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GDS HOLDINGS LTD - ADR (GDS) Stock Fundamental Analysis

NASDAQ:GDS - Nasdaq - US36165L1089 - ADR - Currency: USD

29.65  +2.07 (+7.51%)

Premarket: 29.15 -0.5 (-1.69%)

Fundamental Rating

3

GDS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 82 industry peers in the IT Services industry. While GDS is still in line with the averages on profitability rating, there are concerns on its financial health. GDS is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

GDS had positive earnings in the past year.
GDS had a positive operating cash flow in the past year.
In the past 5 years GDS reported 4 times negative net income.
Each year in the past 5 years GDS had a positive operating cash flow.
GDS Yearly Net Income VS EBIT VS OCF VS FCFGDS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B -4B -6B -8B

1.2 Ratios

GDS has a better Return On Assets (4.58%) than 64.63% of its industry peers.
Looking at the Return On Equity, with a value of 14.32%, GDS is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
GDS has a Return On Invested Capital (1.41%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for GDS is significantly below the industry average of 22.63%.
The 3 year average ROIC (1.07%) for GDS is below the current ROIC(1.41%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 4.58%
ROE 14.32%
ROIC 1.41%
ROA(3y)-1.09%
ROA(5y)-1.28%
ROE(3y)-4.57%
ROE(5y)-4.33%
ROIC(3y)1.07%
ROIC(5y)0.99%
GDS Yearly ROA, ROE, ROICGDS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 -20

1.3 Margins

Looking at the Profit Margin, with a value of 32.66%, GDS belongs to the top of the industry, outperforming 97.56% of the companies in the same industry.
GDS's Operating Margin of 11.16% is fine compared to the rest of the industry. GDS outperforms 69.51% of its industry peers.
GDS's Operating Margin has been stable in the last couple of years.
GDS's Gross Margin of 21.53% is on the low side compared to the rest of the industry. GDS is outperformed by 78.05% of its industry peers.
GDS's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 11.16%
PM (TTM) 32.66%
GM 21.53%
OM growth 3Y15.28%
OM growth 5Y-0.84%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.83%
GM growth 5Y-3.17%
GDS Yearly Profit, Operating, Gross MarginsGDS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

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1

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GDS is destroying value.
The number of shares outstanding for GDS has been increased compared to 1 year ago.
GDS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, GDS has a worse debt to assets ratio.
GDS Yearly Shares OutstandingGDS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
GDS Yearly Total Debt VS Total AssetsGDS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.2 Solvency

GDS has an Altman-Z score of 0.62. This is a bad value and indicates that GDS is not financially healthy and even has some risk of bankruptcy.
GDS's Altman-Z score of 0.62 is on the low side compared to the rest of the industry. GDS is outperformed by 69.51% of its industry peers.
A Debt/Equity ratio of 1.62 is on the high side and indicates that GDS has dependencies on debt financing.
GDS's Debt to Equity ratio of 1.62 is on the low side compared to the rest of the industry. GDS is outperformed by 73.17% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.62
Debt/FCF N/A
Altman-Z 0.62
ROIC/WACC0.18
WACC7.91%
GDS Yearly LT Debt VS Equity VS FCFGDS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B 30B

2.3 Liquidity

A Current Ratio of 1.28 indicates that GDS should not have too much problems paying its short term obligations.
GDS's Current ratio of 1.28 is on the low side compared to the rest of the industry. GDS is outperformed by 63.41% of its industry peers.
A Quick Ratio of 1.28 indicates that GDS should not have too much problems paying its short term obligations.
GDS's Quick ratio of 1.28 is on the low side compared to the rest of the industry. GDS is outperformed by 63.41% of its industry peers.
Industry RankSector Rank
Current Ratio 1.28
Quick Ratio 1.28
GDS Yearly Current Assets VS Current LiabilitesGDS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

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5

3. Growth

3.1 Past

GDS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 837.74%, which is quite impressive.
Looking at the last year, GDS shows a small growth in Revenue. The Revenue has grown by 5.52% in the last year.
GDS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.15% yearly.
EPS 1Y (TTM)837.74%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1544.04%
Revenue 1Y (TTM)5.52%
Revenue growth 3Y9.7%
Revenue growth 5Y20.15%
Sales Q2Q%3.12%

3.2 Future

GDS is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -25.92% yearly.
Based on estimates for the next years, GDS will show a quite strong growth in Revenue. The Revenue will grow by 11.81% on average per year.
EPS Next Y-119.86%
EPS Next 2Y-43.46%
EPS Next 3Y-54.23%
EPS Next 5Y-25.92%
Revenue Next Year0.93%
Revenue Next 2Y7.02%
Revenue Next 3Y9.24%
Revenue Next 5Y11.81%

3.3 Evolution

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.
GDS Yearly Revenue VS EstimatesGDS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B
GDS Yearly EPS VS EstimatesGDS Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 5 -5 10 15

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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 4.68, which indicates a rather cheap valuation of GDS.
Based on the Price/Earnings ratio, GDS is valued cheaply inside the industry as 96.34% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.03. GDS is valued rather cheaply when compared to this.
GDS is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE 4.68
Fwd PE N/A
GDS Price Earnings VS Forward Price EarningsGDS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 50 -50 -100 -150 -200

4.2 Price Multiples

GDS's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 17.46
GDS Per share dataGDS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

A cheap valuation may be justified as GDS's earnings are expected to decrease with -54.23% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-43.46%
EPS Next 3Y-54.23%

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0

5. Dividend

5.1 Amount

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

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GDS HOLDINGS LTD - ADR

NASDAQ:GDS (5/21/2025, 8:00:01 PM)

Premarket: 29.15 -0.5 (-1.69%)

29.65

+2.07 (+7.51%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)05-20 2025-05-20/bmo
Earnings (Next)08-19 2025-08-19
Inst Owners32.58%
Inst Owner Change-7.88%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.76B
Analysts86.67
Price Target29.8 (0.51%)
Short Float %6.85%
Short Ratio3.03
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.04
Dividend Growth(5Y)9.36%
DP1.61%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)726.09%
Min EPS beat(2)40.32%
Max EPS beat(2)1411.86%
EPS beat(4)4
Avg EPS beat(4)372.53%
Min EPS beat(4)14.44%
Max EPS beat(4)1411.86%
EPS beat(8)7
Avg EPS beat(8)198.96%
EPS beat(12)10
Avg EPS beat(12)139.96%
EPS beat(16)10
Avg EPS beat(16)35.58%
Revenue beat(2)0
Avg Revenue beat(2)-1.51%
Min Revenue beat(2)-2.86%
Max Revenue beat(2)-0.16%
Revenue beat(4)0
Avg Revenue beat(4)-1.8%
Min Revenue beat(4)-3.51%
Max Revenue beat(4)-0.16%
Revenue beat(8)0
Avg Revenue beat(8)-2.51%
Revenue beat(12)0
Avg Revenue beat(12)-2%
Revenue beat(16)1
Avg Revenue beat(16)-1.77%
PT rev (1m)7.93%
PT rev (3m)36.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)31.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-10.49%
Revenue NY rev (3m)-16.8%
Valuation
Industry RankSector Rank
PE 4.68
Fwd PE N/A
P/S 4.02
P/FCF N/A
P/OCF 21.42
P/B 1.76
P/tB 2.42
EV/EBITDA 17.46
EPS(TTM)6.33
EY21.35%
EPS(NY)-0.14
Fwd EYN/A
FCF(TTM)-0.94
FCFYN/A
OCF(TTM)1.38
OCFY4.67%
SpS7.37
BVpS16.81
TBVpS12.26
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 4.58%
ROE 14.32%
ROCE 1.78%
ROIC 1.41%
ROICexc 1.6%
ROICexgc 1.81%
OM 11.16%
PM (TTM) 32.66%
GM 21.53%
FCFM N/A
ROA(3y)-1.09%
ROA(5y)-1.28%
ROE(3y)-4.57%
ROE(5y)-4.33%
ROIC(3y)1.07%
ROIC(5y)0.99%
ROICexc(3y)1.21%
ROICexc(5y)1.21%
ROICexgc(3y)1.38%
ROICexgc(5y)1.37%
ROCE(3y)1.38%
ROCE(5y)1.29%
ROICexcg growth 3Y19.95%
ROICexcg growth 5Y-1.85%
ROICexc growth 3Y22.25%
ROICexc growth 5Y-1.95%
OM growth 3Y15.28%
OM growth 5Y-0.84%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.83%
GM growth 5Y-3.17%
F-Score6
Asset Turnover0.14
Health
Industry RankSector Rank
Debt/Equity 1.62
Debt/FCF N/A
Debt/EBITDA 8.67
Cap/Depr 100.35%
Cap/Sales 31.53%
Interest Coverage 0.55
Cash Conversion 44.1%
Profit Quality N/A
Current Ratio 1.28
Quick Ratio 1.28
Altman-Z 0.62
F-Score6
WACC7.91%
ROIC/WACC0.18
Cap/Depr(3y)154.46%
Cap/Depr(5y)268.5%
Cap/Sales(3y)51.51%
Cap/Sales(5y)84.82%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)837.74%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1544.04%
EPS Next Y-119.86%
EPS Next 2Y-43.46%
EPS Next 3Y-54.23%
EPS Next 5Y-25.92%
Revenue 1Y (TTM)5.52%
Revenue growth 3Y9.7%
Revenue growth 5Y20.15%
Sales Q2Q%3.12%
Revenue Next Year0.93%
Revenue Next 2Y7.02%
Revenue Next 3Y9.24%
Revenue Next 5Y11.81%
EBIT growth 1Y107.67%
EBIT growth 3Y26.47%
EBIT growth 5Y19.15%
EBIT Next Year414.41%
EBIT Next 3Y84.81%
EBIT Next 5Y52.63%
FCF growth 1Y3.27%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-6.14%
OCF growth 3Y17.29%
OCF growth 5Y45.88%