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TRADE DESK INC/THE -CLASS A (TTD) Stock Fundamental Analysis

NASDAQ:TTD - Nasdaq - US88339J1051 - Common Stock - Currency: USD

72.43  -2.55 (-3.4%)

After market: 72.18 -0.25 (-0.35%)

Fundamental Rating

7

TTD gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 93 industry peers in the Media industry. TTD gets an excellent profitability rating and is at the same time showing great financial health properties. TTD is valued quite expensively, but it does show have an excellent growth rating. This makes TTD very considerable for growth and quality investing!


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

In the past year TTD was profitable.
In the past year TTD had a positive cash flow from operations.
TTD had positive earnings in each of the past 5 years.
In the past 5 years TTD always reported a positive cash flow from operatings.
TTD Yearly Net Income VS EBIT VS OCF VS FCFTTD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M

1.2 Ratios

TTD has a better Return On Assets (6.43%) than 88.37% of its industry peers.
TTD has a better Return On Equity (13.33%) than 81.40% of its industry peers.
TTD's Return On Invested Capital of 9.51% is amongst the best of the industry. TTD outperforms 87.21% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TTD is in line with the industry average of 7.01%.
The 3 year average ROIC (6.36%) for TTD is below the current ROIC(9.51%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 6.43%
ROE 13.33%
ROIC 9.51%
ROA(3y)3.77%
ROA(5y)4.79%
ROE(3y)8.04%
ROE(5y)11.41%
ROIC(3y)6.36%
ROIC(5y)6.46%
TTD Yearly ROA, ROE, ROICTTD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30

1.3 Margins

The Profit Margin of TTD (16.08%) is better than 91.86% of its industry peers.
In the last couple of years the Profit Margin of TTD has remained more or less at the same level.
TTD's Operating Margin of 17.47% is amongst the best of the industry. TTD outperforms 84.88% of its industry peers.
In the last couple of years the Operating Margin of TTD has remained more or less at the same level.
TTD has a better Gross Margin (80.69%) than 91.86% of its industry peers.
TTD's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 17.47%
PM (TTM) 16.08%
GM 80.69%
OM growth 3Y18.76%
OM growth 5Y0.58%
PM growth 3Y11.76%
PM growth 5Y-0.37%
GM growth 3Y-0.32%
GM growth 5Y1.11%
TTD Yearly Profit, Operating, Gross MarginsTTD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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8

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TTD is creating some value.
TTD has more shares outstanding than it did 1 year ago.
TTD has more shares outstanding than it did 5 years ago.
There is no outstanding debt for TTD. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
TTD Yearly Shares OutstandingTTD Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
TTD Yearly Total Debt VS Total AssetsTTD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.2 Solvency

TTD has an Altman-Z score of 8.22. This indicates that TTD is financially healthy and has little risk of bankruptcy at the moment.
TTD has a better Altman-Z score (8.22) than 97.67% of its industry peers.
There is no outstanding debt for TTD. 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 8.22
ROIC/WACC1.06
WACC8.94%
TTD Yearly LT Debt VS Equity VS FCFTTD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

A Current Ratio of 1.86 indicates that TTD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.86, TTD is in line with its industry, outperforming 59.30% of the companies in the same industry.
TTD has a Quick Ratio of 1.86. This is a normal value and indicates that TTD is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of TTD (1.86) is comparable to the rest of the industry.
The current and quick ratio evaluation for TTD is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.86
Quick Ratio 1.86
TTD Yearly Current Assets VS Current LiabilitesTTD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

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9

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 32.00% over the past year.
Measured over the past years, TTD shows a very strong growth in Earnings Per Share. The EPS has been growing by 35.00% on average per year.
TTD shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.62%.
The Revenue has been growing by 29.90% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)32%
EPS 3Y21.45%
EPS 5Y35%
EPS Q2Q%43.9%
Revenue 1Y (TTM)25.62%
Revenue growth 3Y26.9%
Revenue growth 5Y29.9%
Sales Q2Q%22.32%

3.2 Future

The Earnings Per Share is expected to grow by 27.39% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 20.60% on average over the next years. This is a very strong growth
EPS Next Y10.88%
EPS Next 2Y16.11%
EPS Next 3Y17%
EPS Next 5Y27.39%
Revenue Next Year17.73%
Revenue Next 2Y18.47%
Revenue Next 3Y20.16%
Revenue Next 5Y20.6%

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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
TTD Yearly Revenue VS EstimatesTTD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B 8B
TTD Yearly EPS VS EstimatesTTD Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6 8 10

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2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 43.90 indicates a quite expensive valuation of TTD.
Compared to the rest of the industry, the Price/Earnings ratio of TTD is on the same level as its industry peers.
TTD's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 29.36.
With a Price/Forward Earnings ratio of 39.59, TTD can be considered very expensive at the moment.
TTD's Price/Forward Earnings is on the same level as the industry average.
TTD's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.65.
Industry RankSector Rank
PE 43.9
Fwd PE 39.59
TTD Price Earnings VS Forward Price EarningsTTD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

TTD's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TTD is more expensive than 79.07% of the companies in the same industry.
60.47% of the companies in the same industry are cheaper than TTD, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 56.53
EV/EBITDA 67.1
TTD Per share dataTTD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4 5

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of TTD may justify a higher PE ratio.
TTD's earnings are expected to grow with 17.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.03
PEG (5Y)1.25
EPS Next 2Y16.11%
EPS Next 3Y17%

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0

5. Dividend

5.1 Amount

TTD does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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TRADE DESK INC/THE -CLASS A

NASDAQ:TTD (2/26/2025, 8:11:59 PM)

After market: 72.18 -0.25 (-0.35%)

72.43

-2.55 (-3.4%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)02-12 2025-02-12/amc
Earnings (Next)05-05 2025-05-05/amc
Inst Owners82.95%
Inst Owner Change-83.76%
Ins Owners10.96%
Ins Owner Change-1.61%
Market Cap35.75B
Analysts81.46
Price Target117.28 (61.92%)
Short Float %2.57%
Short Ratio2
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.53%
Min EPS beat(2)3.45%
Max EPS beat(2)3.61%
EPS beat(4)4
Avg EPS beat(4)9.06%
Min EPS beat(4)3.45%
Max EPS beat(4)19.93%
EPS beat(8)7
Avg EPS beat(8)17.23%
EPS beat(12)10
Avg EPS beat(12)16.44%
EPS beat(16)14
Avg EPS beat(16)24.99%
Revenue beat(2)1
Avg Revenue beat(2)-1.51%
Min Revenue beat(2)-3.33%
Max Revenue beat(2)0.31%
Revenue beat(4)3
Avg Revenue beat(4)-0.4%
Min Revenue beat(4)-3.33%
Max Revenue beat(4)1.27%
Revenue beat(8)7
Avg Revenue beat(8)0.84%
Revenue beat(12)10
Avg Revenue beat(12)0.98%
Revenue beat(16)14
Avg Revenue beat(16)1.5%
PT rev (1m)-13.56%
PT rev (3m)-11.86%
EPS NQ rev (1m)-9.38%
EPS NQ rev (3m)9.16%
EPS NY rev (1m)-5.88%
EPS NY rev (3m)-5.23%
Revenue NQ rev (1m)1.09%
Revenue NQ rev (3m)1.61%
Revenue NY rev (1m)-2.43%
Revenue NY rev (3m)-1.74%
Valuation
Industry RankSector Rank
PE 43.9
Fwd PE 39.59
P/S 14.62
P/FCF 56.53
P/OCF 48.35
P/B 12.12
P/tB 12.12
EV/EBITDA 67.1
EPS(TTM)1.65
EY2.28%
EPS(NY)1.83
Fwd EY2.53%
FCF(TTM)1.28
FCFY1.77%
OCF(TTM)1.5
OCFY2.07%
SpS4.95
BVpS5.98
TBVpS5.98
PEG (NY)4.03
PEG (5Y)1.25
Profitability
Industry RankSector Rank
ROA 6.43%
ROE 13.33%
ROCE 13.19%
ROIC 9.51%
ROICexc 23.39%
ROICexgc 23.39%
OM 17.47%
PM (TTM) 16.08%
GM 80.69%
FCFM 25.87%
ROA(3y)3.77%
ROA(5y)4.79%
ROE(3y)8.04%
ROE(5y)11.41%
ROIC(3y)6.36%
ROIC(5y)6.46%
ROICexc(3y)15.65%
ROICexc(5y)14.78%
ROICexgc(3y)15.8%
ROICexgc(5y)14.96%
ROCE(3y)8.82%
ROCE(5y)8.95%
ROICexcg growth 3Y27.68%
ROICexcg growth 5Y9.08%
ROICexc growth 3Y28.44%
ROICexc growth 5Y9.45%
OM growth 3Y18.76%
OM growth 5Y0.58%
PM growth 3Y11.76%
PM growth 5Y-0.37%
GM growth 3Y-0.32%
GM growth 5Y1.11%
F-Score7
Asset Turnover0.4
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 122.37%
Cap/Sales 4.38%
Interest Coverage 250
Cash Conversion 143.68%
Profit Quality 160.88%
Current Ratio 1.86
Quick Ratio 1.86
Altman-Z 8.22
F-Score7
WACC8.94%
ROIC/WACC1.06
Cap/Depr(3y)119.91%
Cap/Depr(5y)156.39%
Cap/Sales(3y)4.34%
Cap/Sales(5y)5.53%
Profit Quality(3y)439.98%
Profit Quality(5y)337.04%
High Growth Momentum
Growth
EPS 1Y (TTM)32%
EPS 3Y21.45%
EPS 5Y35%
EPS Q2Q%43.9%
EPS Next Y10.88%
EPS Next 2Y16.11%
EPS Next 3Y17%
EPS Next 5Y27.39%
Revenue 1Y (TTM)25.62%
Revenue growth 3Y26.9%
Revenue growth 5Y29.9%
Sales Q2Q%22.32%
Revenue Next Year17.73%
Revenue Next 2Y18.47%
Revenue Next 3Y20.16%
Revenue Next 5Y20.6%
EBIT growth 1Y113.01%
EBIT growth 3Y50.71%
EBIT growth 5Y30.65%
EBIT Next Year185.54%
EBIT Next 3Y66.91%
EBIT Next 5Y48.13%
FCF growth 1Y16.4%
FCF growth 3Y25.69%
FCF growth 5Y100.33%
OCF growth 1Y23.59%
OCF growth 3Y25.01%
OCF growth 5Y65.14%