GDS Holdings Limited Fundamental Analysis
GDS Holdings Limited (GDS) shows moderate financial fundamentals with a PE ratio of 15.49, profit margin of 23.48%, and ROE of 10.27%. The company generates $12.1B in annual revenue with moderate year-over-year growth of 7.89%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 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
WeakGDS struggles to sustain strong margins.
Key Financial Metrics
Is GDS Expensive or Cheap?
P/E Ratio
GDS trades at 15.49 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GDS's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values GDS Holdings Limited at 1.40 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.76 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 $23.48 as profit after all expenses.
Operating Margin
Core operations generate 17.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.27 in profit for every $100 of shareholder equity.
ROA
GDS Holdings Limited generates $3.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
GDS Holdings Limited produces operating cash flow of $3.01B, showing steady but balanced cash generation.
Free Cash Flow
GDS Holdings Limited generates weak or negative free cash flow of $-1.34B, restricting financial flexibility.
FCF Per Share
Each share generates $-6.90 in free cash annually.
FCF Yield
GDS converts -3.01% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.49
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.001
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.64
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.50
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.87
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How GDS Stacks Against Its Sector Peers
| Metric | GDS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.49 | 36.36 | Better (Cheaper) |
| ROE | 10.27% | 980.00% | Weak |
| Net Margin | 23.48% | 5969454258.00% | Weak |
| Debt/Equity | 1.50 | 0.36 | Weak (High Leverage) |
| Current Ratio | 1.87 | 5.04 | Neutral |
| ROA | 3.38% | -298400.00% (disorted) | Weak |
GDS outperforms its industry in 1 out of 6 key metrics, 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
59.98%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
213.96%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
742.22%
Industry Style: Growth, Innovation, High Beta
High Growth