GDS HOLDINGS LTD - ADR (GDS) Stock Fundamental Analysis
NASDAQ:GDS - Nasdaq - US36165L1089 - ADR - Currency: USD
GDS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 82 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.
GDS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GDS has a Return On Assets of 6.10%. This is in the better half of the industry: GDS outperforms 70.73% of its industry peers.
The Return On Equity of GDS (18.43%) is better than 80.49% of its industry peers.
GDS has a Return On Invested Capital (1.58%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GDS is significantly below the industry average of 21.60%.
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 | 6.1% | ||
| ROE | 18.43% | ||
| 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
Looking at the Profit Margin, with a value of 43.00%, GDS belongs to the top of the industry, outperforming 98.78% of the companies in the same industry.
GDS's Operating Margin of 12.46% is fine compared to the rest of the industry. GDS outperforms 73.17% of its industry peers.
GDS's Operating Margin has been stable in the last couple of years.
The Gross Margin of GDS (22.02%) is worse than 78.05% of its industry peers.
In the last couple of years the Gross Margin of GDS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.46% | ||
| PM (TTM) | 43% | ||
| GM | 22.02% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GDS is destroying value.
GDS has more shares outstanding than it did 1 year ago.
The number of shares outstanding for GDS has been increased compared to 5 years ago.
Compared to 1 year ago, GDS has a worse debt to assets ratio.
2.2 Solvency
GDS has an Altman-Z score of 0.80. This is a bad value and indicates that GDS is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of GDS (0.80) is worse than 73.17% of its industry peers.
GDS has a debt to FCF ratio of 243.21. This is a negative value and a sign of low solvency as GDS would need 243.21 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 243.21, GDS is doing worse than 62.20% of the companies in the same industry.
GDS has a Debt/Equity ratio of 1.55. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.55, GDS is doing worse than 75.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | 243.21 | ||
| Altman-Z | 0.8 |
ROIC/WACC0.29
WACC5.41%
2.3 Liquidity
GDS has a Current Ratio of 1.47. This is a normal value and indicates that GDS is financially healthy and should not expect problems in meeting its short term obligations.
GDS's Current ratio of 1.47 is in line compared to the rest of the industry. GDS outperforms 41.46% of its industry peers.
GDS has a Quick Ratio of 1.47. 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 Quick ratio of 1.47. This is comparable to the rest of the industry: GDS outperforms 41.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
GDS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 91.11%, which is quite impressive.
GDS shows a small growth in Revenue. In the last year, the Revenue has grown by 2.39%.
GDS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.15% yearly.
EPS 1Y (TTM)91.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%279.17%
Revenue 1Y (TTM)2.39%
Revenue growth 3Y9.7%
Revenue growth 5Y20.15%
Sales Q2Q%3.65%
3.2 Future
The Earnings Per Share is expected to grow by 27.13% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.81% on average over the next years. This is quite good.
EPS Next Y39.24%
EPS Next 2Y35.01%
EPS Next 3Y31.87%
EPS Next 5Y27.13%
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.
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as GDS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 299.1 | ||
| EV/EBITDA | 19.1 |
4.3 Compensation for Growth
GDS's earnings are expected to grow with 31.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y35.01%
EPS Next 3Y31.87%
5. Dividend
5.1 Amount
GDS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:GDS (7/16/2025, 3:03:08 PM)
38.04
+0.32 (+0.85%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners32.74%
Inst Owner Change-0.05%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap7.29B
Analysts87.5
Price Target29.58 (-22.24%)
Short Float %7.63%
Short Ratio5.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.05
Dividend Growth(5Y)9.36%
DP1.21%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)404.16%
Min EPS beat(2)5.7%
Max EPS beat(2)802.61%
EPS beat(4)4
Avg EPS beat(4)218.03%
Min EPS beat(4)5.7%
Max EPS beat(4)802.61%
EPS beat(8)8
Avg EPS beat(8)124.96%
EPS beat(12)11
Avg EPS beat(12)92.31%
EPS beat(16)11
Avg EPS beat(16)55.95%
Revenue beat(2)0
Avg Revenue beat(2)-2.35%
Min Revenue beat(2)-4.55%
Max Revenue beat(2)-0.16%
Revenue beat(4)0
Avg Revenue beat(4)-2.06%
Min Revenue beat(4)-4.55%
Max Revenue beat(4)-0.16%
Revenue beat(8)0
Avg Revenue beat(8)-2.5%
Revenue beat(12)0
Avg Revenue beat(12)-2.27%
Revenue beat(16)1
Avg Revenue beat(16)-1.9%
PT rev (1m)12.55%
PT rev (3m)7.11%
EPS NQ rev (1m)293.76%
EPS NQ rev (3m)345.91%
EPS NY rev (1m)3.12%
EPS NY rev (3m)-13.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-10.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 5.02 | ||
| P/FCF | 299.1 | ||
| P/OCF | 18.38 | ||
| P/B | 2.15 | ||
| P/tB | 2.87 | ||
| EV/EBITDA | 19.1 |
EPS(TTM)-0.09
EYN/A
EPS(NY)-0.17
Fwd EYN/A
FCF(TTM)0.13
FCFY0.33%
OCF(TTM)2.07
OCFY5.44%
SpS7.58
BVpS17.7
TBVpS13.26
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.1% | ||
| ROE | 18.43% | ||
| ROCE | 2% | ||
| ROIC | 1.58% | ||
| ROICexc | 1.78% | ||
| ROICexgc | 2% | ||
| OM | 12.46% | ||
| PM (TTM) | 43% | ||
| GM | 22.02% | ||
| FCFM | 1.68% |
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-Score7
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | 243.21 | ||
| Debt/EBITDA | 8.31 | ||
| Cap/Depr | 82.3% | ||
| Cap/Sales | 25.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.62% | ||
| Profit Quality | 3.9% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 0.8 |
F-Score7
WACC5.41%
ROIC/WACC0.29
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)91.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%279.17%
EPS Next Y39.24%
EPS Next 2Y35.01%
EPS Next 3Y31.87%
EPS Next 5Y27.13%
Revenue 1Y (TTM)2.39%
Revenue growth 3Y9.7%
Revenue growth 5Y20.15%
Sales Q2Q%3.65%
Revenue Next Year0.93%
Revenue Next 2Y7.02%
Revenue Next 3Y9.24%
Revenue Next 5Y11.81%
EBIT growth 1Y109.57%
EBIT growth 3Y26.47%
EBIT growth 5Y19.15%
EBIT Next Year404.9%
EBIT Next 3Y86.9%
EBIT Next 5Y52.96%
FCF growth 1Y102.48%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-4.31%
OCF growth 3Y17.29%
OCF growth 5Y45.88%