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 expensive, but it does show an excellent growth.
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.
In the past 5 years GDYN reported 4 times negative net income.
Each year in the past 5 years GDYN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GDYN (0.68%) is comparable to the rest of the industry.
GDYN has a Return On Equity (0.78%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.68% | ||
| ROE | 0.78% | ||
| ROIC | N/A |
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 1.15% is in line compared to the rest of the industry. GDYN outperforms 51.22% of its industry peers.
Looking at the Gross Margin, with a value of 36.23%, GDYN is in line with its industry, outperforming 54.88% of the companies in the same industry.
GDYN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 1.15% | ||
| GM | 36.23% |
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
GDYN does not have a ROIC to compare to the WACC, probably because it is not profitable.
GDYN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for GDYN has been increased compared to 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 10.91. 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 10.91, GDYN belongs to the top of the industry, outperforming 91.46% 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 | 10.91 |
ROIC/WACCN/A
WACC8.88%
2.3 Liquidity
A Current Ratio of 7.62 indicates that GDYN has no problem at all paying its short term obligations.
GDYN has a Current ratio of 7.62. This is amongst the best in the industry. GDYN outperforms 98.78% of its industry peers.
A Quick Ratio of 7.62 indicates that GDYN has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 7.62, GDYN belongs to the best of the industry, outperforming 98.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.62 | ||
| Quick Ratio | 7.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.62% 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.
GDYN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.04%.
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)15.62%
EPS 3Y0.92%
EPS 5YN/A
EPS Q2Q%71.43%
Revenue 1Y (TTM)12.04%
Revenue growth 3Y18.38%
Revenue growth 5YN/A
Sales Q2Q%28.45%
3.2 Future
GDYN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.46% yearly.
The Revenue is expected to grow by 18.76% on average over the next years. This is quite good.
EPS Next Y17.99%
EPS Next 2Y15.63%
EPS Next 3Y21.46%
EPS Next 5YN/A
Revenue Next Year21.36%
Revenue Next 2Y19.61%
Revenue Next 3Y18.76%
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
GDYN is valuated quite expensively with a Price/Earnings ratio of 38.27.
GDYN's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.88. GDYN is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 32.44, which means the current valuation is very expensive for GDYN.
The rest of the industry has a similar Price/Forward Earnings ratio as GDYN.
GDYN is valuated expensively when we compare the Price/Forward Earnings ratio to 21.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.27 | ||
| Fwd PE | 32.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GDYN indicates a slightly more expensive valuation: GDYN is more expensive than 64.63% of the companies listed in the same industry.
GDYN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.41 | ||
| EV/EBITDA | 66.3 |
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.
A more expensive valuation may be justified as GDYN's earnings are expected to grow with 21.46% in the coming years.
PEG (NY)2.13
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 |
14.16
-0.04 (-0.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners86.86%
Inst Owner Change0.07%
Ins Owners5.3%
Ins Owner Change-0.67%
Market Cap1.19B
Analysts83.64
Price Target20.74 (46.47%)
Short Float %4.86%
Short Ratio4.09
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)11.05%
Min EPS beat(2)6.76%
Max EPS beat(2)15.34%
EPS beat(4)3
Avg EPS beat(4)6.5%
Min EPS beat(4)-3.34%
Max EPS beat(4)15.34%
EPS beat(8)4
Avg EPS beat(8)3%
EPS beat(12)8
Avg EPS beat(12)18.6%
EPS beat(16)12
Avg EPS beat(16)27.74%
Revenue beat(2)2
Avg Revenue beat(2)1.44%
Min Revenue beat(2)0.58%
Max Revenue beat(2)2.3%
Revenue beat(4)4
Avg Revenue beat(4)0.94%
Min Revenue beat(4)0.4%
Max Revenue beat(4)2.3%
Revenue beat(8)4
Avg Revenue beat(8)0.02%
Revenue beat(12)8
Avg Revenue beat(12)1.32%
Revenue beat(16)12
Avg Revenue beat(16)3.6%
PT rev (1m)-16.15%
PT rev (3m)7.02%
EPS NQ rev (1m)-2.27%
EPS NQ rev (3m)-4.44%
EPS NY rev (1m)-1.83%
EPS NY rev (3m)-2.28%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)2.27%
Revenue NY rev (1m)-1.62%
Revenue NY rev (3m)2.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.27 | ||
| Fwd PE | 32.44 | ||
| P/S | 3.39 | ||
| P/FCF | 64.41 | ||
| P/OCF | 39.31 | ||
| P/B | 2.29 | ||
| P/tB | 3.07 | ||
| EV/EBITDA | 66.3 |
EPS(TTM)0.37
EY2.61%
EPS(NY)0.44
Fwd EY3.08%
FCF(TTM)0.22
FCFY1.55%
OCF(TTM)0.36
OCFY2.54%
SpS4.18
BVpS6.18
TBVpS4.61
PEG (NY)2.13
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.68% | ||
| ROE | 0.78% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 1.15% | ||
| GM | 36.23% | ||
| FCFM | 5.26% |
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 Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 82.7% | ||
| Cap/Sales | 3.36% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 233.91% | ||
| Profit Quality | 456.13% | ||
| Current Ratio | 7.62 | ||
| Quick Ratio | 7.62 | ||
| Altman-Z | 10.91 |
F-Score6
WACC8.88%
ROIC/WACCN/A
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)15.62%
EPS 3Y0.92%
EPS 5YN/A
EPS Q2Q%71.43%
EPS Next Y17.99%
EPS Next 2Y15.63%
EPS Next 3Y21.46%
EPS Next 5YN/A
Revenue 1Y (TTM)12.04%
Revenue growth 3Y18.38%
Revenue growth 5YN/A
Sales Q2Q%28.45%
Revenue Next Year21.36%
Revenue Next 2Y19.61%
Revenue Next 3Y18.76%
Revenue Next 5YN/A
EBIT growth 1Y76.4%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year70.67%
EBIT Next 3Y42.67%
EBIT Next 5YN/A
FCF growth 1Y-44.52%
FCF growth 3Y11.63%
FCF growth 5YN/A
OCF growth 1Y-26.51%
OCF growth 3Y18.89%
OCF growth 5YN/A