BIDU  Baidu Inc.

Exchange

NASDAQ

Sector

Technology

Industry

Computer Software: Programming, Data Processing

Market Cap.

60.91B

Vuru Grade

76.68/100

Current Price

$175.60
-2.86 (-1.60%)

Growth Price

$100.97
Overvalued by 42.50%

Stability Price

$34.46
Overvalued by 80.37%

Company Metrics

  • P/E 38.42
  • P/S 5.88
  • P/B 4.48
  • EPS 4.57
  • Cash ROIC 67.57%
  • Cash Ratio 1.95
  • Dividend 0 / N/A %
  • Avg. Vol. 2.59M
  • Shares 346.87M
  • Market Cap. 60.91B

Company Description

Baidu, Inc. provides Chinese and Japanese language Internet search services. Its search services enable users to find relevant information online, including Web pages, news, images, multimedia files, and blogs through the links provided on its Websites. The company also offers online community-based products and entertainment platforms; an instant messaging service; and a consumer-oriented e-comme... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Why Baidu Inc. (ADR) Investors Should Be Wary of New Initiatives
Motley Fool - May 8, 2017
For almost a decade, I've been a loyal shareholder of Chinese search engine Baidu (NASDAQ:BIDU). The company's dominant share of search in China, the long-term trend of Internet adoption in the Middle Kingdom, the migration of advertising dollars to ...
Reload Baidu Inc (ADR) (BIDU) Stock for Even More Free Profits - Investorplace.com
4 Reasons I'm Buying Baidu Inc. (ADR) Stock
Motley Fool - Jan 31, 2017
Its heavy investments in expanding its ecosystem into adjacent markets have weighed down its bottom line growth, making the stock seem like dead money.
China's Google - GuruFocus.com
A Strong Case for Buying Baidu Inc. (ADR)
Motley Fool - Feb 26, 2017
When the parent company for China's largest search engine, Baidu (NASDAQ:BIDU), reported earnings this month, the results weren't pretty.
Company Update (NASDAQ:BIDU): Baidu Inc (ADR) Reports 4Q and Fiscal Year 2016 ... - Smarter Analyst
Baidu profit tumbles after big drop in advertisers - MarketWatch
EPS for Baidu Inc (ADR) (BIDU) Expected At $1.10
Weekly Register - 5 hours ago
Analysts await Baidu Inc (ADR) (NASDAQ:BIDU) to report earnings on July, 27. They expect $1.10 EPS, up 4.76 % or $0.05 from last year's $1.05 per share.
Baidu Inc (ADR) (BIDU) EPS Estimated At $1.10 - WeeklyHub
Qcm Cayman LTD Has Lowered By $459200 Its Baidu (Call) (BIDU) Holding, Fairfax ... - UtahHerald.com
Put-Call Ratio Turns Bearish For Baidu Inc (BIDU)
StockNews.com (blog) - Jun 9, 2017
Baidu Inc (ADR) shares were trading at $183.57 per share on Friday morning, down $2.18 (-1.17%). Year-to-date, BIDU has gained 11.65%, versus a 9.97% rise in the benchmark S&P 500 index during the same period.
How Analysts Rated Baidu Inc (ADR) (NASDAQ:BIDU) Last Week?
Weekly Register - Jun 20, 2017
Among 22 analysts covering Baidu (NASDAQ:BIDU), 6 have Buy rating, 4 Sell and 12 Hold. Therefore 27% are positive. Baidu had 35 analyst reports since July 28, 2015 according to SRatingsIntel. The firm earned “Neutral” rating on Friday, October 28 by ...
Baidu Inc (ADR) (BIDU) Paid Subscription Has Become A Major Revenue Source - Smаrt Stоck Nеws
Hot Stock's Alert: Baidu Inc (ADR)(NASDAQ:BIDU), Intercontinental Exchange Inc ... - Money making news (press release)
News Recap : Aurinia Pharmaceuticals Inc(NASDAQ:AUPH), Baidu Inc (ADR)(NASDAQ ...
Stocks In Focus (press release) - Jun 26, 2017
Shares of Baidu Inc (ADR)(NASDAQ:BIDU), lost -0.66% to $178.14. The 52-week range of the share price is from $155.28 - $197.80, while its earnings per share (EPS) was $3.82.
Changing Chip Dynamics May Favor Advanced Micro Devices Over Intel
Benzinga - 20 hours ago
AMD has deals in lace with Dell, Lenovo Group Limited (ADR) (OTC: LNVGY), Hewlett Packard Enterprise Co (NYSE: HPE), Microsoft Corporation (NASDAQ: MSFT), Baidu Inc (ADR) (NASDAQ: BIDU) and others. “The fundamentals that underpin the CPU ...
Motley Fool Wealth Management LLC Has Decreased Its Baidu INC (BIDU) Position ...
KL Daily - Jun 21, 2017
Analysts expect Baidu Inc (ADR) (NASDAQ:BIDU) to report $1.10 EPS on July, 27.They anticipate $0.05 EPS change or 4.76 % from last quarter's $1.05 EPS.
Artisan Partners Limited Partnership Has Raised Its Baidu INC (BIDU) Position ... - Weekly Register
Can analysts adopt a bullish outlook for Baidu Inc (ADR) (NASDAQ:BIDU)? - Newburgh Gazette
Beach Point Capital Management LP Lowered Whiting Pete New (WLL) Position ...
FlintDaily.com - 18 hours ago
Baidu had 35 analyst reports since July 28, 2015 according to SRatingsIntel. The firm earned “Equal-Weight” rating on Tuesday, January 17 by Morgan Stanley.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for BIDU to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate BIDU's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$175.60 Current Price

$100.97 Growth Price (DCF)

Overvalued by 42.50%


Growth Rate Assumed by Market: 34.05%


Future Free Cash Flow Growth Rate: 15.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$34.46 Stability Price (EPV)

Overvalued by 80.37%


Discount Rate: 15.0%

$4.39 NCA Price

Overvalued by 97.50%

$119.05 Book Price

Overvalued by 32.21%


Varying Cash Return on Invested Capital over the past 5 years

BIDU has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. However, there is a substantial variation in their Cash ROIC from year-to-year. This company may have unreliable free cash flow or operates in a business where invested capital costs increase substantially on a sporadic basis. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

BIDU has created $67.57 of cash for every $100 invested.
Figures in CNY. Fiscal year ends in December
20122013201420152016
Free Cash Flow 9.43B 10.11B 11.54B 11.65B 11.75B
divided by
Invested Capital 4.95B 21.53B 21.72B 53.82B 46.05B
Cash ROIC 190.59% 46.97% 53.14% 21.64% 25.51%

Excellent Return on Equity over the past 5 years

Over the past 5 years, BIDU has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

BIDU has generated $28.71 of Earnings for every $100 of Shareholders' Equity.
Figures in CNY. Fiscal year ends in December
20122013201420152016
Net Income 10.39B 10.36B 12.24B 32.43B 11.60B
divided by
Stockholders' Equity 26.06B 38.42B 51.53B 80.26B 92.27B
Return on Equity 39.88% 26.95% 23.76% 40.41% 12.57%

Excellent Business Performance over the past 10 years

BIDU has been able to maintain profitability in good times and bad. This could mean BIDU has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

BIDU has created positive free cash flow for 9 or more of the past 10 years.
Figures in CNY. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 357.33M 1.27B 1.83B 3.73B 5.84B 9.43B 10.11B 11.54B 11.65B 11.75B

Very Strong Balance Sheet

BIDU has more Cash than its Total Liabilities, resulting in $0.05 Net Cash per share. In other words, if you buy BIDU today, the price you're paying for shares is actually $175.55 because $0.05 of Cash is included in the current share price. This much Cash is very healthy. It can help BIDU sustain itself in the face of any economic turmoil and makes a stock buyback more of a possibility.
Figures in CNY. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 1.59B 2.66B 4.58B 8.16B 14.18B 32.48B 38.43B 57.67B 67.93B 89.84B
Current Assets 1.73B 2.85B 4.84B 8.78B 15.85B 34.67B 43.03B 65.84B 78.23B 99.76B
Total Assets 2.66B 3.94B 6.16B 11.05B 23.34B 45.67B 70.99B 99.66B 147.85B 182.00B
Current Liabilities 632.02M 849.33M 1.40B 2.55B 4.41B 8.24B 11.03B 20.27B 26.10B 46.10B
Total Liabilities 635.36M 849.33M 1.40B 2.64B 8.05B 19.61B 32.56B 48.14B 67.60B 89.72B
Stockholder' Equity 2.02B 3.09B 4.75B 8.41B 15.29B 26.06B 38.42B 51.53B 80.26B 92.27B
Current Ratio 2.73 3.36 3.46 3.44 3.60 4.21 3.90 3.25 3.00 2.16
TL-to-TA 0.24 0.22 0.23 0.24 0.34 0.43 0.46 0.48 0.46 0.49

Consistent Reinvestment of Profits over the past 10 years

BIDU has consistently retained profits. This may put BIDU in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, BIDU can greatly improve their long-term economic picture.
Figures in CNY. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 932.95M 1.98B 3.44B 6.97B 13.60B 24.04B 34.53B 47.66B 74.66B 85.73B
Retained Earnings Growth - 112.21% 73.78% 102.46% 95.30% 76.70% 43.63% 38.04% 56.65% 14.83%

Varying Competitive Advantage over the past 10 years

BIDU likely has a competitive advantage which prevents other companies from entering or competing in their industry. However, there is a substantial variation in their Net Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$36.18 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in CNY. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 629.79M 1.05B 1.49B 3.53B 6.64B 10.39B 10.36B 12.24B 32.43B 11.60B
divided by
Revenue 1.75B 3.20B 4.45B 7.92B 14.50B 22.31B 31.94B 49.05B 66.38B 70.55B
Net Profit Margin 36.06% 32.77% 33.39% 44.54% 45.78% 46.59% 32.42% 24.96% 48.86% 16.44%

Strong Pricing Power over the past 10 years

BIDU has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$65.95 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in CNY. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 1.10B 2.04B 2.83B 5.77B 13.17B 15.86B 20.47B 30.17B 38.92B 35.27B
divided by
Revenue 1.75B 3.20B 4.45B 7.92B 14.50B 22.31B 31.94B 49.05B 66.38B 70.55B
Gross Margin 63.00% 63.87% 63.66% 72.85% 90.80% 71.09% 64.09% 61.50% 58.64% 49.99%

Medium Capital Intensity over the past 10 years

BIDU has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

45.77% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in CNY. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 579.05M 476.81M 450.07M 973.67M 2.34B 2.57B 3.68B 6.40B 7.77B 10.51B
divided by
Net Income 629.79M 1.05B 1.49B 3.53B 6.64B 10.39B 10.36B 12.24B 32.43B 11.60B
Capital Expenditure Ratio 91.94% 45.49% 30.31% 27.62% 35.29% 24.70% 35.54% 52.23% 23.97% 90.64%

No Dividend History over the past 10 years

BIDU has never distributed dividends or has recently suspended their dividend distribution.
Figures in CNY. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 347.24M 347.17M 347.76M 349.18M 349.63M 349.79M 350.36M 351.98M 350.34M 347.57M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 39.89 12.69 41.62 98.21 116.47 99.00 173.99 230.05 192.13 164.41
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

BIDU has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in CNY. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 347.24M 347.17M 347.76M 349.18M 349.63M 349.79M 350.36M 351.98M 350.34M 347.57M
Stock Bought Back - 0.02% -0.17% -0.41% -0.13% -0.05% -0.16% -0.46% 0.47% 0.80%
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Discussion
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1
Posted by mdmanuelduran  (on July 16, 2015)
Baidu stock following its next report (July 27) would result in a gain of around 50% based on current prices.
1
Posted by mdmanuelduran  (on July 15, 2015)
Go for this stock, BIDU will be $300 sometime before May next year
1
Posted by pbanik  (on July 23, 2015)
Early Day Buzz: Baidu Inc (ADR) (NASDAQ:BIDU), Johnson Controls Inc. (NYSE:JCI), Teradata Corporation (NYSE:TDC), xG Technology (NASDAQ:XGTI), Nokia Corporation (ADR) (NYSE:NOK) http://www.propertymentorgroup.com/early-day-buzz-baidu-inc-adr-nasdaqbidu-johnson-controls-inc-nysejci-teradata-corporation-nysetdc-xg-technology-inc-nasdaqxgti-nokia-corporation-adr-nysenok/12102584/

Baidu Inc ADR BIDU
http://www.morningstar.com/stocks/XNAS/BIDU/quote.html

Portfolio Grader - Navellier Growth - InvestorPlace
http://navelliergrowth.investorplace.com/portfolio-grader/report-card.html
0
Posted by rebellam  (on April 1, 2013)
Bidu currently on downtrend. Wouldn't buy now.