Baidu Stock Analysis (NASDAQ:BIDU)

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$176.48 $1.09 (0.61%) BIDU stock closing price Jan 13, 2017 (Closing)
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Baidu
Updated on : Jan 13, 2017
previous close
BIDU 176.5 (0%)
NASDAQ 5574.1 (0%)
Closing Price On: Jan 13, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Services
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2016-Q3
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
41.6%
Operating Profit
Operating Margin:
15.5%
Sector Average:
4.8%
5 Quarter Net Profit
Net Margins
2016-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
5.88B
Debt/Equity Ratio:
 0.44
Compared to the industry
PROS      CONS
Long Term Growth
Operating Margins
Net Margins
ROIC
ROE
High Debt Burden
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
BIDU PS :
5.7
Industry PS :
2.4
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
19.6%
Return on Equity:
40.9%
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Baidu Analysis Video

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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.

Comments on this video and Baidu stock

user profile picture
Stock Market Picks on Baidu stock analysis ($162.24)
bearish
ProStockSystem's Results: $BIDU opened LONG on 8/02 at $160.50 and closed today's at $164.00 +2.18% http://www.prostocksystem.com/Results.ht...
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user profile picture
GrowthInvestor on Baidu stock analysis ($157.31)
bullish
$BIDU Q1 revenue at high end of guidance!! http://blogs.barrons.com/emergingmarkets...
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user profile picture
oracleofwallstreet009 on Baidu stock analysis ($173.5)
bullish
The Google of China is reasonably priced at current valuations. P/E of 34.3 against ROIC of 115.4% Is it time to buy the Chinese giant on the latest dip?
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