GRID DYNAMICS HOLDINGS INC (GDYN)
US39813G1094 - Common Stock
We assign a fundamental rating of 4 out of 10 to GDYN. GDYN was compared to 84 industry peers in the IT Services industry. While GDYN has a great health rating, there are worries on its profitability. GDYN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
GDYN had positive earnings in the past year.
GDYN had a positive operating cash flow in the past year.
In the past 5 years GDYN always reported negative net income.
GDYN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
GDYN has a Return On Assets of 0.52%. This is comparable to the rest of the industry: GDYN outperforms 52.38% of its industry peers.
GDYN has a Return On Equity of 0.59%. This is comparable to the rest of the industry: GDYN outperforms 55.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.52% | ||
| ROE | 0.59% | ||
| ROIC | N/A |
ROA(3y)-3.5%
ROA(5y)-3.9%
ROE(3y)-3.97%
ROE(5y)-17.24%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 0.72%, GDYN is in line with its industry, outperforming 52.38% of the companies in the same industry.
GDYN has a Gross Margin (35.90%) which is comparable to the rest of the industry.
GDYN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 0.72% | ||
| GM | 35.9% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.1%
GM growth 5YN/A
2. Health
2.1 Basic Checks
GDYN does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, GDYN has more shares outstanding
Compared to 5 years ago, GDYN has more shares outstanding
There is no outstanding debt for GDYN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
GDYN has an Altman-Z score of 10.27. This indicates that GDYN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GDYN (10.27) is better than 95.24% of its industry peers.
There is no outstanding debt for GDYN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 10.27 |
ROIC/WACCN/A
WACC10.53%
2.3 Liquidity
A Current Ratio of 7.48 indicates that GDYN has no problem at all paying its short term obligations.
GDYN has a Current ratio of 7.48. This is amongst the best in the industry. GDYN outperforms 98.81% of its industry peers.
A Quick Ratio of 7.48 indicates that GDYN has no problem at all paying its short term obligations.
GDYN has a better Quick ratio (7.48) than 98.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.48 | ||
| Quick Ratio | 7.48 |
3. Growth
3.1 Past
GDYN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.73%.
The Earnings Per Share has been growing by 28.73% on average over the past years. This is a very strong growth
The Revenue has decreased by -2.04% in the past year.
The Revenue has been growing by 41.14% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-36.73%
EPS 3Y28.73%
EPS 5YN/A
EPS growth Q2Q-12.5%
Revenue 1Y (TTM)-2.04%
Revenue growth 3Y41.14%
Revenue growth 5YN/A
Revenue growth Q2Q-0.33%
3.2 Future
GDYN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.28% yearly.
GDYN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.19% yearly.
EPS Next Y14.57%
EPS Next 2Y18.72%
EPS Next 3Y22.28%
EPS Next 5YN/A
Revenue Next Year7.2%
Revenue Next 2Y12.91%
Revenue Next 3Y16.19%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
GDYN is valuated quite expensively with a Price/Earnings ratio of 32.97.
Compared to the rest of the industry, the Price/Earnings ratio of GDYN is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.60. GDYN is around the same levels.
The Price/Forward Earnings ratio is 22.66, which indicates a rather expensive current valuation of GDYN.
GDYN's Price/Forward Earnings is on the same level as the industry average.
GDYN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.97 | ||
| Fwd PE | 22.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GDYN is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GDYN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.49 | ||
| EV/EBITDA | 104.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GDYN does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as GDYN's earnings are expected to grow with 22.28% in the coming years.
PEG (NY)2.26
PEG (5Y)N/A
EPS Next 2Y18.72%
EPS Next 3Y22.28%
5. Dividend
5.1 Amount
No dividends for GDYN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GRID DYNAMICS HOLDINGS INC
NASDAQ:GDYN (5/17/2024, 7:01:17 PM)
After market: 10.22 0 (0%)10.22
-0.26 (-2.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap776.41M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.97 | ||
| Fwd PE | 22.66 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.52% | ||
| ROE | 0.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 0.72% | ||
| GM | 35.9% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 7.48 | ||
| Quick Ratio | 7.48 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-36.73%
EPS 3Y28.73%
EPS 5Y
EPS growth Q2Q
EPS Next Y14.57%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.04%
Revenue growth 3Y41.14%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y