Baidu, Inc.'s (NASDAQ:BIDU) Has Had A Decent Run On The Stock market: Are Fundamentals In The Driver's Seat?

Simply Wall St.09-20

Most readers would already know that Baidu's (NASDAQ:BIDU) stock increased by 3.5% over the past week. As most would know, long-term fundamentals have a strong correlation with market price movements,...

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As most would know, long-term fundamentals have a strong correlation with market price movements,...</p>\n\n<a href=\"https://finance.yahoo.com/news/baidu-inc-nasdaq-bidu-had-101157593.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1115378108.SGD","symbol_name":"Eastspring Investments - Global Emerging Markets Dynamic AS SGD","start_time":0,"source_url":"https://finance.yahoo.com/news/baidu-inc-nasdaq-bidu-had-101157593.html","article_id":"2468643238","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/WySxYJEKYxglsjOAMiyeUA--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/f736be599b0531f3c61304814b769159"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2468643238","pubTimestamp":1726827117,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Most readers would already know that Baidu's  stock increased by 3.5% over the past week. As most would know, long-term fundamentals have a strong correlation with market price movements, so we decided to look at the company's key financial indicators today to determine if they have any role to play in the recent price movement. In this article, we decided to focus on Baidu's  ROE.Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital.Return on Equity = Net Profit  ÷ Shareholders' Equity. So, based on the above formula, the ROE for Baidu is:. So far, we've learned that ROE is a measure of a company's profitability. Depending on how much of these profits the company reinvests or \"retains\", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Generally speaking, other thin","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1115378108.SGD":"Eastspring Investments - Global Emerging Markets Dynamic AS SGD","BK4587":"ChatGPT概念","QID":"纳指两倍做空ETF","LU2210149790.SGD":"Natixis Thematics Subscription Economy R/A SGD-H","BK4535":"淡马锡持仓","IE00BKPKM429.USD":"NEUBERGER BERMAN GLOBAL SUSTAINABLE EQUITY \"A\" (USD) ACC","BK4077":"互动媒体与服务","BK4579":"人工智能","BK4588":"碎股","BK4526":"热门中概股","TQQQ":"纳指三倍做多ETF","IE00B64PRP62.GBP":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (GBP) ACC","LU0287142896.SGD":"Fidelity China Focus A-SGD","BK4552":"Archegos爆仓风波概念","IE00B3QW5Z07.USD":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (USD) ACC","BK4574":"无人驾驶","IE00BGHQF748.EUR":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (EUR) ACC","PSQ":"纳指反向ETF","QLD":"纳指两倍做多ETF","BK4504":"桥水持仓","LU0173614495.USD":"富达中国焦点A","LU0359201612.USD":"贝莱德中国基金A2","BK4112":"金融交易所和数据","BK4514":"搜索引擎","BK4548":"巴美列捷福持仓","LU0359202008.SGD":"Blackrock China Fund A2 SGD-H","LU1023057109.AUD":"BGF CHINA \"A2\" (AUDHDG) ACC","K3SD.SI":"u BIDU ADR US$+","BAIDF":"Baidu, Inc.","NDAQ":"纳斯达克OMX交易所","SQQQ":"纳指三倍做空ETF","IE00B0JY6N72.USD":"PINEBRIDGE GLOBAL EMERGING MARKETS FOCUS EQUITY \"A\" (USD) ACC",".IXIC":"NASDAQ Composite","BK4531":"中概回港概念","LU0640798160.USD":"EASTSPRING INVESTMENTS GLOBAL EMERGING MARKET DYNAMIC \"A\" (USD) ACC","BK4585":"ETF&股票定投概念","LU2095319765.USD":"Natixis Thematics Subscription Economy R/A USD","BIDU":"百度","LU2210150020.SGD":"Natixis Thematics Subscription Economy R/A SGD"},"translate_title":"百度公司（纳斯达克：BIDU）在股市上表现不错：基本面是否占主导地位？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BAIDF":1,"BIDU":1,".IXIC":1,"NDAQ":1,"K3SD.SI":0.9,"TQQQ":0.6,"PSQ":0.6,"QID":0.6,"QLD":0.6,"SQQQ":0.6,"MNQmain":0.6,"NQmain":0.6},"content_text":"Most readers would already know that Baidu's (NASDAQ:BIDU) stock increased by 3.5% over the past week. As most would know, long-term fundamentals have a strong correlation with market price movements, so we decided to look at the company's key financial indicators today to determine if they have any role to play in the recent price movement. In this article, we decided to focus on Baidu's  ROE. \n Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital. \n View our latest analysis for Baidu \n How Do You Calculate Return On Equity? \n The formula for return on equity is: \n Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity \nSo, based on the above formula, the ROE for Baidu is:\n7.8% = CN¥21b ÷ CN¥273b (Based on the trailing twelve months to June 2024).\n The 'return' is the profit over the last twelve months. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.08. \n What Has ROE Got To Do With Earnings Growth? \n So far, we've learned that ROE is a measure of a company's profitability. Depending on how much of these profits the company reinvests or \"retains\", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes. \n A Side By Side comparison of Baidu's Earnings Growth And 7.8% ROE \n When you first look at it, Baidu's ROE doesn't look that attractive. However, its ROE is similar to the industry average of 7.1%, so we won't completely dismiss the company. Even so, Baidu has shown a fairly decent growth in its net income which grew at a rate of 6.0%. Taking into consideration that the ROE is not particularly high, we reckon that there could also be other factors at play which could be influencing the company's growth. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio. \n As a next step, we compared Baidu's net income growth with the industry and were disappointed to see that the company's growth is lower than the industry average growth of 11% in the same period. \n\n\n\n  NasdaqGS:BIDU Past Earnings Growth September 20th 2024\n \n\n The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is Baidu fairly valued compared to other companies? These 3 valuation measures might help you decide. \n Is Baidu Using Its Retained Earnings Effectively? \n Given that Baidu doesn't pay any regular dividends to its shareholders, we infer that the company has been reinvesting all of its profits to grow its business. \n Summary \n In total, it does look like Baidu has some positive aspects to its business. Specifically, its fairly high earnings growth number, which no doubt was backed by the company's high earnings retention. Still, the low ROE means that all that reinvestment is not reaping a lot of benefit to the investors. With that said, the latest industry analyst forecasts reveal that the company's earnings are expected to accelerate. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. \nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2468643238"}