TRADE DESK INC/THE -CLASS A (TTD) Stock Fundamental Analysis
NASDAQ:TTD - Nasdaq - US88339J1051 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to TTD. TTD was compared to 97 industry peers in the Media industry. TTD scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TTD is valued quite expensively, but it does show have an excellent growth rating. With these ratings, TTD could be worth investigating further for growth and quality investing!.
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.
Each year in the past 5 years TTD has been profitable.
In the past 5 years TTD always reported a positive cash flow from operatings.
1.2 Ratios
TTD's Return On Assets of 7.22% is amongst the best of the industry. TTD outperforms 88.66% of its industry peers.
The Return On Equity of TTD (15.17%) is better than 81.44% of its industry peers.
The Return On Invested Capital of TTD (10.81%) is better than 88.66% of its industry peers.
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 7.58%.
The last Return On Invested Capital (10.81%) for TTD is above the 3 year average (6.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.22% | ||
| ROE | 15.17% | ||
| ROIC | 10.81% |
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 has a better Profit Margin (16.04%) than 91.75% of its industry peers.
In the last couple of years the Profit Margin of TTD has remained more or less at the same level.
With an excellent Operating Margin value of 17.63%, TTD belongs to the best of the industry, outperforming 83.51% 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.
Looking at the Gross Margin, with a value of 80.11%, TTD belongs to the top of the industry, outperforming 91.75% 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 | 17.63% | ||
| PM (TTM) | 16.04% | ||
| GM | 80.11% |
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
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 more shares outstanding
Compared to 5 years ago, TTD has more shares outstanding
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
An Altman-Z score of 9.21 indicates that TTD is not in any danger for bankruptcy at the moment.
TTD has a Altman-Z score of 9.21. This is amongst the best in the industry. TTD outperforms 90.72% 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 | 9.21 |
ROIC/WACC1.19
WACC9.11%
2.3 Liquidity
A Current Ratio of 1.81 indicates that TTD should not have too much problems paying its short term obligations.
The Current ratio of TTD (1.81) is better than 67.01% of its industry peers.
A Quick Ratio of 1.81 indicates that TTD should not have too much problems paying its short term obligations.
TTD has a Quick ratio of 1.81. This is in the better half of the industry: TTD outperforms 68.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
TTD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.37%, 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
Looking at the last year, TTD shows a very strong growth in Revenue. The Revenue has grown by 25.06%.
TTD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.90% yearly.
EPS 1Y (TTM)34.37%
EPS 3Y21.45%
EPS 5Y35%
EPS Q2Q%26.92%
Revenue 1Y (TTM)25.06%
Revenue growth 3Y26.9%
Revenue growth 5Y29.9%
Sales Q2Q%25.4%
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 21.80% on average per year.
The Revenue is expected to grow by 18.87% on average over the next years. This is quite good.
EPS Next Y7.91%
EPS Next 2Y13.44%
EPS Next 3Y16.59%
EPS Next 5Y21.8%
Revenue Next Year16%
Revenue Next 2Y17.21%
Revenue Next 3Y17.63%
Revenue Next 5Y18.87%
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 46.63, the valuation of TTD can be described as expensive.
TTD's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.50, TTD is valued quite expensively.
A Price/Forward Earnings ratio of 37.77 indicates a quite expensive valuation of TTD.
TTD's Price/Forward Earnings ratio is in line with the industry average.
TTD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.63 | ||
| Fwd PE | 37.77 |
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.
TTD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.48 | ||
| EV/EBITDA | 69.4 |
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 16.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.89
PEG (5Y)1.33
EPS Next 2Y13.44%
EPS Next 3Y16.59%
5. Dividend
5.1 Amount
TTD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
80.21
-1.23 (-1.51%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners81.61%
Inst Owner Change0.01%
Ins Owners0.54%
Ins Owner Change12.04%
Market Cap39.42B
Analysts79.11
Price Target88.93 (10.87%)
Short Float %5.24%
Short Ratio2.65
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)18.06%
Min EPS beat(2)3.61%
Max EPS beat(2)32.52%
EPS beat(4)4
Avg EPS beat(4)12.21%
Min EPS beat(4)3.45%
Max EPS beat(4)32.52%
EPS beat(8)7
Avg EPS beat(8)10.56%
EPS beat(12)10
Avg EPS beat(12)15.67%
EPS beat(16)14
Avg EPS beat(16)21.23%
Revenue beat(2)1
Avg Revenue beat(2)0.56%
Min Revenue beat(2)-3.33%
Max Revenue beat(2)4.45%
Revenue beat(4)3
Avg Revenue beat(4)0.4%
Min Revenue beat(4)-3.33%
Max Revenue beat(4)4.45%
Revenue beat(8)7
Avg Revenue beat(8)0.9%
Revenue beat(12)10
Avg Revenue beat(12)1.15%
Revenue beat(16)14
Avg Revenue beat(16)1.76%
PT rev (1m)0.54%
PT rev (3m)-19.09%
EPS NQ rev (1m)0.43%
EPS NQ rev (3m)-0.76%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-0.85%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.63 | ||
| Fwd PE | 37.77 | ||
| P/S | 15.34 | ||
| P/FCF | 57.48 | ||
| P/OCF | 46.63 | ||
| P/B | 14.51 | ||
| P/tB | 14.51 | ||
| EV/EBITDA | 69.4 |
EPS(TTM)1.72
EY2.14%
EPS(NY)2.12
Fwd EY2.65%
FCF(TTM)1.4
FCFY1.74%
OCF(TTM)1.72
OCFY2.14%
SpS5.23
BVpS5.53
TBVpS5.53
PEG (NY)5.89
PEG (5Y)1.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.22% | ||
| ROE | 15.17% | ||
| ROCE | 14.98% | ||
| ROIC | 10.81% | ||
| ROICexc | 25.46% | ||
| ROICexgc | 25.46% | ||
| OM | 17.63% | ||
| PM (TTM) | 16.04% | ||
| GM | 80.11% | ||
| FCFM | 26.69% |
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-Score8
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 177.92% | ||
| Cap/Sales | 6.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 155.78% | ||
| Profit Quality | 166.41% | ||
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.81 | ||
| Altman-Z | 9.21 |
F-Score8
WACC9.11%
ROIC/WACC1.19
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)34.37%
EPS 3Y21.45%
EPS 5Y35%
EPS Q2Q%26.92%
EPS Next Y7.91%
EPS Next 2Y13.44%
EPS Next 3Y16.59%
EPS Next 5Y21.8%
Revenue 1Y (TTM)25.06%
Revenue growth 3Y26.9%
Revenue growth 5Y29.9%
Sales Q2Q%25.4%
Revenue Next Year16%
Revenue Next 2Y17.21%
Revenue Next 3Y17.63%
Revenue Next 5Y18.87%
EBIT growth 1Y79.39%
EBIT growth 3Y50.71%
EBIT growth 5Y30.65%
EBIT Next Year154.76%
EBIT Next 3Y55.42%
EBIT Next 5Y42.7%
FCF growth 1Y37.81%
FCF growth 3Y25.69%
FCF growth 5Y100.33%
OCF growth 1Y43.27%
OCF growth 3Y25.01%
OCF growth 5Y65.14%