TRADE DESK INC/THE -CLASS A (TTD)
US88339J1051 - Common Stock
We assign a fundamental rating of 7 out of 10 to TTD. TTD was compared to 92 industry peers in the Media industry. TTD gets an excellent profitability rating and is at the same time showing great financial health properties. TTD shows excellent growth, but is valued quite expensive already. This makes TTD very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
TTD had positive earnings in the past year.
In the past year TTD had a positive cash flow from operations.
In the past 5 years TTD has always been profitable.
Each year in the past 5 years TTD had a positive operating cash flow.
1.2 Ratios
TTD has a Return On Assets of 5.60%. This is amongst the best in the industry. TTD outperforms 87.91% of its industry peers.
TTD has a Return On Equity of 11.74%. This is amongst the best in the industry. TTD outperforms 81.32% of its industry peers.
TTD has a better Return On Invested Capital (10.29%) than 91.21% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TTD is below the industry average of 7.64%.
The last Return On Invested Capital (10.29%) for TTD is above the 3 year average (5.35%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.6% | ||
| ROE | 11.74% | ||
| ROIC | 10.29% |
ROA(3y)2.91%
ROA(5y)4.76%
ROE(3y)6.61%
ROE(5y)12.28%
ROIC(3y)5.35%
ROIC(5y)7.21%
1.3 Margins
TTD has a better Profit Margin (13.34%) than 87.91% of its industry peers.
TTD's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 16.29%, TTD belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Operating Margin of TTD has declined.
With an excellent Gross Margin value of 81.06%, TTD belongs to the best of the industry, outperforming 93.41% of the companies in the same industry.
TTD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.29% | ||
| PM (TTM) | 13.34% | ||
| GM | 81.06% |
OM growth 3Y-15.79%
OM growth 5Y-14.45%
PM growth 3Y-31.8%
PM growth 5Y-13.01%
GM growth 3Y1.09%
GM growth 5Y1.31%
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.
Compared to 1 year ago, TTD has less shares outstanding
TTD has more shares outstanding than it did 5 years ago.
TTD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
TTD has an Altman-Z score of 14.28. This indicates that TTD is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 14.28, TTD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
TTD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 14.28 |
ROIC/WACC1.13
WACC9.07%
2.3 Liquidity
TTD has a Current Ratio of 1.85. This is a normal value and indicates that TTD is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.85, TTD is in the better half of the industry, outperforming 60.44% of the companies in the same industry.
TTD has a Quick Ratio of 1.85. This is a normal value and indicates that TTD is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.85, TTD is in the better half of the industry, outperforming 60.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.49% over the past year.
TTD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.07% yearly.
The Revenue has grown by 26.13% in the past year. This is a very strong growth!
The Revenue has been growing by 32.46% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)20.49%
EPS 3Y22.5%
EPS 5Y36.07%
EPS Q2Q%24.24%
Revenue 1Y (TTM)26.13%
Revenue growth 3Y32.53%
Revenue growth 5Y32.46%
Sales Q2Q%27.32%
3.2 Future
Based on estimates for the next years, TTD will show a very strong growth in Earnings Per Share. The EPS will grow by 27.32% on average per year.
The Revenue is expected to grow by 21.42% on average over the next years. This is a very strong growth
EPS Next Y30.24%
EPS Next 2Y24.27%
EPS Next 3Y24.11%
EPS Next 5Y27.32%
Revenue Next Year27.43%
Revenue Next 2Y23.86%
Revenue Next 3Y22.25%
Revenue Next 5Y21.42%
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
With a Price/Earnings ratio of 88.23, TTD can be considered very expensive at the moment.
TTD's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 29.20. TTD is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 67.18, TTD can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as TTD.
The average S&P500 Price/Forward Earnings ratio is at 24.00. TTD is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.23 | ||
| Fwd PE | 67.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TTD indicates a slightly more expensive valuation: TTD is more expensive than 75.82% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TTD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 123.32 | ||
| EV/EBITDA | 131.71 |
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 24.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.92
PEG (5Y)2.45
EPS Next 2Y24.27%
EPS Next 3Y24.11%
5. Dividend
5.1 Amount
No dividends for TTD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TRADE DESK INC/THE -CLASS A
NASDAQ:TTD (11/22/2024, 8:09:54 PM)
After market: 129.7 0 (0%)129.7
+2.35 (+1.85%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap64.02B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.23 | ||
| Fwd PE | 67.18 | ||
| 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)2.92
PEG (5Y)2.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.6% | ||
| ROE | 11.74% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.29% | ||
| PM (TTM) | 13.34% | ||
| GM | 81.06% | ||
| 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 Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.85 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)20.49%
EPS 3Y22.5%
EPS 5Y
EPS Q2Q%
EPS Next Y30.24%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)26.13%
Revenue growth 3Y32.53%
Revenue growth 5Y
Sales 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
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FCF growth 5Y
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OCF growth 5Y