TRADE DESK INC/THE -CLASS A (TTD) Stock Fundamental Analysis
USA - NASDAQ:TTD - US88339J1051 - Common Stock
45.15 USD
-0.09 (-0.2%)
45.08 USD
-0.07 (-0.16%)
TTD gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 99 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.
TTD had a positive operating cash flow in the past year.
Each year in the past 5 years TTD has 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 7.00%. This is amongst the best in the industry. TTD outperforms 86.87% of its industry peers.
Looking at the Return On Equity, with a value of 15.48%, TTD belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
The Return On Invested Capital of TTD (11.11%) is better than 88.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TTD is below the industry average of 8.87%.
The 3 year average ROIC (6.36%) for TTD is below the current ROIC(11.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7% | ||
| ROE | 15.48% | ||
| ROIC | 11.11% |
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 15.57% is amongst the best of the industry. TTD outperforms 91.92% of its industry peers.
In the last couple of years the Profit Margin of TTD has remained more or less at the same level.
Looking at the Operating Margin, with a value of 17.73%, TTD belongs to the top of the industry, outperforming 84.85% 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 better Gross Margin (79.41%) than 91.92% of its industry peers.
TTD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.73% | ||
| PM (TTM) | 15.57% | ||
| GM | 79.41% |
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
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 5.17. 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 5.17, TTD belongs to the top of the industry, outperforming 86.87% of the companies in the same industry.
The Debt to FCF ratio of TTD is 0.10, which is an excellent value as it means it would take TTD, only 0.10 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TTD (0.10) is better than 91.92% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that TTD is not too dependend on debt financing.
TTD has a Debt to Equity ratio of 0.03. This is amongst the best in the industry. TTD outperforms 80.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.1 | ||
| Altman-Z | 5.17 |
ROIC/WACC1.28
WACC8.65%
2.3 Liquidity
TTD has a Current Ratio of 1.71. 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 decent Current ratio value of 1.71, TTD is doing good in the industry, outperforming 67.68% of the companies in the same industry.
TTD has a Quick Ratio of 1.71. 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 decent Quick ratio value of 1.71, TTD is doing good in the industry, outperforming 68.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.18% over the past year.
TTD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.00% yearly.
Looking at the last year, TTD shows a very strong growth in Revenue. The Revenue has grown by 23.18%.
TTD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.90% yearly.
EPS 1Y (TTM)25.18%
EPS 3Y21.45%
EPS 5Y35%
EPS Q2Q%5.13%
Revenue 1Y (TTM)23.18%
Revenue growth 3Y26.9%
Revenue growth 5Y29.9%
Sales Q2Q%18.73%
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 20.73% on average per year.
Based on estimates for the next years, TTD will show a quite strong growth in Revenue. The Revenue will grow by 17.79% on average per year.
EPS Next Y6.59%
EPS Next 2Y13.12%
EPS Next 3Y15.75%
EPS Next 5Y20.73%
Revenue Next Year16.2%
Revenue Next 2Y16.78%
Revenue Next 3Y17.3%
Revenue Next 5Y17.79%
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
The Price/Earnings ratio is 25.95, which means the current valuation is very expensive for TTD.
TTD's Price/Earnings ratio is a bit cheaper when compared to the industry. TTD is cheaper than 66.67% 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 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.38, which indicates a rather expensive current valuation of TTD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TTD is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of TTD to the average of the S&P500 Index (22.73), we can say TTD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.95 | ||
| Fwd PE | 21.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TTD is valued a bit more expensive than the industry average as 60.61% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as TTD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.6 | ||
| EV/EBITDA | 34.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 15.75% in the coming years.
PEG (NY)3.94
PEG (5Y)0.74
EPS Next 2Y13.12%
EPS Next 3Y15.75%
5. Dividend
5.1 Amount
TTD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
45.15
-0.09 (-0.2%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners81.61%
Inst Owner Change0.28%
Ins Owners0.54%
Ins Owner Change13.3%
Market Cap22.08B
Analysts73.18
Price Target77.1 (70.76%)
Short Float %7.57%
Short Ratio2.21
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)16.38%
Min EPS beat(2)0.24%
Max EPS beat(2)32.52%
EPS beat(4)4
Avg EPS beat(4)9.96%
Min EPS beat(4)0.24%
Max EPS beat(4)32.52%
EPS beat(8)7
Avg EPS beat(8)9.61%
EPS beat(12)11
Avg EPS beat(12)15.88%
EPS beat(16)14
Avg EPS beat(16)18.78%
Revenue beat(2)2
Avg Revenue beat(2)2.36%
Min Revenue beat(2)0.27%
Max Revenue beat(2)4.45%
Revenue beat(4)3
Avg Revenue beat(4)0.43%
Min Revenue beat(4)-3.33%
Max Revenue beat(4)4.45%
Revenue beat(8)7
Avg Revenue beat(8)0.81%
Revenue beat(12)10
Avg Revenue beat(12)0.98%
Revenue beat(16)14
Avg Revenue beat(16)1.39%
PT rev (1m)-14.94%
PT rev (3m)-12.83%
EPS NQ rev (1m)3.5%
EPS NQ rev (3m)-5.78%
EPS NY rev (1m)-1.23%
EPS NY rev (3m)-1.61%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)-2.22%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.95 | ||
| Fwd PE | 21.38 | ||
| P/S | 8.24 | ||
| P/FCF | 29.6 | ||
| P/OCF | 23.76 | ||
| P/B | 8.19 | ||
| P/tB | 8.19 | ||
| EV/EBITDA | 34.42 |
EPS(TTM)1.74
EY3.85%
EPS(NY)2.11
Fwd EY4.68%
FCF(TTM)1.53
FCFY3.38%
OCF(TTM)1.9
OCFY4.21%
SpS5.48
BVpS5.51
TBVpS5.51
PEG (NY)3.94
PEG (5Y)0.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7% | ||
| ROE | 15.48% | ||
| ROCE | 15.79% | ||
| ROIC | 11.11% | ||
| ROICexc | 24.55% | ||
| ROICexgc | 24.55% | ||
| OM | 17.73% | ||
| PM (TTM) | 15.57% | ||
| GM | 79.41% | ||
| FCFM | 27.84% |
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 Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.1 | ||
| Debt/EBITDA | 0.13 | ||
| Cap/Depr | 191.92% | ||
| Cap/Sales | 6.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 162.85% | ||
| Profit Quality | 178.76% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 5.17 |
F-Score7
WACC8.65%
ROIC/WACC1.28
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)25.18%
EPS 3Y21.45%
EPS 5Y35%
EPS Q2Q%5.13%
EPS Next Y6.59%
EPS Next 2Y13.12%
EPS Next 3Y15.75%
EPS Next 5Y20.73%
Revenue 1Y (TTM)23.18%
Revenue growth 3Y26.9%
Revenue growth 5Y29.9%
Sales Q2Q%18.73%
Revenue Next Year16.2%
Revenue Next 2Y16.78%
Revenue Next 3Y17.3%
Revenue Next 5Y17.79%
EBIT growth 1Y55.48%
EBIT growth 3Y50.71%
EBIT growth 5Y30.65%
EBIT Next Year155.21%
EBIT Next 3Y55.45%
EBIT Next 5Y41.13%
FCF growth 1Y40.63%
FCF growth 3Y25.69%
FCF growth 5Y100.33%
OCF growth 1Y48.34%
OCF growth 3Y25.01%
OCF growth 5Y65.14%