TRADE DESK INC/THE -CLASS A (TTD) Stock Fundamental Analysis
USA - NASDAQ:TTD - US88339J1051 - Common Stock
54.13 USD
+0.24 (+0.45%)
54.05 USD
-0.08 (-0.15%)
We assign a fundamental rating of 7 out of 10 to TTD. TTD was compared to 95 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.
1. Profitability
1.1 Basic Checks
In the past year TTD was profitable.
TTD had a positive operating cash flow in the past year.
TTD had positive earnings in each of the past 5 years.
In the past 5 years TTD always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.00%, TTD belongs to the top of the industry, outperforming 87.37% of the companies in the same industry.
TTD has a better Return On Equity (15.48%) than 85.26% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.11%, TTD belongs to the top of the industry, outperforming 89.47% 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 8.50%.
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
With an excellent Profit Margin value of 15.57%, TTD belongs to the best of the industry, outperforming 93.68% of the companies in the same industry.
TTD's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 17.73%, TTD belongs to the best of the industry, outperforming 86.32% 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's Gross Margin of 79.41% is amongst the best of the industry. TTD outperforms 92.63% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TTD is still 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.
2.2 Solvency
TTD has an Altman-Z score of 5.95. This indicates that TTD is financially healthy and has little risk of bankruptcy at the moment.
TTD has a better Altman-Z score (5.95) than 89.47% of its industry peers.
TTD has a debt to FCF ratio of 0.10. This is a very positive value and a sign of high solvency as it would only need 0.10 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.10, TTD belongs to the best of the industry, outperforming 90.53% of the companies in the same industry.
TTD has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.03, TTD belongs to the top of the industry, outperforming 82.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.1 | ||
| Altman-Z | 5.95 |
ROIC/WACC1.29
WACC8.61%
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.
The Quick ratio of TTD (1.71) is better than 70.53% 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.
TTD shows a strong growth in Revenue. In the last year, 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.
Based on estimates for the next years, TTD will show a quite strong growth in Revenue. The Revenue will grow by 16.77% on average per year.
EPS Next Y3.59%
EPS Next 2Y11.9%
EPS Next 3Y15.74%
EPS Next 5Y20.73%
Revenue Next Year16.12%
Revenue Next 2Y16.31%
Revenue Next 3Y16.43%
Revenue Next 5Y16.77%
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
With a Price/Earnings ratio of 31.11, TTD can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of TTD indicates a somewhat cheap valuation: TTD is cheaper than 62.11% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.67, TTD is valued at the same level.
With a Price/Forward Earnings ratio of 26.20, 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 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.33, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.11 | ||
| Fwd PE | 26.2 |
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 65.26% of the companies 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 | 35.49 | ||
| EV/EBITDA | 41.84 |
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 15.74% in the coming years.
PEG (NY)8.66
PEG (5Y)0.89
EPS Next 2Y11.9%
EPS Next 3Y15.74%
5. Dividend
5.1 Amount
TTD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
54.13
+0.24 (+0.45%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners83.89%
Inst Owner Change-0.49%
Ins Owners0.39%
Ins Owner Change0.8%
Market Cap26.47B
Revenue(TTM)2.68B
Net Income(TTM)417.19M
Analysts72.27
Price Target75.12 (38.78%)
Short Float %8.76%
Short Ratio2.27
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)-0.86%
PT rev (3m)-17.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.52%
EPS NY rev (1m)-2.81%
EPS NY rev (3m)-4.01%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.11 | ||
| Fwd PE | 26.2 | ||
| P/S | 9.88 | ||
| P/FCF | 35.49 | ||
| P/OCF | 28.48 | ||
| P/B | 9.82 | ||
| P/tB | 9.82 | ||
| EV/EBITDA | 41.84 |
EPS(TTM)1.74
EY3.21%
EPS(NY)2.07
Fwd EY3.82%
FCF(TTM)1.53
FCFY2.82%
OCF(TTM)1.9
OCFY3.51%
SpS5.48
BVpS5.51
TBVpS5.51
PEG (NY)8.66
PEG (5Y)0.89
Graham Number14.69
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%
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 Turnover0.45
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 | 5.95 |
F-Score7
WACC8.61%
ROIC/WACC1.29
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 Y3.59%
EPS Next 2Y11.9%
EPS Next 3Y15.74%
EPS Next 5Y20.73%
Revenue 1Y (TTM)23.18%
Revenue growth 3Y26.9%
Revenue growth 5Y29.9%
Sales Q2Q%18.73%
Revenue Next Year16.12%
Revenue Next 2Y16.31%
Revenue Next 3Y16.43%
Revenue Next 5Y16.77%
EBIT growth 1Y55.48%
EBIT growth 3Y50.71%
EBIT growth 5Y30.65%
EBIT Next Year156.1%
EBIT Next 3Y53.31%
EBIT Next 5Y39.92%
FCF growth 1Y40.63%
FCF growth 3Y25.69%
FCF growth 5Y100.33%
OCF growth 1Y48.34%
OCF growth 3Y25.01%
OCF growth 5Y65.14%