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TRADE DESK INC/THE -CLASS A (TTD) Stock Fundamental Analysis

NASDAQ:TTD - Nasdaq - US88339J1051 - Common Stock - Currency: USD

73.56  -0.85 (-1.14%)

After market: 73.42 -0.14 (-0.19%)

Fundamental Rating

7

TTD gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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 expensive, but it does show an excellent growth. This makes TTD very considerable for growth and quality investing!


Dividend Valuation Growth Profitability Health

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8

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.
TTD had positive earnings in each of the past 5 years.
In the past 5 years TTD always reported a positive cash flow from operatings.
TTD Yearly Net Income VS EBIT VS OCF VS FCFTTD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M

1.2 Ratios

With an excellent Return On Assets value of 7.22%, TTD belongs to the best of the industry, outperforming 88.66% of the companies in the same industry.
With an excellent Return On Equity value of 15.17%, TTD belongs to the best of the industry, outperforming 81.44% of the companies in the same industry.
TTD's Return On Invested Capital of 10.81% is amongst the best of the industry. TTD outperforms 88.66% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TTD is in line with the industry average of 7.56%.
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 RankSector 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%
TTD Yearly ROA, ROE, ROICTTD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30

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.
TTD has a better Operating Margin (17.63%) than 83.51% of its industry peers.
In the last couple of years the Operating Margin of TTD has remained more or less at the same level.
TTD's Gross Margin of 80.11% is amongst the best of 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 RankSector 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%
TTD Yearly Profit, Operating, Gross MarginsTTD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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7

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
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.
TTD Yearly Shares OutstandingTTD Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
TTD Yearly Total Debt VS Total AssetsTTD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.2 Solvency

TTD has an Altman-Z score of 8.51. This indicates that TTD is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TTD (8.51) is better than 89.69% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 8.51
ROIC/WACC1.2
WACC8.99%
TTD Yearly LT Debt VS Equity VS FCFTTD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

A Current Ratio of 1.81 indicates that TTD should not have too much problems paying its short term obligations.
TTD has a better Current ratio (1.81) than 67.01% of its industry peers.
TTD has a Quick Ratio of 1.81. This is a normal value and indicates that TTD is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of TTD (1.81) is better than 68.04% of its industry peers.
Industry RankSector Rank
Current Ratio 1.81
Quick Ratio 1.81
TTD Yearly Current Assets VS Current LiabilitesTTD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

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9

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.
Measured over the past years, TTD shows a very strong growth in Earnings Per Share. The EPS has been growing by 35.00% on average per year.
TTD shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.06%.
The Revenue has been growing by 29.90% on average over the past years. This is a very strong growth!
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

TTD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.80% yearly.
The Revenue is expected to grow by 18.87% on average over the next years. This is quite good.
EPS Next Y8.04%
EPS Next 2Y13.55%
EPS Next 3Y16.76%
EPS Next 5Y21.8%
Revenue Next Year16.08%
Revenue Next 2Y17.43%
Revenue Next 3Y18.26%
Revenue Next 5Y18.87%

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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
TTD Yearly Revenue VS EstimatesTTD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B 8B
TTD Yearly EPS VS EstimatesTTD Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2 4 6 8

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2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 42.77, TTD can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as TTD.
Compared to an average S&P500 Price/Earnings ratio of 27.29, TTD is valued quite expensively.
Based on the Price/Forward Earnings ratio of 34.58, the valuation of TTD can be described as expensive.
TTD's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.74. TTD is valued rather expensively when compared to this.
Industry RankSector Rank
PE 42.77
Fwd PE 34.58
TTD Price Earnings VS Forward Price EarningsTTD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TTD is valued a bit more expensive than 67.01% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TTD.
Industry RankSector Rank
P/FCF 52.72
EV/EBITDA 63.03
TTD Per share dataTTD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4 5

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.
The excellent profitability rating of TTD may justify a higher PE ratio.
TTD's earnings are expected to grow with 16.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.32
PEG (5Y)1.22
EPS Next 2Y13.55%
EPS Next 3Y16.76%

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0

5. Dividend

5.1 Amount

TTD does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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TRADE DESK INC/THE -CLASS A

NASDAQ:TTD (7/7/2025, 8:00:01 PM)

After market: 73.42 -0.14 (-0.19%)

73.56

-0.85 (-1.14%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)08-05 2025-08-05/amc
Inst Owners81.61%
Inst Owner Change0.01%
Ins Owners0.54%
Ins Owner Change12.04%
Market Cap36.15B
Analysts79.11
Price Target88.93 (20.89%)
Short Float %5.01%
Short Ratio2.45
Dividend
Industry RankSector 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)-2.15%
PT rev (3m)-19.09%
EPS NQ rev (1m)0.4%
EPS NQ rev (3m)-0.78%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-0.74%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.74%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-1.06%
Valuation
Industry RankSector Rank
PE 42.77
Fwd PE 34.58
P/S 14.07
P/FCF 52.72
P/OCF 42.76
P/B 13.31
P/tB 13.31
EV/EBITDA 63.03
EPS(TTM)1.72
EY2.34%
EPS(NY)2.13
Fwd EY2.89%
FCF(TTM)1.4
FCFY1.9%
OCF(TTM)1.72
OCFY2.34%
SpS5.23
BVpS5.53
TBVpS5.53
PEG (NY)5.32
PEG (5Y)1.22
Profitability
Industry RankSector 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 RankSector 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 8.51
F-Score8
WACC8.99%
ROIC/WACC1.2
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 Y8.04%
EPS Next 2Y13.55%
EPS Next 3Y16.76%
EPS Next 5Y21.8%
Revenue 1Y (TTM)25.06%
Revenue growth 3Y26.9%
Revenue growth 5Y29.9%
Sales Q2Q%25.4%
Revenue Next Year16.08%
Revenue Next 2Y17.43%
Revenue Next 3Y18.26%
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%