TRADE DESK INC/THE -CLASS A (TTD)

US88339J1051 - Common Stock

87.21  +0.16 (+0.18%)

After market: 87.4 +0.19 (+0.22%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to TTD. TTD was compared to 97 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. These ratings could make TTD a good candidate for growth and quality investing.



7

1. Profitability

1.1 Basic Checks

TTD had positive earnings in the past year.
In the past year TTD had a positive cash flow from operations.
In the past 5 years TTD has always been profitable.
Each year in the past 5 years TTD had a positive operating cash flow.

1.2 Ratios

TTD has a better Return On Assets (3.66%) than 73.96% of its industry peers.
The Return On Equity of TTD (8.27%) is better than 80.21% of its industry peers.
With a decent Return On Invested Capital value of 6.66%, TTD is doing good in the industry, outperforming 73.96% 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 7.46%.
The 3 year average ROIC (5.35%) for TTD is below the current ROIC(6.66%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.66%
ROE 8.27%
ROIC 6.66%
ROA(3y)2.91%
ROA(5y)4.76%
ROE(3y)6.61%
ROE(5y)12.28%
ROIC(3y)5.35%
ROIC(5y)7.21%

1.3 Margins

The Profit Margin of TTD (9.19%) is better than 81.25% of its industry peers.
TTD's Profit Margin has declined in the last couple of years.
TTD's Operating Margin of 10.30% is fine compared to the rest of the industry. TTD outperforms 69.79% of its industry peers.
In the last couple of years the Operating Margin of TTD has declined.
With an excellent Gross Margin value of 81.21%, TTD belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
TTD's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 10.3%
PM (TTM) 9.19%
GM 81.21%
OM growth 3Y-15.79%
OM growth 5Y-14.45%
PM growth 3Y-31.8%
PM growth 5Y-13.01%
GM growth 3Y1.09%
GM growth 5Y1.31%

7

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TTD is destroying value.
The number of shares outstanding for TTD has been reduced compared to 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

An Altman-Z score of 10.42 indicates that TTD is not in any danger for bankruptcy at the moment.
TTD has a better Altman-Z score (10.42) than 93.75% 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 10.42
ROIC/WACC0.75
WACC8.88%

2.3 Liquidity

A Current Ratio of 1.72 indicates that TTD should not have too much problems paying its short term obligations.
TTD has a Current ratio of 1.72. This is comparable to the rest of the industry: TTD outperforms 54.17% of its industry peers.
TTD has a Quick Ratio of 1.72. 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 Quick ratio (1.72) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.72
Quick Ratio 1.72

9

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 19.05% over the past year.
TTD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.07% yearly.
The Revenue has grown by 23.35% in the past year. This is a very strong growth!
The Revenue has been growing by 32.46% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)19.05%
EPS 3Y22.5%
EPS 5Y36.07%
EPS growth Q2Q7.89%
Revenue 1Y (TTM)23.35%
Revenue growth 3Y32.53%
Revenue growth 5Y32.46%
Revenue growth Q2Q23.46%

3.2 Future

TTD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.50% yearly.
Based on estimates for the next years, TTD will show a very strong growth in Revenue. The Revenue will grow by 21.19% on average per year.
EPS Next Y19.12%
EPS Next 2Y18.34%
EPS Next 3Y20.84%
EPS Next 5Y27.5%
Revenue Next Year24.14%
Revenue Next 2Y22.27%
Revenue Next 3Y22.83%
Revenue Next 5Y21.19%

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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

2

4. Valuation

4.1 Price/Earnings Ratio

TTD is valuated quite expensively with a Price/Earnings ratio of 69.77.
The rest of the industry has a similar Price/Earnings ratio as TTD.
Compared to an average S&P500 Price/Earnings ratio of 26.42, TTD is valued quite expensively.
Based on the Price/Forward Earnings ratio of 58.57, the valuation of TTD can be described as expensive.
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 (22.74), we can say TTD is valued expensively.
Industry RankSector Rank
PE 69.77
Fwd PE 58.57

4.2 Price Multiples

73.96% of the companies in the same industry are cheaper than TTD, based on the Enterprise Value to EBITDA ratio.
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 RankSector Rank
P/FCF 78.48
EV/EBITDA 145.13

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 decent profitability rating of TTD may justify a higher PE ratio.
TTD's earnings are expected to grow with 20.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.65
PEG (5Y)1.93
EPS Next 2Y18.34%
EPS Next 3Y20.84%

0

5. Dividend

5.1 Amount

No dividends for TTD!.
Industry RankSector Rank
Dividend Yield N/A

TRADE DESK INC/THE -CLASS A

NASDAQ:TTD (3/27/2024, 8:00:01 PM)

After market: 87.4 +0.19 (+0.22%)

87.21

+0.16 (+0.18%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap42.64B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 69.77
Fwd PE 58.57
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.65
PEG (5Y)1.93
Profitability
Industry RankSector Rank
ROA 3.66%
ROE 8.27%
ROCE
ROIC
ROICexc
ROICexgc
OM 10.3%
PM (TTM) 9.19%
GM 81.21%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.4
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.72
Quick Ratio 1.72
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)19.05%
EPS 3Y22.5%
EPS 5Y
EPS growth Q2Q
EPS Next Y19.12%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)23.35%
Revenue growth 3Y32.53%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y