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 91 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 expensive, but it does show an excellent growth. These ratings could make TTD a good candidate 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.
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 has a Return On Assets of 5.60%. This is amongst the best in the industry. TTD outperforms 88.51% of its industry peers.
The Return On Equity of TTD (11.74%) is better than 81.61% of its industry peers.
TTD's Return On Invested Capital of 10.29% is amongst the best of the industry. TTD outperforms 90.80% of its industry peers.
TTD had an Average Return On Invested Capital over the past 3 years of 5.35%. This is in line with the industry average of 6.90%.
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's Profit Margin of 13.34% is amongst the best of the industry. TTD outperforms 88.51% 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 83.91% of the companies in the same industry.
TTD's Operating Margin has declined in the last couple of years.
The Gross Margin of TTD (81.06%) is better than 91.95% 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 | 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
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 less shares outstanding
The number of shares outstanding for TTD has been increased compared to 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
An Altman-Z score of 13.52 indicates that TTD is not in any danger for bankruptcy at the moment.
TTD has a Altman-Z score of 13.52. This is amongst the best in the industry. TTD outperforms 100.00% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 13.52 |
ROIC/WACC1.11
WACC9.27%
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.
TTD has a Current ratio (1.85) which is in line with its industry peers.
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.
With a Quick ratio value of 1.85, TTD perfoms like the industry average, outperforming 59.77% of the companies in the same 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.85 |
3. Growth
3.1 Past
TTD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.49%, which is quite impressive.
Measured over the past years, TTD shows a very strong growth in Earnings Per Share. The EPS has been growing by 36.07% on average per year.
The Revenue has grown by 26.13% in the past year. This is a very strong growth!
TTD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 32.46% yearly.
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
TTD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.88% yearly.
The Revenue is expected to grow by 22.26% on average over the next years. This is a very strong growth
EPS Next Y32.13%
EPS Next 2Y24.71%
EPS Next 3Y24.7%
EPS Next 5Y28.88%
Revenue Next Year28.05%
Revenue Next 2Y24.3%
Revenue Next 3Y23.39%
Revenue Next 5Y22.26%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
TTD is valuated quite expensively with a Price/Earnings ratio of 81.61.
The rest of the industry has a similar Price/Earnings ratio as TTD.
When comparing the Price/Earnings ratio of TTD to the average of the S&P500 Index (28.58), we can say TTD is valued expensively.
The Price/Forward Earnings ratio is 61.71, which means the current valuation is very expensive for TTD.
TTD's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.47, TTD is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 81.61 | ||
| Fwd PE | 61.71 |
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 78.16% of the companies listed in the same industry.
63.22% of the companies in the same industry are cheaper than TTD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 114.06 | ||
| EV/EBITDA | 123.79 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TTD does not grow enough to justify the current Price/Earnings ratio.
TTD has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TTD's earnings are expected to grow with 24.70% in the coming years.
PEG (NY)2.54
PEG (5Y)2.26
EPS Next 2Y24.71%
EPS Next 3Y24.7%
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 (1/24/2025, 8:12:12 PM)
Premarket: 115.49 -4.47 (-3.73%)119.96
+0.82 (+0.69%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners79.85%
Inst Owner Change-2%
Ins Owners0.52%
Ins Owner Change-6.07%
Market Cap59.21B
Analysts80.98
Price Target135.68 (13.1%)
Short Float %2.51%
Short Ratio2.59
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)6.35%
Min EPS beat(2)3.45%
Max EPS beat(2)9.24%
EPS beat(4)3
Avg EPS beat(4)6.84%
Min EPS beat(4)-5.25%
Max EPS beat(4)19.93%
EPS beat(8)7
Avg EPS beat(8)17.43%
EPS beat(12)10
Avg EPS beat(12)20.25%
EPS beat(16)14
Avg EPS beat(16)30.73%
Revenue beat(2)2
Avg Revenue beat(2)0.24%
Min Revenue beat(2)0.17%
Max Revenue beat(2)0.31%
Revenue beat(4)4
Avg Revenue beat(4)1.19%
Min Revenue beat(4)0.17%
Max Revenue beat(4)3.03%
Revenue beat(8)7
Avg Revenue beat(8)1.14%
Revenue beat(12)11
Avg Revenue beat(12)1.31%
Revenue beat(16)15
Avg Revenue beat(16)2.23%
PT rev (1m)1.53%
PT rev (3m)13.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.17%
EPS NY rev (1m)0%
EPS NY rev (3m)2.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.78%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 81.61 | ||
| Fwd PE | 61.71 | ||
| P/S | 25.64 | ||
| P/FCF | 114.06 | ||
| P/OCF | 93.81 | ||
| P/B | 22.55 | ||
| P/tB | 22.55 | ||
| EV/EBITDA | 123.79 |
EPS(TTM)1.47
EY1.23%
EPS(NY)1.94
Fwd EY1.62%
FCF(TTM)1.05
FCFY0.88%
OCF(TTM)1.28
OCFY1.07%
SpS4.68
BVpS5.32
TBVpS5.32
PEG (NY)2.54
PEG (5Y)2.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.6% | ||
| ROE | 11.74% | ||
| ROCE | 13.02% | ||
| ROIC | 10.29% | ||
| ROICexc | 25.66% | ||
| ROICexgc | 25.66% | ||
| OM | 16.29% | ||
| PM (TTM) | 13.34% | ||
| GM | 81.06% | ||
| FCFM | 22.48% |
ROA(3y)2.91%
ROA(5y)4.76%
ROE(3y)6.61%
ROE(5y)12.28%
ROIC(3y)5.35%
ROIC(5y)7.21%
ROICexc(3y)12.63%
ROICexc(5y)14.32%
ROICexgc(3y)12.87%
ROICexgc(5y)14.58%
ROCE(3y)6.77%
ROCE(5y)9.13%
ROICexcg growth 3Y-3.02%
ROICexcg growth 5Y-18.51%
ROICexc growth 3Y-3%
ROICexc growth 5Y-18.1%
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%
F-Score7
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 133.59% | ||
| Cap/Sales | 4.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 137.16% | ||
| Profit Quality | 168.45% | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.85 | ||
| Altman-Z | 13.52 |
F-Score7
WACC9.27%
ROIC/WACC1.11
Cap/Depr(3y)126.51%
Cap/Depr(5y)169.34%
Cap/Sales(3y)4.56%
Cap/Sales(5y)5.88%
Profit Quality(3y)463.4%
Profit Quality(5y)308.48%
High Growth Momentum
Growth
EPS 1Y (TTM)20.49%
EPS 3Y22.5%
EPS 5Y36.07%
EPS Q2Q%24.24%
EPS Next Y32.13%
EPS Next 2Y24.71%
EPS Next 3Y24.7%
EPS Next 5Y28.88%
Revenue 1Y (TTM)26.13%
Revenue growth 3Y32.53%
Revenue growth 5Y32.46%
Sales Q2Q%27.32%
Revenue Next Year28.05%
Revenue Next 2Y24.3%
Revenue Next 3Y23.39%
Revenue Next 5Y22.26%
EBIT growth 1Y140.75%
EBIT growth 3Y11.61%
EBIT growth 5Y13.32%
EBIT Next Year488.3%
EBIT Next 3Y108.93%
EBIT Next 5Y70.67%
FCF growth 1Y7.01%
FCF growth 3Y18.68%
FCF growth 5Y54.66%
OCF growth 1Y17.17%
OCF growth 3Y13.88%
OCF growth 5Y47.19%