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TRADE DESK INC/THE -CLASS A (TTD) Stock Fundamental Analysis

NASDAQ:TTD - Nasdaq - US88339J1051 - Common Stock - Currency: USD

72.55  +0.18 (+0.25%)

Fundamental Rating

7

TTD gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 98 industry peers in the Media industry. TTD gets an excellent profitability rating and is at the same time showing great financial health properties. TTD is valued quite expensively, but it does show have an excellent growth rating. These ratings would make TTD suitable for growth and quality investing!


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

In the past year TTD was profitable.
TTD had a positive operating cash flow in the past year.
In the past 5 years TTD has always been profitable.
TTD had a positive operating cash flow in each of the past 5 years.
TTD Yearly Net Income VS EBIT VS OCF VS FCFTTD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M

1.2 Ratios

With an excellent Return On Assets value of 7.22%, TTD belongs to the best of the industry, outperforming 88.78% of the companies in the same industry.
The Return On Equity of TTD (15.17%) is better than 81.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.81%, TTD belongs to the top 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 in line with the industry average of 7.63%.
The 3 year average ROIC (6.36%) for TTD is below the current ROIC(10.81%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 7.22%
ROE 15.17%
ROIC 10.81%
ROA(3y)3.77%
ROA(5y)4.79%
ROE(3y)8.04%
ROE(5y)11.41%
ROIC(3y)6.36%
ROIC(5y)6.46%
TTD Yearly ROA, ROE, ROICTTD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30

1.3 Margins

With an excellent Profit Margin value of 16.04%, TTD belongs to the best of the industry, outperforming 91.84% 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 17.63%, TTD belongs to the best of the industry, outperforming 83.67% 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.
With an excellent Gross Margin value of 80.11%, TTD belongs to the best of the industry, outperforming 91.84% of the companies in the same industry.
TTD's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 17.63%
PM (TTM) 16.04%
GM 80.11%
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%
TTD Yearly Profit, Operating, Gross MarginsTTD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TTD is creating some value.
TTD has more shares outstanding than it did 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.
TTD Yearly Shares OutstandingTTD Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
TTD Yearly Total Debt VS Total AssetsTTD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.2 Solvency

TTD has an Altman-Z score of 8.31. This indicates that TTD is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 8.31, TTD belongs to the best of the industry, outperforming 90.82% of the companies in the same industry.
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 8.31
ROIC/WACC1.18
WACC9.13%
TTD Yearly LT Debt VS Equity VS FCFTTD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

TTD has a Current Ratio of 1.81. This is a normal value and indicates that TTD is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of TTD (1.81) is better than 67.35% of its industry peers.
TTD has a Quick Ratio of 1.81. 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 of 1.81. This is in the better half of the industry: TTD outperforms 68.37% of its industry peers.
Industry RankSector Rank
Current Ratio 1.81
Quick Ratio 1.81
TTD Yearly Current Assets VS Current LiabilitesTTD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

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9

3. Growth

3.1 Past

TTD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.37%, 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 25.06%.
The Revenue has been growing by 29.90% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)34.37%
EPS 3Y21.45%
EPS 5Y35%
EPS Q2Q%26.92%
Revenue 1Y (TTM)25.06%
Revenue growth 3Y26.9%
Revenue growth 5Y29.9%
Sales Q2Q%25.4%

3.2 Future

TTD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.80% yearly.
TTD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.87% yearly.
EPS Next Y8.33%
EPS Next 2Y13.42%
EPS Next 3Y16.5%
EPS Next 5Y21.8%
Revenue Next Year16%
Revenue Next 2Y17.29%
Revenue Next 3Y18.18%
Revenue Next 5Y18.87%

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.
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.
TTD Yearly Revenue VS EstimatesTTD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B 8B
TTD Yearly EPS VS EstimatesTTD Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2 4 6 8

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2

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 42.18, the valuation of TTD can be described as expensive.
Based on the Price/Earnings ratio, TTD is valued a bit cheaper than 60.20% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.59, TTD is valued quite expensively.
Based on the Price/Forward Earnings ratio of 34.18, the valuation of TTD can be described as expensive.
TTD's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of TTD to the average of the S&P500 Index (22.39), we can say TTD is valued expensively.
Industry RankSector Rank
PE 42.18
Fwd PE 34.18
TTD Price Earnings VS Forward Price EarningsTTD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TTD is valued a bit more expensive than the industry average as 66.33% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as TTD.
Industry RankSector Rank
P/FCF 51.99
EV/EBITDA 61.18
TTD Per share dataTTD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4 5

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 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 16.50% in the coming years.
PEG (NY)5.06
PEG (5Y)1.21
EPS Next 2Y13.42%
EPS Next 3Y16.5%

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0

5. Dividend

5.1 Amount

TTD does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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TRADE DESK INC/THE -CLASS A

NASDAQ:TTD (6/11/2025, 3:02:02 PM)

72.55

+0.18 (+0.25%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)08-05 2025-08-05/amc
Inst Owners82.95%
Inst Owner Change-2.67%
Ins Owners10.96%
Ins Owner Change12.09%
Market Cap35.65B
Analysts79.11
Price Target88.45 (21.92%)
Short Float %5.17%
Short Ratio2.2
Dividend
Industry RankSector 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)18.06%
Min EPS beat(2)3.61%
Max EPS beat(2)32.52%
EPS beat(4)4
Avg EPS beat(4)12.21%
Min EPS beat(4)3.45%
Max EPS beat(4)32.52%
EPS beat(8)7
Avg EPS beat(8)10.56%
EPS beat(12)10
Avg EPS beat(12)15.67%
EPS beat(16)14
Avg EPS beat(16)21.23%
Revenue beat(2)1
Avg Revenue beat(2)0.56%
Min Revenue beat(2)-3.33%
Max Revenue beat(2)4.45%
Revenue beat(4)3
Avg Revenue beat(4)0.4%
Min Revenue beat(4)-3.33%
Max Revenue beat(4)4.45%
Revenue beat(8)7
Avg Revenue beat(8)0.9%
Revenue beat(12)10
Avg Revenue beat(12)1.15%
Revenue beat(16)14
Avg Revenue beat(16)1.76%
PT rev (1m)-6.3%
PT rev (3m)-23.16%
EPS NQ rev (1m)-1.18%
EPS NQ rev (3m)-1.52%
EPS NY rev (1m)2.77%
EPS NY rev (3m)-2.3%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.2%
Valuation
Industry RankSector Rank
PE 42.18
Fwd PE 34.18
P/S 13.88
P/FCF 51.99
P/OCF 42.17
P/B 13.12
P/tB 13.12
EV/EBITDA 61.18
EPS(TTM)1.72
EY2.37%
EPS(NY)2.12
Fwd EY2.93%
FCF(TTM)1.4
FCFY1.92%
OCF(TTM)1.72
OCFY2.37%
SpS5.23
BVpS5.53
TBVpS5.53
PEG (NY)5.06
PEG (5Y)1.21
Profitability
Industry RankSector Rank
ROA 7.22%
ROE 15.17%
ROCE 14.98%
ROIC 10.81%
ROICexc 25.46%
ROICexgc 25.46%
OM 17.63%
PM (TTM) 16.04%
GM 80.11%
FCFM 26.69%
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-Score8
Asset Turnover0.45
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 177.92%
Cap/Sales 6.21%
Interest Coverage 250
Cash Conversion 155.78%
Profit Quality 166.41%
Current Ratio 1.81
Quick Ratio 1.81
Altman-Z 8.31
F-Score8
WACC9.13%
ROIC/WACC1.18
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)34.37%
EPS 3Y21.45%
EPS 5Y35%
EPS Q2Q%26.92%
EPS Next Y8.33%
EPS Next 2Y13.42%
EPS Next 3Y16.5%
EPS Next 5Y21.8%
Revenue 1Y (TTM)25.06%
Revenue growth 3Y26.9%
Revenue growth 5Y29.9%
Sales Q2Q%25.4%
Revenue Next Year16%
Revenue Next 2Y17.29%
Revenue Next 3Y18.18%
Revenue Next 5Y18.87%
EBIT growth 1Y79.39%
EBIT growth 3Y50.71%
EBIT growth 5Y30.65%
EBIT Next Year154.76%
EBIT Next 3Y55.42%
EBIT Next 5Y42.7%
FCF growth 1Y37.81%
FCF growth 3Y25.69%
FCF growth 5Y100.33%
OCF growth 1Y43.27%
OCF growth 3Y25.01%
OCF growth 5Y65.14%