Baidu Stock Analysis (NASDAQ:BIDU)
Baidu Analysis Video
View Baidu stock analysis video. This is our BIDU analyst opinion covering the buy and sell arguments for BIDU stock.
Baidu Inc (ADR) Stock Rating (3.6/5)
Our Baidu stock opinion is based on fundamentals of the company. This Baidu stock analysis is based on latest Q3 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.
Should you buy BIDU stock?
- The company saw a significant growth in revenue with a 5 year CAGR of 41.6%.
- The TTM operating margin was good at 15.5% for Baidu.
- Net margins stood at a healthy 45.8% (average) for Baidu in the Trailing Twelve Months.
- Baidu has an attractive ROIC (Return on Invested Capital) of 19.6%
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Baidu at 40.9%.
Should you sell BIDU stock?
- Baidu has a debt/equity ratio of 0.44, which is worse than the average in the Computer and Technology sector.
- The BIDU stock currently trades at a PE of 51.1, which is expensive, compared to the industry average of 25.8.
- The company is trading at a price to sales multiple of 5.6, which is higher in comparison to the Internet Services industry average of 2.5, making BIDU stock expensive.