Baidu Stock Analysis (NASDAQ:BIDU)

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$185.62 $0.45 (0.24%) BIDU stock closing price Feb 21, 2017 (Closing)
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Baidu
Updated on : Feb 21, 2017
previous close
BIDU 185.6 (0%)
NASDAQ 5866 (0%)
Closing Price On: Feb 21, 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:
4.3%
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 :
6
Industry PS :
2.6
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's average operating margin of 15.5% was exceptional.
  • LTM Net margins were good at 45.8% for Baidu.
  • Baidu has an attractive ROIC (Return on Invested Capital) of 19.6%
  • The LTM ROE of 40.9% for Baidu is attractive.

Should you sell BIDU stock?

  • With a debt/equity ratio of  0.44, Baidu is highly leveraged in comparison to Computer and Technology peers.
  • Trading at a PE ratio of 54.1, BIDU stock is overvalued in comparison to industry average multiple of 25.9.
  • The company is trading at a price to sales multiple of 6, which is overvalued in comparison to the Internet Services industry average multiple of 2.6.

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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