GDS Holdings Limited
GDS Holdings Limited Fundamental Analysis
GDS Holdings Limited (9698.HK) shows weak financial fundamentals with a PE ratio of 56.37, profit margin of 8.40%, and ROE of 3.70%. The company generates $11.4B in annual revenue with moderate year-over-year growth of 3.67%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 24.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 9698.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak9698.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate9698.HK shows balanced valuation metrics.
Growth Score
Moderate9698.HK shows steady but slowing expansion.
Financial Health Score
Moderate9698.HK shows balanced financial health with some risks.
Profitability Score
Weak9698.HK struggles to sustain strong margins.
Key Financial Metrics
Is 9698.HK Expensive or Cheap?
P/E Ratio
9698.HK trades at 56.37 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 9698.HK's PEG of 0.12 indicates potential undervaluation.
Price to Book
The market values GDS Holdings Limited at 2.01 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.46 times EBITDA. This is generally considered low.
How Well Does 9698.HK Make Money?
Net Profit Margin
For every $100 in sales, GDS Holdings Limited keeps $8.40 as profit after all expenses.
Operating Margin
Core operations generate 13.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.70 in profit for every $100 of shareholder equity.
ROA
GDS Holdings Limited generates $1.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
GDS Holdings Limited generates strong operating cash flow of $3.37B, reflecting robust business health.
Free Cash Flow
GDS Holdings Limited generates weak or negative free cash flow of $-1.26B, restricting financial flexibility.
FCF Per Share
Each share generates $-0.81 in free cash annually.
FCF Yield
9698.HK converts -2.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
56.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.008
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.75
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.77
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How 9698.HK Stacks Against Its Sector Peers
| Metric | 9698.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 56.37 | 33.94 | Worse (Expensive) |
| ROE | 3.70% | 1002.00% | Weak |
| Net Margin | 8.40% | -48794.00% (disorted) | Weak |
| Debt/Equity | 1.77 | 0.44 | Weak (High Leverage) |
| Current Ratio | 2.60 | 5.74 | Strong Liquidity |
| ROA | 1.20% | -288341.00% (disorted) | Weak |
9698.HK outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews GDS Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
88.10%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
682.08%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
396.25%
Industry Style: Growth, Innovation, High Beta
High Growth