BIDU  Baidu Inc.

Exchange

NASDAQ

Sector

Technology

Industry

Computer Software: Programming, Data Processing

Market Cap.

60.77B

Vuru Grade

77.23/100

Current Price

$175.17
-9.47 (-5.13%)

Growth Price

$95.18
Overvalued by 45.67%

Stability Price

$62.34
Overvalued by 64.41%

Company Metrics

  • P/E 13.15
  • P/S 6.18
  • P/B 4.97
  • EPS 13.32
  • Cash ROIC 87.02%
  • Cash Ratio 2.60
  • Dividend 0 / 0%
  • Avg. Vol. 2.05M
  • Shares 346.92M
  • Market Cap. 60.77B

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

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 - Yahoo Finance
Better Buy: Twitter Inc vs. Baidu Inc (ADR)
Motley Fool - Jan 17, 2017
Down-and-out technology companies are on the menu today. Since membership growth started slowing, shares of Twitter (NYSE:TWTR) have fallen on tough times -- down 65% since April of 2015.
Company Update (NASDAQ:BIDU): Baidu Inc (ADR) Appoints Dr. Qi Lu as Group ... - Smarter Analyst
As Profits Shrink, Baidu Inc (ADR) (NASDAQ:BIDU) Opens New Augmented Reality Lab - Market Exclusive
Company Update (NASDAQ:BIDU): Baidu Inc (ADR) Reports 4Q and Fiscal Year 2016 ...
Smarter Analyst - Feb 23, 2017
Baidu Inc (ADR) (NASDAQ:BIDU) announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2016.
Baidu profit tumbles after big drop in advertisers - MarketWatch
JD.com Inc. (ADR) Faces Regulatory Heat: Time to Buy or Bail? - Madison.com
Bet on Baidu Inc (ADR) (BIDU) Stock Into Earnings
Investorplace.com - Feb 22, 2017
Baidu earnings are coming this week and I want to be long the stock. I am not going to risk my money into a binary event. Instead, I will use BIDU options to go long for free.
Baidu Inc (ADR) (BIDU) Releases Earnings Results, Beats Expectations By $0.85 EPS - Highland Mirror
Baidu Inc (ADR) (NASDAQ:BIDU): Here's The Latest Analyst Rating Ahead of ... - Stock Market Daily
4 Great Reasons to Buy Baidu Inc. (ADR)
Motley Fool - Dec 15, 2016
Baidu (NASDAQ:BIDU) stock slipped about 9% this year, due to concerns about slowing sales growth, higher investments, tighter regulation of ads, and the softness of the Chinese economy.
Better Buy: Amazon.com, Inc. vs. Baidu Inc. (ADR)
Motley Fool - Jan 4, 2017
Taking this into consideration, it's pretty clear that if forced to choose a more robust company, we'd have to side with Baidu. The company's cash-to-debt ratio is more favorable, and it brings in more income and free cash flow (FCF) -- relative to its ...
Better Buy: Facebook Inc vs. Baidu Inc (ADR)
Motley Fool - Nov 2, 2016
Those that don't have cash sitting in the bank, on the other hand, are at the whim of such downturns. These companies are forced to contract their offerings, and do everything possible to make ends meet.
How Does Baidu Inc (ADR) Work?
Motley Fool - Nov 16, 2015
Baidu (NASDAQ:BIDU)has an estimated 80% share of the search market in China, but the company offers a lot more than just search.
Hewlett Packard Enterprise Co (NYSE:HPE), Baidu Inc (ADR) (NASDAQ:BIDU), Kohl ...
Stock Market Daily - Feb 23, 2017
Baidu Inc (ADR) (NASDAQ:BIDU) is planning to announce its financial results after the bell. Market sees the company delivering earnings of 90 cents a share.
Better Buy: Baidu Inc (ADR) vs. Twitter Inc
Motley Fool - Jul 12, 2016
It's important to note that Baidu is valued at over four times the market cap of Twitter. But even after we adjust for that, Baidu has superior net income and free cash flow. It also has a lot more cash on hand on an absolute basis. That's important ...
Alibaba Group, Baidu Inc Might Suffer From Strict Internet Ads Policies - China Business News
Baidu Inc: What's Ahead for Baidu Stock? - Profit Confidential
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.

$175.17 Current Price

$95.18 Growth Price (DCF)

Overvalued by 45.67%


Growth Rate Assumed by Market: 35.08%


Future Free Cash Flow Growth Rate: 15.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$62.34 Stability Price (EPV)

Overvalued by 64.41%


Discount Rate: 15.0%

$4.65 NCA Price

Overvalued by 97.34%

$111.98 Book Price

Overvalued by 36.07%


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 $87.02 of cash for every $100 invested.
Figures in CNY. Fiscal year ends in December
20112012201320142015
Free Cash Flow 5.84B 9.43B 10.11B 11.54B 11.65B
divided by
Invested Capital 4.75B 4.95B 21.53B 21.72B 53.82B
Cash ROIC 122.74% 190.59% 46.97% 53.14% 21.64%

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 $34.88 of Earnings for every $100 of Shareholders' Equity.
Figures in CNY. Fiscal year ends in December
20112012201320142015
Net Income 6.64B 10.39B 10.36B 12.24B 32.43B
divided by
Stockholders' Equity 15.29B 26.06B 38.42B 51.53B 80.26B
Return on Equity 43.41% 39.88% 26.95% 23.76% 40.41%

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
2006200720082009201020112012201320142015
Free Cash Flow 360.58M 357.33M 1.27B 1.83B 3.73B 5.84B 9.43B 10.11B 11.54B 11.65B

Very Strong Balance Sheet

BIDU has more Cash than its Total Liabilities, resulting in $0.15 Net Cash per share. In other words, if you buy BIDU today, the price you're paying for shares is actually $175.02 because $0.15 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
2006200720082009201020112012201320142015
Cash 1.22B 1.59B 2.66B 4.58B 8.16B 14.18B 32.48B 38.43B 57.67B 67.93B
Current Assets 1.28B 1.73B 2.85B 4.84B 8.78B 15.85B 34.67B 43.03B 65.84B 78.23B
Total Assets 1.67B 2.66B 3.94B 6.16B 11.05B 23.34B 45.67B 70.99B 99.66B 147.85B
Current Liabilities 301.03M 632.02M 849.33M 1.40B 2.55B 4.41B 8.24B 11.03B 20.27B 26.10B
Total Liabilities 310.85M 635.36M 849.33M 1.40B 2.64B 8.05B 19.61B 32.56B 48.14B 67.60B
Stockholder' Equity 1.36B 2.02B 3.09B 4.75B 8.41B 15.29B 26.06B 38.42B 51.53B 80.26B
Current Ratio 4.25 2.73 3.36 3.46 3.44 3.60 4.21 3.90 3.25 3.00
TL-to-TA 0.19 0.24 0.22 0.23 0.24 0.34 0.43 0.46 0.48 0.46

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
2006200720082009201020112012201320142015
Retained Earnings 302.81M 932.95M 1.98B 3.44B 6.97B 13.60B 24.04B 34.53B 47.66B 74.66B
Retained Earnings Growth - 208.10% 112.21% 73.78% 102.46% 95.30% 76.70% 43.63% 38.04% 56.65%

Competitive Advantage over the past 10 years

BIDU likely has a competitive advantage which prevents other companies from entering or competing in their industry. This could be strong branding, the ability to keep costs low, or some other characteristic that is hard to replicate. Look at future prospects to determine its sustainability.

$38.08 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in CNY. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 297.20M 629.79M 1.05B 1.49B 3.53B 6.64B 10.39B 10.36B 12.24B 32.43B
divided by
Revenue 837.95M 1.75B 3.20B 4.45B 7.92B 14.50B 22.31B 31.94B 49.05B 66.38B
Net Profit Margin 35.47% 36.06% 32.77% 33.39% 44.54% 45.78% 46.59% 32.42% 24.96% 48.86%

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.

$68.02 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
2006200720082009201020112012201320142015
Gross Profit 592.43M 1.10B 2.04B 2.83B 5.77B 13.17B 15.86B 20.47B 30.17B 38.92B
divided by
Revenue 837.95M 1.75B 3.20B 4.45B 7.92B 14.50B 22.31B 31.94B 49.05B 66.38B
Gross Margin 70.70% 63.00% 63.87% 63.66% 72.85% 90.80% 71.09% 64.09% 61.50% 58.64%

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.

42.28% 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
2006200720082009201020112012201320142015
Capital Expenditure 165.63M 579.05M 476.81M 450.07M 973.67M 2.34B 2.57B 3.68B 6.40B 7.77B
divided by
Net Income 297.20M 629.79M 1.05B 1.49B 3.53B 6.64B 10.39B 10.36B 12.24B 32.43B
Capital Expenditure Ratio 55.73% 91.94% 45.49% 30.31% 27.62% 35.29% 24.70% 35.54% 52.23% 23.97%

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
2006200720082009201020112012201320142015
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 345.07M 347.24M 347.17M 347.76M 349.18M 349.63M 349.79M 350.36M 351.98M 350.34M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 11.27 39.89 12.69 41.62 98.21 116.47 99.00 173.99 230.05 192.13
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
2006200720082009201020112012201320142015
Shares Outstanding 345.07M 347.24M 347.17M 347.76M 349.18M 349.63M 349.79M 350.36M 351.98M 350.34M
Stock Bought Back - -0.63% 0.02% -0.17% -0.41% -0.13% -0.05% -0.16% -0.46% 0.47%
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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.