47.52 USD
+1.01 (+2.17%)
47.3 USD
-0.22 (-0.46%)
Taking everything into account, GDS scores 4 out of 10 in our fundamental rating. GDS was compared to 88 industry peers in the IT Services industry. There are concerns on the financial health of GDS while its profitability can be described as average. 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.
- GDS had negative earnings in 4 of the past 5 years.
- Each year in the past 5 years GDS had a positive operating cash flow.
1.2 Ratios
- GDS's Return On Assets of 7.06% is fine compared to the rest of the industry. GDS outperforms 76.14% of its industry peers.
- Looking at the Return On Equity, with a value of 20.82%, GDS belongs to the top of the industry, outperforming 84.09% of the companies in the same industry.
- GDS's Return On Invested Capital of 1.58% is in line compared to the rest of the industry. GDS outperforms 51.14% 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 29.06%.
- 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's Profit Margin of 53.31% is amongst the best of the industry. GDS outperforms 98.86% of its industry peers.
- With a decent Operating Margin value of 13.82%, GDS is doing good in the industry, outperforming 78.41% of the companies in the same industry.
- 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 (22.35%) is worse than 76.14% of its industry peers.
- GDS's Gross Margin has declined in the last couple of years.
| 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.
- GDS has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, GDS has more shares outstanding
- Compared to 1 year ago, GDS has a worse debt to assets ratio.
2.2 Solvency
- GDS has an Altman-Z score of 1.00. 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 1.00. This is in the lower half of the industry: GDS underperforms 67.05% 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.
- The Debt to FCF ratio of GDS (15.99) is worse than 60.23% 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.
- With a Debt to Equity ratio value of 1.59, GDS is not doing good in the industry: 70.45% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 15.99 | ||
| Altman-Z | 1 |
ROIC/WACC0.28
WACC5.73%
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 has a Current ratio of 2.51. This is in the better half of the industry: GDS outperforms 72.73% 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.
- GDS has a Quick ratio of 2.51. This is in the better half of the industry: GDS outperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.51 | ||
| Quick Ratio | 2.51 |
3. Growth
3.1 Past
- GDS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 59.69%, which is quite impressive.
- The Revenue has decreased by -5.13% in the past 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 20.88% on average per year.
- Based on estimates for the next years, GDS will show a quite strong growth in Revenue. The Revenue will grow by 10.55% on average per year.
EPS Next Y213.57%
EPS Next 2Y37.36%
EPS Next 3Y32.31%
EPS Next 5Y20.88%
Revenue Next Year-0.89%
Revenue Next 2Y5.61%
Revenue Next 3Y8.2%
Revenue Next 5Y10.55%
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
- GDS reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- 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 in line with the industry average.
- Based on the Price/Free Cash Flow ratio, GDS is valued a bit cheaper than 61.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.18 | ||
| EV/EBITDA | 20.7 |
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%
5. Dividend
5.1 Amount
- GDS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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%.