GRID DYNAMICS HOLDINGS INC (GDYN) Stock Fundamental Analysis
NASDAQ:GDYN - Nasdaq - US39813G1094 - Common Stock - Currency: USD
Taking everything into account, GDYN scores 6 out of 10 in our fundamental rating. GDYN was compared to 83 industry peers in the IT Services industry. GDYN has a great financial health rating, but its profitability evaluates not so good. GDYN is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
GDYN had positive earnings in the past year.
In the past year GDYN had a positive cash flow from operations.
GDYN had negative earnings in 4 of the past 5 years.
Each year in the past 5 years GDYN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.79%, GDYN is in line with its industry, outperforming 57.83% of the companies in the same industry.
GDYN has a Return On Equity (3.19%) which is in line with its industry peers.
With a Return On Invested Capital value of 0.37%, GDYN perfoms like the industry average, outperforming 44.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.79% | ||
| ROE | 3.19% | ||
| ROIC | 0.37% |
ROA(3y)-2.28%
ROA(5y)-3.47%
ROE(3y)-2.57%
ROE(5y)-3.88%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
GDYN's Profit Margin of 4.37% is fine compared to the rest of the industry. GDYN outperforms 61.45% of its industry peers.
GDYN's Operating Margin of 0.66% is in line compared to the rest of the industry. GDYN outperforms 43.37% of its industry peers.
GDYN has a Gross Margin (36.30%) which is in line with its industry peers.
In the last couple of years the Gross Margin of GDYN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.66% | ||
| PM (TTM) | 4.37% | ||
| GM | 36.3% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.43%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GDYN is destroying value.
The number of shares outstanding for GDYN has been increased compared to 1 year ago.
Compared to 5 years ago, GDYN has more shares outstanding
There is no outstanding debt for GDYN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
GDYN has an Altman-Z score of 6.48. This indicates that GDYN is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.48, GDYN belongs to the best of the industry, outperforming 84.34% of the companies in the same industry.
GDYN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.48 |
ROIC/WACC0.04
WACC9.09%
2.3 Liquidity
GDYN has a Current Ratio of 7.37. This indicates that GDYN is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 7.37, GDYN belongs to the best of the industry, outperforming 96.39% of the companies in the same industry.
GDYN has a Quick Ratio of 7.37. This indicates that GDYN is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of GDYN (7.37) is better than 96.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.37 | ||
| Quick Ratio | 7.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 43.33% over the past year.
The Earnings Per Share has been growing slightly by 0.92% on average over the past years.
The Revenue has grown by 22.27% in the past year. This is a very strong growth!
GDYN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.38% yearly.
EPS 1Y (TTM)43.33%
EPS 3Y0.92%
EPS 5YN/A
EPS Q2Q%25%
Revenue 1Y (TTM)22.27%
Revenue growth 3Y18.38%
Revenue growth 5YN/A
Sales Q2Q%21.75%
3.2 Future
Based on estimates for the next years, GDYN will show a very strong growth in Earnings Per Share. The EPS will grow by 21.46% on average per year.
Based on estimates for the next years, GDYN will show a quite strong growth in Revenue. The Revenue will grow by 18.02% on average per year.
EPS Next Y20.19%
EPS Next 2Y15.93%
EPS Next 3Y21.46%
EPS Next 5YN/A
Revenue Next Year20.18%
Revenue Next 2Y17.03%
Revenue Next 3Y18.02%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.91 indicates a rather expensive valuation of GDYN.
Based on the Price/Earnings ratio, GDYN is valued a bit cheaper than the industry average as 67.47% of the companies are valued more expensively.
GDYN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.84.
GDYN is valuated correctly with a Price/Forward Earnings ratio of 15.49.
GDYN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GDYN is cheaper than 67.47% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.29, GDYN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.91 | ||
| Fwd PE | 15.49 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GDYN indicates a somewhat cheap valuation: GDYN is cheaper than 68.67% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GDYN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.49 | ||
| EV/EBITDA | 11.53 |
4.3 Compensation for Growth
GDYN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GDYN's earnings are expected to grow with 21.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.89
PEG (5Y)N/A
EPS Next 2Y15.93%
EPS Next 3Y21.46%
5. Dividend
5.1 Amount
No dividends for GDYN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.7
-0.29 (-3.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners83.16%
Inst Owner Change3.7%
Ins Owners5.5%
Ins Owner Change-4.02%
Market Cap651.03M
Analysts83.64
Price Target14.96 (94.29%)
Short Float %6.25%
Short Ratio5.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.85%
Min EPS beat(2)4.3%
Max EPS beat(2)25.4%
EPS beat(4)4
Avg EPS beat(4)12.95%
Min EPS beat(4)4.3%
Max EPS beat(4)25.4%
EPS beat(8)5
Avg EPS beat(8)5.64%
EPS beat(12)8
Avg EPS beat(12)9.06%
EPS beat(16)12
Avg EPS beat(16)19.12%
Revenue beat(2)1
Avg Revenue beat(2)-0.71%
Min Revenue beat(2)-1.52%
Max Revenue beat(2)0.09%
Revenue beat(4)3
Avg Revenue beat(4)0.36%
Min Revenue beat(4)-1.52%
Max Revenue beat(4)2.3%
Revenue beat(8)5
Avg Revenue beat(8)0.16%
Revenue beat(12)7
Avg Revenue beat(12)0.06%
Revenue beat(16)11
Avg Revenue beat(16)2.34%
PT rev (1m)-22.81%
PT rev (3m)-30.16%
EPS NQ rev (1m)-24.14%
EPS NQ rev (3m)-29.03%
EPS NY rev (1m)0%
EPS NY rev (3m)1.87%
Revenue NQ rev (1m)-1.62%
Revenue NQ rev (3m)-4.35%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.91 | ||
| Fwd PE | 15.49 | ||
| P/S | 1.67 | ||
| P/FCF | 24.49 | ||
| P/OCF | 16.27 | ||
| P/B | 1.22 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | 11.53 |
EPS(TTM)0.43
EY5.58%
EPS(NY)0.5
Fwd EY6.46%
FCF(TTM)0.31
FCFY4.08%
OCF(TTM)0.47
OCFY6.15%
SpS4.6
BVpS6.29
TBVpS4.75
PEG (NY)0.89
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.79% | ||
| ROE | 3.19% | ||
| ROCE | 0.47% | ||
| ROIC | 0.37% | ||
| ROICexc | 0.96% | ||
| ROICexgc | 2.47% | ||
| OM | 0.66% | ||
| PM (TTM) | 4.37% | ||
| GM | 36.3% | ||
| FCFM | 6.83% |
ROA(3y)-2.28%
ROA(5y)-3.47%
ROE(3y)-2.57%
ROE(5y)-3.88%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.43%
GM growth 5YN/A
F-Score7
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 54.43% | ||
| Cap/Sales | 3.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 146.8% | ||
| Profit Quality | 156.45% | ||
| Current Ratio | 7.37 | ||
| Quick Ratio | 7.37 | ||
| Altman-Z | 6.48 |
F-Score7
WACC9.09%
ROIC/WACC0.04
Cap/Depr(3y)73.1%
Cap/Depr(5y)79.41%
Cap/Sales(3y)2.61%
Cap/Sales(5y)2.42%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)43.33%
EPS 3Y0.92%
EPS 5YN/A
EPS Q2Q%25%
EPS Next Y20.19%
EPS Next 2Y15.93%
EPS Next 3Y21.46%
EPS Next 5YN/A
Revenue 1Y (TTM)22.27%
Revenue growth 3Y18.38%
Revenue growth 5YN/A
Sales Q2Q%21.75%
Revenue Next Year20.18%
Revenue Next 2Y17.03%
Revenue Next 3Y18.02%
Revenue Next 5YN/A
EBIT growth 1Y142.19%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year40.59%
EBIT Next 3Y25.51%
EBIT Next 5YN/A
FCF growth 1Y-17.7%
FCF growth 3Y11.63%
FCF growth 5YN/A
OCF growth 1Y2.83%
OCF growth 3Y18.89%
OCF growth 5YN/A