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 (3.5/5)
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?
- Revenue growth has been tremendous with a compounded annual growth of over the last 5 years.
- Baidu had a healthy average operating margin of 15.5% over the last 4 quarters.
- 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.
- Trading at a PE ratio of 51.5, BIDU stock is overvalued in comparison to industry average multiple of 26.
- BIDU stock is trading at a PS multiple of 5.7, which is a negative when compared to the Internet Services industry average multiple of 2.4.