TRADE DESK INC/THE -CLASS A (TTD) Stock Fundamental Analysis
USA - NASDAQ:TTD - US88339J1051 - Common Stock
41.93 USD
-0.94 (-2.19%)
42.02 USD
+0.09 (+0.21%)
Taking everything into account, TTD scores 7 out of 10 in our fundamental rating. 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 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.
Each year in the past 5 years TTD has been profitable.
Each year in the past 5 years TTD had a positive operating cash flow.
1.2 Ratios
TTD has a Return On Assets of 7.38%. This is amongst the best in the industry. TTD outperforms 86.32% of its industry peers.
With an excellent Return On Equity value of 16.86%, TTD belongs to the best of the industry, outperforming 87.37% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.92%, TTD belongs to the best of the industry, outperforming 93.68% 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 8.51%.
The last Return On Invested Capital (12.92%) for TTD is above the 3 year average (6.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.38% | ||
| ROE | 16.86% | ||
| ROIC | 12.92% |
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 15.72% is amongst the best of the industry. TTD outperforms 91.58% 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 18.91% is amongst the best of the industry. TTD outperforms 88.42% 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 78.81%, TTD belongs to the top of the industry, outperforming 90.53% 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 | 18.91% | ||
| PM (TTM) | 15.72% | ||
| GM | 78.81% |
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
TTD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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 4.87. This indicates that TTD is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TTD (4.87) is better than 89.47% of its industry peers.
TTD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.87 |
ROIC/WACC1.47
WACC8.78%
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.
TTD's Current ratio of 1.71 is fine compared to the rest of the industry. TTD outperforms 69.47% 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.
Looking at the Quick ratio, with a value of 1.71, TTD is in the better half of the industry, outperforming 72.63% 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 21.09%, which is quite impressive.
Measured over the past years, TTD shows a very strong growth in Earnings Per Share. The EPS has been growing by 35.00% on average per year.
TTD shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.82%.
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)21.09%
EPS 3Y21.45%
EPS 5Y35%
EPS Q2Q%9.76%
Revenue 1Y (TTM)20.82%
Revenue growth 3Y26.9%
Revenue growth 5Y29.9%
Sales Q2Q%17.74%
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 20.03% 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 16.73% on average per year.
EPS Next Y6.76%
EPS Next 2Y12.75%
EPS Next 3Y15.52%
EPS Next 5Y20.03%
Revenue Next Year16.12%
Revenue Next 2Y16.33%
Revenue Next 3Y16.45%
Revenue Next 5Y16.73%
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
TTD is valuated rather expensively with a Price/Earnings ratio of 23.56.
Based on the Price/Earnings ratio, TTD is valued a bit cheaper than 64.21% of the companies in the same industry.
TTD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.99 indicates a rather expensive valuation of TTD.
The rest of the industry has a similar Price/Forward Earnings ratio as TTD.
The average S&P500 Price/Forward Earnings ratio is at 34.59. TTD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.56 | ||
| Fwd PE | 19.99 |
4.2 Price Multiples
63.16% 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.22 | ||
| EV/EBITDA | 29.45 |
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 15.52% in the coming years.
PEG (NY)3.49
PEG (5Y)0.67
EPS Next 2Y12.75%
EPS Next 3Y15.52%
5. Dividend
5.1 Amount
TTD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
41.93
-0.94 (-2.19%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners83.89%
Inst Owner Change-2.61%
Ins Owners0.39%
Ins Owner Change0.94%
Market Cap20.50B
Revenue(TTM)2.79B
Net Income(TTM)438.58M
Analysts72.27
Price Target72.16 (72.1%)
Short Float %8.72%
Short Ratio2.66
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)0.65%
Min EPS beat(2)0.24%
Max EPS beat(2)1.06%
EPS beat(4)4
Avg EPS beat(4)9.36%
Min EPS beat(4)0.24%
Max EPS beat(4)32.52%
EPS beat(8)7
Avg EPS beat(8)8.1%
EPS beat(12)11
Avg EPS beat(12)14.74%
EPS beat(16)14
Avg EPS beat(16)17.53%
Revenue beat(2)2
Avg Revenue beat(2)1.07%
Min Revenue beat(2)0.27%
Max Revenue beat(2)1.87%
Revenue beat(4)3
Avg Revenue beat(4)0.81%
Min Revenue beat(4)-3.33%
Max Revenue beat(4)4.45%
Revenue beat(8)7
Avg Revenue beat(8)1%
Revenue beat(12)10
Avg Revenue beat(12)1.03%
Revenue beat(16)14
Avg Revenue beat(16)1.19%
PT rev (1m)-3.95%
PT rev (3m)-23.17%
EPS NQ rev (1m)-0.34%
EPS NQ rev (3m)3.74%
EPS NY rev (1m)3.06%
EPS NY rev (3m)-1.07%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.56 | ||
| Fwd PE | 19.99 | ||
| P/S | 7.35 | ||
| P/FCF | 30.22 | ||
| P/OCF | 23.28 | ||
| P/B | 7.88 | ||
| P/tB | 7.88 | ||
| EV/EBITDA | 29.45 |
EPS(TTM)1.78
EY4.25%
EPS(NY)2.1
Fwd EY5%
FCF(TTM)1.39
FCFY3.31%
OCF(TTM)1.8
OCFY4.3%
SpS5.71
BVpS5.32
TBVpS5.32
PEG (NY)3.49
PEG (5Y)0.67
Graham Number14.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.38% | ||
| ROE | 16.86% | ||
| ROCE | 17.92% | ||
| ROIC | 12.92% | ||
| ROICexc | 25.37% | ||
| ROICexgc | 25.37% | ||
| OM | 18.91% | ||
| PM (TTM) | 15.72% | ||
| GM | 78.81% | ||
| FCFM | 24.31% |
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 Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 187.23% | ||
| Cap/Sales | 7.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 138.51% | ||
| Profit Quality | 154.69% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 4.87 |
F-Score7
WACC8.78%
ROIC/WACC1.47
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)21.09%
EPS 3Y21.45%
EPS 5Y35%
EPS Q2Q%9.76%
EPS Next Y6.76%
EPS Next 2Y12.75%
EPS Next 3Y15.52%
EPS Next 5Y20.03%
Revenue 1Y (TTM)20.82%
Revenue growth 3Y26.9%
Revenue growth 5Y29.9%
Sales Q2Q%17.74%
Revenue Next Year16.12%
Revenue Next 2Y16.33%
Revenue Next 3Y16.45%
Revenue Next 5Y16.73%
EBIT growth 1Y40.25%
EBIT growth 3Y50.71%
EBIT growth 5Y30.65%
EBIT Next Year156.1%
EBIT Next 3Y53.31%
EBIT Next 5Y39.91%
FCF growth 1Y12.66%
FCF growth 3Y25.69%
FCF growth 5Y100.33%
OCF growth 1Y29.38%
OCF growth 3Y25.01%
OCF growth 5Y65.14%
TRADE DESK INC/THE -CLASS A / TTD FAQ
Can you provide the ChartMill fundamental rating for TRADE DESK INC/THE -CLASS A?
ChartMill assigns a fundamental rating of 7 / 10 to TTD.
Can you provide the valuation status for TRADE DESK INC/THE -CLASS A?
ChartMill assigns a valuation rating of 3 / 10 to TRADE DESK INC/THE -CLASS A (TTD). This can be considered as Overvalued.
How profitable is TRADE DESK INC/THE -CLASS A (TTD) stock?
TRADE DESK INC/THE -CLASS A (TTD) has a profitability rating of 8 / 10.
What is the valuation of TRADE DESK INC/THE -CLASS A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TRADE DESK INC/THE -CLASS A (TTD) is 23.56 and the Price/Book (PB) ratio is 7.88.