TRADE DESK INC/THE -CLASS A (TTD) Stock Fundamental Analysis
USA - NASDAQ:TTD - US88339J1051 - Common Stock
42.87 USD
-0.92 (-2.1%)
43 USD
+0.13 (+0.3%)
Taking everything into account, TTD scores 7 out of 10 in our fundamental rating. TTD was compared to 95 industry peers in the Media industry. Both the health and profitability get an excellent rating, making TTD a very profitable company, without any liquidiy or solvency issues. TTD shows excellent growth, but is valued quite expensive already. These ratings could make TTD a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
TTD had positive earnings in the past year.
TTD had a positive operating cash flow in the past year.
Each year in the past 5 years TTD has been profitable.
Each year in the past 5 years TTD had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.38%, TTD belongs to the best of the industry, outperforming 86.32% of the companies in the same industry.
TTD has a Return On Equity of 16.86%. This is amongst the best in the industry. TTD outperforms 87.37% of its industry peers.
With an excellent Return On Invested Capital value of 12.92%, TTD belongs to the best of the industry, outperforming 93.68% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TTD is below the industry average of 8.51%.
The last Return On Invested Capital (12.92%) for TTD is above the 3 year average (6.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.38% | ||
| ROE | 16.86% | ||
| ROIC | 12.92% |
ROA(3y)3.77%
ROA(5y)4.79%
ROE(3y)8.04%
ROE(5y)11.41%
ROIC(3y)6.36%
ROIC(5y)6.46%
1.3 Margins
TTD's Profit Margin of 15.72% is amongst the best of the industry. TTD outperforms 91.58% of its industry peers.
TTD's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 18.91%, TTD belongs to the best of the industry, outperforming 88.42% of the companies in the same industry.
TTD's Operating Margin has been stable in the last couple of years.
TTD has a Gross Margin of 78.81%. This is amongst the best in the industry. TTD outperforms 90.53% of its industry peers.
TTD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.91% | ||
| PM (TTM) | 15.72% | ||
| GM | 78.81% |
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%
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.
TTD has more shares outstanding than it did 1 year ago.
The number of shares outstanding for TTD has been increased compared to 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.
2.2 Solvency
TTD has an Altman-Z score of 4.95. This indicates that TTD is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.95, TTD belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.95 |
ROIC/WACC1.48
WACC8.72%
2.3 Liquidity
A Current Ratio of 1.71 indicates that TTD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.71, TTD is in the better half of the industry, outperforming 69.47% of the companies in the same industry.
TTD has a Quick Ratio of 1.71. 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 Quick ratio (1.71) than 72.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.09% 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
TTD shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.82%.
The Revenue has been growing by 29.90% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)21.09%
EPS 3Y21.45%
EPS 5Y35%
EPS Q2Q%9.76%
Revenue 1Y (TTM)20.82%
Revenue growth 3Y26.9%
Revenue growth 5Y29.9%
Sales Q2Q%17.74%
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 20.03% on average per year.
TTD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.73% yearly.
EPS Next Y6.76%
EPS Next 2Y12.75%
EPS Next 3Y15.52%
EPS Next 5Y20.03%
Revenue Next Year16.12%
Revenue Next 2Y16.33%
Revenue Next 3Y16.45%
Revenue Next 5Y16.73%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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.
4. Valuation
4.1 Price/Earnings Ratio
TTD is valuated rather expensively with a Price/Earnings ratio of 24.08.
Compared to the rest of the industry, the Price/Earnings ratio of TTD indicates a somewhat cheap valuation: TTD is cheaper than 63.16% of the companies listed in the same industry.
TTD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.91.
A Price/Forward Earnings ratio of 20.44 indicates a rather expensive valuation of TTD.
TTD's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of TTD to the average of the S&P500 Index (34.57), we can say TTD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.08 | ||
| Fwd PE | 20.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TTD is valued a bit more expensive than 62.11% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TTD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.9 | ||
| EV/EBITDA | 30.16 |
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.
TTD's earnings are expected to grow with 15.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.56
PEG (5Y)0.69
EPS Next 2Y12.75%
EPS Next 3Y15.52%
5. Dividend
5.1 Amount
TTD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
42.87
-0.92 (-2.1%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners83.89%
Inst Owner Change-2.61%
Ins Owners0.39%
Ins Owner Change0.94%
Market Cap20.96B
Revenue(TTM)2.79B
Net Income(TTM)438.58M
Analysts72.27
Price Target72.16 (68.32%)
Short Float %8.72%
Short Ratio2.66
Dividend
| Industry Rank | Sector 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)0.65%
Min EPS beat(2)0.24%
Max EPS beat(2)1.06%
EPS beat(4)4
Avg EPS beat(4)9.36%
Min EPS beat(4)0.24%
Max EPS beat(4)32.52%
EPS beat(8)7
Avg EPS beat(8)8.1%
EPS beat(12)11
Avg EPS beat(12)14.74%
EPS beat(16)14
Avg EPS beat(16)17.53%
Revenue beat(2)2
Avg Revenue beat(2)1.07%
Min Revenue beat(2)0.27%
Max Revenue beat(2)1.87%
Revenue beat(4)3
Avg Revenue beat(4)0.81%
Min Revenue beat(4)-3.33%
Max Revenue beat(4)4.45%
Revenue beat(8)7
Avg Revenue beat(8)1%
Revenue beat(12)10
Avg Revenue beat(12)1.03%
Revenue beat(16)14
Avg Revenue beat(16)1.19%
PT rev (1m)-3.95%
PT rev (3m)-23.17%
EPS NQ rev (1m)-0.34%
EPS NQ rev (3m)3.74%
EPS NY rev (1m)3.06%
EPS NY rev (3m)-1.07%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.08 | ||
| Fwd PE | 20.44 | ||
| P/S | 7.51 | ||
| P/FCF | 30.9 | ||
| P/OCF | 23.8 | ||
| P/B | 8.06 | ||
| P/tB | 8.06 | ||
| EV/EBITDA | 30.16 |
EPS(TTM)1.78
EY4.15%
EPS(NY)2.1
Fwd EY4.89%
FCF(TTM)1.39
FCFY3.24%
OCF(TTM)1.8
OCFY4.2%
SpS5.71
BVpS5.32
TBVpS5.32
PEG (NY)3.56
PEG (5Y)0.69
Graham Number14.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.38% | ||
| ROE | 16.86% | ||
| ROCE | 17.92% | ||
| ROIC | 12.92% | ||
| ROICexc | 25.37% | ||
| ROICexgc | 25.37% | ||
| OM | 18.91% | ||
| PM (TTM) | 15.72% | ||
| GM | 78.81% | ||
| FCFM | 24.31% |
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%
ROICexgc growth 3Y28.16%
ROICexgc 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-Score7
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 187.23% | ||
| Cap/Sales | 7.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 138.51% | ||
| Profit Quality | 154.69% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 4.95 |
F-Score7
WACC8.72%
ROIC/WACC1.48
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)21.09%
EPS 3Y21.45%
EPS 5Y35%
EPS Q2Q%9.76%
EPS Next Y6.76%
EPS Next 2Y12.75%
EPS Next 3Y15.52%
EPS Next 5Y20.03%
Revenue 1Y (TTM)20.82%
Revenue growth 3Y26.9%
Revenue growth 5Y29.9%
Sales Q2Q%17.74%
Revenue Next Year16.12%
Revenue Next 2Y16.33%
Revenue Next 3Y16.45%
Revenue Next 5Y16.73%
EBIT growth 1Y40.25%
EBIT growth 3Y50.71%
EBIT growth 5Y30.65%
EBIT Next Year156.1%
EBIT Next 3Y53.31%
EBIT Next 5Y39.91%
FCF growth 1Y12.66%
FCF growth 3Y25.69%
FCF growth 5Y100.33%
OCF growth 1Y29.38%
OCF growth 3Y25.01%
OCF growth 5Y65.14%
TRADE DESK INC/THE -CLASS A / TTD FAQ
Can you provide the ChartMill fundamental rating for TRADE DESK INC/THE -CLASS A?
ChartMill assigns a fundamental rating of 7 / 10 to TTD.
Can you provide the valuation status for TRADE DESK INC/THE -CLASS A?
ChartMill assigns a valuation rating of 3 / 10 to TRADE DESK INC/THE -CLASS A (TTD). This can be considered as Overvalued.
How profitable is TRADE DESK INC/THE -CLASS A (TTD) stock?
TRADE DESK INC/THE -CLASS A (TTD) has a profitability rating of 8 / 10.
What is the valuation of TRADE DESK INC/THE -CLASS A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TRADE DESK INC/THE -CLASS A (TTD) is 24.08 and the Price/Book (PB) ratio is 8.06.