
Investor Relations Officer - Chinano datano datano data

6.8yrs

Average Tenure

44yo

Average Age

Experienced Management: SOHU's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Charles Zhang
Chairman & CEO24.08yrsno data0.68%
$ 4.6m
Qin Huang
Director18.92yrsUS$110.00k0.19%
$ 1.3m
Shi Wang
Independent Director15.33yrsUS$110.00k0.087%
$ 582.3k
Daqing Qi
Independent Director15.33yrsUS$280.00k0.074%
$ 493.7k
Zhonghan Deng
Independent Director13.42yrsUS$194.00k0.037%
$ 247.6k
Dave De Yang
Independent Director3.42yrsUS$160.08kno data

15.3yrs

Average Tenure

55yo

Average Age

Experienced Board: SOHU's board of directors are seasoned and experienced ( 15.3 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

Sohu.com Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sohu.com Limited
  • Ticker: SOHU
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: US$669.924m
  • Shares outstanding: 39.27m
  • Website: https://www.sohu.com

Number of Employees


Location

  • Sohu.com Limited
  • Sohu.com Media Plaza
  • Level 18, Block 3
  • Beijing
  • Beijing Province
  • 100190
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOHUNasdaqGS (Nasdaq Global Select)YesSPONSORED ADSUSUSDJun 2018
2SUWBAG (Wiener Boerse AG)YesSPONSORED ADSATEURJun 2018

Biography

Sohu.com Limited provides online media, search, and game services on personal computers (PCs) and mobile devices in the People’s Republic of China. The company provides online news and information through ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/27 05:40
End of Day Share Price2020/09/25 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.