Baidu, Inc. (NASDAQ: BIDU)

Sector: Communication Services Industry: Internet Content & Information CIK: 0001329099
Market Cap 62.73 Bn
P/B 1.69
P/E 49.63
P/S 3.42
ROIC (Qtr) -5.72
Div Yield % 0.00
Rev 1y % (Qtr) -7.10
Total Debt (Qtr) 13.66 Bn
Debt/Equity (Qtr) 0.37

About

Baidu, Inc., a leading Chinese technology company, operates primarily in the internet and artificial intelligence (AI) industry. The company's main business activities include search, feed, and other online marketing services, as well as the development and sale of AI-powered products and services. Baidu's primary products and services include Baidu App, Baidu Search, Baidu Feed, Baidu Health, Haokan, and ERNIE Bot. Baidu is a prominent player in the technology sector, with a strong presence in China and other countries such as the United States,...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 53.73B provides 3.93x coverage of total debt 13.66B, indicating robust asset backing and low credit risk.
  • Tangible assets of 53.73B provide exceptional 26.24x coverage of deferred revenue 2.05B, showing strong service capability backing.
  • Short-term investments of 12.11B provide solid 5.60x coverage of other current liabilities 2.16B, indicating strong liquidity.
  • Robust tangible asset base of 53.73B provides 5.08x coverage of working capital 10.57B, indicating strong operational backing.
  • Long-term investments of 22.25B provide solid 2.39x coverage of long-term debt 9.31B, indicating strategic financial planning.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 2.86B, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 0 provides insufficient coverage of deferred revenue obligations of 2.05B, which is 0x, raising concerns about future service delivery capabilities.
  • Long-term investments of 22.25B represent a high 4.68x of fixed assets 4.75B, indicating potential overexposure to financial assets versus operational capabilities.
  • Operating cash flow of 0 provides minimal 0x coverage of tax expenses of 259.69M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Short-term investments of 12.11B represent 1.14x of working capital 10.57B, suggesting potentially excessive financial asset allocation versus operational needs.

Segments Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Internet Content & Information
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GOOGL Alphabet Inc. 4,538.16 Bn 131.46 27.23 33.71 Bn
2 META Meta Platforms, Inc. 1,747.49 Bn 74.30 23.25 51.06 Bn
3 SPOT Spotify Technology S.A. 103.00 Bn 62.32 5.18 2.57 Bn
4 BIDU Baidu, Inc. 62.73 Bn 49.63 3.42 13.66 Bn
5 RDDT Reddit, Inc. 32.18 Bn 92.16 16.90 0.03 Bn
6 NBIS Nebius Group N.V. 27.81 Bn 127.53 81.80 4.51 Bn
7 TME Tencent Music Entertainment Group 24.66 Bn 15.77 5.54 0.54 Bn
8 PINS Pinterest, Inc. 16.95 Bn 8.53 4.18 0.21 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.41 1.10
EV to Cash from Ops. EV/CFO 8.74 -3.08
EV to Debt EV to Debt 1.86 28.98
EV to EBIT EV/EBIT 13.29 -26.54
EV to EBITDA EV/EBITDA 5.41 9.30
EV to Free Cash Flow [EV/FCF] EV/FCF 14.17 -67.01
EV to Market Cap EV to Market Cap 0.41 0.90
EV to Revenue EV/Rev 1.39 61.25
Price to Book Value [P/B] P/B 1.69 1.56
Price to Earnings [P/E] P/E 49.63 2.92
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.33
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -8.92
Dividend per Basic Share Div per Share (Qtr) 0.00 0.31
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.58
Interest Coverage Int. cover (Qtr) 4.91 -202.56
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -24.06
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -3.37 175.36
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.94
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -52.48 31.53
EBITDA Growth (1y) % EBITDA Growth (1y) % 0.00 -472.14
EBIT Growth (1y) % EBIT 1y % (Qtr) -49.27 32.66
EBT Growth (1y) % EBT 1y % (Qtr) -54.61 -25.80
EPS Growth (1y) % EPS 1y % (Qtr) -60.46 -18.36
FCF Growth (1y) % FCF 1y % (Qtr) 0.00 20.83
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -14.84 19.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.04 0.74
Cash Payout Ratio Cash Payout Ratio 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.47 1.54
Current Ratio Curr Ratio (Qtr) 1.91 3.38
Debt to Equity Ratio Debt/Equity (Qtr) 0.37 -0.39
Interest Cover Ratio Int Coverage (Qtr) 4.91 -202.56
Times Interest Earned Times Interest Earned (Qtr) 4.91 -202.56
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -4,283.87
EBIT Margin % EBIT Margin % (Qtr) 74.35 -4,786.62
EBT Margin % EBT Margin % (Qtr) 8.32 -5,002.12
Gross Margin % Gross Margin % (Qtr) 44.70 58.65
Net Profit Margin % Net Margin % (Qtr) 6.90 -5,003.08