35.58 USD
-0.68 (-1.88%)
34.88 USD
-0.7 (-1.97%)
GDS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 85 industry peers in the IT Services industry. GDS has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, GDS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
GDS had negative earnings in the past year.
GDS had a positive operating cash flow in the past year.
GDS had negative earnings in 4 of the past 5 years.
GDS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.06%, GDS is in the better half of the industry, outperforming 75.29% of the companies in the same industry.
Looking at the Return On Equity, with a value of 20.82%, GDS belongs to the top of the industry, outperforming 83.53% of the companies in the same industry.
GDS has a Return On Invested Capital (1.58%) which is in line with its industry peers.
GDS had an Average Return On Invested Capital over the past 3 years of 1.07%. This is significantly below the industry average of 29.59%.
The 3 year average ROIC (1.07%) for GDS is below the current ROIC(1.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.06% | ||
| ROE | 20.82% | ||
| ROIC | 1.58% |
ROA(3y)-1.09%
ROA(5y)-1.28%
ROE(3y)-4.57%
ROE(5y)-4.33%
ROIC(3y)1.07%
ROIC(5y)0.99%
1.3 Margins
With an excellent Profit Margin value of 53.31%, GDS belongs to the best of the industry, outperforming 98.82% of the companies in the same industry.
GDS has a Operating Margin of 13.82%. This is in the better half of the industry: GDS outperforms 77.65% of its industry peers.
GDS's Operating Margin has been stable in the last couple of years.
GDS's Gross Margin of 22.35% is on the low side compared to the rest of the industry. GDS is outperformed by 77.65% of its industry peers.
In the last couple of years the Gross Margin of GDS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.82% | ||
| PM (TTM) | 53.31% | ||
| GM | 22.35% |
OM growth 3Y15.28%
OM growth 5Y-0.84%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.83%
GM growth 5Y-3.17%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GDS is destroying value.
Compared to 1 year ago, GDS has more shares outstanding
GDS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for GDS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.82, we must say that GDS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of GDS (0.82) is worse than 71.76% of its industry peers.
GDS has a debt to FCF ratio of 15.99. This is a negative value and a sign of low solvency as GDS would need 15.99 years to pay back of all of its debts.
GDS has a worse Debt to FCF ratio (15.99) than 61.18% of its industry peers.
GDS has a Debt/Equity ratio of 1.59. This is a high value indicating a heavy dependency on external financing.
GDS's Debt to Equity ratio of 1.59 is on the low side compared to the rest of the industry. GDS is outperformed by 75.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 15.99 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.3
WACC5.33%
2.3 Liquidity
GDS has a Current Ratio of 2.51. This indicates that GDS is financially healthy and has no problem in meeting its short term obligations.
GDS has a better Current ratio (2.51) than 71.76% of its industry peers.
GDS has a Quick Ratio of 2.51. This indicates that GDS is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of GDS (2.51) is better than 71.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.51 | ||
| Quick Ratio | 2.51 |
3. Growth
3.1 Past
GDS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 59.69%, which is quite impressive.
The Revenue has decreased by -5.13% in the past year.
Measured over the past years, GDS shows a very strong growth in Revenue. The Revenue has been growing by 20.15% on average per year.
EPS 1Y (TTM)59.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-207.14%
Revenue 1Y (TTM)-5.13%
Revenue growth 3Y9.7%
Revenue growth 5Y20.15%
Sales Q2Q%-2.65%
3.2 Future
Based on estimates for the next years, GDS will show a very strong growth in Earnings Per Share. The EPS will grow by 20.85% on average per year.
Based on estimates for the next years, GDS will show a quite strong growth in Revenue. The Revenue will grow by 10.95% on average per year.
EPS Next Y195.15%
EPS Next 2Y35.78%
EPS Next 3Y29.44%
EPS Next 5Y20.85%
Revenue Next Year-0.83%
Revenue Next 2Y5.65%
Revenue Next 3Y8.23%
Revenue Next 5Y10.95%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for GDS. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for GDS. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GDS is on the same level as its industry peers.
65.88% of the companies in the same industry are more expensive than GDS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.83 | ||
| EV/EBITDA | 17.38 |
4.3 Compensation for Growth
A more expensive valuation may be justified as GDS's earnings are expected to grow with 29.44% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y35.78%
EPS Next 3Y29.44%
5. Dividend
5.1 Amount
No dividends for GDS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
35.58
-0.68 (-1.88%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners38.46%
Inst Owner Change-3.53%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.81B
Revenue(TTM)10.41B
Net Income(TTM)5.55B
Analysts87.5
Price Target32.09 (-9.81%)
Short Float %5.97%
Short Ratio4.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly Dividend0.05
Dividend Growth(5Y)9.36%
DP0.98%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-112.42%
Min EPS beat(2)-251.31%
Max EPS beat(2)26.47%
EPS beat(4)3
Avg EPS beat(4)145.87%
Min EPS beat(4)-251.31%
Max EPS beat(4)802.61%
EPS beat(8)7
Avg EPS beat(8)90.65%
EPS beat(12)10
Avg EPS beat(12)68.91%
EPS beat(16)12
Avg EPS beat(16)51.04%
Revenue beat(2)1
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-2.43%
Max Revenue beat(2)0.74%
Revenue beat(4)1
Avg Revenue beat(4)-1.6%
Min Revenue beat(4)-4.55%
Max Revenue beat(4)0.74%
Revenue beat(8)1
Avg Revenue beat(8)-2.11%
Revenue beat(12)1
Avg Revenue beat(12)-2.28%
Revenue beat(16)2
Avg Revenue beat(16)-1.88%
PT rev (1m)-14.79%
PT rev (3m)-19.34%
EPS NQ rev (1m)55.93%
EPS NQ rev (3m)53.34%
EPS NY rev (1m)159%
EPS NY rev (3m)309.77%
Revenue NQ rev (1m)-1.27%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 4.61 | ||
| P/FCF | 16.83 | ||
| P/OCF | 14.34 | ||
| P/B | 1.8 | ||
| P/tB | 2.28 | ||
| EV/EBITDA | 17.38 |
EPS(TTM)-0.39
EYN/A
EPS(NY)-0.17
Fwd EYN/A
FCF(TTM)2.11
FCFY5.94%
OCF(TTM)2.48
OCFY6.97%
SpS7.72
BVpS19.76
TBVpS15.62
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.06% | ||
| ROE | 20.82% | ||
| ROCE | 2.01% | ||
| ROIC | 1.58% | ||
| ROICexc | 1.95% | ||
| ROICexgc | 2.16% | ||
| OM | 13.82% | ||
| PM (TTM) | 53.31% | ||
| GM | 22.35% | ||
| FCFM | 27.4% |
ROA(3y)-1.09%
ROA(5y)-1.28%
ROE(3y)-4.57%
ROE(5y)-4.33%
ROIC(3y)1.07%
ROIC(5y)0.99%
ROICexc(3y)1.21%
ROICexc(5y)1.21%
ROICexgc(3y)1.38%
ROICexgc(5y)1.37%
ROCE(3y)1.38%
ROCE(5y)1.29%
ROICexgc growth 3Y19.95%
ROICexgc growth 5Y-1.85%
ROICexc growth 3Y22.25%
ROICexc growth 5Y-1.95%
OM growth 3Y15.28%
OM growth 5Y-0.84%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.83%
GM growth 5Y-3.17%
F-Score5
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 15.99 | ||
| Debt/EBITDA | 9.17 | ||
| Cap/Depr | 15.61% | ||
| Cap/Sales | 4.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.59% | ||
| Profit Quality | 51.4% | ||
| Current Ratio | 2.51 | ||
| Quick Ratio | 2.51 | ||
| Altman-Z | 0.82 |
F-Score5
WACC5.33%
ROIC/WACC0.3
Cap/Depr(3y)154.46%
Cap/Depr(5y)268.5%
Cap/Sales(3y)51.51%
Cap/Sales(5y)84.82%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)59.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-207.14%
EPS Next Y195.15%
EPS Next 2Y35.78%
EPS Next 3Y29.44%
EPS Next 5Y20.85%
Revenue 1Y (TTM)-5.13%
Revenue growth 3Y9.7%
Revenue growth 5Y20.15%
Sales Q2Q%-2.65%
Revenue Next Year-0.83%
Revenue Next 2Y5.65%
Revenue Next 3Y8.23%
Revenue Next 5Y10.95%
EBIT growth 1Y54.68%
EBIT growth 3Y26.47%
EBIT growth 5Y19.15%
EBIT Next Year411.72%
EBIT Next 3Y84.98%
EBIT Next 5Y52.07%
FCF growth 1Y138.68%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y65.55%
OCF growth 3Y17.29%
OCF growth 5Y45.88%
GDS HOLDINGS LTD - ADR / GDS FAQ
Can you provide the ChartMill fundamental rating for GDS HOLDINGS LTD - ADR?
ChartMill assigns a fundamental rating of 4 / 10 to GDS.
Can you provide the valuation status for GDS HOLDINGS LTD - ADR?
ChartMill assigns a valuation rating of 2 / 10 to GDS HOLDINGS LTD - ADR (GDS). This can be considered as Overvalued.
How profitable is GDS HOLDINGS LTD - ADR (GDS) stock?
GDS HOLDINGS LTD - ADR (GDS) has a profitability rating of 5 / 10.
What is the financial health of GDS HOLDINGS LTD - ADR (GDS) stock?
The financial health rating of GDS HOLDINGS LTD - ADR (GDS) is 3 / 10.