GDS Holdings Limited
GDS Holdings Limited Fundamental Analysis
GDS Holdings Limited (GDS) shows strong financial fundamentals with a PE ratio of 12.01, profit margin of 50.05%, and ROE of 22.43%. The company generates $9.5B 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 46.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GDS's fundamental strength across five key dimensions:
Efficiency Score
WeakGDS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGDS trades at attractive valuation levels.
Growth Score
ModerateGDS shows steady but slowing expansion.
Financial Health Score
ModerateGDS shows balanced financial health with some risks.
Profitability Score
ModerateGDS maintains healthy but balanced margins.
Key Financial Metrics
Is GDS Expensive or Cheap?
P/E Ratio
GDS trades at 12.01 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GDS's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values GDS Holdings Limited at 2.52 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.97 times EBITDA. This is generally considered low.
How Well Does GDS Make Money?
Net Profit Margin
For every $100 in sales, GDS Holdings Limited keeps $50.05 as profit after all expenses.
Operating Margin
Core operations generate 12.85 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.43 in profit for every $100 of shareholder equity.
ROA
GDS Holdings Limited generates $7.13 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 $2.81B, reflecting robust business health.
Free Cash Flow
GDS Holdings Limited generates weak or negative free cash flow of $-650.96M, restricting financial flexibility.
FCF Per Share
Each share generates $-3.38 in free cash annually.
FCF Yield
GDS converts -1.33% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.009
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.76
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How GDS Stacks Against Its Sector Peers
| Metric | GDS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.01 | 34.79 | Better (Cheaper) |
| ROE | 22.43% | 1185.00% | Weak |
| Net Margin | 50.05% | -131296.00% (disorted) | Strong |
| Debt/Equity | 1.76 | 0.43 | Weak (High Leverage) |
| Current Ratio | 2.51 | 4.90 | Strong Liquidity |
| ROA | 7.13% | -325472.00% (disorted) | Weak |
GDS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
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