BIDUBIDU
US • —
$119.00
P/E
638.63
PEG
—
FCF Yield
—
Rev Growth YoY
-4.0% YoY
Gross Margin
42.1%
Health Score
5/10
D/E Ratio
0.34
Confidence
MEDIUM
Business Snapshot
Baidu operates as a leading Chinese internet company, primarily generating revenue through its online advertising platform and artificial intelligence-driven businesses including cloud services and autonomous driving. The company dominates the Chinese-language search engine market, commanding significant market share in digital advertising while expanding into AI and smart transportation solutions. With earnings nearly disappearing over the trailing twelve months, the company's financial scale has contracted sharply. Baidu's defining characteristic is its long-established monopoly in Chinese search, which provides a durable competitive moat despite regulatory pressures and slowing economic growth in China.
Financial Health
Gross margin of 42.1% reflects a healthy core business model with pricing power, though no prior-year comparison is available to assess direction. Net margin has collapsed to just 0.3%, indicating that near-zero earnings are squeezing profitability and leaving virtually no room for error...
Risk Assessment
- VALUATION — P/E ratio of 638.63x is extreme relative to the sector average of 22x, though this is distorted by near-zero earnings and should not be taken at face value.
- EARNINGS QUALITY — Earnings growth declined 99.0% year-over-year, representing a dramatic deterioration in net income that signals severe underlying pressure.
- REVENUE DECELERATION — Revenue declined 4.0% year-over-year, confirming a shrinking top line in a weakening macro environment.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- FCF / CASH BURN — Free cash flow data is unavailable, preventing a reliable assessment of cash generation or burn rate....
Gross margin of 42.1% reflects a healthy core business model with pricing power, though no prior-year comparison is available to assess direction. Net margin has collapsed to just 0.3%, indicating that near-zero earnings are squeezing profitability and leaving virtually no room for error. The debt-to-equity ratio of 0.34x is conservative, and the current ratio of 1.76x signals adequate short-term liquidity with no immediate solvency concerns. Return on equity of 0.1% is negligible, highlighting that the company is generating minimal profit relative to shareholder equity. For investors, the low debt burden preserves financial flexibility, but the razor-thin net margin leaves little capacity for dividend payouts and raises the risk of capital allocation missteps.
- VALUATION — P/E ratio of 638.63x is extreme relative to the sector average of 22x, though this is distorted by near-zero earnings and should not be taken at face value. - EARNINGS QUALITY — Earnings growth declined 99.0% year-over-year, representing a dramatic deterioration in net income that signals severe underlying pressure. - REVENUE DECELERATION — Revenue declined 4.0% year-over-year, confirming a shrinking top line in a weakening macro environment. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - FCF / CASH BURN — Free cash flow data is unavailable, preventing a reliable assessment of cash generation or burn rate.
Unlock the full AI report
Full 8-section analysis includes:
Metric deep-dives