IQ

Communication Services

iQIYI, Inc. · Entertainment · $1B

UQS Score — Balanced Preset
33.4
Below Average

iQIYI, Inc. scores 33.4/100 using the Balanced preset.

UQS vs Communication Services Sector
IQ
33.4
Sector avg
35.8
Quality
Weak
Moat
Weak
Growth
Neutral
Risk
Neutral
Valuation
Good

What is iQIYI, Inc.?

iQIYI is one of China's largest online video streaming platforms, often compared to Netflix in its home market. Operating under the iQIYI brand, the company serves hundreds of millions of users across a broad suite of digital entertainment products.

The company generates revenue primarily through paid memberships, online advertising, and content distribution. It licenses professionally produced content and creates original programming, while also operating adjacent services including live broadcasting, online literature, animations, and casual games. iQIYI is a subsidiary of Baidu Holdings Limited, which provides a significant distribution and technology relationship. Talent agency work and IP licensing round out its revenue mix.

iQIYI was incorporated in 2009 and is headquartered in Beijing, China.

  • Subscription video-on-demand platform with licensed and original content
  • iQIYI Show — real-time live broadcasting service
  • iQIYI Lite — lightweight personalized video app
  • Online advertising across its video and content network
  • Online games, literature, and animation services

Is IQ a Good Stock to Buy?

UQS Score rates IQ as Poor overall, reflecting broad weakness across most of the five quality pillars.

The one relative bright spot in iQIYI's profile is its Valuation pillar, which is rated Good — suggesting the market has already priced in a great deal of the company's challenges, leaving the stock trading at levels that appear undemanding relative to peers.

Quality, Moat, Growth, and Risk are all rated Weak, pointing to thin competitive defenses, limited earnings power, uncertain growth prospects, and meaningful financial and regulatory risk in the Chinese internet sector.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does IQ pay dividends?

No — iQIYI, Inc. does not currently pay a dividend.

iQIYI does not currently pay a dividend. Given the company's focus on content investment and the ongoing need to manage costs in a competitive streaming environment, capital is retained rather than returned to shareholders. Income-focused investors should look elsewhere, as no dividend is expected in the near term.

When does IQ report earnings?

iQIYI reports earnings on a quarterly cadence, consistent with its listing as a US-traded ADR on Nasdaq.

The company has faced persistent pressure on both revenue growth and profitability, reflecting a challenging environment for Chinese internet platforms. Membership growth and cost discipline remain the key metrics investors watch each quarter.

For the most recent quarter's results and guidance, visit iQIYI's official investor relations page.

IQ Price History

-90.7% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in iQIYI, Inc.?

$
Today it would be worth
$933
That's a -90.7% total return, or -37.8% annualized.

Based on iQIYI, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

IQ Long-term Outlook

iQIYI's Growth and Risk pillars are both rated Weak, which points to a cautious fundamental outlook. The path to sustained profitability depends heavily on membership expansion, content cost management, and a stable regulatory environment in China — none of which are guaranteed. The Good Valuation rating suggests downside may be limited at current prices, but a meaningful re-rating would require tangible improvement in underlying business quality.

Growth drivers

  • Paid membership growth as Chinese consumers shift toward premium streaming
  • Original content and IP licensing as potential higher-margin revenue streams
  • Baidu's ecosystem providing distribution and technology support

Key risks

  • Ongoing regulatory uncertainty in China's internet and media sector
  • High content costs pressuring margins in a competitive market
  • Weak moat leaving the platform vulnerable to rivals with deeper pockets

IQ vs Peers

iQIYI competes broadly in the entertainment and content space, though its direct peers on US exchanges span different segments of the industry.

SBGISimilar UQS
Sinclair, Inc.

Sinclair operates US regional broadcast television stations, making it a traditional media business with a very different geographic and distribution model than iQIYI's China-focused streaming platform.

AMCSimilar UQS
AMC Entertainment Holdings, Inc.

AMC focuses on physical movie theater exhibition in the US and internationally, representing a brick-and-mortar entertainment model that contrasts sharply with iQIYI's digital-first approach.

IMAXIQ scores lower
IMAX Corporation

IMAX licenses its premium large-format cinema technology globally, including in China, giving it a presence in iQIYI's home market through a technology-licensing rather than streaming model.

Frequently Asked Questions

What does iQIYI do?

iQIYI operates one of China's largest online video streaming platforms, offering subscription video, live broadcasting, online literature, animations, and casual games. The company earns revenue through paid memberships, advertising, and content distribution, and is a subsidiary of Baidu Holdings Limited.

Does IQ pay dividends?

No, iQIYI does not pay a dividend. The company retains capital to fund content investment and operational needs. Investors seeking regular income distributions should be aware that no dividend program is currently in place.

When does IQ report earnings?

iQIYI reports financial results on a quarterly basis, as is standard for US-listed ADRs. For the exact timing of upcoming earnings releases, check iQIYI's investor relations page directly, as dates can shift.

Is IQ a good stock to buy?

UQS Score rates IQ as Poor, driven by Weak ratings across Quality, Moat, Growth, and Risk pillars. The Valuation pillar is rated Good, which may limit downside, but the overall profile suggests significant fundamental challenges remain. The full pillar breakdown is available to Pro members.

Is IQ overvalued?

Based on the UQS Valuation pillar, IQ is rated Good — meaning the stock does not appear expensive relative to its fundamentals and sector peers. However, a low valuation alone does not offset the weaknesses identified across the other four pillars.

How does IQ compare to its competitors?

iQIYI's listed peers on US exchanges — Sinclair, AMC Entertainment, and IMAX — operate in different segments of the entertainment industry. iQIYI is unique as a China-focused digital streaming platform, which means its competitive dynamics, regulatory exposure, and growth profile differ substantially from these US-centric peers.

What is IQ's market cap bracket?

iQIYI is classified as a small-cap stock. This places it in a bracket where liquidity, analyst coverage, and institutional ownership can be more limited than for large- or mega-cap peers, which may contribute to higher price volatility.

Who founded iQIYI?

iQIYI was founded in 2009 — originally operating as Qiyi.com, Inc. before rebranding to iQIYI in November 2017. The company was built with backing from Baidu, China's dominant search engine, which remains its controlling shareholder. Founding details are widely available through public filings.

Is IQ a long-term quality investment?

As a long-term quality indicator, UQS Score rates IQ as Poor. Sustained long-term value creation typically requires durable competitive advantages and consistent earnings power — areas where iQIYI currently scores Weak. Investors with a long horizon should weigh these structural concerns carefully before committing capital.

What is the main competitive advantage of iQIYI?

iQIYI's Moat pillar is rated Weak, suggesting its competitive advantages are limited. Its scale as one of China's largest streaming platforms and its relationship with Baidu provide some structural support, but content costs and intense domestic competition from rivals like Tencent Video and Youku constrain durable differentiation.

What sector does IQ belong to?

iQIYI is classified in the Communication Services sector. This sector includes streaming platforms, broadcasters, and digital media companies. Within Communication Services, iQIYI occupies the online entertainment sub-segment, focused entirely on the Chinese consumer market.

Is IQ a growth stock or value stock?

Based on UQS pillar labels, IQ does not fit neatly into either category. Its Growth pillar is rated Weak, meaning it lacks the momentum typically associated with growth stocks. Its Valuation pillar is rated Good, giving it a value-like appearance — but that alone does not make it a classic value investment given the weak underlying fundamentals.

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Pro Analysis

IQ — Score History

1520253035Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 9 most recent
DateUQSQualityMoatGrowthRiskValueChange
Apr 26, 202625.34.023.025.714.375.0-0.2
Apr 22, 202625.54.023.026.514.375.0+0.1
Apr 18, 202625.44.023.026.414.375.0+0.9
Apr 14, 202624.54.023.026.414.368.80.0
Apr 11, 202624.54.023.026.514.368.80.0
Apr 9, 202624.54.023.026.314.368.80.0
Apr 5, 202624.54.023.026.214.368.80.0
Apr 4, 202624.54.023.026.414.368.8+0.1
Apr 2, 202624.44.023.026.114.368.8

IQ — Pillar Breakdown

Quality

0.6/100 (25%)

iQIYI, Inc. currently shows below-average quality metrics, suggesting challenges with profitability.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Return on EquityWeak

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityWeak

Bottom-line profit as a share of revenue.

Gross Profit / AssetsWeak

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationWeak

Free cash flow relative to market value.

Growth

50.0/100 (20%)

iQIYI, Inc. shows steady but unspectacular growth, typical for mature companies.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthWeak

Year-over-year earnings per share growth.

Forward Revenue OutlookStrong

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

47.9/100 (15%)

iQIYI, Inc. has some risk factors including moderate leverage or solvency concerns.

Financial LeverageStrong

Debt levels relative to earnings capacity.

Debt/EquityModerate

Total debt relative to shareholder equity.

Current RatioWeak

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

68.8/100 (15%)

iQIYI, Inc. trades at a reasonable valuation with decent earnings yield and FCF multiples.

Earnings YieldStrong

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowWeak

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

Moat

23/100 (25%)

iQIYI, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for IQ.

Score Composition

Quality
0.6×25%0.1
Growth
50.0×20%10.0
Risk
47.9×15%7.2
Valuation
68.8×15%10.3
Moat
23.0×25%5.8
Total
33.4Below Average

Financial Data

More Stock Analysis

How is the IQ UQS Score Calculated?

The UQS (Unified Quality Score) for iQIYI, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses iQIYI, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether iQIYI, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.