GDS HOLDINGS LTD - ADR (GDS)

US36165L1089 - ADR

7.76  +0.56 (+7.78%)

After market: 7.76 0 (0%)

Fundamental Rating

2

GDS gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 86 industry peers in the IT Services industry. Both the profitability and financial health of GDS have multiple concerns. GDS is quite expensive at the moment. It does show a decent growth rate.



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2

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 always reported negative net income.
In the past 5 years GDS always reported a positive cash flow from operatings.

1.2 Ratios

GDS has a Return On Assets (-5.83%) which is comparable to the rest of the industry.
The Return On Equity of GDS (-21.76%) is worse than 60.71% of its industry peers.
GDS has a Return On Invested Capital (0.66%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for GDS is significantly below the industry average of 12.84%.
Industry RankSector Rank
ROA -5.83%
ROE -21.76%
ROIC 0.66%
ROA(3y)-3.23%
ROA(5y)-2.51%
ROE(3y)-11.07%
ROE(5y)-8.08%
ROIC(3y)0.69%
ROIC(5y)0.89%

1.3 Margins

GDS's Operating Margin of 5.57% is fine compared to the rest of the industry. GDS outperforms 60.71% of its industry peers.
In the last couple of years the Operating Margin of GDS has declined.
GDS's Gross Margin of 19.31% is on the low side compared to the rest of the industry. GDS is outperformed by 84.52% of its industry peers.
GDS's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 5.57%
PM (TTM) N/A
GM 19.31%
OM growth 3Y-21.97%
OM growth 5Y-1.57%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-10.59%
GM growth 5Y-2.83%

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2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GDS is destroying value.
The number of shares outstanding for GDS has been reduced 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

GDS has an Altman-Z score of 0.14. 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 (0.14) is worse than 69.05% of its industry peers.
GDS has a Debt/Equity ratio of 2.16. This is a high value indicating a heavy dependency on external financing.
GDS's Debt to Equity ratio of 2.16 is on the low side compared to the rest of the industry. GDS is outperformed by 76.19% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.16
Debt/FCF N/A
Altman-Z 0.14
ROIC/WACC0.11
WACC5.97%

2.3 Liquidity

GDS has a Current Ratio of 1.32. 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 (1.32) which is comparable to the rest of the industry.
GDS has a Quick Ratio of 1.32. 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 1.32. This is comparable to the rest of the industry: GDS outperforms 44.05% of its industry peers.
Industry RankSector Rank
Current Ratio 1.32
Quick Ratio 1.32

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 12.62% over the past year.
Looking at the last year, GDS shows a small growth in Revenue. The Revenue has grown by 6.76% in the last year.
Measured over the past years, GDS shows a very strong growth in Revenue. The Revenue has been growing by 28.95% on average per year.
EPS 1Y (TTM)12.62%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q15.38%
Revenue 1Y (TTM)6.76%
Revenue growth 3Y20.16%
Revenue growth 5Y28.95%
Revenue growth Q2Q6.34%

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 20.91% on average per year.
The Revenue is expected to decrease by -23.65% on average over the next years. This is quite bad
EPS Next Y-17.87%
EPS Next 2Y5.24%
EPS Next 3Y14.51%
EPS Next 5Y20.91%
Revenue Next Year12.17%
Revenue Next 2Y13.24%
Revenue Next 3Y14.28%
Revenue Next 5Y-23.65%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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1

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 RankSector Rank
PE N/A
Fwd PE N/A

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, GDS is valued a bit cheaper than the industry average as 63.10% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.1

4.3 Compensation for Growth

GDS's earnings are expected to grow with 14.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.24%
EPS Next 3Y14.51%

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0

5. Dividend

5.1 Amount

GDS does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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GDS HOLDINGS LTD - ADR

NASDAQ:GDS (4/26/2024, 7:00:00 PM)

After market: 7.76 0 (0%)

7.76

+0.56 (+7.78%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.46B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -5.83%
ROE -21.76%
ROCE
ROIC
ROICexc
ROICexgc
OM 5.57%
PM (TTM) N/A
GM 19.31%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.13
Health
Industry RankSector Rank
Debt/Equity 2.16
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.32
Quick Ratio 1.32
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)12.62%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-17.87%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.76%
Revenue growth 3Y20.16%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y