TRADE DESK INC/THE -CLASS A (TTD) Stock Fundamental Analysis
USA - NASDAQ:TTD - US88339J1051 - Common Stock
45.24 USD
-0.9 (-1.95%)
45.44 USD
+0.2 (+0.44%)
Taking everything into account, TTD scores 7 out of 10 in our fundamental rating. TTD was compared to 99 industry peers in the Media industry. TTD scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
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
Looking at the Return On Assets, with a value of 7.00%, TTD belongs to the top of the industry, outperforming 86.87% of the companies in the same industry.
With an excellent Return On Equity value of 15.48%, TTD belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
The Return On Invested Capital of TTD (11.11%) is better than 88.89% of its industry peers.
TTD had an Average Return On Invested Capital over the past 3 years of 6.36%. This is below the industry average of 8.87%.
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
Looking at the Profit Margin, with a value of 15.57%, TTD belongs to the top of the industry, outperforming 91.92% of the companies in the same industry.
TTD's Profit Margin has been stable in the last couple of years.
TTD has a better Operating Margin (17.73%) than 84.85% of its industry peers.
In the last couple of years the Operating Margin of TTD has remained more or less at the same level.
With an excellent Gross Margin value of 79.41%, TTD belongs to the best of the industry, outperforming 91.92% of the companies in the same industry.
TTD's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TTD is still creating some value.
TTD has more shares outstanding than it did 1 year ago.
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.
2.2 Solvency
An Altman-Z score of 5.17 indicates that TTD is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.17, TTD belongs to the top of the industry, outperforming 86.87% of the companies in the same industry.
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.
The Debt to FCF ratio of TTD (0.10) is better than 91.92% of its industry peers.
TTD has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
TTD has a better Debt to Equity ratio (0.03) than 80.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.1 | ||
| Altman-Z | 5.17 |
ROIC/WACC1.28
WACC8.68%
2.3 Liquidity
A Current Ratio of 1.71 indicates that TTD should not have too much problems paying its short term obligations.
TTD has a Current ratio of 1.71. This is in the better half of the industry: TTD outperforms 67.68% of its industry peers.
A Quick Ratio of 1.71 indicates that TTD should not have too much problems paying its short term obligations.
The Quick ratio of TTD (1.71) is better than 68.69% 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 25.18% 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
The Revenue has grown by 23.18% in the past year. This is a very strong growth!
Measured over the past years, TTD shows a very strong growth in Revenue. The Revenue has been growing by 29.90% on average per year.
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
TTD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.73% yearly.
Based on estimates for the next years, TTD will show a quite strong growth in Revenue. The Revenue will grow by 17.79% on average per year.
EPS Next Y6.59%
EPS Next 2Y13.12%
EPS Next 3Y15.75%
EPS Next 5Y20.73%
Revenue Next Year16.2%
Revenue Next 2Y16.78%
Revenue Next 3Y17.3%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.00, the valuation of TTD can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TTD indicates a somewhat cheap valuation: TTD is cheaper than 66.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.43, TTD is valued at the same level.
Based on the Price/Forward Earnings ratio of 21.43, the valuation of TTD can be described as rather expensive.
TTD's Price/Forward Earnings ratio is in line with the industry average.
TTD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26 | ||
| Fwd PE | 21.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TTD is valued a bit more expensive than 60.61% 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 | 29.66 | ||
| EV/EBITDA | 34.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of TTD may justify a higher PE ratio.
A more expensive valuation may be justified as TTD's earnings are expected to grow with 15.75% in the coming years.
PEG (NY)3.95
PEG (5Y)0.74
EPS Next 2Y13.12%
EPS Next 3Y15.75%
5. Dividend
5.1 Amount
TTD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
45.24
-0.9 (-1.95%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners81.61%
Inst Owner Change0.28%
Ins Owners0.54%
Ins Owner Change13.3%
Market Cap22.12B
Analysts73.18
Price Target77.1 (70.42%)
Short Float %7.57%
Short Ratio2.21
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)-14.94%
PT rev (3m)-12.83%
EPS NQ rev (1m)3.5%
EPS NQ rev (3m)-5.78%
EPS NY rev (1m)-1.23%
EPS NY rev (3m)-1.61%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)-2.22%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26 | ||
| Fwd PE | 21.43 | ||
| P/S | 8.26 | ||
| P/FCF | 29.66 | ||
| P/OCF | 23.81 | ||
| P/B | 8.21 | ||
| P/tB | 8.21 | ||
| EV/EBITDA | 34.42 |
EPS(TTM)1.74
EY3.85%
EPS(NY)2.11
Fwd EY4.67%
FCF(TTM)1.53
FCFY3.37%
OCF(TTM)1.9
OCFY4.2%
SpS5.48
BVpS5.51
TBVpS5.51
PEG (NY)3.95
PEG (5Y)0.74
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 | 5.17 |
F-Score7
WACC8.68%
ROIC/WACC1.28
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 Y6.59%
EPS Next 2Y13.12%
EPS Next 3Y15.75%
EPS Next 5Y20.73%
Revenue 1Y (TTM)23.18%
Revenue growth 3Y26.9%
Revenue growth 5Y29.9%
Sales Q2Q%18.73%
Revenue Next Year16.2%
Revenue Next 2Y16.78%
Revenue Next 3Y17.3%
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%