BIDUBaidu, Inc.
Is it safe?
Mostly sound, with a caveat: comfortable debt (AA), but big price swings.
Net cash and profitable. A rule of thumb on leverage, not a credit rating.
Large price swings, high volatility. Worst drawdown -77% · now 47% below its 52-week high.
Where this answer is blind. Altman sits structurally low for utilities and pipelines; Beneish runs high for fast growers, since sales growth alone lifts it; banks and REITs are excluded.
Can BIDU take a bad year?
Baidu, Inc. holds $86.6B more cash than debt, so a bad year is a question about profits, not about lenders.
Net cash
- Net debt / EBITDA
- net cash
Net debt / EBITDA · no net borrowings to measure against earnings
- Interest cover
- 7.47×
Interest cover · operating profit covers the interest bill several times over
- Annualised volatility
- 49%
Annualised volatility · roughly twice as jumpy as the market
Details›
- Total debtQ4 2018
- $52.7B
- Cash and short-term investments
- $139.3B
- Net cash
- $86.6B
- EBITDA, trailing twelve months
- $19.1B
- Operating profit, trailing twelve months
- $15.0B
- Debt / equity
- 0.32×
- Total debt / EBITDA
- 2.76×
- Annualised volatilitytwo years of daily moves
- 49%
- Worst drawdown on file
- −77%
- Below its 52-week high
- 48%
Balance sheet from SEC filings; drawdown and volatility from end-of-day closes; Altman Z from the filed statements.
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