GRID DYNAMICS HOLDINGS INC (GDYN) Stock Fundamental Analysis
USA - NASDAQ:GDYN - US39813G1094 - Common Stock
8.97 USD
+0.16 (+1.82%)
8.9766 USD
+0.01 (+0.07%)
Taking everything into account, GDYN scores 5 out of 10 in our fundamental rating. GDYN was compared to 85 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.
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 has a Return On Assets (2.79%) which is comparable to the rest of the industry.
GDYN has a Return On Equity (3.19%) which is in line with 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 line with its industry, outperforming 60.00% of the companies in the same industry.
With a Operating Margin value of 0.66%, GDYN is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
GDYN has a Gross Margin (36.30%) which is comparable to the rest of the industry.
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
GDYN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, GDYN has more shares outstanding
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
An Altman-Z score of 7.22 indicates that GDYN is not in any danger for bankruptcy at the moment.
The Altman-Z score of GDYN (7.22) is better than 84.71% of its industry peers.
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 | 7.22 |
ROIC/WACC0.04
WACC8.79%
2.3 Liquidity
A Current Ratio of 7.37 indicates that GDYN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 7.37, GDYN belongs to the top of the industry, outperforming 94.12% 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.
GDYN's Quick ratio of 7.37 is amongst the best of the industry. GDYN outperforms 94.12% of its industry peers.
| 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 31.25%, which is quite impressive.
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)31.25%
EPS 3Y0.92%
EPS 5YN/A
EPS Q2Q%-10%
Revenue 1Y (TTM)12.04%
Revenue growth 3Y18.38%
Revenue growth 5YN/A
Sales Q2Q%19.13%
3.2 Future
The Earnings Per Share is expected to grow by 15.06% on average over the next years. This is quite good.
Based on estimates for the next years, GDYN will show a quite strong growth in Revenue. The Revenue will grow by 14.42% on average per year.
EPS Next Y2.46%
EPS Next 2Y13.02%
EPS Next 3Y15.06%
EPS Next 5YN/A
Revenue Next Year19.18%
Revenue Next 2Y14.55%
Revenue Next 3Y14.42%
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 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 21.36, the valuation of GDYN can be described as rather expensive.
Based on the Price/Earnings ratio, GDYN is valued a bit cheaper than the industry average as 61.18% of the companies are valued more expensively.
GDYN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.13.
A Price/Forward Earnings ratio of 18.98 indicates a rather expensive valuation of GDYN.
GDYN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GDYN is cheaper than 61.18% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GDYN to the average of the S&P500 Index (22.35), we can say GDYN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.36 | ||
| Fwd PE | 18.98 |
4.2 Price Multiples
GDYN's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 28.57 | ||
| EV/EBITDA | 20.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as GDYN's earnings are expected to grow with 15.06% in the coming years.
PEG (NY)8.68
PEG (5Y)N/A
EPS Next 2Y13.02%
EPS Next 3Y15.06%
5. Dividend
5.1 Amount
GDYN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.97
+0.16 (+1.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners85.4%
Inst Owner Change-0.58%
Ins Owners5.5%
Ins Owner Change-1.01%
Market Cap759.49M
Revenue(TTM)350.57M
Net Income(TTM)16.99M
Analysts85
Price Target13.26 (47.83%)
Short Float %6.37%
Short Ratio3.56
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)-11.36%
PT rev (3m)-29.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.91%
EPS NY rev (1m)4.39%
EPS NY rev (3m)-10.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.36 | ||
| Fwd PE | 18.98 | ||
| P/S | 1.95 | ||
| P/FCF | 28.57 | ||
| P/OCF | 18.98 | ||
| P/B | 1.43 | ||
| P/tB | 1.89 | ||
| EV/EBITDA | 20.18 |
EPS(TTM)0.42
EY4.68%
EPS(NY)0.47
Fwd EY5.27%
FCF(TTM)0.31
FCFY3.5%
OCF(TTM)0.47
OCFY5.27%
SpS4.6
BVpS6.29
TBVpS4.74
PEG (NY)8.68
PEG (5Y)N/A
Graham Number7.71
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
ROICexgc growth 3YN/A
ROICexgc 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 | 75.9% | ||
| Cap/Sales | 3.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 197.35% | ||
| Profit Quality | 156.45% | ||
| Current Ratio | 7.37 | ||
| Quick Ratio | 7.37 | ||
| Altman-Z | 7.22 |
F-Score7
WACC8.79%
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)31.25%
EPS 3Y0.92%
EPS 5YN/A
EPS Q2Q%-10%
EPS Next Y2.46%
EPS Next 2Y13.02%
EPS Next 3Y15.06%
EPS Next 5YN/A
Revenue 1Y (TTM)12.04%
Revenue growth 3Y18.38%
Revenue growth 5YN/A
Sales Q2Q%19.13%
Revenue Next Year19.18%
Revenue Next 2Y14.55%
Revenue Next 3Y14.42%
Revenue Next 5YN/A
EBIT growth 1Y142.19%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year37.22%
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
GRID DYNAMICS HOLDINGS INC / GDYN FAQ
What is the ChartMill fundamental rating of GRID DYNAMICS HOLDINGS INC (GDYN) stock?
ChartMill assigns a fundamental rating of 5 / 10 to GDYN.
What is the valuation status for GDYN stock?
ChartMill assigns a valuation rating of 3 / 10 to GRID DYNAMICS HOLDINGS INC (GDYN). This can be considered as Overvalued.
Can you provide the profitability details for GRID DYNAMICS HOLDINGS INC?
GRID DYNAMICS HOLDINGS INC (GDYN) has a profitability rating of 3 / 10.
What is the expected EPS growth for GRID DYNAMICS HOLDINGS INC (GDYN) stock?
The Earnings per Share (EPS) of GRID DYNAMICS HOLDINGS INC (GDYN) is expected to grow by 2.46% in the next year.
How sustainable is the dividend of GRID DYNAMICS HOLDINGS INC (GDYN) stock?
The dividend rating of GRID DYNAMICS HOLDINGS INC (GDYN) is 0 / 10 and the dividend payout ratio is 0%.