NasdaqGM:GDS

Stock Analysis Report

Executive Summary

GDS Holdings Limited, together with its subsidiaries, designs, builds, and operates data centers in the People's Republic of China.


Snowflake Analysis

High growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has GDS Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GDS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.5%

GDS

0.2%

US IT

0.7%

US Market


1 Year Return

70.5%

GDS

31.8%

US IT

18.2%

US Market

Return vs Industry: GDS exceeded the US IT industry which returned 31.8% over the past year.

Return vs Market: GDS exceeded the US Market which returned 18.2% over the past year.


Shareholder returns

GDSIndustryMarket
7 Day-1.5%0.2%0.7%
30 Day7.6%3.4%1.5%
90 Day14.1%3.3%5.0%
1 Year70.5%70.5%33.1%31.8%20.8%18.2%
3 Year377.1%377.1%97.6%89.2%45.2%35.8%
5 Yearn/a142.5%121.1%71.6%52.7%

Price Volatility Vs. Market

How volatile is GDS Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is GDS Holdings undervalued compared to its fair value and its price relative to the market?

5.47x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: GDS ($46.18) is trading above our estimate of fair value ($4.76)

Significantly Below Fair Value: GDS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GDS is unprofitable, so we can't compare its PE Ratio to the IT industry average.

PE vs Market: GDS is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GDS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GDS is overvalued based on its PB Ratio (5.5x) compared to the US IT industry average (3.7x).


Next Steps

Future Growth

How is GDS Holdings forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

69.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GDS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: GDS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GDS's is expected to become profitable in the next 3 years.

Revenue vs Market: GDS's revenue (25.5% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: GDS's revenue (25.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GDS's Return on Equity is forecast to be low in 3 years time (4%).


Next Steps

Past Performance

How has GDS Holdings performed over the past 5 years?

-14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GDS is currently unprofitable.

Growing Profit Margin: GDS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GDS is unprofitable, and losses have increased over the past 5 years at a rate of -14.2% per year.

Accelerating Growth: Unable to compare GDS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GDS is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (17%).


Return on Equity

High ROE: GDS has a negative Return on Equity (-4.88%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is GDS Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: GDS's short term assets (CN¥7.2B) exceed its short term liabilities (CN¥3.6B).

Long Term Liabilities: GDS's short term assets (CN¥7.2B) do not cover its long term liabilities (CN¥15.0B).


Debt to Equity History and Analysis

Debt Level: GDS's debt to equity ratio (110.4%) is considered high.

Reducing Debt: Insufficient data to determine if GDS's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: GDS has a high level of physical assets or inventory.

Debt Coverage by Assets: GDS's debt is not covered by short term assets (assets are 0.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: GDS has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if GDS has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is GDS Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate GDS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GDS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GDS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GDS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GDS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of GDS Holdings's salary, the management and board of directors tenure and is there insider trading?

7.6yrs

Average management tenure


CEO

William Wei Huang (52yo)

15.9yrs

Tenure

0

Mr. William Wei Huang has been the Chief Executive Officer of GDS Holdings Limited since 2004 and has been its Chairman since 2002. Mr. Huang is the Founder of GDS Holdings Limited. Mr. Huang serves as Chi ...


Management Age and Tenure

7.6yrs

Average Tenure

48yo

Average Age

Experienced Management: GDS's management team is seasoned and experienced (7.6 years average tenure).


Board Age and Tenure

5.9yrs

Average Tenure

59.5yo

Average Age

Experienced Board: GDS's board of directors are considered experienced (5.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellCN¥199,999,99916 Apr 19
CyrusOne Inc.
EntityCompany
Shares5,730,659
Max PriceCN¥34.90

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.9%.


Management Team

  • William Wei Huang (52yo)

    Chairman of the Board & CEO

    • Tenure: 15.9yrs
  • Jamie Khoo (54yo)

    Chief Operating Officer

    • Tenure: 0.9yrs
  • Daniel Newman (58yo)

    Chief Financial Officer

    • Tenure: 8.3yrs
  • Xu Wei (47yo)

    Senior Vice President of Sales

    • Tenure: 6.9yrs
  • Yilin Chen (48yo)

    Senior Vice President of Product & Service Business

    • Tenure: 11.9yrs
  • Liang Chen (44yo)

    Senior Vice President of Design

    • Tenure: 4.9yrs
  • Yan Liang (44yo)

    Senior Vice President of Operation & Delivery

    • Tenure: 0yrs
  • Laura Chen

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Qiang Chang Sun (62yo)

    Independent Director

    • Tenure: 2.7yrs
  • Ah Doo Lim (70yo)

    Independent Director

    • Tenure: 5.9yrs
  • Tat Sio (71yo)

    Vice-Chairman

    • Tenure: 5.9yrs
  • Zulkifli Bin Baharudin (59yo)

    Independent Director

    • Tenure: 3.1yrs
  • Bruno Lopez (55yo)

    Director

    • Tenure: 5.9yrs
  • William Wei Huang (52yo)

    Chairman of the Board & CEO

    • Tenure: 15.9yrs
  • Gary Wojtaszek (53yo)

    Director

    • Tenure: 1.5yrs
  • Choong Lee (62yo)

    Director

    • Tenure: 5.9yrs
  • Satoshi Okada (60yo)

    Director

    • Tenure: 5.9yrs
  • Bin Yu (49yo)

    Independent Director

    • Tenure: 3.1yrs

Company Information

GDS Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GDS Holdings Limited
  • Ticker: GDS
  • Exchange: NasdaqGM
  • Founded: 2006
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: US$6.748b
  • Shares outstanding: 145.74m
  • Website: https://www.gds-services.com

Number of Employees


Location

  • GDS Holdings Limited
  • Youyou Century Place
  • 2nd Floor, Tower 2
  • Shanghai
  • 200127
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GDSNasdaqGM (Nasdaq Global Market)YesSPON ADS EACH REP 8 ORD CL AUSUSDNov 2016
G40DB (Deutsche Boerse AG)YesSPON ADS EACH REP 8 ORD CL ADEEURNov 2016
GDS NBMV (Bolsa Mexicana de Valores)YesSPON ADS EACH REP 8 ORD CL AMXMXNNov 2016

Biography

GDS Holdings Limited, together with its subsidiaries, designs, builds, and operates data centers in the People's Republic of China. The company provides colocation, managed hosting, and managed cloud servi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 00:26
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.