TRADE DESK INC/THE -CLASS A (TTD) Stock Fundamental Analysis
USA - NASDAQ:TTD - US88339J1051 - Common Stock
50.88 USD
+1.56 (+3.16%)
50.89 USD
+0.01 (+0.02%)
Taking everything into account, TTD scores 7 out of 10 in our fundamental rating. TTD was compared to 98 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 shows excellent growth, but is valued quite expensive already. 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.
Each year in the past 5 years TTD has been profitable.
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 86.73% 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 84.69% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.11%, TTD belongs to the best of the industry, outperforming 88.78% 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 8.86%.
The last Return On Invested Capital (11.11%) for TTD is above the 3 year average (6.36%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 15.57%. This is amongst the best in the industry. TTD outperforms 91.84% of its industry peers.
TTD's Profit Margin has been stable in the last couple of years.
TTD's Operating Margin of 17.73% is amongst the best of the industry. TTD outperforms 84.69% of its industry peers.
TTD's Operating Margin has been stable in the last couple of years.
The Gross Margin of TTD (79.41%) is better than 91.84% 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.
TTD has more shares outstanding than it did 1 year ago.
TTD has more shares outstanding than it did 5 years ago.
TTD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
TTD has an Altman-Z score of 5.53. This indicates that TTD is financially healthy and has little risk of bankruptcy at the moment.
TTD's Altman-Z score of 5.53 is amongst the best of the industry. TTD outperforms 87.76% 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.
The Debt to FCF ratio of TTD (0.10) is better than 91.84% 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 81.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.1 | ||
| Altman-Z | 5.53 |
ROIC/WACC1.27
WACC8.76%
2.3 Liquidity
TTD has a Current 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.
With a decent Current ratio value of 1.71, TTD is doing good in the industry, outperforming 67.35% 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.
With a decent Quick ratio value of 1.71, TTD is doing good in the industry, outperforming 68.37% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 35.00% on average over the past years. This is a very strong growth
Looking at the last year, TTD shows a very strong growth in Revenue. The Revenue has grown by 23.18%.
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.
The Revenue is expected to grow by 17.79% on average over the next years. This is quite good.
EPS Next Y3.59%
EPS Next 2Y11.9%
EPS Next 3Y15.74%
EPS Next 5Y20.73%
Revenue Next Year16.12%
Revenue Next 2Y16.43%
Revenue Next 3Y16.51%
Revenue Next 5Y17.79%
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
Based on the Price/Earnings ratio of 29.24, the valuation of TTD can be described as expensive.
TTD's Price/Earnings ratio is a bit cheaper when compared to the industry. TTD is cheaper than 64.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of TTD to the average of the S&P500 Index (27.86), we can say TTD is valued inline with the index average.
TTD is valuated rather expensively with a Price/Forward Earnings ratio of 24.63.
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 23.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.24 | ||
| Fwd PE | 24.63 |
4.2 Price Multiples
64.29% of the companies in the same industry are cheaper than TTD, based on the Enterprise Value to EBITDA ratio.
TTD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.36 | ||
| EV/EBITDA | 37.92 |
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.
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)8.14
PEG (5Y)0.84
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 |
50.88
+1.56 (+3.16%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners83.89%
Inst Owner Change0.27%
Ins Owners0.39%
Ins Owner Change13.27%
Market Cap24.88B
Analysts73.18
Price Target75.77 (48.92%)
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)-1.72%
PT rev (3m)-14.8%
EPS NQ rev (1m)0.57%
EPS NQ rev (3m)1.03%
EPS NY rev (1m)-2.81%
EPS NY rev (3m)-4.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.24 | ||
| Fwd PE | 24.63 | ||
| P/S | 9.29 | ||
| P/FCF | 33.36 | ||
| P/OCF | 26.77 | ||
| P/B | 9.23 | ||
| P/tB | 9.23 | ||
| EV/EBITDA | 37.92 |
EPS(TTM)1.74
EY3.42%
EPS(NY)2.07
Fwd EY4.06%
FCF(TTM)1.53
FCFY3%
OCF(TTM)1.9
OCFY3.74%
SpS5.48
BVpS5.51
TBVpS5.51
PEG (NY)8.14
PEG (5Y)0.84
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 | 5.53 |
F-Score7
WACC8.76%
ROIC/WACC1.27
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 2Y16.43%
Revenue Next 3Y16.51%
Revenue Next 5Y17.79%
EBIT growth 1Y55.48%
EBIT growth 3Y50.71%
EBIT growth 5Y30.65%
EBIT Next Year156.1%
EBIT Next 3Y53.31%
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%