BIDU : NASDAQ : Technology
$159.15 -1.70 | -1.10%
Today's Range: 157.54 - 159.47
Avg. Daily Volume: 3,930,300
07/25/16 - 10:31 AM ET

Financial Analysis


BAIDU INC's gross profit margin for the first quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. BAIDU INC is extremely liquid. Currently, the Quick Ratio is 2.84 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 45.02% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)2453.562052.69
EBITDA ($mil)452.55441.64
EBIT ($mil)342.86347.69
Net Income ($mil)308.13395.11


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)11100.59448.18
Total Assets ($mil)23286.5316574.02
Total Debt ($mil)5422.04170.79
Equity ($mil)12764.178801.55


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin56.6662.72
EBITDA Margin18.4421.51
Operating Margin13.9716.94
Sales Turnover0.460.51
Return on Assets21.9412.74
Return on Equity40.0324.0
Debt Q1 FY16 Q1 FY15
Current Ratio3.013.23
Debt/Capital0.30.32
Interest Expense41.6232.12
Interest Coverage8.2410.82


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)346.3351.23
Div / share0.00.0
EPS0.831.09
Book value / share36.8625.06
Institutional Own % n/a n/a
Avg Daily Volume3894113.02976325.0

Valuation


BUY. BAIDU INC's P/E ratio indicates a significant discount compared to an average of 39.31 for the Internet Software & Services industry and a significant discount compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 4.38 indicates a significant premium versus the S&P 500 average of 2.81 and a discount versus the industry average of 5.44. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, BAIDU INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BIDU 11.19 Peers 39.31   BIDU NA Peers 26.21

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

BIDU is trading at a significant discount to its peers.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BIDU 3.25 Peers 20.61   BIDU 0.09 Peers 0.25

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

BIDU is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

BIDU trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BIDU 4.38 Peers 5.44   BIDU 142.92 Peers 35.70

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

BIDU is trading at a discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

BIDU is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BIDU 5.25 Peers 8.94   BIDU 26.30 Peers 26.18

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

BIDU is trading at a significant discount to its industry on this measurement.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

BIDU is keeping pace with its peers on the basis of sales growth.

 

 

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