GDS HOLDINGS LTD - ADR (GDS) Stock Fundamental Analysis

NASDAQ:GDS • US36165L1089

42.33 USD
-2.66 (-5.91%)
Last: Feb 26, 2026, 10:18 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

GDS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 87 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. While showing a medium growth rate, GDS is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

  • GDS had negative earnings in the past year.
  • In the past year GDS had a positive cash flow from operations.
  • In the past 5 years GDS reported 4 times negative net income.
  • In the past 5 years GDS always reported a positive cash flow from operatings.
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 Return On Assets of 7.06%. This is in the better half of the industry: GDS outperforms 75.86% of its industry peers.
  • With an excellent Return On Equity value of 20.82%, GDS belongs to the best of the industry, outperforming 83.91% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 1.58%, GDS is in line with its industry, outperforming 51.72% 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 10.57%.
  • 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 RankSector 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%
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

  • GDS's Profit Margin of 53.31% is amongst the best of the industry. GDS outperforms 98.85% of its industry peers.
  • GDS has a Operating Margin of 13.82%. This is in the better half of the industry: GDS outperforms 78.16% of its industry peers.
  • GDS's Operating Margin has been stable in the last couple of years.
  • GDS's Gross Margin of 22.35% is on the low side compared to the rest of the industry. GDS is outperformed by 77.01% of its industry peers.
  • In the last couple of years the Gross Margin of GDS has declined.
Industry RankSector 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%
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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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GDS is destroying value.
  • Compared to 1 year ago, GDS has more shares outstanding
  • The number of shares outstanding for GDS has been increased compared to 5 years ago.
  • GDS has a worse debt/assets ratio than last year.
GDS Yearly Shares OutstandingGDS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
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

  • Based on the Altman-Z score of 0.98, we must say that GDS is in the distress zone and has some risk of bankruptcy.
  • GDS has a Altman-Z score of 0.98. This is in the lower half of the industry: GDS underperforms 67.82% 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 Debt to FCF ratio of 15.99. This is in the lower half of the industry: GDS underperforms 60.92% of its industry peers.
  • A Debt/Equity ratio of 1.59 is on the high side and indicates that GDS has dependencies on debt financing.
  • The Debt to Equity ratio of GDS (1.59) is worse than 70.11% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.59
Debt/FCF 15.99
Altman-Z 0.98
ROIC/WACC0.28
WACC5.72%
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

  • 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.
  • The Current ratio of GDS (2.51) is better than 72.41% of its industry peers.
  • A Quick Ratio of 2.51 indicates that GDS has no problem at all paying its short term obligations.
  • With a decent Quick ratio value of 2.51, GDS is doing good in the industry, outperforming 72.41% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.51
Quick Ratio 2.51
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 59.69% over the past year.
  • Looking at the last year, GDS shows a decrease in Revenue. The Revenue has decreased by -5.13% in the last year.
  • The Revenue has been growing by 20.15% on average over the past years. This is a very strong growth!
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

  • Based on estimates for the next years, GDS will show a very strong growth in Earnings Per Share. The EPS will grow by 20.83% on average per year.
  • GDS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.84% yearly.
EPS Next Y213.57%
EPS Next 2Y37.36%
EPS Next 3Y32.31%
EPS Next 5Y20.83%
Revenue Next Year-1.21%
Revenue Next 2Y5.27%
Revenue Next 3Y7.93%
Revenue Next 5Y10.84%

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.
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 2031 2032 2033 10B 20B 30B
GDS Yearly EPS VS EstimatesGDS Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 10 -10 20 30 40

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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • GDS reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
  • Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for GDS. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
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 -100 -200 -300

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as GDS.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as GDS.
Industry RankSector Rank
P/FCF 20.42
EV/EBITDA 20.4
GDS Per share dataGDS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

  • GDS's earnings are expected to grow with 32.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y37.36%
EPS Next 3Y32.31%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • GDS does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

GDS HOLDINGS LTD - ADR

NASDAQ:GDS (2/26/2026, 10:18:55 AM)

42.33

-2.66 (-5.91%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-19
Earnings (Next)03-17
Inst Owners38.95%
Inst Owner Change-2.32%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap8.48B
Revenue(TTM)10.41B
Net Income(TTM)5.55B
Analysts87.5
Price Target46.7 (10.32%)
Short Float %7.7%
Short Ratio5.49
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)22.47%
PT rev (3m)45.52%
EPS NQ rev (1m)68.14%
EPS NQ rev (3m)87.36%
EPS NY rev (1m)-4.42%
EPS NY rev (3m)195.47%
Revenue NQ rev (1m)1.65%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-0.45%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 5.6
P/FCF 20.42
P/OCF 17.4
P/B 2.19
P/tB 2.76
EV/EBITDA 20.4
EPS(TTM)-0.38
EYN/A
EPS(NY)-0.12
Fwd EYN/A
FCF(TTM)2.07
FCFY4.9%
OCF(TTM)2.43
OCFY5.75%
SpS7.57
BVpS19.37
TBVpS15.31
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector 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 RankSector 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 0.98
F-Score5
WACC5.72%
ROIC/WACC0.28
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 Y213.57%
EPS Next 2Y37.36%
EPS Next 3Y32.31%
EPS Next 5Y20.83%
Revenue 1Y (TTM)-5.13%
Revenue growth 3Y9.7%
Revenue growth 5Y20.15%
Sales Q2Q%-2.65%
Revenue Next Year-1.21%
Revenue Next 2Y5.27%
Revenue Next 3Y7.93%
Revenue Next 5Y10.84%
EBIT growth 1Y54.68%
EBIT growth 3Y26.47%
EBIT growth 5Y19.15%
EBIT Next Year411.72%
EBIT Next 3Y84.98%
EBIT Next 5Y51.92%
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.


What is the valuation status of GDS HOLDINGS LTD - ADR (GDS) stock?

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.


Can you provide the dividend sustainability for GDS stock?

The dividend rating of GDS HOLDINGS LTD - ADR (GDS) is 0 / 10 and the dividend payout ratio is 0.98%.