iQIYI Inc. American Depositary Shares (IQ)
FairStock Score: 61/100 — STEADY
Key Financials
| Current Price | $0.92 |
| Market Cap | $1.2B |
| P/E Ratio | -6.58 |
| ROE | -6.73% |
| Dividend Yield | —% |
| Sector | Communication Services |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
iQIYI is an online entertainment video platform in China, offering long-form video, micro dramas, and related content. On the numbers I have, the business looks mediocre-to-weak, though the price is deeply discounted. In fiscal Q2 2026, revenue was $6.3 billion and net loss was $287.5 million, a -4.57% margin. The supplied revenue growth figure is only 2.73%, so I see little evidence of pricing power or a wide moat; content platforms are competitive and capital-intensive. The balance sheet and returns are not comforting: debt-to-equity is 1.12, ROE is -6.73%, ROCE is -0.54%, and the FairStock Altman Z-Score of -1.54 signals financial distress. Still, trailing free cash flow is $181.0 million, a 15.6% FCF yield against the $1.2 billion market cap, and the price of $0.99 on 2026-10-13 is 0.48 times book value. That is a Graham-style bargain if the cash flow is durable. But EV/EBITDA is 40.66, and the negative P/E makes earnings-based valuation meaningless. The Piotroski F-Score of 5/9 is mediocre. The FairStock Score is 61/100, and the Lynch category is none because there are only 0 years of filed results versus the 3 needed. With a low beta of 0.18 and a 52-week range of $0.86-$2.36, the market is skeptical. I would want the loss to shrink and free cash flow to persist before trusting the discount.
In plain English: iQIYI runs online video and entertainment services in China. The business looks weak right now: it lost money in its latest quarter, carries meaningful debt, and has not grown revenue much, but it does produce free cash and trades below the value of its assets after debts. At 99 cents, the price may look cheap against those assets, but the losses and debt mean it is not a clearly healthy business.
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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash
Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer