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GDS

GDS Holdings NasdaqGM:GDS Stock Report

Last Price

US$29.00

Market Cap

US$5.5b

7D

4.8%

1Y

-51.1%

Updated

06 Aug, 2022

Data

Company Financials +
GDS fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance0/6
Financial Health2/6
Dividends0/6

GDS Stock Overview

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

GDS Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for GDS Holdings
Historical stock prices
Current Share PriceUS$29.00
52 Week HighUS$66.50
52 Week LowUS$19.83
Beta0.76
1 Month Change-11.29%
3 Month Change4.54%
1 Year Change-51.08%
3 Year Change-24.52%
5 Year Change218.68%
Change since IPO178.58%

Recent News & Updates

Jul 29
The Return Trends At GDS Holdings (NASDAQ:GDS) Look Promising

The Return Trends At GDS Holdings (NASDAQ:GDS) Look Promising

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Shareholder Returns

GDSUS ITUS Market
7D4.8%3.7%1.0%
1Y-51.1%-28.3%-12.9%

Return vs Industry: GDS underperformed the US IT industry which returned -28.3% over the past year.

Return vs Market: GDS underperformed the US Market which returned -12.8% over the past year.

Price Volatility

Is GDS's price volatile compared to industry and market?
GDS volatility
GDS Average Weekly Movement12.9%
IT Industry Average Movement10.0%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: GDS is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: GDS's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
20011,878William Huanghttps://www.gds-services.com

GDS Holdings Limited, together with its subsidiaries, develops and operates data centers in the People's Republic of China. The company provides colocation services comprising critical facilities space, customer-available power, racks, and cooling; managed hosting services, including business continuity and disaster recovery, network management, data storage, system security, operating system, database, and server middleware services; managed cloud services; and consulting services. It serves cloud service providers, large Internet companies, financial institutions, telecommunications and IT service providers, and large domestic private sector and multinational corporations.

GDS Holdings Fundamentals Summary

How do GDS Holdings's earnings and revenue compare to its market cap?
GDS fundamental statistics
Market CapCN¥37.37b
Earnings (TTM)-CN¥1.59b
Revenue (TTM)CN¥8.36b

4.5x

P/S Ratio

-23.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GDS income statement (TTM)
RevenueCN¥8.36b
Cost of RevenueCN¥6.49b
Gross ProfitCN¥1.87b
Other ExpensesCN¥3.46b
Earnings-CN¥1.59b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-8.33
Gross Margin22.37%
Net Profit Margin-19.00%
Debt/Equity Ratio126.6%

How did GDS perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is GDS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GDS?

Other financial metrics that can be useful for relative valuation.

GDS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue8.6x
Enterprise Value/EBITDA21.2x
PEG Ration/a

Price to Sales Ratio vs Peers

How does GDS's PS Ratio compare to its peers?

GDS PS Ratio vs Peers
The above table shows the PS ratio for GDS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average8.2x
WIX Wix.com
3x14.6%US$4.0b
SWCH Switch
8.5x10.3%US$8.3b
DOCN DigitalOcean Holdings
10.1x27.5%US$4.7b
SQSP Squarespace
4.1x13.0%US$3.4b
GDS GDS Holdings
4.5x19.5%US$5.5b

Price-To-Sales vs Peers: GDS is good value based on its Price-To-Sales Ratio (4.5x) compared to the peer average (8.2x).


Price to Earnings Ratio vs Industry

How does GDS's PE Ratio compare vs other companies in the US IT Industry?

Price-To-Sales vs Industry: GDS is expensive based on its Price-To-Sales Ratio (4.5x) compared to the US IT industry average (2.9x)


Price to Sales Ratio vs Fair Ratio

What is GDS's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GDS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio4.5x
Fair PS Ratio3.6x

Price-To-Sales vs Fair Ratio: GDS is expensive based on its Price-To-Sales Ratio (4.5x) compared to the estimated Fair Price-To-Sales Ratio (3.6x).


Share Price vs Fair Value

What is the Fair Price of GDS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GDS ($29) is trading above our estimate of fair value ($3.86)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is GDS Holdings forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


32.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GDS is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: GDS is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: GDS is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: GDS's revenue (19.5% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: GDS's revenue (19.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GDS is forecast to be unprofitable in 3 years.


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Past Performance

How has GDS Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-32.6%

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 32.6% 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 (19.8%).


Return on Equity

High ROE: GDS has a negative Return on Equity (-5.14%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is GDS Holdings's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: GDS's short term assets (CN¥14.5B) exceed its short term liabilities (CN¥13.2B).

Long Term Liabilities: GDS's short term assets (CN¥14.5B) do not cover its long term liabilities (CN¥37.4B).


Debt to Equity History and Analysis

Debt Level: GDS's net debt to equity ratio (81.3%) is considered high.

Reducing Debt: GDS's debt to equity ratio has increased from 113.1% to 126.6% over the past 5 years.


Balance Sheet


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.


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as GDS has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

10.9yrs

Average management tenure


CEO

William Huang (55 yo)

18.58yrs

Tenure

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


Leadership Team

Experienced Management: GDS's management team is seasoned and experienced (10.9 years average tenure).


Board Members

Experienced Board: GDS's board of directors are considered experienced (8.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: GDS Holdings Limited
  • Ticker: GDS
  • Exchange: NasdaqGM
  • Founded: 2001
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Implied Market Cap: US$5.526b
  • Shares outstanding: 190.55m
  • Website: https://www.gds-services.com

Number of Employees


Location

  • GDS Holdings Limited
  • Building C, Sunland International
  • 4th and 5th Floor
  • Shanghai
  • 200137
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/06 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.