GDS HOLDINGS LTD - ADR (GDS) Stock Fundamental Analysis
NASDAQ:GDS - Nasdaq - US36165L1089 - ADR - Currency: USD
Taking everything into account, GDS scores 3 out of 10 in our fundamental rating. GDS was compared to 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
GDS had positive earnings in the past year.
In the past year GDS had a positive cash flow from operations.
GDS had negative earnings in 4 of the past 5 years.
GDS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GDS's Return On Assets of 4.58% is fine compared to the rest of the industry. GDS outperforms 62.20% of its industry peers.
With a decent Return On Equity value of 14.32%, GDS is doing good in the industry, outperforming 73.17% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.37%, GDS is in line with its industry, outperforming 46.34% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GDS is significantly below the industry average of 22.65%.
The 3 year average ROIC (1.01%) for GDS is below the current ROIC(1.37%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.58% | ||
| ROE | 14.32% | ||
| ROIC | 1.37% |
ROA(3y)-1.09%
ROA(5y)-1.28%
ROE(3y)-4.57%
ROE(5y)-4.33%
ROIC(3y)1.01%
ROIC(5y)0.96%
1.3 Margins
GDS has a Profit Margin of 31.32%. This is amongst the best in the industry. GDS outperforms 97.56% of its industry peers.
GDS has a Operating Margin of 10.42%. This is in the better half of the industry: GDS outperforms 68.29% of its industry peers.
In the last couple of years the Operating Margin of GDS has remained more or less at the same level.
The Gross Margin of GDS (21.81%) is worse than 76.83% of its industry peers.
In the last couple of years the Gross Margin of GDS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.42% | ||
| PM (TTM) | 31.32% | ||
| GM | 21.81% |
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%
2. Health
2.1 Basic Checks
GDS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
GDS has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, GDS has more shares outstanding
The debt/assets ratio for GDS has been reduced compared to a year ago.
2.2 Solvency
GDS has an Altman-Z score of 0.55. This is a bad value and indicates that GDS is not financially healthy and even has some risk of bankruptcy.
GDS has a Altman-Z score of 0.55. This is in the lower half of the industry: GDS underperforms 70.73% 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 has a worse Debt to Equity ratio (1.62) than 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.55 |
ROIC/WACC0.18
WACC7.62%
2.3 Liquidity
GDS has a Current Ratio of 1.28. This is a normal value and indicates that GDS is financially healthy and should not expect problems in meeting its short term obligations.
GDS has a Current ratio of 1.28. This is in the lower half of the industry: GDS underperforms 64.63% 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 has a Quick ratio of 1.28. This is in the lower half of the industry: GDS underperforms 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 352.22% over the past year.
The Revenue has grown by 8.11% in the past year. This is quite good.
The Revenue has been growing by 20.15% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)352.22%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%2654.55%
Revenue 1Y (TTM)8.11%
Revenue growth 3Y9.7%
Revenue growth 5Y20.15%
Sales Q2Q%22.59%
3.2 Future
The Earnings Per Share is expected to decrease by -25.92% on average over the next years. This is quite bad
The Revenue is expected to grow by 11.81% on average over the next years. This is quite good.
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
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.78, the valuation of GDS can be described as reasonable.
Based on the Price/Earnings ratio, GDS is valued cheaper than 90.24% of the companies in the same industry.
GDS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.88.
GDS is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.78 | ||
| Fwd PE | N/A |
4.2 Price Multiples
GDS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GDS is cheaper than 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.22 |
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%
5. Dividend
5.1 Amount
GDS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.76
+0.55 (+2.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners32.58%
Inst Owner Change0.17%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.01B
Analysts86.67
Price Target24.83 (-3.61%)
Short Float %6.47%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.04
Dividend Growth(5Y)N/A
DP0%
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)-31.88%
PT rev (3m)18.81%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)7.48%
EPS NY rev (3m)13.25%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-10.49%
Revenue NY rev (3m)-16.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.78 | ||
| Fwd PE | N/A | ||
| P/S | 3.38 | ||
| P/FCF | N/A | ||
| P/OCF | 18.77 | ||
| P/B | 1.55 | ||
| P/tB | 2.12 | ||
| EV/EBITDA | 16.22 |
EPS(TTM)2.39
EY9.28%
EPS(NY)-0.47
Fwd EYN/A
FCF(TTM)-0.73
FCFYN/A
OCF(TTM)1.37
OCFY5.33%
SpS7.62
BVpS16.66
TBVpS12.16
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.58% | ||
| ROE | 14.32% | ||
| ROCE | 1.74% | ||
| ROIC | 1.37% | ||
| ROICexc | 1.56% | ||
| ROICexgc | 1.76% | ||
| OM | 10.42% | ||
| PM (TTM) | 31.32% | ||
| GM | 21.81% | ||
| FCFM | N/A |
ROA(3y)-1.09%
ROA(5y)-1.28%
ROE(3y)-4.57%
ROE(5y)-4.33%
ROIC(3y)1.01%
ROIC(5y)0.96%
ROICexc(3y)1.15%
ROICexc(5y)1.17%
ROICexgc(3y)1.32%
ROICexgc(5y)1.33%
ROCE(3y)1.29%
ROCE(5y)1.24%
ROICexcg growth 3Y21.36%
ROICexcg growth 5Y-1.16%
ROICexc growth 3Y23.53%
ROICexc growth 5Y-1.34%
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 Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.73 | ||
| Cap/Depr | 91.44% | ||
| Cap/Sales | 27.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 44.41% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 0.55 |
F-Score6
WACC7.62%
ROIC/WACC0.18
Cap/Depr(3y)195.63%
Cap/Depr(5y)293.2%
Cap/Sales(3y)67.11%
Cap/Sales(5y)94.18%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)352.22%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%2654.55%
EPS Next Y-119.86%
EPS Next 2Y-43.46%
EPS Next 3Y-54.23%
EPS Next 5Y-25.92%
Revenue 1Y (TTM)8.11%
Revenue growth 3Y9.7%
Revenue growth 5Y20.15%
Sales Q2Q%22.59%
Revenue Next Year0.93%
Revenue Next 2Y7.02%
Revenue Next 3Y9.24%
Revenue Next 5Y11.81%
EBIT growth 1Y102.22%
EBIT growth 3Y26.47%
EBIT growth 5Y19.15%
EBIT Next Year414.41%
EBIT Next 3Y84.81%
EBIT Next 5Y52.63%
FCF growth 1Y75.48%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-6.14%
OCF growth 3Y17.29%
OCF growth 5Y45.88%