NasdaqGS:GSUM

Stock Analysis Report

Executive Summary

Gridsum Holding Inc. provides data analysis software for enterprises and government agencies in China.

Risk Analysis

Earnings have declined by -52.4% per year over past 5 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Weak fundamentals or lack of information.


Similar Companies

Share Price & News

How has Gridsum Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GSUM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.9%

GSUM

2.4%

US Software

1.7%

US Market


1 Year Return

-36.9%

GSUM

39.0%

US Software

23.2%

US Market

Return vs Industry: GSUM underperformed the US Software industry which returned 39.8% over the past year.

Return vs Market: GSUM underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

GSUMIndustryMarket
7 Day-4.9%2.4%1.7%
30 Day-19.2%7.8%4.2%
90 Day-27.4%19.4%11.9%
1 Year-36.9%-36.9%40.2%39.0%25.8%23.2%
3 Year-88.5%-88.5%144.0%134.3%52.8%42.9%
5 Yearn/a198.3%177.0%75.2%55.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Gridsum Holding undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Gridsum Holding is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Gridsum Holding has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

Future Growth

How is Gridsum Holding forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.8%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Gridsum Holding has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Gridsum Holding performed over the past 5 years?

-52.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GSUM is currently unprofitable.

Growing Profit Margin: GSUM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GSUM is unprofitable, and losses have increased over the past 5 years at a rate of -52.4% per year.

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

Earnings vs Industry: GSUM is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (20.8%).


Return on Equity

High ROE: GSUM's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gridsum Holding's financial position?


Financial Position Analysis

Short Term Liabilities: GSUM has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: GSUM has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: GSUM has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: GSUM's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: GSUM has a low level of unsold assets or inventory.

Debt Coverage by Assets: GSUM has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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: Insufficient data to determine if GSUM has enough cash runway based on its current free cash flow.

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


Next Steps

Dividend

What is Gridsum Holding's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if GSUM'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 GSUM'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 Gridsum Holding's salary, the management and board of directors tenure and is there insider trading?

5.1yrs

Average management tenure


CEO

Guosheng Qi (35yo)

15yrs

Tenure

0

Mr. Guosheng Qi serves as the Chairman and Chief Executive Officer of Beijing Gridsum Technology Co., Ltd. Mr. Qi founded Beijing Gridsum in 2005. He is a Co-Owner of Fairy Spirit Limited. Mr. Qi co-founde ...


Management Age and Tenure

5.1yrs

Average Tenure

48yo

Average Age

Experienced Management: GSUM's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

8.0yrs

Average Tenure

49yo

Average Age

Experienced Board: GSUM's board of directors are considered experienced (8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.9%.


Management Team

  • Ravi Sarathy (48yo)

    Chief Financial Officer

    • Tenure: 0.3yrs
  • Guosheng Qi (35yo)

    Chairman & CEO

    • Tenure: 15yrs
  • Guofa Yu (45yo)

    COO & Director

    • Tenure: 15yrs
  • Michael Zhang (49yo)

    Vice President of Corporate Development

    • Tenure: 0.3yrs
  • John Liu (54yo)

    Chief Technology Officer

    • Tenure: 5.1yrs
  • Aaron Li (46yo)

    Co-President

    • Tenure: 11yrs
  • Michael Xu (48yo)

    Co-President

    • Tenure: 11.8yrs
  • Xijian Liu (61yo)

    Chief Strategy Officer

    • Tenure: 2.4yrs
  • Herman Fong (46yo)

    Co-President & Executive Director

    • Tenure: 0.9yrs

Board Members

  • Dannis Lee (49yo)

    Independent Director

    • Tenure: 0.8yrs
  • Yanchun Bai (53yo)

    Director

    • Tenure: 8yrs
  • Guosheng Qi (35yo)

    Chairman & CEO

    • Tenure: 15yrs
  • Guofa Yu (45yo)

    COO & Director

    • Tenure: 15yrs
  • Xudong Gao (53yo)

    Independent Director

    • Tenure: 14yrs
  • Herman Fong (46yo)

    Co-President & Executive Director

    • Tenure: 0.9yrs
  • Feng Lu (63yo)

    Independent Director

    • Tenure: 0.8yrs

Company Information

Gridsum Holding Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gridsum Holding Inc.
  • Ticker: GSUM
  • Exchange: NasdaqGS
  • Founded: 2005
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$46.630m
  • Shares outstanding: 34.54m
  • Website: https://www.gridsum.com

Number of Employees


Location

  • Gridsum Holding Inc.
  • High Technology Building
  • South Wing
  • Beijing
  • 100083
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GSUMNasdaqGS (Nasdaq Global Select)YesSPONSORED ADRUSUSDSep 2016

Biography

Gridsum Holding Inc. provides data analysis software for enterprises and government agencies in China. Its proprietary distributed data architecture allows its customers to collect and analyze information; and Gridsum Big Data platform and Gridsum Prophet performs multi-dimensional correlation analysis and analyzes complex real-time events. The company offers Web Dissector to analyze customer Websites by monitoring and analyzing key performance indicators; Mobile Dissector to understand mobile app user activity; SEM Dissector for search engine marketing; SEO Dissector, a search engine optimization tool; Ad Dissector, an advertisement performance monitoring and optimization product; Contribution Dissector to track and analyze user behavior; Audience Dissector, an audience analysis product; and Recommendation Engine, a data driven content recommendation solution. It also provides Government Web Dissector, a digital intelligence solution; Government Website Group Integrated Management Platform, an integrated management platform; Streaming Dissector, a real-time viewership analysis for digital online video; Video Dissector, an online video content analytics tool; TV Dissector, an analytics tool; Rating Plus, a television viewing data analytics tool; and Media Dissector, a mass, social, and user-generated content media monitoring and analytics tool. In addition, the company offers Law Dissector and Smart Push, a search and statistical analysis tool; Smart Push, a legal research tool; voice recognition and transcription system; Information Dissector, an analytical system; Social Listening, a cloud-based social listening solution; Gridsum Dashboard, a data visualization tool; and Gridsum Report Center, an automated report generation and distribution tool. Further, it develops media analytics and information discovery solutions. Gridsum Holding Inc. has a strategic alliance with ShineWing. The company was founded in 2005 and is headquartered in Beijing, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/17 02:21
End of Day Share Price2020/01/16 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.