TRADE DESK INC/THE -CLASS A (TTD)
US88339J1051 - Common Stock
Overall TTD gets a fundamental rating of 6 out of 10. We evaluated TTD against 96 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. 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.
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
TTD has a Return On Assets of 3.66%. This is in the better half of the industry: TTD outperforms 75.79% of its industry peers.
TTD has a better Return On Equity (8.27%) than 81.05% of its industry peers.
With a decent Return On Invested Capital value of 6.66%, TTD is doing good in the industry, outperforming 72.63% 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 7.68%.
The last Return On Invested Capital (6.66%) for TTD is above the 3 year average (5.35%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.66% | ||
| ROE | 8.27% | ||
| ROIC | 6.66% |
ROA(3y)2.91%
ROA(5y)4.76%
ROE(3y)6.61%
ROE(5y)12.28%
ROIC(3y)5.35%
ROIC(5y)7.21%
1.3 Margins
TTD has a better Profit Margin (9.19%) than 83.16% of its industry peers.
In the last couple of years the Profit Margin of TTD has declined.
TTD has a better Operating Margin (10.30%) than 69.47% of its industry peers.
TTD's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 81.21%, TTD belongs to the top of the industry, outperforming 92.63% 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 | 10.3% | ||
| PM (TTM) | 9.19% | ||
| GM | 81.21% |
OM growth 3Y-15.79%
OM growth 5Y-14.45%
PM growth 3Y-31.8%
PM growth 5Y-13.01%
GM growth 3Y1.09%
GM growth 5Y1.31%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TTD is destroying value.
The number of shares outstanding for TTD has been reduced compared to 1 year ago.
Compared to 5 years ago, TTD has more shares outstanding
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 10.01. This indicates that TTD is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.01, TTD belongs to the top of the industry, outperforming 94.74% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 10.01 |
ROIC/WACC0.72
WACC9.29%
2.3 Liquidity
TTD has a Current Ratio of 1.72. 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 1.72 is in line compared to the rest of the industry. TTD outperforms 52.63% of its industry peers.
A Quick Ratio of 1.72 indicates that TTD should not have too much problems paying its short term obligations.
TTD has a Quick ratio of 1.72. This is comparable to the rest of the industry: TTD outperforms 52.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
TTD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.05%, which is quite good.
Measured over the past years, TTD shows a very strong growth in Earnings Per Share. The EPS has been growing by 36.07% on average per year.
Looking at the last year, TTD shows a very strong growth in Revenue. The Revenue has grown by 23.35%.
The Revenue has been growing by 32.46% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)19.05%
EPS 3Y22.5%
EPS 5Y36.07%
EPS growth Q2Q7.89%
Revenue 1Y (TTM)23.35%
Revenue growth 3Y32.53%
Revenue growth 5Y32.46%
Revenue growth Q2Q23.46%
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 27.50% on average per year.
The Revenue is expected to grow by 21.19% on average over the next years. This is a very strong growth
EPS Next Y19.32%
EPS Next 2Y19.48%
EPS Next 3Y22.83%
EPS Next 5Y27.5%
Revenue Next Year24.09%
Revenue Next 2Y21.83%
Revenue Next 3Y21.84%
Revenue Next 5Y21.19%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 66.67, which means the current valuation is very expensive for TTD.
Compared to the rest of the industry, the Price/Earnings ratio of TTD is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 25.20, TTD is valued quite expensively.
TTD is valuated quite expensively with a Price/Forward Earnings ratio of 55.88.
TTD's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.63, TTD is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.67 | ||
| Fwd PE | 55.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TTD is valued a bit more expensive than the industry average as 76.84% of the companies are valued more cheaply.
TTD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 75 | ||
| EV/EBITDA | 138.39 |
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 decent 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 22.83% in the coming years.
PEG (NY)3.45
PEG (5Y)1.85
EPS Next 2Y19.48%
EPS Next 3Y22.83%
5. Dividend
5.1 Amount
TTD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TRADE DESK INC/THE -CLASS A
NASDAQ:TTD (4/25/2024, 7:22:04 PM)
Premarket: 85 +1.66 (+1.99%)83.34
-0.45 (-0.54%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap40.75B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.67 | ||
| Fwd PE | 55.88 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.45
PEG (5Y)1.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.66% | ||
| ROE | 8.27% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.3% | ||
| PM (TTM) | 9.19% | ||
| GM | 81.21% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)19.05%
EPS 3Y22.5%
EPS 5Y
EPS growth Q2Q
EPS Next Y19.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)23.35%
Revenue growth 3Y32.53%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y