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 (3.3/5)
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?
- Long term revenue growth has been strong with a 5 year compounded annual growth of 36.3%.
- Baidu's average operating margin of 14.4% was exceptional.
- Net margins came in at average 16.4% for Baidu over the last twelve months.
- The company has an operating cash flow which is 5.4 times the net income. We see this as a positive signal.
- Baidu has an attractive ROIC (Return on Invested Capital) of 15.2%
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Baidu at 13.3%.
- Baidu has a healthy FCF (Free Cash Flow) margin of 24.8%.
Should you sell BIDU stock?
- With a debt/equity ratio of 0.48, Baidu is highly leveraged in comparison to Computer and Technology peers.
- BIDU stock is trading at a PS multiple of 5.9, which is a negative when compared to the Internet Services industry average multiple of 2.7.