Baidu, Inc. Fundamental Analysis
Baidu, Inc. (BAIDF) shows weak financial fundamentals with a PE ratio of 243.62, profit margin of 1.03%, and ROE of 0.48%. The company generates $125.1B in annual revenue with weak year-over-year growth of -1.09%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 17.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BAIDF's fundamental strength across five key dimensions:
Efficiency Score
WeakBAIDF struggles to generate sufficient returns from assets.
Valuation Score
ModerateBAIDF shows balanced valuation metrics.
Growth Score
WeakBAIDF faces weak or negative growth trends.
Financial Health Score
ExcellentBAIDF maintains a strong and stable balance sheet.
Profitability Score
WeakBAIDF struggles to sustain strong margins.
Key Financial Metrics
Is BAIDF Expensive or Cheap?
P/E Ratio
BAIDF trades at 243.62 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BAIDF's PEG of -0.36 indicates potential undervaluation.
Price to Book
The market values Baidu, Inc. at 1.17 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 17.15 times EBITDA. This signals the market has high growth expectations.
How Well Does BAIDF Make Money?
Net Profit Margin
For every $100 in sales, Baidu, Inc. keeps $1.03 as profit after all expenses.
Operating Margin
Core operations generate 7.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.48 in profit for every $100 of shareholder equity.
ROA
Baidu, Inc. generates $0.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Baidu, Inc. generates limited operating cash flow of $-3.07B, signaling weaker underlying cash strength.
Free Cash Flow
Baidu, Inc. generates weak or negative free cash flow of $-15.73B, restricting financial flexibility.
FCF Per Share
Each share generates $-5.78 in free cash annually.
FCF Yield
BAIDF converts -5.02% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
243.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.36
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.35
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.85
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.005
vs 25 benchmark
ROA
Return on assets percentage
0.003
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How BAIDF Stacks Against Its Sector Peers
| Metric | BAIDF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 243.62 | 23.79 | Worse (Expensive) |
| ROE | 0.48% | 987.00% | Weak |
| Net Margin | 1.03% | -68162.00% (disorted) | Weak |
| Debt/Equity | 0.35 | 3.29 | Strong (Low Leverage) |
| Current Ratio | 1.85 | 1.70 | Neutral |
| ROA | 0.29% | -5962.00% (disorted) | Weak |
BAIDF outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Baidu, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
23.79%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
1137.26%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
-25.47%
Industry Style: Growth, Technology, Streaming
Declining