IQiQIYI, Inc.
Is the business good?
Earnings fully cash-backed (1.3×). That is the only one of 4 checks this filer's data supports, so take it as a single data point rather than a settled answer.
Operating profit is fully backed by cash.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is IQ?
iQIYI, Inc. earns 5.3% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 3.7 points below what the capital costs: growth destroys value
- Operating margin
- 3.0%
Operating margin · Entertainment median 4.3% · 12 months to Q4 2024
- Cash conversion
- 1.33×
Cash conversion · operating cash flow covers the operating profit after tax
- R&D as % of revenue
- 7.3%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | −20% |
| FY2021 | −15% |
| FY2022 | 4.5% |
| FY2023 | 9.4% |
| FY2024 | 6.2% |
| FY2025 | 0.84% |
Details›
- Gross margin12 months to Q4 2024
- 23%
- Operating margin12 months to Q4 2024
- 3.0%
- Net margin12 months to Q4 2024
- −4.1%
- Free cash flow margin
- 2.9%
- R&D as % of revenue
- 7.3%
- Revenue, trailing twelve months
- $29.3B
- Free cash flow, trailing twelve months
- $838M
- Net income, trailing twelve months
- −$1.19B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.3%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.