GRID DYNAMICS HOLDINGS INC (GDYN) Stock Fundamental Analysis
NASDAQ:GDYN - Nasdaq - US39813G1094 - Common Stock - Currency: USD
Overall GDYN gets a fundamental rating of 5 out of 10. We evaluated GDYN against 82 industry peers in the IT Services industry. While GDYN has a great health rating, there are worries on its profitability. GDYN is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year GDYN was profitable.
GDYN had a positive operating cash flow in the past year.
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
GDYN's Return On Assets of 1.84% is in line compared to the rest of the industry. GDYN outperforms 51.22% of its industry peers.
Looking at the Return On Equity, with a value of 2.11%, GDYN is in line with its industry, outperforming 52.44% of the companies in the same industry.
GDYN has a Return On Invested Capital of 0.38%. This is comparable to the rest of the industry: GDYN outperforms 42.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.84% | ||
| ROE | 2.11% | ||
| ROIC | 0.38% |
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 has a Profit Margin (2.94%) which is comparable to the rest of the industry.
With a Operating Margin value of 0.70%, GDYN perfoms like the industry average, outperforming 41.46% of the companies in the same industry.
GDYN has a Gross Margin of 36.73%. This is comparable to the rest of the industry: GDYN outperforms 54.88% of its industry peers.
In the last couple of years the Gross Margin of GDYN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.7% | ||
| PM (TTM) | 2.94% | ||
| GM | 36.73% |
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.
Compared to 1 year ago, GDYN has more shares outstanding
GDYN has more shares outstanding than it did 5 years ago.
GDYN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
GDYN has an Altman-Z score of 9.69. This indicates that GDYN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.69, GDYN belongs to the top of the industry, outperforming 89.02% of the companies in the same industry.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 9.69 |
ROIC/WACC0.04
WACC9.39%
2.3 Liquidity
A Current Ratio of 7.25 indicates that GDYN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 7.25, GDYN belongs to the top of the industry, outperforming 97.56% of the companies in the same industry.
GDYN has a Quick Ratio of 7.25. This indicates that GDYN is financially healthy and has no problem in meeting its short term obligations.
GDYN has a Quick ratio of 7.25. This is amongst the best in the industry. GDYN outperforms 97.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.25 | ||
| Quick Ratio | 7.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 32.26% over the past year.
GDYN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.92% yearly.
The Revenue has grown by 18.72% in the past year. This is quite good.
Measured over the past years, GDYN shows a quite strong growth in Revenue. The Revenue has been growing by 18.38% on average per year.
EPS 1Y (TTM)32.26%
EPS 3Y0.92%
EPS 5YN/A
EPS Q2Q%57.14%
Revenue 1Y (TTM)18.72%
Revenue growth 3Y18.38%
Revenue growth 5YN/A
Sales Q2Q%25.81%
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.
GDYN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.93% yearly.
EPS Next Y16.34%
EPS Next 2Y15.63%
EPS Next 3Y21.46%
EPS Next 5YN/A
Revenue Next Year20.05%
Revenue Next 2Y16.96%
Revenue Next 3Y17.93%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.44, the valuation of GDYN can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as GDYN.
Compared to an average S&P500 Price/Earnings ratio of 26.60, GDYN is valued at the same level.
With a Price/Forward Earnings ratio of 24.40, GDYN is valued on the expensive side.
GDYN's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.39. GDYN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.44 | ||
| Fwd PE | 24.4 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GDYN.
GDYN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.82 | ||
| EV/EBITDA | 37.32 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GDYN does not grow enough to justify the current Price/Earnings ratio.
GDYN's earnings are expected to grow with 21.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.8
PEG (5Y)N/A
EPS Next 2Y15.63%
EPS Next 3Y21.46%
5. Dividend
5.1 Amount
GDYN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.07
-0.19 (-1.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners86.86%
Inst Owner Change0.54%
Ins Owners5.3%
Ins Owner Change-0.64%
Market Cap1.02B
Analysts83.64
Price Target19.38 (60.56%)
Short Float %5.56%
Short Ratio5.28
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)20.37%
Min EPS beat(2)15.34%
Max EPS beat(2)25.4%
EPS beat(4)4
Avg EPS beat(4)13.68%
Min EPS beat(4)6.76%
Max EPS beat(4)25.4%
EPS beat(8)5
Avg EPS beat(8)6.57%
EPS beat(12)8
Avg EPS beat(12)11.45%
EPS beat(16)12
Avg EPS beat(16)22.81%
Revenue beat(2)2
Avg Revenue beat(2)1.2%
Min Revenue beat(2)0.09%
Max Revenue beat(2)2.3%
Revenue beat(4)4
Avg Revenue beat(4)0.84%
Min Revenue beat(4)0.09%
Max Revenue beat(4)2.3%
Revenue beat(8)5
Avg Revenue beat(8)0.21%
Revenue beat(12)8
Avg Revenue beat(12)0.48%
Revenue beat(16)12
Avg Revenue beat(16)3.15%
PT rev (1m)-9.52%
PT rev (3m)-7.77%
EPS NQ rev (1m)-8%
EPS NQ rev (3m)-13.21%
EPS NY rev (1m)-1.4%
EPS NY rev (3m)-1.4%
Revenue NQ rev (1m)-0.76%
Revenue NQ rev (3m)-1.88%
Revenue NY rev (1m)-0.54%
Revenue NY rev (3m)1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.44 | ||
| Fwd PE | 24.4 | ||
| P/S | 2.75 | ||
| P/FCF | 41.82 | ||
| P/OCF | 28.11 | ||
| P/B | 1.97 | ||
| P/tB | 2.64 | ||
| EV/EBITDA | 37.32 |
EPS(TTM)0.41
EY3.4%
EPS(NY)0.49
Fwd EY4.1%
FCF(TTM)0.29
FCFY2.39%
OCF(TTM)0.43
OCFY3.56%
SpS4.39
BVpS6.12
TBVpS4.57
PEG (NY)1.8
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.84% | ||
| ROE | 2.11% | ||
| ROCE | 0.49% | ||
| ROIC | 0.38% | ||
| ROICexc | 0.99% | ||
| ROICexgc | 2.67% | ||
| OM | 0.7% | ||
| PM (TTM) | 2.94% | ||
| GM | 36.73% | ||
| FCFM | 6.57% |
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-Score6
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 74.27% | ||
| Cap/Sales | 3.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 194.98% | ||
| Profit Quality | 223.84% | ||
| Current Ratio | 7.25 | ||
| Quick Ratio | 7.25 | ||
| Altman-Z | 9.69 |
F-Score6
WACC9.39%
ROIC/WACC0.04
Cap/Depr(3y)87.47%
Cap/Depr(5y)88.03%
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)32.26%
EPS 3Y0.92%
EPS 5YN/A
EPS Q2Q%57.14%
EPS Next Y16.34%
EPS Next 2Y15.63%
EPS Next 3Y21.46%
EPS Next 5YN/A
Revenue 1Y (TTM)18.72%
Revenue growth 3Y18.38%
Revenue growth 5YN/A
Sales Q2Q%25.81%
Revenue Next Year20.05%
Revenue Next 2Y16.96%
Revenue Next 3Y17.93%
Revenue Next 5YN/A
EBIT growth 1Y150.4%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year61.52%
EBIT Next 3Y37.19%
EBIT Next 5YN/A
FCF growth 1Y-12.19%
FCF growth 3Y11.63%
FCF growth 5YN/A
OCF growth 1Y7.42%
OCF growth 3Y18.89%
OCF growth 5YN/A