Baidu logged a -2.9% change during today's morning session, and is now trading at a price of $99.72 per share.
Baidu returned losses of -24.9% last year, with its stock price reaching a high of $160.88 and a low of $97.51. Over the same period, the stock underperformed the S&P 500 index by -45.7%. As of April 2023, the company's 50-day average price was $113.23. Baidu, Inc. offers internet search services in China. Based in Beijing, China, the large-cap Technology company has 41,300 full time employees. Baidu has not offered a regular dividend during the last year.
The Company Has a Positive Net Current Asset Value:
| 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $13,034 | $14,876 | $15,429 | $16,410 | $19,536 | $17,931 |
| Revenue Growth | n/a | 14.13% | 3.72% | 6.36% | 19.05% | -8.22% |
| Operating Margins | 18% | 15% | 6% | 13% | 8% | 13% |
| Net Margins | 22% | 27% | 2% | 21% | 8% | 6% |
| Net Income (MM) | $2,812 | $4,010 | $296 | $3,444 | $1,605 | $1,096 |
| Net Interest Expense (MM) | $248 | $274 | $425 | $476 | $537 | $422 |
| Depreciation & Amort. (MM) | $585 | $543 | $807 | $885 | $923 | $939 |
| Earnings Per Share | $101.83 | $144.59 | $10.81 | $1.63 | $0.73 | $0.49 |
| EPS Growth | n/a | 41.99% | -92.52% | -84.92% | -55.21% | -32.88% |
| Diluted Shares (MM) | 28 | 28 | 27 | 2,107 | 2,205 | 2,254 |
| Free Cash Flow (MM) | $4,319 | $3,955 | $3,165 | $2,930 | $1,448 | $2,593 |
| Capital Expenditures (MM) | $735 | $1,276 | $923 | $779 | $1,710 | $1,201 |
| Current Ratio | 1.84 | 2.73 | 2.89 | 2.68 | 2.86 | 2.67 |
| Total Debt (MM) | $5,473 | $7,215 | $6,221 | $7,419 | $8,414 | $6,785 |
| Net Debt / EBITDA | 1.26 | 1.14 | 0.83 | 0.63 | 1.02 | -0.28 |
Baidu has weak operating margins with a negative growth trend, declining EPS growth, and positive cash flows. On the other hand, the company benefits from an excellent current ratio and healthy leverage levels.
Baidu Has Attractive P/B and P/E Ratios:
Baidu has a trailing twelve month P/E ratio of 18.9, compared to an average of 35.0 for the Technology sector. Based on its EPS guidance of $11.03, the company has a forward P/E ratio of 10.3. The -27.2% compound average growth rate of Baidu's historical and projected earnings per share yields a PEG ratio of -0.69. This indicates that its shares are overvalued.In contrast, the market is likely undervaluing Baidu in terms of its equity because its P/B ratio is 0.14 while the sector average is 7.92.
There's an Analyst Consensus of Strong Upside Potential for Baidu:
The 39 analysts following Baidu have set target prices ranging from $130.25 to $227.18 per share, for an average of $170.38 with a buy rating. As of April 2023, the company is trading -33.5% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
The largest shareholder is Primecap Management Company, whose 3% stake in the company is worth $924,459,656.
