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GDYN

Grid Dynamics Holdings NasdaqCM:GDYN Stock Report

Last Price

US$17.05

Market Cap

US$1.1b

7D

-7.1%

1Y

-17.1%

Updated

01 Jul, 2022

Data

Company Financials +
GDYN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance0/6
Financial Health5/6
Dividends0/6

GDYN Stock Overview

Grid Dynamics Holdings, Inc., together with its subsidiaries, provides enterprise-level digital transformation services in the areas of search, analytics, and release automation for Fortune 1000 corporations in North America, Europe, and internationally.

Grid Dynamics Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Grid Dynamics Holdings
Historical stock prices
Current Share PriceUS$17.05
52 Week HighUS$42.81
52 Week LowUS$9.09
Beta1.13
1 Month Change-7.94%
3 Month Change21.96%
1 Year Change-17.11%
3 Year Changen/a
5 Year Changen/a
Change since IPO45.60%

Recent News & Updates

Jul 01
What Is Grid Dynamics Holdings, Inc.'s (NASDAQ:GDYN) Share Price Doing?

What Is Grid Dynamics Holdings, Inc.'s (NASDAQ:GDYN) Share Price Doing?

Grid Dynamics Holdings, Inc. ( NASDAQ:GDYN ), is not the largest company out there, but it received a lot of attention...

May 27

Grid Dynamics Holdings: A First Take On Recent Insider Buying

Today, we put Grid Dynamics Holdings in the spotlight for the first time. This tech concern that drives digital transformation has been a roller coaster ride for shareholders.  Recently the stock has seen some insider buying. A full investment analysis follows in the paragraphs below.

May 26
Returns On Capital At Grid Dynamics Holdings (NASDAQ:GDYN) Paint A Concerning Picture

Returns On Capital At Grid Dynamics Holdings (NASDAQ:GDYN) Paint A Concerning Picture

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Amongst...

Shareholder Returns

GDYNUS ITUS Market
7D-7.1%-4.7%-2.5%
1Y-17.1%-35.2%-21.2%

Return vs Industry: GDYN exceeded the US IT industry which returned -35.7% over the past year.

Return vs Market: GDYN exceeded the US Market which returned -21.7% over the past year.

Price Volatility

Is GDYN's price volatile compared to industry and market?
GDYN volatility
GDYN Average Weekly Movement9.8%
IT Industry Average Movement10.0%
Market Average Movement8.1%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: GDYN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: GDYN's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20063,671Leonard Livschitzhttps://www.griddynamics.com

Grid Dynamics Holdings, Inc., together with its subsidiaries, provides enterprise-level digital transformation services in the areas of search, analytics, and release automation for Fortune 1000 corporations in North America, Europe, and internationally. It works in collaboration with its clients on digital transformation initiatives that cover strategy consulting, early prototypes, and enterprise-scale delivery of new digital platforms. The company offers technical consulting, software design, development, testing, and internet service operations services.

Grid Dynamics Holdings Fundamentals Summary

How do Grid Dynamics Holdings's earnings and revenue compare to its market cap?
GDYN fundamental statistics
Market CapUS$1.14b
Earnings (TTM)-US$8.30m
Revenue (TTM)US$243.56m

4.7x

P/S Ratio

-137.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GDYN income statement (TTM)
RevenueUS$243.56m
Cost of RevenueUS$144.39m
Gross ProfitUS$99.17m
Other ExpensesUS$107.48m
Earnings-US$8.30m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.12
Gross Margin40.72%
Net Profit Margin-3.41%
Debt/Equity Ratio2.1%

How did GDYN perform over the long term?

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

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

GDYN 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/Revenue4.1x
Enterprise Value/EBITDA129.5x
PEG Ration/a

Price to Sales Ratio vs Peers

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

GDYN PS Ratio vs Peers
The above table shows the PS ratio for GDYN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average6.4x
CINT CI&T
4.2x27.3%US$1.3b
UIS Unisys
0.4x7.2%US$840.1m
KD Kyndryl Holdings
0.1x-2.8%US$2.3b
CISO Cerberus Cyber Sentinel
20.9xn/aUS$458.9m
GDYN Grid Dynamics Holdings
4.7x22.3%US$1.1b

Price-To-Sales vs Peers: GDYN is good value based on its Price-To-Sales Ratio (4.7x) compared to the peer average (6.4x).


Price to Earnings Ratio vs Industry

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

Price-To-Sales vs Industry: GDYN is expensive based on its Price-To-Sales Ratio (4.7x) compared to the US IT industry average (2.3x)


Price to Sales Ratio vs Fair Ratio

What is GDYN'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.

GDYN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio4.7x
Fair PS Ratio3.6x

Price-To-Sales vs Fair Ratio: GDYN is expensive based on its Price-To-Sales Ratio (4.7x) compared to the estimated Fair Price-To-Sales Ratio (3.6x).


Share Price vs Fair Value

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

Below Fair Value: GDYN ($17.05) is trading below our estimate of fair value ($19.11)

Significantly Below Fair Value: GDYN is trading below fair value, but not by a significant amount.


Price to Earnings Growth Ratio

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


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Future Growth

How is Grid Dynamics Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


109.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GDYN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

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

High Growth Earnings: GDYN is expected to become profitable in the next 3 years.

Revenue vs Market: GDYN's revenue (22.3% per year) is forecast to grow faster than the US market (8.2% per year).

High Growth Revenue: GDYN's revenue (22.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GDYN's Return on Equity is forecast to be low in 3 years time (8.2%).


Discover growth companies

Past Performance

How has Grid Dynamics 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


-73.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GDYN is currently unprofitable.

Growing Profit Margin: GDYN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GDYN is unprofitable, and losses have increased over the past 5 years at a rate of 73% per year.

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

Earnings vs Industry: GDYN is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (21.4%).


Return on Equity

High ROE: GDYN has a negative Return on Equity (-3.59%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Grid Dynamics Holdings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: GDYN's short term assets ($206.6M) exceed its short term liabilities ($32.7M).

Long Term Liabilities: GDYN's short term assets ($206.6M) exceed its long term liabilities ($11.9M).


Debt to Equity History and Analysis

Debt Level: GDYN has more cash than its total debt.

Reducing Debt: Insufficient data to determine if GDYN's debt to equity ratio has reduced 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: Whilst unprofitable GDYN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: GDYN is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 31.1% per year.


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Dividend

What is Grid Dynamics 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

  • Future Dividend Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate GDYN'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 GDYN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GDYN'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 GDYN has not reported any payouts.


Discover strong dividend paying companies

Management

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

1.4yrs

Average management tenure


CEO

Leonard Livschitz (55 yo)

8.42yrs

Tenure

US$6,822,033

Compensation

Mr. Leonard Livschitz has been the Chief Executive Officer at Grid Dynamics Holdings, Inc. since 2014. Prior to joining Grid Dynamics, Mr. Livschitz co-founded the LED solutions company Luxera, serving as...


CEO Compensation Analysis

Compensation vs Market: Leonard's total compensation ($USD6.82M) is above average for companies of similar size in the US market ($USD4.03M).

Compensation vs Earnings: Leonard's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: GDYN's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: GDYN's board of directors are considered experienced (5.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: GDYN insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.3%.


Top Shareholders

Company Information

Grid Dynamics Holdings, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Grid Dynamics Holdings, Inc.
  • Ticker: GDYN
  • Exchange: NasdaqCM
  • Founded: 2006
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Implied Market Cap: US$1.143b
  • Shares outstanding: 67.06m
  • Website: https://www.griddynamics.com

Number of Employees


Location

  • Grid Dynamics Holdings, Inc.
  • 5000 Executive Parkway
  • Suite 520
  • San Ramon
  • California
  • 94583
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/01 00:00
End of Day Share Price2022/07/01 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.