NasdaqGM:TTD

Stock Analysis Report

Executive Summary

The Trade Desk, Inc., a technology company, provides a self-service omnichannel software platform that enables clients to purchase and manage data-driven digital advertising campaigns in the United States and internationally.


Snowflake Analysis

Flawless balance sheet with high growth potential.


Similar Companies

Share Price & News

How has Trade Desk's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.9%

TTD

2.6%

US Software

5.3%

US Market


1 Year Return

-6.8%

TTD

9.5%

US Software

-10.7%

US Market

Return vs Industry: TTD underperformed the US Software industry which returned 9.5% over the past year.

Return vs Market: TTD exceeded the US Market which returned -10.7% over the past year.


Shareholder returns

TTDIndustryMarket
7 Day-1.9%2.6%5.3%
30 Day-32.9%-7.9%-13.6%
90 Day-28.8%-3.2%-19.8%
1 Year-6.8%-6.8%10.6%9.5%-8.9%-10.7%
3 Year421.5%421.5%106.4%97.6%15.5%8.0%
5 Yearn/a173.9%154.7%35.2%20.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Trade Desk undervalued compared to its fair value and its price relative to the market?

45.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TTD ($193.21) is trading below our estimate of fair value ($353.02)

Significantly Below Fair Value: TTD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TTD is poor value based on its PE Ratio (79.4x) compared to the Software industry average (40x).

PE vs Market: TTD is poor value based on its PE Ratio (79.4x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: TTD is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: TTD is overvalued based on its PB Ratio (14.3x) compared to the US Software industry average (4.3x).


Next Steps

Future Growth

How is Trade Desk forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

20.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TTD's forecast earnings growth (20.2% per year) is above the savings rate (1.7%).

Earnings vs Market: TTD's earnings (20.2% per year) are forecast to grow faster than the US market (12.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TTD's revenue (19.4% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: TTD's revenue (19.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TTD's Return on Equity is forecast to be high in 3 years time (23.1%)


Next Steps

Past Performance

How has Trade Desk performed over the past 5 years?

59.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TTD has a high level of non-cash earnings.

Growing Profit Margin: TTD's current net profit margins (16.4%) are lower than last year (18.5%).


Past Earnings Growth Analysis

Earnings Trend: TTD's earnings have grown significantly by 59.2% per year over the past 5 years.

Accelerating Growth: TTD's earnings growth over the past year (22.9%) is below its 5-year average (59.2% per year).

Earnings vs Industry: TTD earnings growth over the past year (22.9%) exceeded the Software industry 18.7%.


Return on Equity

High ROE: TTD's Return on Equity (17.7%) is considered low.


Next Steps

Financial Health

How is Trade Desk's financial position?


Financial Position Analysis

Short Term Liabilities: TTD's short term assets ($1.4B) exceed its short term liabilities ($930.4M).

Long Term Liabilities: TTD's short term assets ($1.4B) exceed its long term liabilities ($185.9M).


Debt to Equity History and Analysis

Debt Level: TTD is debt free.

Reducing Debt: TTD has no debt compared to 5 years ago when its debt to equity ratio was 72.7%.

Debt Coverage: TTD has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: TTD has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if TTD's debt is covered by short term assets.


Next Steps

Dividend

What is Trade Desk's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if TTD'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 TTD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Jeff Green (42yo)

10.33s

Tenure

US$10,782,252

Compensation

Mr. Jeffrey Terry Green, also known as Jeff, is the Founder of The Trade Desk, Inc. and has been its Chief Executive Officer and president since November 2011. He serves as the Chairman of the Board at The ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD10.78M) is above average for companies of similar size in the US market ($USD7.33M).

Compensation vs Earnings: Jeff's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Green
Founder10.33yrsUS$10.78m11.56% $1.0b
David Pickles
Founder & CTOno dataUS$4.16m0.27% $24.0m
Vivian Yang
Chief Legal Officer3.58yrsUS$4.16m0.063% $5.5m
Susan Vobejda
Chief Marketing Officer2.33yrsUS$4.16m0.068% $6.0m
Brian Stempeck
Chief Strategy Officer & Director1.17yrsUS$4.26m0.080% $7.0m
Blake Grayson
Chief Financial Officer0.33yrno data0.039% $3.4m
Chris Toth
Vice President of Investor Relationsno datano datano data
Mason Burnham
Senior Director of Communicationsno datano datano data
Ian Colley
Vice President of Communicationsno datano datano data
Vina Leite
Chief People Officer0.92yrno datano data

3.0yrs

Average Tenure

42yo

Average Age

Experienced Management: TTD's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Green
Founder10.33yrsUS$10.78m11.56% $1.0b
Brian Stempeck
Chief Strategy Officer & Director1.17yrsUS$4.26m0.080% $7.0m
Lise Buyer
Director1yrno data0.023% $2.0m
Kathryn Falberg
Non-Employee Director3.58yrsUS$561.94k0.091% $8.0m
Thomas Falk
Non-Employee Director7.83yrsUS$505.97k0.020% $1.8m
Eric Paley
Non-Employee Director10yrsUS$519.91k0.090% $7.9m
Gokul Rajaram
Independent Director1.83yrsUS$851.49k0.013% $1.1m
David Wells
Non-Employee Director4.25yrsUS$553.93k0.021% $1.8m

3.6yrs

Average Tenure

44yo

Average Age

Experienced Board: TTD's board of directors are considered experienced (3.6 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.9%.


Top Shareholders

Company Information

The Trade Desk, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Trade Desk, Inc.
  • Ticker: TTD
  • Exchange: NasdaqGM
  • Founded: 2009
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$8.796b
  • Shares outstanding: 45.57m
  • Website: https://www.thetradedesk.com

Number of Employees


Location

  • The Trade Desk, Inc.
  • 42 North Chestnut Street
  • Ventura
  • California
  • 93001
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TTDNasdaqGM (Nasdaq Global Market)YesClass A Common StockUSUSDSep 2016
TT8DB (Deutsche Boerse AG)YesClass A Common StockDEEURSep 2016
0LF5LSE (London Stock Exchange)YesClass A Common StockGBUSDSep 2016
TT8BRSE (Berne Stock Exchange)YesClass A Common StockCHCHFSep 2016
TTDWBAG (Wiener Boerse AG)YesClass A Common StockATEURSep 2016
TTD *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNSep 2016

Biography

The Trade Desk, Inc., a technology company, provides a self-service omnichannel software platform that enables clients to purchase and manage data-driven digital advertising campaigns in the United States and internationally. The company’s platform allows clients to manage integrated advertising campaigns in various advertising channels and formats, including display, video, audio, native and social, and on a multitude of devices, such as computers, mobile devices, and connected TV (CTV). It serves advertising agencies and other service providers for advertisers. The Trade Desk, Inc. was founded in 2009 and is headquartered in Ventura, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 00:45
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.