35.21 USD
+1.43 (+4.23%)
34.8 USD
-0.41 (-1.16%)
GDS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 85 industry peers in the IT Services industry. GDS has a medium profitability rating, but doesn't score so well on its financial health evaluation. GDS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year GDS has reported negative net income.
GDS had a positive operating cash flow in the past year.
In the past 5 years GDS reported 4 times negative net income.
GDS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GDS has a Return On Assets of 7.06%. This is in the better half of the industry: GDS outperforms 76.47% of its industry peers.
GDS has a better Return On Equity (20.82%) than 83.53% of its industry peers.
GDS's Return On Invested Capital of 1.58% is in line compared to the rest of the industry. GDS outperforms 49.41% of its industry peers.
GDS had an Average Return On Invested Capital over the past 3 years of 1.07%. This is significantly below the industry average of 29.77%.
The last Return On Invested Capital (1.58%) for GDS is above the 3 year average (1.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.06% | ||
| ROE | 20.82% | ||
| ROIC | 1.58% |
ROA(3y)-1.09%
ROA(5y)-1.28%
ROE(3y)-4.57%
ROE(5y)-4.33%
ROIC(3y)1.07%
ROIC(5y)0.99%
1.3 Margins
GDS has a better Profit Margin (53.31%) than 100.00% of its industry peers.
The Operating Margin of GDS (13.82%) is better than 77.65% of its industry peers.
GDS's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 22.35%, GDS is not doing good in the industry: 76.47% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of GDS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.82% | ||
| PM (TTM) | 53.31% | ||
| GM | 22.35% |
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
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.
2.2 Solvency
Based on the Altman-Z score of 0.80, we must say that GDS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of GDS (0.80) is worse than 69.41% of its industry peers.
The Debt to FCF ratio of GDS is 15.99, which is on the high side as it means it would take GDS, 15.99 years of fcf income to pay off all of its debts.
GDS has a worse Debt to FCF ratio (15.99) than 62.35% of its industry peers.
GDS has a Debt/Equity ratio of 1.59. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.59, GDS is doing worse than 72.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 15.99 | ||
| Altman-Z | 0.8 |
ROIC/WACC0.3
WACC5.32%
2.3 Liquidity
GDS has a Current Ratio of 2.51. This indicates that GDS is financially healthy and has no problem in meeting its short term obligations.
GDS's Current ratio of 2.51 is fine compared to the rest of the industry. GDS outperforms 74.12% of its industry peers.
GDS has a Quick Ratio of 2.51. This indicates that GDS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.51, GDS is in the better half of the industry, outperforming 74.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.51 | ||
| Quick Ratio | 2.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 59.69% over the past year.
GDS shows a decrease in Revenue. In the last year, the revenue decreased by -5.13%.
GDS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.15% yearly.
EPS 1Y (TTM)59.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-207.14%
Revenue 1Y (TTM)-5.13%
Revenue growth 3Y9.7%
Revenue growth 5Y20.15%
Sales Q2Q%-2.65%
3.2 Future
The Earnings Per Share is expected to grow by 20.85% on average over the next years. This is a very strong growth
Based on estimates for the next years, GDS will show a quite strong growth in Revenue. The Revenue will grow by 10.95% on average per year.
EPS Next Y148.57%
EPS Next 2Y38.18%
EPS Next 3Y32.11%
EPS Next 5Y20.85%
Revenue Next Year-0.76%
Revenue Next 2Y5.9%
Revenue Next 3Y7.83%
Revenue Next 5Y10.95%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for GDS. In the last year negative earnings were reported.
Also next year GDS is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| 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 63.53% of the companies in the same industry.
68.24% of the companies in the same industry are more expensive than GDS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.71 | ||
| EV/EBITDA | 16.89 |
4.3 Compensation for Growth
GDS's earnings are expected to grow with 32.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y38.18%
EPS Next 3Y32.11%
5. Dividend
5.1 Amount
GDS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
35.21
+1.43 (+4.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners38.46%
Inst Owner Change-3.53%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.74B
Revenue(TTM)10.41B
Net Income(TTM)5.55B
Analysts87.5
Price Target32.09 (-8.86%)
Short Float %6.67%
Short Ratio4.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.05
Dividend Growth(5Y)9.36%
DP0.98%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-112.42%
Min EPS beat(2)-251.31%
Max EPS beat(2)26.47%
EPS beat(4)3
Avg EPS beat(4)145.87%
Min EPS beat(4)-251.31%
Max EPS beat(4)802.61%
EPS beat(8)7
Avg EPS beat(8)90.65%
EPS beat(12)10
Avg EPS beat(12)68.91%
EPS beat(16)12
Avg EPS beat(16)51.04%
Revenue beat(2)1
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-2.43%
Max Revenue beat(2)0.74%
Revenue beat(4)1
Avg Revenue beat(4)-1.6%
Min Revenue beat(4)-4.55%
Max Revenue beat(4)0.74%
Revenue beat(8)1
Avg Revenue beat(8)-2.11%
Revenue beat(12)1
Avg Revenue beat(12)-2.28%
Revenue beat(16)2
Avg Revenue beat(16)-1.88%
PT rev (1m)-22.4%
PT rev (3m)-10.37%
EPS NQ rev (1m)-46.9%
EPS NQ rev (3m)-55.54%
EPS NY rev (1m)-9.82%
EPS NY rev (3m)109.16%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)1.22%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 4.58 | ||
| P/FCF | 16.71 | ||
| P/OCF | 14.24 | ||
| P/B | 1.79 | ||
| P/tB | 2.26 | ||
| EV/EBITDA | 16.89 |
EPS(TTM)-0.38
EYN/A
EPS(NY)-0.1
Fwd EYN/A
FCF(TTM)2.11
FCFY5.98%
OCF(TTM)2.47
OCFY7.02%
SpS7.69
BVpS19.69
TBVpS15.57
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.06% | ||
| ROE | 20.82% | ||
| ROCE | 2.01% | ||
| ROIC | 1.58% | ||
| ROICexc | 1.95% | ||
| ROICexgc | 2.16% | ||
| OM | 13.82% | ||
| PM (TTM) | 53.31% | ||
| GM | 22.35% | ||
| FCFM | 27.4% |
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%
ROICexgc growth 3Y19.95%
ROICexgc 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-Score5
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 15.99 | ||
| Debt/EBITDA | 9.17 | ||
| Cap/Depr | 15.61% | ||
| Cap/Sales | 4.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.59% | ||
| Profit Quality | 51.4% | ||
| Current Ratio | 2.51 | ||
| Quick Ratio | 2.51 | ||
| Altman-Z | 0.8 |
F-Score5
WACC5.32%
ROIC/WACC0.3
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)59.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-207.14%
EPS Next Y148.57%
EPS Next 2Y38.18%
EPS Next 3Y32.11%
EPS Next 5Y20.85%
Revenue 1Y (TTM)-5.13%
Revenue growth 3Y9.7%
Revenue growth 5Y20.15%
Sales Q2Q%-2.65%
Revenue Next Year-0.76%
Revenue Next 2Y5.9%
Revenue Next 3Y7.83%
Revenue Next 5Y10.95%
EBIT growth 1Y54.68%
EBIT growth 3Y26.47%
EBIT growth 5Y19.15%
EBIT Next Year416.52%
EBIT Next 3Y85.66%
EBIT Next 5Y52.07%
FCF growth 1Y138.68%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y65.55%
OCF growth 3Y17.29%
OCF growth 5Y45.88%
GDS HOLDINGS LTD - ADR / GDS FAQ
Can you provide the ChartMill fundamental rating for GDS HOLDINGS LTD - ADR?
ChartMill assigns a fundamental rating of 4 / 10 to GDS.
Can you provide the valuation status for GDS HOLDINGS LTD - ADR?
ChartMill assigns a valuation rating of 2 / 10 to GDS HOLDINGS LTD - ADR (GDS). This can be considered as Overvalued.
How profitable is GDS HOLDINGS LTD - ADR (GDS) stock?
GDS HOLDINGS LTD - ADR (GDS) has a profitability rating of 5 / 10.
What is the financial health of GDS HOLDINGS LTD - ADR (GDS) stock?
The financial health rating of GDS HOLDINGS LTD - ADR (GDS) is 3 / 10.