IQIYI Profitability Analysis

IQ Stock  USD 4.23  0.20  4.96%   
Considering the key profitability indicators obtained from IQIYI's historical financial statements, IQIYI Inc is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in April. Profitability indicators assess IQIYI's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2016-06-30
Previous Quarter
475.9 M
Current Value
466.2 M
Quarterly Volatility
1.3 B
 
Covid
As of 03/28/2024, Price To Sales Ratio is likely to drop to 0.98. In addition to that, Operating Cash Flow Sales Ratio is likely to drop to 0.05. At this time, IQIYI's Operating Income is relatively stable compared to the past year. As of 03/28/2024, Net Income From Continuing Ops is likely to grow to about 2.1 B, though Total Other Income Expense Net is likely to grow to (79.9 M).
For IQIYI profitability analysis, we use financial ratios and fundamental drivers that measure the ability of IQIYI to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well IQIYI Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between IQIYI's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of IQIYI Inc over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
Is IQIYI's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of IQIYI. If investors know IQIYI will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about IQIYI listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.389
Earnings Share
0.27
Revenue Per Share
33.422
Quarterly Revenue Growth
0.015
Return On Assets
0.0447
The market value of IQIYI Inc is measured differently than its book value, which is the value of IQIYI that is recorded on the company's balance sheet. Investors also form their own opinion of IQIYI's value that differs from its market value or its book value, called intrinsic value, which is IQIYI's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because IQIYI's market value can be influenced by many factors that don't directly affect IQIYI's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between IQIYI's value and its price as these two are different measures arrived at by different means. Investors typically determine if IQIYI is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, IQIYI's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

IQIYI Inc Price To Earnings To Growth vs. Cash And Equivalents Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining IQIYI's current stock value. Our valuation model uses many indicators to compare IQIYI value to that of its competitors to determine the firm's financial worth.
IQIYI Inc is rated third overall in cash and equivalents category among related companies. It is rated below average in price to earnings to growth category among related companies . The ratio of Cash And Equivalents to Price To Earnings To Growth for IQIYI Inc is about  40,728,744,939 . Comparative valuation analysis is a catch-all model that can be used if you cannot value IQIYI by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for IQIYI's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the IQIYI's earnings, one of the primary drivers of an investment's value.

IQIYI Price To Earnings To Growth vs. Cash And Equivalents

Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

IQIYI

Cash

 = 

Bank Deposits

+

Liquidities

 = 
5.03 B
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
PEG Ratio indicates the potential value of an equity instrument and is calculated by dividing Price to Earnings (P/E) ratio into earnings growth rate. Most analysts and investors prefer this measure to a Price to Earnings (P/E) ratio because it incorporates the future growth of a firm. The low PEG ratio usually implies that an equity instrument is undervalued; whereas PEG of 1 may indicate that an equity is reasonably priced under given expectations of future growth.

IQIYI

PEG Ratio

 = 

PE Ratio

EPS Growth

 = 
0.12 X
Generally speaking, PEG ratio is a 'quick and dirty' way to measure how the current price of a firm's stock relates to its earnings and growth rate. The main benefit of using PEG ratio is that investors can compare the relative valuations of companies within different industries without analyzing their P/E ratios.

IQIYI Price To Earnings To Growth Comparison

IQIYI is rated fifth overall in price to earnings to growth category among related companies.

IQIYI Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in IQIYI, profitability is also one of the essential criteria for including it into their portfolios because, without profit, IQIYI will eventually generate negative long term returns. The profitability progress is the general direction of IQIYI's change in net profit over the period of time. It can combine multiple indicators of IQIYI, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income1.7 B1.6 B
Interest Income257.5 M176.9 M
Operating IncomeB3.1 B
Net Income From Continuing OpsB2.1 B
Income Before TaxB2.1 B
Non Operating Income Net Other 0.00  0.00 
Total Other Income Expense Net-84.1 M-79.9 M
Net Loss-156.6 M-164.5 M
Net IncomeB2.1 B
Income Tax Expense80 M52.7 M
Net Interest Income-872.8 M-829.2 M
Change To Netincome1.1 B673.1 M
Net Income Per E B T 0.95  1.02 

IQIYI Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on IQIYI. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of IQIYI position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the IQIYI's important profitability drivers and their relationship over time.

IQIYI Profitability Trends

IQIYI profitability trend refers to the progression of profit or loss within a business. An upward trend means that IQIYI's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is IQIYI's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

IQIYI Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between IQIYI different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards IQIYI in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down IQIYI's future profitability.

Use IQIYI in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if IQIYI position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in IQIYI will appreciate offsetting losses from the drop in the long position's value.

IQIYI Pair Trading

IQIYI Inc Pair Trading Analysis

The ability to find closely correlated positions to IQIYI could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace IQIYI when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back IQIYI - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling IQIYI Inc to buy it.
The correlation of IQIYI is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as IQIYI moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if IQIYI Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for IQIYI can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your IQIYI position

In addition to having IQIYI in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Toys Thematic Idea Now

Toys
Toys Theme
Companies producing and distributing toys and different gaming products for kids. The Toys theme has 43 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Toys Theme or any other thematic opportunities.
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When determining whether IQIYI Inc is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if IQIYI Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Iqiyi Inc Stock. Highlighted below are key reports to facilitate an investment decision about Iqiyi Inc Stock:
Check out Risk vs Return Analysis.
You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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To fully project IQIYI's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of IQIYI Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include IQIYI's income statement, its balance sheet, and the statement of cash flows.
Potential IQIYI investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although IQIYI investors may work on each financial statement separately, they are all related. The changes in IQIYI's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on IQIYI's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.