GRID DYNAMICS HOLDINGS INC (GDYN) Stock Fundamental Analysis
NASDAQ:GDYN - Nasdaq - US39813G1094 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to GDYN. GDYN was compared to 81 industry peers in the IT Services industry. GDYN has a great financial health rating, but its profitability evaluates not so good. GDYN is valued quite expensive, but it does show an excellent growth.
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.
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 (1.84%) is comparable to the rest of the industry.
GDYN has a Return On Equity (2.11%) which is in line with its industry peers.
GDYN has a Return On Invested Capital (0.38%) which is comparable to the rest of the industry.
| 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
With a Profit Margin value of 2.94%, GDYN perfoms like the industry average, outperforming 51.85% of the companies in the same industry.
Looking at the Operating Margin, with a value of 0.70%, GDYN is in line with its industry, outperforming 41.98% 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 54.32% 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
GDYN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for GDYN has been increased compared to 1 year ago.
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
An Altman-Z score of 9.91 indicates that GDYN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.91, GDYN belongs to the top of the industry, outperforming 88.89% 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 | 9.91 |
ROIC/WACC0.04
WACC9.59%
2.3 Liquidity
GDYN has a Current Ratio of 7.25. This indicates that GDYN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 7.25, GDYN belongs to the top of the industry, outperforming 97.53% of the companies in the same industry.
A Quick Ratio of 7.25 indicates that GDYN has no problem at all paying its short term obligations.
GDYN's Quick ratio of 7.25 is amongst the best of the industry. GDYN outperforms 97.53% 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.
Measured over the past 5 years, GDYN shows a small growth in Earnings Per Share. The EPS has been growing by 0.92% on average per year.
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.
Based on estimates for the next years, GDYN will show a quite strong growth in Revenue. The Revenue will grow by 17.93% on average per year.
EPS Next Y20.19%
EPS Next 2Y15.93%
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
GDYN is valuated quite expensively with a Price/Earnings ratio of 30.22.
The rest of the industry has a similar Price/Earnings ratio as GDYN.
When comparing the Price/Earnings ratio of GDYN to the average of the S&P500 Index (27.45), we can say GDYN is valued inline with the index average.
The Price/Forward Earnings ratio is 24.92, which indicates a rather expensive current valuation of GDYN.
The rest of the industry has a similar Price/Forward Earnings ratio as GDYN.
The average S&P500 Price/Forward Earnings ratio is at 21.90. GDYN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.22 | ||
| Fwd PE | 24.92 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GDYN.
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 | 42.93 | ||
| EV/EBITDA | 38.77 |
4.3 Compensation for Growth
GDYN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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)1.5
PEG (5Y)N/A
EPS Next 2Y15.93%
EPS Next 3Y21.46%
5. Dividend
5.1 Amount
GDYN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.39
+0.43 (+3.6%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners82.84%
Inst Owner Change0.54%
Ins Owners5.64%
Ins Owner Change-0.48%
Market Cap1.05B
Analysts83.64
Price Target19.38 (56.42%)
Short Float %5.44%
Short Ratio5.29
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)-21.65%
EPS NQ rev (1m)-4.17%
EPS NQ rev (3m)-9.8%
EPS NY rev (1m)3.32%
EPS NY rev (3m)1.87%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-1.66%
Revenue NY rev (1m)-0.54%
Revenue NY rev (3m)-2.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.22 | ||
| Fwd PE | 24.92 | ||
| P/S | 2.82 | ||
| P/FCF | 42.93 | ||
| P/OCF | 28.85 | ||
| P/B | 2.02 | ||
| P/tB | 2.71 | ||
| EV/EBITDA | 38.77 |
EPS(TTM)0.41
EY3.31%
EPS(NY)0.5
Fwd EY4.01%
FCF(TTM)0.29
FCFY2.33%
OCF(TTM)0.43
OCFY3.47%
SpS4.39
BVpS6.12
TBVpS4.57
PEG (NY)1.5
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 | 9.91 |
F-Score6
WACC9.59%
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 Y20.19%
EPS Next 2Y15.93%
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