Baidu logged a -2.8% change during today's afternoon session, and is now trading at a price of $91.78 per share.
Baidu returned losses of -12.4% last year, with its stock price reaching a high of $116.25 and a low of $77.19. Over the same period, the stock underperformed the S&P 500 index by -20.3%. AThe company's 50-day average price was $87.69. Baidu, Inc. provides online marketing and cloud services through an internet platform in the People's Republic of China. The Large-Cap Technology company is headquartered in Beijing, China. Baidu has not offered a dividend during the last year.
Exceptional EPS Growth Obtained Primarily Through Share Buybacks:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $14,876 | $15,429 | $16,410 | $19,536 | $17,931 | $18,958 |
| Gross Margins | 49% | 41% | 48% | 48% | 48% | 52% |
| Net Margins | 27% | 2% | 21% | 8% | 6% | 15% |
| Net Income (M) | $4,010 | $296 | $3,444 | $1,605 | $1,096 | $2,861 |
| Net Interest Expense (M) | $274 | $425 | $476 | $537 | $422 | $457 |
| Depreciation & Amort. (M) | $543 | $807 | $885 | $923 | $939 | $1,041 |
| Diluted Shares (M) | 35,171,043 | 34,884,854 | 2,756 | 2,814 | 2,809 | 2,837 |
| Earnings Per Share | $0.0 | $0.0 | $1.25 | $0.57 | $0.39 | $1.01 |
| EPS Growth | n/a | n/a | n/a | -54.4% | -31.58% | 158.97% |
| Free Cash Flow (M) | $3,955 | $3,165 | $2,930 | $1,448 | $2,593 | $3,581 |
| CAPEX (M) | $1,276 | $923 | $779 | $1,710 | $1,201 | $1,576 |
| Total Debt (M) | $7,215 | $6,221 | $7,419 | $8,414 | $6,785 | $5,777 |
| Net Debt / EBITDA | 1.14 | 0.83 | 0.63 | 1.02 | -0.28 | 0.54 |
| Current Ratio | 2.73 | 2.89 | 2.68 | 2.86 | 2.67 | 3.01 |
Baidu has growing revenues and increasing reinvestment in the business and an excellent current ratio of 3.01. Additionally, the company's financial statements display generally positive cash flows and healthy leverage levels. However, the firm suffers from slimmer gross margins than its peers and exceptional EPS growth obtained primarily through share buybacks.
an Exceptionally Low P/B Ratio but Priced Beyond Its Margin of Safety:
Baidu has a trailing twelve month P/E ratio of 9.6, compared to an average of 30.01 for the Technology sector. Based on its EPS guidance of $11.09, the company has a forward P/E ratio of 7.9. The inf% compound average growth rate of Baidu's historical and projected earnings per share yields a PEG ratio of 0.0. This suggests that its shares are undervalued. Additionally, the market is possibly undervaluing Baidu in terms of its equity because its P/B ratio is 0.12 whereas the sector average is 3.91. The company's shares are currently trading 453.6% below their Graham number.
Analysts Give Baidu an Average Rating of Buy:
The 33 analysts following Baidu have set target prices ranging from $76.44844 to $157.90025 per share, for an average of $110.35 with a buy rating. The company is trading -16.8% away from its average target price, indicating that there is an analyst consensus of some upside potential.
The largest shareholder is Primecap Management Company, whose 4% stake in the company is worth $1,111,905,195.
