NASDAQ · Communication Services

Baidu, Inc.

BIDU · Internet Content & Information

$111.76

▲ 0.15 (0.13%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

B⤢

Gross Profit Margin 38.9%

Operating Margin 10.0%

Net Income Margin 10.7%

Fin. Health

B⤢

Years to Pay Off Debt 27.3 yrs

Working Capital vs Long-Term Debt $10.2B

Working Capital $71.4B

Valuation

A⤢

Margin of Safety 74.6%

Price-to-Book 0.11x

Cash Flow

A⤢

Free Cash Flow $2.7B

Profitability

Gross Profit Margin 38.9%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 10.0%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 10.7%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 27.3 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt $10.2B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $71.4B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Baidu, Inc.

Baidu, Inc. provides internet content, value-added telecommunication-based, internet map, and online audio and video services in the People's Republic of China. It operates in two segments, Baidu General Business and iQIYI. The Baidu General Business segment offers products and services for mobile ecosystem, AI cloud, and intelligent driving. This segment operates Baidu App that enables users to access search, feed, content, and other services through mobile devices; and Haokan, which offers a range of various user generated and professionally produced short videos. It also provides a portfolio of knowledge and information products, including Baidu Wiki, which features columns and videos, such as encyclopedia of intangible cultural heritage, digital museum and recorder of history; Baidu Knows, an online community where users can pose questions to other users, such as individuals, professionals, and enterprises; Baidu Experience, an online platform where users share daily knowledge and experience; ERNIE Bot, new AI-native product that serves as a multi-round conversational AI assistant on both PC and mobile; and Baidu Post, a social media that allows users to post text, image, audio and video content, and reply to original curation forming valuable discussion groups, as well as livestreaming services, including live streaming and AI-powered digital human livestreaming. In addition, the company offers DuerOS smart assistant for the Chinese language; Apollo Go autonomous ride-hailing service; online marketing services; Baidu Maps, a voice-enabled mobile app providing users with travel-related services; and AI chips. The iQIYI segment produces and distributes professionally produced content. This segment offers online entertainment video services, including online videos, experience services, online games, comics, and others. The company was incorporated in 2000 and is headquartered in Beijing, the People's Republic of China.

Market Data

Market Cap $38.0B

Enterprise Value $39.0B

P/E (TTM) 12.22

Dividend Yield N/A

Exchange NASDAQ

Key Margins

Gross Profit 38.9%

Operating Margin 10.0%

Net Margin 10.7%

Company Info

Sector Communication Services

Industry Internet Content & Information

Employees 33500

Country China

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Baidu, Inc. at $111.76.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

At $111.76, the stock trades below its Graham Number of $440.20 — suggesting a margin of safety exists.

The margin of safety of 74.6% exceeds Graham's recommended 33% threshold — a rare opportunity.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q3 2024
Gross Profit %	38.9%▼	44.2%•	N/A
Operating Margin %	10.0%▲	4.5%•	N/A
Net Income %	10.7%▲	5.4%•	N/A
Diluted EPS	8.80▲	3.68•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$449.6B	$449.2B	N/A
Total Debt	$94.1B▼	$97.1B•	N/A
Working Capital	$71.4B▲	$65.6B•	N/A
Years to Pay Debt	27.33	54.48	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025
Free Cash Flow	$2.7B▲	-$10.8B
Owner Earnings	N/A	N/A
CapEx % of Net Income	N/A	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	-136,735	-397,860
Tax Rate For Calcs	0	0
Normalized EBITDA	5,444,000	4,431,000
Total Unusual Items	-989,000	-1,054,000
Total Unusual Items Excluding Goodwill	-989,000	-1,054,000
Net Income From Continuing Operation Net Minority Interest	3,445,000	1,782,000
Reconciled Cost Of Revenue	19,589,000	18,277,000
EBITDA	4,455,000	3,377,000
EBIT	4,455,000	3,377,000
Net Interest Income	1,327,000	1,400,000
Interest Expense	636,000	651,000
Interest Income	1,963,000	2,051,000
Normalized Income	4,297,265	2,438,140
Net Income From Continuing And Discontinued Operation	3,445,000	1,782,000
Total Expenses	28,882,000	31,257,000
Total Operating Income As Reported	3,193,000	1,483,000
Diluted Average Shares	345,500	344,750
Basic Average Shares	340,125	340,125
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	3,445,000	236,000
Net Income Common Stockholders	3,445,000	856,000
Net Income	3,445,000	1,782,000
Minority Interests	154,000	85,000
Net Income Including Noncontrolling Interests	3,291,000	1,697,000
Net Income Continuous Operations	3,291,000	1,697,000
Tax Provision	528,000	1,029,000
Pretax Income	3,819,000	2,726,000
Other Income Expense	-701,000	-157,000
Other Non Operating Income Expenses	-248,000	-296,000
Special Income Charges			0
Impairment Of Capital Assets			0
Earnings From Equity Interest	536,000	1,193,000
Gain On Sale Of Security	-989,000	-1,054,000
Net Non Operating Interest Income Expense	1,327,000	1,400,000
Interest Expense Non Operating	636,000	651,000
Interest Income Non Operating	1,963,000	2,051,000
Operating Income	3,193,000	1,483,000
Operating Expense	9,293,000	12,980,000
Research And Development	4,381,000	5,591,000
Selling General And Administration	4,912,000	7,389,000
Gross Profit	12,486,000	14,463,000
Cost Of Revenue	19,589,000	18,277,000
Total Revenue	32,075,000	32,740,000
Operating Revenue	32,075,000	77,722,000

Balance Sheet

	2026	2025	2024
Treasury Shares Number		125,568	41,183
Ordinary Shares Number	2,722,021	2,722,014	2,763,575
Share Issued	2,722,021	2,847,582	2,804,757
Net Debt	56,849,000	64,906,000
Total Debt	94,136,000	97,077,000
Tangible Book Value	207,018,000	205,119,000
Invested Capital	355,683,000	355,842,000
Working Capital	71,440,000	65,642,000
Net Tangible Assets	207,018,000	205,119,000
Capital Lease Obligations	7,339,000	7,565,000
Common Stock Equity	268,886,000	266,330,000
Total Capitalization	330,159,000	327,432,000
Total Equity Gross Minority Interest	292,348,000	289,726,000
Minority Interest	23,462,000	23,396,000
Stockholders Equity	268,886,000	266,330,000
Gains Losses Not Affecting Retained Earnings		-1,650,000	-1,803,000
Treasury Stock		4,693,000	6,236,000
Retained Earnings		177,694,000	180,073,000
Additional Paid In Capital		94,979,000	91,586,000
Total Liabilities Net Minority Interest	157,218,000	159,431,000
Total Non Current Liabilities Net Minority Interest	73,369,000	73,103,000
Other Non Current Liabilities	1,956,000	1,951,000
Dueto Related Parties Non Current	30,000	36,000
Non Current Deferred Liabilities	6,169,000	5,906,000
Non Current Deferred Revenue	958,000	921,000
Non Current Deferred Taxes Liabilities	5,211,000	4,985,000
Long Term Debt And Capital Lease Obligation	65,214,000	65,210,000
Long Term Capital Lease Obligation	3,941,000	4,108,000
Long Term Debt	61,273,000	61,102,000
Current Liabilities	83,849,000	86,328,000
Current Deferred Liabilities	13,488,000	13,582,000
Current Deferred Revenue	13,488,000	13,582,000
Current Debt And Capital Lease Obligation	28,922,000	31,867,000
Current Capital Lease Obligation	3,398,000	3,457,000
Current Debt	25,524,000	28,410,000
Other Current Borrowings	25,524,000	28,410,000
Payables And Accrued Expenses	41,439,000	40,879,000
Current Accrued Expenses		34,764,000	33,263,000
Interest Payable			335,000
Payables	41,439,000	6,115,000
Other Payable		1,500,000	4,653,000
Dueto Related Parties Current	1,960,000	1,988,000
Total Tax Payable		2,627,000	3,527,000
Accounts Payable	39,479,000
Total Assets	449,566,000	449,157,000
Total Non Current Assets	294,277,000	297,187,000
Other Non Current Assets	32,292,000	27,556,000
Non Current Prepaid Assets		0	13,547,000
Non Current Deferred Assets	5,266,000	4,582,000
Non Current Deferred Taxes Assets	5,266,000	4,582,000
Duefrom Related Parties Non Current	119,000	167,000
Non Current Accounts Receivable	119,000	167,000
Investments And Advances	159,334,000	168,780,000
Other Investments
Investmentin Financial Assets		144,199,000	118,358,000
Available For Sale Securities		144,199,000	118,358,000
Long Term Equity Investment		24,581,000	21,898,000
Investments In Other Ventures Under Equity Method		24,581,000	21,898,000
Goodwill And Other Intangible Assets	61,868,000	61,211,000
Other Intangible Assets	25,085,000	24,428,000
Goodwill	36,783,000	36,783,000
Net PPE	35,398,000	34,891,000
Accumulated Depreciation		-51,104,000	-38,977,000
Gross PPE	35,398,000	85,995,000
Leases		505,000	549,000
Construction In Progress		563,000	621,000
Other Properties	35,398,000	8,610,000
Machinery Furniture Equipment		66,526,000	58,378,000
Buildings And Improvements		9,791,000	9,531,000
Current Assets	155,289,000	151,970,000
Other Current Assets	22,867,000	5,102,000
Restricted Cash	584,000	225,000
Prepaid Assets		8,395,000	5,310,000
Inventory		6,200,000	5,989,000
Receivables	14,948,000	16,781,000
Other Receivables		3,048,000	3,386,000
Duefrom Related Parties Current	781,000	761,000
Accounts Receivable	14,167,000	12,972,000
Allowance For Doubtful Accounts Receivable		-5,001,000	-3,517,000
Gross Accounts Receivable		17,973,000	13,621,000
Cash Cash Equivalents And Short Term Investments	116,890,000	115,267,000
Other Short Term Investments	86,942,000	90,661,000
Cash And Cash Equivalents	29,948,000	24,606,000

Cash Flow

	2026	2025
Free Cash Flow	2,670,000	-10,808,000
End Cash Position	30,532,000	24,831,000
Beginning Cash Position	24,831,000	39,800,000
Effect Of Exchange Rate Changes	-276,000	-305,000
Changes In Cash	5,977,000	-14,664,000
Financing Cash Flow	-1,635,000	1,113,000
Investing Cash Flow	4,942,000	-18,386,000
Operating Cash Flow	2,670,000	2,609,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $32.5B ▼ $32.1B -1.2%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 46.1% ▼ 38.9% -7.2pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 9.8% ▼ 10.0% +0.1pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 23.8% ▼ 10.7% -13.0pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$32.1B/qtr (≈$128.3B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

1.85x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$2.7B

vs Positive

Operating Cash Flow

$2.7B

Latest quarter · Buffett's cash reality check

ROIC

0.7%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

0.1x

Net Assets: $292.3B

Asset Context — Internet Content & Information

Platform and internet businesses derive value from network effects, user data, and brand — intangibles that accounting rules don't capitalise. A low or negative Net Assets figure is expected and not a risk signal. ROIC and FCF per share are more relevant valuation anchors.

⚠️ Net margin compressed 13.0pp vs same quarter last year. Common causes: one-time charges (restructuring, write-downs, legal settlements), tax rate changes, or rising interest expense. Check the income statement notes before drawing conclusions about operating health.

Peers & Industry Comparison

Internet Content & Information — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
BIDU	$111.76	$38.0B	12.22	38.9%	10.7%	$32.1B
GOOGL Alphabet Inc.	$368.03	$4,490.9B	28.1	60.4%	37.9%	$422.5B
META Meta Platforms, Inc.	$577.22	$1,465.2B	21.0	81.9%	32.8%	$215.0B
SNAP Snap Inc.	$4.66	$7.7B	N/A	55.8%	-6.7%	$6.1B
PINS Pinterest, Inc.	$20.27	$11.4B	42.2	79.9%	7.6%	$4.4B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

3.26%

Moderate — some alignment with shareholders

Return on Equity (ROE)

1.3%

Weak — poor returns on equity

Return on Assets (ROA)

0.8%

Poor — assets are not generating adequate returns

Share Buybacks (Latest Year)

$5.5B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-3.0% YoY

Debt is declining — management is deleveraging

Leadership Team

Yanhong Li

Co-Founder, Chairman & CEO

Age 56

Haijian He

Chief Financial Officer

Age 43

Dou Shen

Executive VP & President of Baidu AI Cloud Group

Age 45

Rong Luo

Executive Vice President of Baidu Mobile Ecosystem Group

Age 43

Zhenyu Li

Senior Vice President and GM of IDG

Age 49

Top Institutional Holders

Institution	% Owned	Shares
Primecap Management Company	4.02%	11,056,800
Morgan Stanley	2.37%	6,514,644
Blackrock Inc.	0.84%	2,296,478
UBS Group AG	0.77%	2,124,299
Robeco Institutional Asset Management B.V.	0.54%	1,474,077
Dimensional Fund Advisors LP	0.44%	1,212,101
Capital World Investors	0.44%	1,198,291
ARK Investment Management, LLC	0.41%	1,120,331

Risk Analysis

Beta (Market Risk)

0.53

Low volatility — more stable than the market

Short Interest

4.8% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.32x

Conservative balance sheet — low financial risk

Current Ratio

1.85x

Adequate liquidity

52-Week Price Range

Low: $83.30 Current: $111.76 High: $165.30

Currently at 35% of 52-week range

Baidu, Inc.

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry Comparison

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis