Returns Are Gaining Momentum At Baidu (NASDAQ:BIDU)

Simply Wall St.12-14

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. Firstly, we'll want to see a proven return on capital employed (...

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Firstly, we'll want to see a proven return on capital employed (...</p>\n\n<a href=\"https://finance.yahoo.com/news/returns-gaining-momentum-baidu-nasdaq-124106220.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":"NVIW.SI","symbol_name":"NVDA 3xLongSG261006","start_time":0,"source_url":"https://finance.yahoo.com/news/returns-gaining-momentum-baidu-nasdaq-124106220.html","article_id":"2491649165","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=2491649165","pubTimestamp":1734180066,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. 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Alternatively, email","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"NVIW.SI":"NVDA 3xLongSG261006","BK4574":"无人驾驶","PSQ":"纳指反向ETF","QLD":"纳指两倍做多ETF","TQQQ":"纳指三倍做多ETF","LU0173614495.USD":"富达中国焦点A","LU0359201612.USD":"贝莱德中国基金A2","BK4504":"桥水持仓","EBIT":"Harbor AlphaEdge Small Cap Earners ETF","LU0359202008.SGD":"Blackrock China Fund A2 SGD-H","BK4548":"巴美列捷福持仓","LU1023057109.AUD":"BGF CHINA \"A2\" (AUDHDG) ACC","USAW.SI":"AMZN 3xLongSG261006","BK4112":"金融交易所和数据","BK4514":"搜索引擎","TSYW.SI":"TESLA 3xLongSG261006","IE00B0JY6N72.USD":"PINEBRIDGE GLOBAL EMERGING MARKETS FOCUS EQUITY \"A\" (USD) ACC","BIDU":"百度","LU0640798160.USD":"EASTSPRING INVESTMENTS GLOBAL EMERGING MARKET DYNAMIC \"A\" (USD) ACC","SQQQ":"纳指三倍做空ETF","BK4531":"中概回港概念","LU2095319765.USD":"Natixis Thematics Subscription Economy R/A USD","K3SD.SI":"u BIDU ADR US$+","LU1115378108.SGD":"Eastspring Investments - Global Emerging Markets Dynamic AS SGD","BK4585":"ETF&股票定投概念","LU2210150020.SGD":"Natixis Thematics Subscription Economy R/A SGD","NDAQ":"纳斯达克OMX交易所","LU2210149790.SGD":"Natixis Thematics Subscription Economy R/A SGD-H","QID":"纳指两倍做空ETF","BK4587":"ChatGPT概念","IE00BGHQF748.EUR":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (EUR) ACC","IE00BKPKM429.USD":"NEUBERGER BERMAN GLOBAL SUSTAINABLE EQUITY \"A\" (USD) ACC","USJW.SI":"ALPHAB 3xLongSG261006","IE00B64PRP62.GBP":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (GBP) ACC","BK4535":"淡马锡持仓",".IXIC":"NASDAQ Composite","BK4077":"互动媒体与服务","IE00B3QW5Z07.USD":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (USD) ACC","BK4588":"碎股","BK4579":"人工智能","BK4526":"热门中概股","LU0287142896.SGD":"Fidelity China Focus A-SGD","BK4552":"Archegos爆仓风波概念"},"translate_title":"百度（纳斯达克：BIDU）的回报势头强劲","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BIDU":1,".IXIC":1,"EBIT":1,"NDAQ":1,"K3SD.SI":0.9,"USJW.SI":0.6,"USAW.SI":0.6,"TQQQ":0.6,"TSYW.SI":0.6,"NVIW.SI":0.6,"PSQ":0.6,"QID":0.6,"QLD":0.6,"SQQQ":0.6,"MNQmain":0.6,"NQmain":0.6},"content_text":"If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. So on that note, Baidu (NASDAQ:BIDU) looks quite promising in regards to its trends of return on capital. \n Return On Capital Employed (ROCE): What Is It? \n For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for Baidu: \n Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) \n0.067 = CN¥23b ÷ (CN¥417b - CN¥78b) (Based on the trailing twelve months to September 2024).\n So, Baidu has an ROCE of 6.7%.  Even though it's in line with the industry average of 6.8%, it's still a low return by itself. \n View our latest analysis for Baidu \n\n\n\n  NasdaqGS:BIDU Return on Capital Employed December 14th 2024\n \n\n Above you can see how the current ROCE for Baidu compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free analyst report for Baidu . \n So How Is Baidu's ROCE Trending? \n While in absolute terms it isn't a high ROCE, it's promising to see that it has been moving in the right direction. The numbers show that in the last five years, the returns generated on capital employed have grown considerably to 6.7%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 39%. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, a combination that's common among multi-baggers. \n The Bottom Line \n In summary, it's great to see that Baidu can compound returns by consistently reinvesting capital at increasing rates of return, because these are some of the key ingredients of those highly sought after multi-baggers. Given the stock has declined 29% in the last five years, this could be a good investment if the valuation and other metrics are also appealing. So researching this company further and determining whether or not these trends will continue seems justified. \n On the other side of ROCE, we have to consider valuation. That's why we have a FREE intrinsic value estimation for BIDU on our platform  that is definitely worth checking out. \n While Baidu may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here. \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":"1","news_tag":"dataReport","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":"4.29.4","shortVersion":"4.29.4","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/2491649165"}