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 (2.8/5)
Our Baidu stock opinion is based on fundamentals of the company. This Baidu stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.
Should you buy BIDU stock?
- Revenue growth has been tremendous with a compounded annual growth of 36.3% over the last 5 years.
- Baidu had a healthy average operating margin of 14.4% over the last 4 quarters.
- Net margins came in at average 16.4% for Baidu over the last twelve months.
- Baidu generates a high return on invested capital of 15.2%.
- Baidu has a good Return On Equity (ROE) of 13.3%.
Should you sell BIDU stock?
- With a debt/equity ratio of 0.48, Baidu is highly leveraged in comparison to Computer and Technology peers.
- The company is trading at a price to sales multiple of 5.6, which is overvalued in comparison to the Internet Services industry average multiple of 2.6.