TRADE DESK INC/THE -CLASS A (TTD) Stock Fundamental Analysis
NASDAQ:TTD - Nasdaq - US88339J1051 - Common Stock - Currency: USD
Overall TTD gets a fundamental rating of 7 out of 10. We evaluated TTD against 97 industry peers in the Media industry. Both the health and profitability get an excellent rating, making TTD a very profitable company, without any liquidiy or solvency issues. TTD is valued quite expensively, but it does show have an excellent growth rating. These ratings would make TTD suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year TTD was profitable.
TTD had a positive operating cash flow in the past year.
TTD had positive earnings in each of the past 5 years.
Each year in the past 5 years TTD had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 6.43%, TTD belongs to the best of the industry, outperforming 88.66% of the companies in the same industry.
The Return On Equity of TTD (13.33%) is better than 81.44% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.51%, TTD belongs to the top of the industry, outperforming 87.63% of the companies in the same industry.
TTD had an Average Return On Invested Capital over the past 3 years of 6.36%. This is in line with the industry average of 6.94%.
The last Return On Invested Capital (9.51%) for TTD is above the 3 year average (6.36%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
TTD's Profit Margin of 16.08% is amongst the best of the industry. TTD outperforms 91.75% of its industry peers.
TTD's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 17.47%, TTD belongs to the best of the industry, outperforming 86.60% of the companies in the same industry.
In the last couple of years the Operating Margin of TTD has remained more or less at the same level.
TTD has a Gross Margin of 80.69%. This is amongst the best in the industry. TTD outperforms 91.75% of its industry peers.
In the last couple of years the Gross Margin of TTD has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
TTD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, TTD has more shares outstanding
The number of shares outstanding for TTD has been increased compared to 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.
2.2 Solvency
TTD has an Altman-Z score of 5.88. This indicates that TTD is financially healthy and has little risk of bankruptcy at the moment.
TTD has a Altman-Z score of 5.88. This is amongst the best in the industry. TTD outperforms 93.81% of its industry peers.
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 | 5.88 |
ROIC/WACC1.06
WACC8.98%
2.3 Liquidity
A Current Ratio of 1.86 indicates that TTD should not have too much problems paying its short term obligations.
TTD has a better Current ratio (1.86) than 63.92% of its industry peers.
A Quick Ratio of 1.86 indicates that TTD should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.86, TTD is in the better half of the industry, outperforming 63.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.86 |
3. Growth
3.1 Past
TTD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.00%, which is quite impressive.
The Earnings Per Share has been growing by 35.00% on average over the past years. This is a very strong growth
TTD shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.62%.
Measured over the past years, TTD shows a very strong growth in Revenue. The Revenue has been growing by 29.90% on average per year.
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
Based on estimates for the next years, TTD will show a very strong growth in Earnings Per Share. The EPS will grow by 24.26% on average per year.
TTD is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.32% yearly.
EPS Next Y5.42%
EPS Next 2Y13.42%
EPS Next 3Y13.46%
EPS Next 5Y24.26%
Revenue Next Year16.88%
Revenue Next 2Y18.35%
Revenue Next 3Y18.76%
Revenue Next 5Y20.32%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
Based on the Price/Earnings ratio of 30.46, the valuation of TTD can be described as expensive.
TTD's Price/Earnings ratio is a bit cheaper when compared to the industry. TTD is cheaper than 61.86% of the companies in the same industry.
TTD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 28.90 indicates a quite expensive valuation of TTD.
Based on the Price/Forward Earnings ratio, TTD is valued a bit cheaper than 60.82% of the companies in the same industry.
TTD is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.46 | ||
| Fwd PE | 28.9 |
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 68.04% of the companies 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 | 39.07 | ||
| EV/EBITDA | 43.2 |
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.
A more expensive valuation may be justified as TTD's earnings are expected to grow with 13.46% in the coming years.
PEG (NY)5.62
PEG (5Y)0.87
EPS Next 2Y13.42%
EPS Next 3Y13.46%
5. Dividend
5.1 Amount
TTD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
50.26
+1.81 (+3.74%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners82.95%
Inst Owner Change0.17%
Ins Owners10.96%
Ins Owner Change11.15%
Market Cap24.71B
Analysts80
Price Target109.91 (118.68%)
Short Float %4.1%
Short Ratio1.85
Dividend
| Industry Rank | Sector 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)-4.52%
PT rev (3m)-18.99%
EPS NQ rev (1m)-0.39%
EPS NQ rev (3m)-18.92%
EPS NY rev (1m)-4.93%
EPS NY rev (3m)-10.53%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)-0.45%
Revenue NY rev (3m)-3.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.46 | ||
| Fwd PE | 28.9 | ||
| P/S | 10.11 | ||
| P/FCF | 39.07 | ||
| P/OCF | 33.41 | ||
| P/B | 8.38 | ||
| P/tB | 8.38 | ||
| EV/EBITDA | 43.2 |
EPS(TTM)1.65
EY3.28%
EPS(NY)1.74
Fwd EY3.46%
FCF(TTM)1.29
FCFY2.56%
OCF(TTM)1.5
OCFY2.99%
SpS4.97
BVpS6
TBVpS6
PEG (NY)5.62
PEG (5Y)0.87
Profitability
| Industry Rank | Sector 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)15.89%
ROICexgc(5y)15.01%
ROCE(3y)8.82%
ROCE(5y)8.95%
ROICexcg growth 3Y28.16%
ROICexcg growth 5Y9.33%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 122.37% | ||
| Cap/Sales | 4.38% | ||
| Interest Coverage | 433.23 | ||
| Cash Conversion | 143.68% | ||
| Profit Quality | 160.88% | ||
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.86 | ||
| Altman-Z | 5.88 |
F-Score7
WACC8.98%
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 Y5.42%
EPS Next 2Y13.42%
EPS Next 3Y13.46%
EPS Next 5Y24.26%
Revenue 1Y (TTM)25.62%
Revenue growth 3Y26.9%
Revenue growth 5Y29.9%
Sales Q2Q%22.32%
Revenue Next Year16.88%
Revenue Next 2Y18.35%
Revenue Next 3Y18.76%
Revenue Next 5Y20.32%
EBIT growth 1Y113.01%
EBIT growth 3Y50.71%
EBIT growth 5Y30.65%
EBIT Next Year155.66%
EBIT Next 3Y58.01%
EBIT Next 5Y44.03%
FCF growth 1Y16.4%
FCF growth 3Y25.69%
FCF growth 5Y100.33%
OCF growth 1Y23.59%
OCF growth 3Y25.01%
OCF growth 5Y65.14%