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TRADE DESK INC/THE -CLASS A (TTD) Stock Fundamental Analysis

NASDAQ:TTD - Nasdaq - US88339J1051 - Common Stock - Currency: USD

76.09  -0.97 (-1.26%)

Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to TTD. TTD was compared to 96 industry peers in the Media industry. TTD has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TTD is valued quite expensive, but it does show an excellent growth. These ratings could make TTD a good candidate for growth and quality investing.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

In the past year TTD was profitable.
TTD had a positive operating cash flow in the past year.
Each year in the past 5 years TTD has been profitable.
TTD had a positive operating cash flow in each of the past 5 years.
TTD Yearly Net Income VS EBIT VS OCF VS FCFTTD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M

1.2 Ratios

TTD has a Return On Assets of 7.22%. This is amongst the best in the industry. TTD outperforms 90.63% of its industry peers.
TTD's Return On Equity of 15.17% is amongst the best of the industry. TTD outperforms 83.33% of its industry peers.
TTD has a better Return On Invested Capital (10.81%) than 90.63% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TTD is in line with the industry average of 6.73%.
The last Return On Invested Capital (10.81%) for TTD is above the 3 year average (6.36%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 7.22%
ROE 15.17%
ROIC 10.81%
ROA(3y)3.77%
ROA(5y)4.79%
ROE(3y)8.04%
ROE(5y)11.41%
ROIC(3y)6.36%
ROIC(5y)6.46%
TTD Yearly ROA, ROE, ROICTTD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30

1.3 Margins

Looking at the Profit Margin, with a value of 16.04%, TTD belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
In the last couple of years the Profit Margin of TTD has remained more or less at the same level.
Looking at the Operating Margin, with a value of 17.63%, TTD belongs to the top of the industry, outperforming 85.42% of the companies in the same industry.
In the last couple of years the Operating Margin of TTD has remained more or less at the same level.
TTD has a better Gross Margin (80.11%) than 92.71% of its industry peers.
TTD's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 17.63%
PM (TTM) 16.04%
GM 80.11%
OM growth 3Y18.76%
OM growth 5Y0.58%
PM growth 3Y11.76%
PM growth 5Y-0.37%
GM growth 3Y-0.32%
GM growth 5Y1.11%
TTD Yearly Profit, Operating, Gross MarginsTTD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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7

2. Health

2.1 Basic Checks

TTD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, TTD has more shares outstanding
TTD has more shares outstanding than it did 5 years ago.
There is no outstanding debt for TTD. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
TTD Yearly Shares OutstandingTTD Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
TTD Yearly Total Debt VS Total AssetsTTD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.2 Solvency

An Altman-Z score of 8.78 indicates that TTD is not in any danger for bankruptcy at the moment.
The Altman-Z score of TTD (8.78) is better than 92.71% of its industry peers.
There is no outstanding debt for TTD. 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 8.78
ROIC/WACC1.19
WACC9.1%
TTD Yearly LT Debt VS Equity VS FCFTTD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

TTD has a Current Ratio of 1.81. This is a normal value and indicates that TTD is financially healthy and should not expect problems in meeting its short term obligations.
TTD has a better Current ratio (1.81) than 69.79% of its industry peers.
A Quick Ratio of 1.81 indicates that TTD should not have too much problems paying its short term obligations.
TTD's Quick ratio of 1.81 is fine compared to the rest of the industry. TTD outperforms 69.79% of its industry peers.
Industry RankSector Rank
Current Ratio 1.81
Quick Ratio 1.81
TTD Yearly Current Assets VS Current LiabilitesTTD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

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9

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 34.37% over the past year.
The Earnings Per Share has been growing by 35.00% on average over the past years. This is a very strong growth
Looking at the last year, TTD shows a very strong growth in Revenue. The Revenue has grown by 25.06%.
The Revenue has been growing by 29.90% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)34.37%
EPS 3Y21.45%
EPS 5Y35%
EPS Q2Q%26.92%
Revenue 1Y (TTM)25.06%
Revenue growth 3Y26.9%
Revenue growth 5Y29.9%
Sales Q2Q%25.4%

3.2 Future

Based on estimates for the next years, TTD will show a very strong growth in Earnings Per Share. The EPS will grow by 24.26% on average per year.
The Revenue is expected to grow by 20.32% on average over the next years. This is a very strong growth
EPS Next Y8.33%
EPS Next 2Y13.42%
EPS Next 3Y16.5%
EPS Next 5Y24.26%
Revenue Next Year15.92%
Revenue Next 2Y17.14%
Revenue Next 3Y17.66%
Revenue Next 5Y20.32%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
TTD Yearly Revenue VS EstimatesTTD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B 8B 10B
TTD Yearly EPS VS EstimatesTTD Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2 4 6 8

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2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 44.24 indicates a quite expensive valuation of TTD.
TTD's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.60, TTD is valued quite expensively.
With a Price/Forward Earnings ratio of 35.85, TTD can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TTD is on the same level as its industry peers.
TTD's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.43.
Industry RankSector Rank
PE 44.24
Fwd PE 35.85
TTD Price Earnings VS Forward Price EarningsTTD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

TTD's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TTD is more expensive than 68.75% of the companies in the same industry.
TTD's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 54.54
EV/EBITDA 65.45
TTD Per share dataTTD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4 5

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TTD has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TTD's earnings are expected to grow with 16.50% in the coming years.
PEG (NY)5.31
PEG (5Y)1.26
EPS Next 2Y13.42%
EPS Next 3Y16.5%

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0

5. Dividend

5.1 Amount

TTD does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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TRADE DESK INC/THE -CLASS A

NASDAQ:TTD (5/21/2025, 9:51:08 AM)

76.09

-0.97 (-1.26%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)08-05 2025-08-05/amc
Inst Owners82.95%
Inst Owner Change-2.38%
Ins Owners10.96%
Ins Owner Change11.83%
Market Cap37.40B
Analysts79.09
Price Target90.88 (19.44%)
Short Float %5.6%
Short Ratio2.02
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.06%
Min EPS beat(2)3.61%
Max EPS beat(2)32.52%
EPS beat(4)4
Avg EPS beat(4)12.21%
Min EPS beat(4)3.45%
Max EPS beat(4)32.52%
EPS beat(8)7
Avg EPS beat(8)10.56%
EPS beat(12)10
Avg EPS beat(12)15.67%
EPS beat(16)14
Avg EPS beat(16)21.23%
Revenue beat(2)1
Avg Revenue beat(2)0.56%
Min Revenue beat(2)-3.33%
Max Revenue beat(2)4.45%
Revenue beat(4)3
Avg Revenue beat(4)0.4%
Min Revenue beat(4)-3.33%
Max Revenue beat(4)4.45%
Revenue beat(8)7
Avg Revenue beat(8)0.9%
Revenue beat(12)10
Avg Revenue beat(12)1.15%
Revenue beat(16)14
Avg Revenue beat(16)1.76%
PT rev (1m)-17.31%
PT rev (3m)-35.13%
EPS NQ rev (1m)-0.63%
EPS NQ rev (3m)-5.44%
EPS NY rev (1m)2.77%
EPS NY rev (3m)-4.22%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)-0.83%
Revenue NY rev (3m)-3.87%
Valuation
Industry RankSector Rank
PE 44.24
Fwd PE 35.85
P/S 14.56
P/FCF 54.54
P/OCF 44.24
P/B 13.77
P/tB 13.77
EV/EBITDA 65.45
EPS(TTM)1.72
EY2.26%
EPS(NY)2.12
Fwd EY2.79%
FCF(TTM)1.4
FCFY1.83%
OCF(TTM)1.72
OCFY2.26%
SpS5.23
BVpS5.53
TBVpS5.53
PEG (NY)5.31
PEG (5Y)1.26
Profitability
Industry RankSector Rank
ROA 7.22%
ROE 15.17%
ROCE 14.98%
ROIC 10.81%
ROICexc 25.46%
ROICexgc 25.46%
OM 17.63%
PM (TTM) 16.04%
GM 80.11%
FCFM 26.69%
ROA(3y)3.77%
ROA(5y)4.79%
ROE(3y)8.04%
ROE(5y)11.41%
ROIC(3y)6.36%
ROIC(5y)6.46%
ROICexc(3y)15.65%
ROICexc(5y)14.78%
ROICexgc(3y)15.89%
ROICexgc(5y)15.01%
ROCE(3y)8.82%
ROCE(5y)8.95%
ROICexcg growth 3Y28.16%
ROICexcg growth 5Y9.33%
ROICexc growth 3Y28.44%
ROICexc growth 5Y9.45%
OM growth 3Y18.76%
OM growth 5Y0.58%
PM growth 3Y11.76%
PM growth 5Y-0.37%
GM growth 3Y-0.32%
GM growth 5Y1.11%
F-Score8
Asset Turnover0.45
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 177.92%
Cap/Sales 6.21%
Interest Coverage 250
Cash Conversion 155.78%
Profit Quality 166.41%
Current Ratio 1.81
Quick Ratio 1.81
Altman-Z 8.78
F-Score8
WACC9.1%
ROIC/WACC1.19
Cap/Depr(3y)119.91%
Cap/Depr(5y)156.39%
Cap/Sales(3y)4.34%
Cap/Sales(5y)5.53%
Profit Quality(3y)439.98%
Profit Quality(5y)337.04%
High Growth Momentum
Growth
EPS 1Y (TTM)34.37%
EPS 3Y21.45%
EPS 5Y35%
EPS Q2Q%26.92%
EPS Next Y8.33%
EPS Next 2Y13.42%
EPS Next 3Y16.5%
EPS Next 5Y24.26%
Revenue 1Y (TTM)25.06%
Revenue growth 3Y26.9%
Revenue growth 5Y29.9%
Sales Q2Q%25.4%
Revenue Next Year15.92%
Revenue Next 2Y17.14%
Revenue Next 3Y17.66%
Revenue Next 5Y20.32%
EBIT growth 1Y79.39%
EBIT growth 3Y50.71%
EBIT growth 5Y30.65%
EBIT Next Year155.66%
EBIT Next 3Y58.01%
EBIT Next 5Y44.03%
FCF growth 1Y37.81%
FCF growth 3Y25.69%
FCF growth 5Y100.33%
OCF growth 1Y43.27%
OCF growth 3Y25.01%
OCF growth 5Y65.14%