GRID DYNAMICS HOLDINGS INC (GDYN) Stock Fundamental Analysis
USA - NASDAQ:GDYN - US39813G1094 - Common Stock
7.53 USD
-0.24 (-3.09%)
7.68 USD
+0.15 (+1.99%)
GDYN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 86 industry peers in the IT Services industry. While GDYN has a great health rating, there are worries on its profitability. GDYN is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year GDYN was profitable.
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
GDYN has a Return On Assets (2.79%) which is comparable to the rest of the industry.
GDYN's Return On Equity of 3.19% is in line compared to the rest of the industry. GDYN outperforms 54.65% of its industry peers.
GDYN has a Return On Invested Capital (0.37%) which is comparable to the rest of the 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
Looking at the Profit Margin, with a value of 4.37%, GDYN is in the better half of the industry, outperforming 60.47% of the companies in the same industry.
GDYN's Operating Margin of 0.66% is in line compared to the rest of the industry. GDYN outperforms 40.70% of its industry peers.
GDYN has a Gross Margin of 36.30%. This is comparable to the rest of the industry: GDYN outperforms 52.33% of 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
An Altman-Z score of 6.53 indicates that GDYN is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.53, GDYN belongs to the best of the industry, outperforming 81.40% 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 | 6.53 |
ROIC/WACC0.04
WACC9.17%
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.
The Current ratio of GDYN (7.37) is better than 96.51% of its industry peers.
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.
Looking at the Quick ratio, with a value of 7.37, GDYN belongs to the top of the industry, outperforming 96.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.37 | ||
| Quick Ratio | 7.37 |
3. Growth
3.1 Past
GDYN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 43.33%, which is quite impressive.
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!
The Revenue has been growing by 18.38% on average over the past years. This is quite good.
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
GDYN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.27% yearly.
GDYN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.01% yearly.
EPS Next Y2.55%
EPS Next 2Y12.92%
EPS Next 3Y12.27%
EPS Next 5YN/A
Revenue Next Year19.74%
Revenue Next 2Y15.14%
Revenue Next 3Y15.01%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 17.51, which indicates a rather expensive current valuation of GDYN.
GDYN's Price/Earnings ratio is a bit cheaper when compared to the industry. GDYN is cheaper than 70.93% of the companies in the same industry.
When comparing the Price/Earnings ratio of GDYN to the average of the S&P500 Index (27.38), we can say GDYN is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.96 indicates a correct valuation of GDYN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GDYN indicates a somewhat cheap valuation: GDYN is cheaper than 70.93% of the companies listed in the same industry.
GDYN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 15.96 |
4.2 Price Multiples
69.77% of the companies in the same industry are more expensive than GDYN, based on the Enterprise Value to EBITDA ratio.
GDYN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.98 | ||
| EV/EBITDA | 11.78 |
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 12.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.86
PEG (5Y)N/A
EPS Next 2Y12.92%
EPS Next 3Y12.27%
5. Dividend
5.1 Amount
No dividends for GDYN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.53
-0.24 (-3.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners83.16%
Inst Owner Change3.41%
Ins Owners5.5%
Ins Owner Change-1.51%
Market Cap637.57M
Analysts83.64
Price Target14.96 (98.67%)
Short Float %6.46%
Short Ratio3.61
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)0%
PT rev (3m)-22.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-29.03%
EPS NY rev (1m)-14.68%
EPS NY rev (3m)-11.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.35%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 15.96 | ||
| P/S | 1.64 | ||
| P/FCF | 23.98 | ||
| P/OCF | 15.93 | ||
| P/B | 1.2 | ||
| P/tB | 1.59 | ||
| EV/EBITDA | 11.78 |
EPS(TTM)0.43
EY5.71%
EPS(NY)0.47
Fwd EY6.26%
FCF(TTM)0.31
FCFY4.17%
OCF(TTM)0.47
OCFY6.28%
SpS4.6
BVpS6.29
TBVpS4.74
PEG (NY)6.86
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 | 6.53 |
F-Score7
WACC9.17%
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 Y2.55%
EPS Next 2Y12.92%
EPS Next 3Y12.27%
EPS Next 5YN/A
Revenue 1Y (TTM)22.27%
Revenue growth 3Y18.38%
Revenue growth 5YN/A
Sales Q2Q%21.75%
Revenue Next Year19.74%
Revenue Next 2Y15.14%
Revenue Next 3Y15.01%
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