TRADE DESK INC/THE -CLASS A (TTD) Stock Fundamental Analysis
NASDAQ:TTD - Nasdaq - US88339J1051 - Common Stock - Currency: USD
TTD gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 98 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 expensively, but it does show have an excellent growth rating. This makes TTD very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year TTD was profitable.
In the past year TTD had a positive cash flow from operations.
TTD had positive earnings in each of the past 5 years.
TTD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TTD (7.00%) is better than 87.76% of its industry peers.
Looking at the Return On Equity, with a value of 15.48%, TTD belongs to the top of the industry, outperforming 84.69% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.11%, TTD belongs to the top of the industry, outperforming 89.80% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TTD is in line with the industry average of 7.61%.
The 3 year average ROIC (6.36%) for TTD is below the current ROIC(11.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7% | ||
| ROE | 15.48% | ||
| ROIC | 11.11% |
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 15.57% is amongst the best of the industry. TTD outperforms 92.86% of its industry peers.
In the last couple of years the Profit Margin of TTD has remained more or less at the same level.
TTD's Operating Margin of 17.73% is amongst the best of the industry. TTD outperforms 83.67% of its industry peers.
In the last couple of years the Operating Margin of TTD has remained more or less at the same level.
Looking at the Gross Margin, with a value of 79.41%, TTD belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
In the last couple of years the Gross Margin of TTD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.73% | ||
| PM (TTM) | 15.57% | ||
| GM | 79.41% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TTD is creating some value.
Compared to 1 year ago, TTD has more shares outstanding
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
An Altman-Z score of 5.82 indicates that TTD is not in any danger for bankruptcy at the moment.
TTD has a better Altman-Z score (5.82) than 87.76% of its industry peers.
The Debt to FCF ratio of TTD is 0.10, which is an excellent value as it means it would take TTD, only 0.10 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.10, TTD belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
A Debt/Equity ratio of 0.03 indicates that TTD is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.03, TTD belongs to the best of the industry, outperforming 81.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.1 | ||
| Altman-Z | 5.82 |
ROIC/WACC1.24
WACC8.93%
2.3 Liquidity
A Current Ratio of 1.71 indicates that TTD should not have too much problems paying its short term obligations.
TTD's Current ratio of 1.71 is fine compared to the rest of the industry. TTD outperforms 63.27% of its industry peers.
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 63.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
TTD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.18%, which is quite impressive.
TTD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.00% yearly.
Looking at the last year, TTD shows a very strong growth in Revenue. The Revenue has grown by 23.18%.
TTD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.90% yearly.
EPS 1Y (TTM)25.18%
EPS 3Y21.45%
EPS 5Y35%
EPS Q2Q%5.13%
Revenue 1Y (TTM)23.18%
Revenue growth 3Y26.9%
Revenue growth 5Y29.9%
Sales Q2Q%18.73%
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 20.73% on average per year.
The Revenue is expected to grow by 17.79% on average over the next years. This is quite good.
EPS Next Y7.91%
EPS Next 2Y13.44%
EPS Next 3Y16.59%
EPS Next 5Y20.73%
Revenue Next Year16%
Revenue Next 2Y17.14%
Revenue Next 3Y17.46%
Revenue Next 5Y17.79%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 30.06, the valuation of TTD can be described as expensive.
Based on the Price/Earnings ratio, TTD is valued a bit cheaper than the industry average as 62.24% of the companies are valued more expensively.
TTD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.76.
TTD is valuated rather expensively with a Price/Forward Earnings ratio of 24.63.
The rest of the industry has a similar Price/Forward Earnings ratio as TTD.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.91, TTD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.06 | ||
| Fwd PE | 24.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TTD indicates a slightly more expensive valuation: TTD is more expensive than 65.31% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TTD is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.29 | ||
| EV/EBITDA | 40.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TTD does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of TTD may justify a higher PE ratio.
TTD's earnings are expected to grow with 16.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.8
PEG (5Y)0.86
EPS Next 2Y13.44%
EPS Next 3Y16.59%
5. Dividend
5.1 Amount
TTD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
52.3
-0.23 (-0.44%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners81.61%
Inst Owner Change0.34%
Ins Owners0.54%
Ins Owner Change12.34%
Market Cap25.57B
Analysts79.09
Price Target93.91 (79.56%)
Short Float %7.07%
Short Ratio2.12
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)16.38%
Min EPS beat(2)0.24%
Max EPS beat(2)32.52%
EPS beat(4)4
Avg EPS beat(4)9.96%
Min EPS beat(4)0.24%
Max EPS beat(4)32.52%
EPS beat(8)7
Avg EPS beat(8)9.61%
EPS beat(12)11
Avg EPS beat(12)15.88%
EPS beat(16)14
Avg EPS beat(16)18.78%
Revenue beat(2)2
Avg Revenue beat(2)2.36%
Min Revenue beat(2)0.27%
Max Revenue beat(2)4.45%
Revenue beat(4)3
Avg Revenue beat(4)0.43%
Min Revenue beat(4)-3.33%
Max Revenue beat(4)4.45%
Revenue beat(8)7
Avg Revenue beat(8)0.81%
Revenue beat(12)10
Avg Revenue beat(12)0.98%
Revenue beat(16)14
Avg Revenue beat(16)1.39%
PT rev (1m)5.6%
PT rev (3m)3.33%
EPS NQ rev (1m)1.17%
EPS NQ rev (3m)-5.57%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)-2.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.06 | ||
| Fwd PE | 24.63 | ||
| P/S | 9.54 | ||
| P/FCF | 34.29 | ||
| P/OCF | 27.52 | ||
| P/B | 9.49 | ||
| P/tB | 9.49 | ||
| EV/EBITDA | 40.67 |
EPS(TTM)1.74
EY3.33%
EPS(NY)2.12
Fwd EY4.06%
FCF(TTM)1.53
FCFY2.92%
OCF(TTM)1.9
OCFY3.63%
SpS5.48
BVpS5.51
TBVpS5.51
PEG (NY)3.8
PEG (5Y)0.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7% | ||
| ROE | 15.48% | ||
| ROCE | 15.79% | ||
| ROIC | 11.11% | ||
| ROICexc | 24.55% | ||
| ROICexgc | 24.55% | ||
| OM | 17.73% | ||
| PM (TTM) | 15.57% | ||
| GM | 79.41% | ||
| FCFM | 27.84% |
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-Score7
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.1 | ||
| Debt/EBITDA | 0.13 | ||
| Cap/Depr | 191.92% | ||
| Cap/Sales | 6.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 162.85% | ||
| Profit Quality | 178.76% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 5.82 |
F-Score7
WACC8.93%
ROIC/WACC1.24
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)25.18%
EPS 3Y21.45%
EPS 5Y35%
EPS Q2Q%5.13%
EPS Next Y7.91%
EPS Next 2Y13.44%
EPS Next 3Y16.59%
EPS Next 5Y20.73%
Revenue 1Y (TTM)23.18%
Revenue growth 3Y26.9%
Revenue growth 5Y29.9%
Sales Q2Q%18.73%
Revenue Next Year16%
Revenue Next 2Y17.14%
Revenue Next 3Y17.46%
Revenue Next 5Y17.79%
EBIT growth 1Y55.48%
EBIT growth 3Y50.71%
EBIT growth 5Y30.65%
EBIT Next Year155.21%
EBIT Next 3Y55.45%
EBIT Next 5Y41.13%
FCF growth 1Y40.63%
FCF growth 3Y25.69%
FCF growth 5Y100.33%
OCF growth 1Y48.34%
OCF growth 3Y25.01%
OCF growth 5Y65.14%