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. GDS has a medium profitability rating, but doesn't score so well on its financial health evaluation. GDS is quite expensive at the moment. 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.
Each year in the past 5 years GDS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GDS (6.10%) is better than 70.73% of its industry peers.
GDS has a better Return On Equity (18.43%) than 80.49% of its industry peers.
With a Return On Invested Capital value of 1.58%, GDS perfoms like the industry average, outperforming 47.56% 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 21.64%.
The 3 year average ROIC (1.07%) for GDS is below the current ROIC(1.58%), indicating increased profibility in the last year.
| 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
The Profit Margin of GDS (43.00%) is better than 98.78% of its industry peers.
Looking at the Operating Margin, with a value of 12.46%, GDS is in the better half of the industry, outperforming 73.17% 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 (22.02%) 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
GDS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for GDS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.58, we must say that GDS is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.58, GDS is doing worse than 73.17% of the companies in the same industry.
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.
GDS's Debt to FCF ratio of 243.21 is on the low side compared to the rest of the industry. GDS is outperformed by 62.20% of its industry peers.
GDS has a Debt/Equity ratio of 1.55. This is a high value indicating a heavy dependency on external financing.
GDS has a worse Debt to Equity ratio (1.55) than 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | 243.21 | ||
| Altman-Z | 0.58 |
ROIC/WACC0.32
WACC4.94%
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 has a Current ratio (1.47) which is in line with its industry peers.
A Quick Ratio of 1.47 indicates that GDS should not have too much problems paying its short term obligations.
GDS's Quick ratio of 1.47 is in line compared to the rest of the industry. GDS outperforms 40.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 91.11% over the past year.
GDS shows a small growth in Revenue. In the last year, the Revenue has grown by 2.39%.
The Revenue has been growing by 20.15% on average over the past years. This is a very strong growth!
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
GDS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.16% yearly.
Based on estimates for the next years, GDS will show a quite strong growth in Revenue. The Revenue will grow by 11.87% on average per year.
EPS Next Y39.24%
EPS Next 2Y35.01%
EPS Next 3Y31.87%
EPS Next 5Y27.16%
Revenue Next Year0.93%
Revenue Next 2Y7.02%
Revenue Next 3Y9.24%
Revenue Next 5Y11.87%
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
Based on the Enterprise Value to EBITDA ratio, GDS is valued a bit cheaper than 63.41% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as GDS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 195.86 | ||
| EV/EBITDA | 15.23 |
4.3 Compensation for Growth
A more expensive valuation may be justified as GDS's earnings are expected to grow with 31.87% in the coming years.
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 |
25.68
-1.04 (-3.89%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners32.74%
Inst Owner Change-7.88%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.76B
Analysts88
Price Target26.28 (2.34%)
Short Float %7.05%
Short Ratio3.69
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)-11.82%
PT rev (3m)-32.49%
EPS NQ rev (1m)-26.91%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-26.91%
EPS NY rev (3m)-25.24%
Revenue NQ rev (1m)-1.3%
Revenue NQ rev (3m)N/A
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 | 3.28 | ||
| P/FCF | 195.86 | ||
| P/OCF | 12.03 | ||
| P/B | 1.41 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | 15.23 |
EPS(TTM)-0.1
EYN/A
EPS(NY)-0.18
Fwd EYN/A
FCF(TTM)0.13
FCFY0.51%
OCF(TTM)2.13
OCFY8.31%
SpS7.82
BVpS18.24
TBVpS13.67
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 | 0.58 |
F-Score7
WACC4.94%
ROIC/WACC0.32
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 5Y27.16%
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 5Y11.87%
EBIT growth 1Y109.57%
EBIT growth 3Y26.47%
EBIT growth 5Y19.15%
EBIT Next Year404.9%
EBIT Next 3Y86.9%
EBIT Next 5Y53.05%
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%