Deep Value: cash covers more than 100% of the stock price

This company holds roughly $900.9M in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

Stock

iQIYI

Entertainment · Communication Services

Also trades as: 0XWG.L GBP 0.01 (+1.39%)

Price

$0.92

+0.02 (+1.79%)

extended-hours:$0.94+2.04%

Market Cap

$889.0M

Exchange

NASDAQ

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Oct 24, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality

Weak

2/30

Growth

Weak

1/20

Cash Flow

Weak

1/10

Stability

Weak

2/10

Valuation

Data not available

0/10

Ownership

Good

10/15

Dividends

Not counted

n/a

16 of 95 counted points = Winston Score 17. Pillars marked n/a do not apply to this company and are left out of the total.

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Share count rising — dilution

+21.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 795.8M (2021) → 963.8M (2025)

§Winston Score History

The full picture

iQIYI is a Chinese online video streaming platform, often called the "Netflix of China." It offers movies, TV dramas, anime, and original content to hundreds of millions of users across mainland China. The company is majority-owned by Baidu, one of China's largest technology companies.

iQIYI makes money through paid memberships, advertising, and content licensing. It operates almost entirely in China, where it competes directly with Tencent Video and Youku, making it a crowded and expensive market to compete in. The company has struggled to turn a consistent profit, and its thin margins reflect the high cost of producing and licensing content. The key risk going forward is whether iQIYI can grow its paying subscriber base enough to cover those costs, especially as Chinese consumers have many free alternatives and economic conditions in China remain uncertain.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-5.4% YoY

YoY Growth Rate

Revenue declining

Reported EPS Growth

-114.3% YoY

Quarterly reporting periods ended:

30 Jun 2025: ¥-0.14

30 Jun 2026: ¥-0.30

Reported/statutory EPS, not adjusted or underlying earnings. One-off items can affect this figure. Provider rounding can affect the growth rate.

YoY Growth Rate

Reported EPS decreased year over year

R&D Spend

¥1.7B/ year

↓ Declining (-6% vs prior year)

6.1% of revenue

Below sector average (12%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

45.3%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

¥6.0B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

iQIYI's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

16.5%

Thin — 16.5% gross margin

Profit after running costs

Operating Margin

-1.7%

Losing money on operations — -1.7%

Return on the money invested

ROCE

-1.5%

Weak — -1.5% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

-6.2%

Shrinking sales (-6.2% YoY)

Profit growth

EPS YoY

<−1,000%

Earnings shrinking (<−1,000% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

1/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

0.5%

Thin free cash flow (0.5%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

1.12

Elevated debt (1.12)

Covers its interest

Interest Cover

N/A

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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