GDS HOLDINGS LTD - ADR (GDS) Stock Fundamental Analysis
USA - NASDAQ:GDS - US36165L1089 - ADR
33.91 USD
-0.26 (-0.76%)
34.49 USD
+0.58 (+1.71%)
GDS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 85 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 was profitable.
In the past year GDS had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 5.85%, GDS is in the better half of the industry, outperforming 71.76% of the companies in the same industry.
The Return On Equity of GDS (18.19%) is better than 83.53% of its industry peers.
The Return On Invested Capital of GDS (1.57%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for GDS is significantly below the industry average of 27.96%.
The 3 year average ROIC (1.07%) for GDS is below the current ROIC(1.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.85% | ||
| ROE | 18.19% | ||
| ROIC | 1.57% |
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
With an excellent Profit Margin value of 44.16%, GDS belongs to the best of the industry, outperforming 98.82% of the companies in the same industry.
GDS has a better Operating Margin (13.31%) than 76.47% of its industry peers.
GDS's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 22.35%, GDS is not doing good in the industry: 78.82% of the companies in the same industry are doing better.
GDS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.31% | ||
| PM (TTM) | 44.16% | ||
| 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
GDS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
GDS has more shares outstanding than it did 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 0.75, we must say that GDS is in the distress zone and has some risk of bankruptcy.
GDS has a worse Altman-Z score (0.75) than 69.41% of its industry peers.
GDS has a debt to FCF ratio of 38.87. This is a negative value and a sign of low solvency as GDS would need 38.87 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 38.87, GDS is in line with its industry, outperforming 42.35% of the companies in the same industry.
A Debt/Equity ratio of 1.65 is on the high side and indicates that GDS has dependencies on debt financing.
GDS has a Debt to Equity ratio of 1.65. This is in the lower half of the industry: GDS underperforms 75.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.65 | ||
| Debt/FCF | 38.87 | ||
| Altman-Z | 0.75 |
ROIC/WACC0.3
WACC5.27%
2.3 Liquidity
A Current Ratio of 2.00 indicates that GDS should not have too much problems paying its short term obligations.
The Current ratio of GDS (2.00) is comparable to the rest of the industry.
GDS has a Quick Ratio of 2.00. This is a normal value and indicates that GDS is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 2.00, GDS perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
GDS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 103.46%, which is quite impressive.
The Revenue has decreased by -0.36% in the past year.
GDS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.15% yearly.
EPS 1Y (TTM)103.46%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%62.5%
Revenue 1Y (TTM)-0.36%
Revenue growth 3Y9.7%
Revenue growth 5Y20.15%
Sales Q2Q%2.62%
3.2 Future
GDS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.53% yearly.
The Revenue is expected to grow by 11.57% on average over the next years. This is quite good.
EPS Next Y171.21%
EPS Next 2Y38.08%
EPS Next 3Y32.11%
EPS Next 5Y25.53%
Revenue Next Year-0.57%
Revenue Next 2Y6.54%
Revenue Next 3Y8.81%
Revenue Next 5Y11.57%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 1130.33, the valuation of GDS can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of GDS indicates a slightly more expensive valuation: GDS is more expensive than 61.18% of the companies listed in the same industry.
GDS is valuated expensively when we compare the Price/Earnings ratio to 25.67, which is the current average of the S&P500 Index.
GDS is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1130.33 | ||
| Fwd PE | N/A |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.75 | ||
| EV/EBITDA | 17.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GDS's earnings are expected to grow with 32.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.6
PEG (5Y)N/A
EPS Next 2Y38.08%
EPS Next 3Y32.11%
5. Dividend
5.1 Amount
GDS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
33.91
-0.26 (-0.76%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners37.31%
Inst Owner Change-2.06%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.49B
Revenue(TTM)10.49B
Net Income(TTM)4.63B
Analysts88
Price Target37.66 (11.06%)
Short Float %6.84%
Short Ratio3.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.04
Dividend Growth(5Y)9.36%
DP1.17%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)414.54%
Min EPS beat(2)26.47%
Max EPS beat(2)802.61%
EPS beat(4)4
Avg EPS beat(4)218.78%
Min EPS beat(4)5.7%
Max EPS beat(4)802.61%
EPS beat(8)8
Avg EPS beat(8)122.1%
EPS beat(12)11
Avg EPS beat(12)92.58%
EPS beat(16)12
Avg EPS beat(16)61.72%
Revenue beat(2)1
Avg Revenue beat(2)-1.91%
Min Revenue beat(2)-4.55%
Max Revenue beat(2)0.74%
Revenue beat(4)1
Avg Revenue beat(4)-1.71%
Min Revenue beat(4)-4.55%
Max Revenue beat(4)0.74%
Revenue beat(8)1
Avg Revenue beat(8)-2.05%
Revenue beat(12)1
Avg Revenue beat(12)-2.16%
Revenue beat(16)2
Avg Revenue beat(16)-1.83%
PT rev (1m)-5.34%
PT rev (3m)-2.99%
EPS NQ rev (1m)-29.41%
EPS NQ rev (3m)-2.04%
EPS NY rev (1m)0%
EPS NY rev (3m)197.85%
Revenue NQ rev (1m)0.85%
Revenue NQ rev (3m)1.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1130.33 | ||
| Fwd PE | N/A | ||
| P/S | 4.41 | ||
| P/FCF | 38.75 | ||
| P/OCF | 14.61 | ||
| P/B | 1.82 | ||
| P/tB | 2.33 | ||
| EV/EBITDA | 17.3 |
EPS(TTM)0.03
EY0.09%
EPS(NY)-0.08
Fwd EYN/A
FCF(TTM)0.88
FCFY2.58%
OCF(TTM)2.32
OCFY6.84%
SpS7.69
BVpS18.67
TBVpS14.53
PEG (NY)6.6
PEG (5Y)N/A
Graham Number3.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.85% | ||
| ROE | 18.19% | ||
| ROCE | 1.99% | ||
| ROIC | 1.57% | ||
| ROICexc | 1.93% | ||
| ROICexgc | 2.14% | ||
| OM | 13.31% | ||
| PM (TTM) | 44.16% | ||
| GM | 22.35% | ||
| FCFM | 11.39% |
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-Score6
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.65 | ||
| Debt/FCF | 38.87 | ||
| Debt/EBITDA | 9.07 | ||
| Cap/Depr | 61.16% | ||
| Cap/Sales | 18.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.52% | ||
| Profit Quality | 25.78% | ||
| Current Ratio | 2 | ||
| Quick Ratio | 2 | ||
| Altman-Z | 0.75 |
F-Score6
WACC5.27%
ROIC/WACC0.3
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)103.46%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%62.5%
EPS Next Y171.21%
EPS Next 2Y38.08%
EPS Next 3Y32.11%
EPS Next 5Y25.53%
Revenue 1Y (TTM)-0.36%
Revenue growth 3Y9.7%
Revenue growth 5Y20.15%
Sales Q2Q%2.62%
Revenue Next Year-0.57%
Revenue Next 2Y6.54%
Revenue Next 3Y8.81%
Revenue Next 5Y11.57%
EBIT growth 1Y102.23%
EBIT growth 3Y26.47%
EBIT growth 5Y19.15%
EBIT Next Year416.52%
EBIT Next 3Y85.66%
EBIT Next 5Y52.83%
FCF growth 1Y115.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y51.62%
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.
Can you provide the valuation status for GDS HOLDINGS LTD - ADR?
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.
What are the PE and PB ratios of GDS HOLDINGS LTD - ADR (GDS) stock?
The Price/Earnings (PE) ratio for GDS HOLDINGS LTD - ADR (GDS) is 1130.33 and the Price/Book (PB) ratio is 1.82.
What is the financial health of GDS HOLDINGS LTD - ADR (GDS) stock?
The financial health rating of GDS HOLDINGS LTD - ADR (GDS) is 2 / 10.