Grid Dynamics Holdings, Inc.
Grid Dynamics Holdings, Inc. Fundamental Analysis
Grid Dynamics Holdings, Inc. (GDYN) shows weak financial fundamentals with a PE ratio of 41.53, profit margin of 3.42%, and ROE of 2.64%. The company generates $0.4B in annual revenue with strong year-over-year growth of 12.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GDYN's fundamental strength across five key dimensions:
Efficiency Score
WeakGDYN struggles to generate sufficient returns from assets.
Valuation Score
ModerateGDYN shows balanced valuation metrics.
Growth Score
ModerateGDYN shows steady but slowing expansion.
Financial Health Score
ExcellentGDYN maintains a strong and stable balance sheet.
Profitability Score
ModerateGDYN maintains healthy but balanced margins.
Key Financial Metrics
Is GDYN Expensive or Cheap?
P/E Ratio
GDYN trades at 41.53 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GDYN's PEG of -2.18 indicates potential undervaluation.
Price to Book
The market values Grid Dynamics Holdings, Inc. at 1.07 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 43.93 times EBITDA. This signals the market has high growth expectations.
How Well Does GDYN Make Money?
Net Profit Margin
For every $100 in sales, Grid Dynamics Holdings, Inc. keeps $3.42 as profit after all expenses.
Operating Margin
Core operations generate 0.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.64 in profit for every $100 of shareholder equity.
ROA
Grid Dynamics Holdings, Inc. generates $2.26 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Grid Dynamics Holdings, Inc. generates limited operating cash flow of $37.82M, signaling weaker underlying cash strength.
Free Cash Flow
Grid Dynamics Holdings, Inc. produces free cash flow of $23.63M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.28 in free cash annually.
FCF Yield
GDYN converts 4.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
41.53
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.07
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
7.63
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.006
vs 25 benchmark
How GDYN Stacks Against Its Sector Peers
| Metric | GDYN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 41.53 | 35.19 | Worse (Expensive) |
| ROE | 2.64% | 1155.00% | Weak |
| Net Margin | 3.42% | -127067.00% (disorted) | Weak |
| Debt/Equity | 0.03 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 7.63 | 4.71 | Strong Liquidity |
| ROA | 2.26% | -314918.00% (disorted) | Weak |
GDYN outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Grid Dynamics Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
92.11%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-75.75%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
56.22%
Industry Style: Growth, Innovation, High Beta
High Growth