The Trade Desk, Inc. (TTD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Autodesk, Inc.

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Roper Technologies, Inc.

Shopify, Inc.

The Trade Desk, Inc.

Palo Alto Networks, Inc.

Synopsys, Inc.

VMware, Inc.

Activision Blizzard, Inc.

Why is The Trade Desk, Inc. ?

The company is Net-Debt Free

Healthy long term growth as Net Sales has grown by an annual rate of 28.21%

Flat results in Mar 26

INTEREST(9M) At USD 1.38 MM has Grown at inf%
INTEREST COVERAGE RATIO(Q) Lowest at 26,294.37
DEBT-EQUITY RATIO (HY) Highest at -40.04 %

With ROE of 17.84%, it has a fair valuation with a 4.08 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -75.36%, its profits have risen by 12.8% ; the PEG ratio of the company is 1.5

High Institutional Holdings at 92.53%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Below par performance in long term as well as near term

Along with generating -75.36% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to The Trade Desk, Inc. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is The Trade Desk, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

The Trade Desk, Inc.

-75.36%

-1.26

64.32%

S&P 500

20.78%

1.56

13.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

28.21%

EBIT Growth (5y)

32.52%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.61

Sales to Capital Employed (avg)

0.92

Tax Ratio

23.27%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

92.53%

ROCE (avg)

27.93%

ROE (avg)

11.35%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.08

EV to EBIT

15.11

EV to EBITDA

12.63

EV to Capital Employed

7.08

EV to Sales

3.07

PEG Ratio

1.51

Dividend Yield

ROCE (Latest)

46.86%

ROE (Latest)

17.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 1,093.09 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 0.93 times

-9What is not working for the Company

INTEREST(9M)

At USD 1.38 MM has Grown at inf%

INTEREST COVERAGE RATIO(Q)

Lowest at 26,294.37

DEBT-EQUITY RATIO (HY)

Highest at -40.04 %

NET PROFIT(Q)

Lowest at USD 40 MM

EPS(Q)

Lowest at USD 0.08

Here's what is working for The Trade Desk, Inc.

Operating Cash Flow

Highest at USD 1,093.09 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debtors Turnover Ratio

Highest at 0.93 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for The Trade Desk, Inc.

Interest

At USD 1.38 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 26,294.37

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

Lowest at USD 40 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.08

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Highest at -40.04 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio