Trade Desk
Market Cap
US$36.9b
Last Updated
2021/01/25 23:48 UTC
Data Sources
Company Financials +
Executive Summary
The Trade Desk, Inc. operates as a technology company in the United States and internationally. More Details
Rewards
Risk Analysis
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.
Volatility Over Time: TTD's weekly volatility (11%) has been stable over the past year.
Market Performance
7 Day Return
0.03%
TTD
5.2%
US Software
2.6%
US Market
1 Year Return
187.5%
TTD
48.2%
US Software
26.0%
US Market
Return vs Industry: TTD exceeded the US Software industry which returned 48.2% over the past year.
Return vs Market: TTD exceeded the US Market which returned 26% over the past year.
Shareholder returns
| TTD | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.03% | 5.2% | 2.6% |
| 30 Day | -15.7% | 0.6% | 5.1% |
| 90 Day | 28.1% | 10.2% | 17.1% |
| 1 Year | 187.5%187.5% | 49.2%48.2% | 28.9%26.0% |
| 3 Year | 1,454.1%1,454.1% | 131.0%123.7% | 46.3%36.6% |
| 5 Year | n/a | 281.1%260.0% | 126.9%101.6% |
Long-Term 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
5 days ago | Simply Wall St
Here's What To Make Of Trade Desk's (NASDAQ:TTD) Returns On Capital2 weeks ago | Simply Wall St
Is Trade Desk (NASDAQ:TTD) Using Too Much Debt?1 month ago | Simply Wall St
What Kind Of Shareholders Hold The Majority In The Trade Desk, Inc.'s (NASDAQ:TTD) Shares?Valuation
Is Trade Desk undervalued compared to its fair value and its price relative to the market?
254.62x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TTD ($785.59) is trading above our estimate of fair value ($522.94)
Significantly Below Fair Value: TTD is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: TTD is poor value based on its PE Ratio (254.6x) compared to the US Software industry average (59.7x).
PE vs Market: TTD is poor value based on its PE Ratio (254.6x) compared to the US market (21.3x).
Price to Earnings Growth Ratio
PEG Ratio: TTD is poor value based on its PEG Ratio (10.3x)
Price to Book Ratio
PB vs Industry: TTD is overvalued based on its PB Ratio (44.3x) compared to the US Software industry average (9.7x).
Next Steps
Future Growth
How is Trade Desk forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
24.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TTD's forecast earnings growth (24.7% per year) is above the savings rate (2%).
Earnings vs Market: TTD's earnings (24.7% per year) are forecast to grow faster than the US market (21.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: TTD's revenue (22.5% per year) is forecast to grow faster than the US market (10.6% per year).
High Growth Revenue: TTD's revenue (22.5% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TTD's Return on Equity is forecast to be low in 3 years time (19.5%).
Next Steps
Past Performance
How has Trade Desk performed over the past 5 years?
54.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TTD has high quality earnings.
Growing Profit Margin: TTD's current net profit margins (19.3%) are higher than last year (16%).
Past Earnings Growth Analysis
Earnings Trend: TTD's earnings have grown significantly by 54.5% per year over the past 5 years.
Accelerating Growth: TTD's earnings growth over the past year (45.8%) is below its 5-year average (54.5% per year).
Earnings vs Industry: TTD earnings growth over the past year (45.8%) exceeded the Software industry 13.6%.
Return on Equity
High ROE: TTD's Return on Equity (17%) 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 ($1.8B) exceed its short term liabilities ($1.0B).
Long Term Liabilities: TTD's short term assets ($1.8B) exceed its long term liabilities ($293.6M).
Debt to Equity History and Analysis
Debt Level: TTD's debt to equity ratio (8.6%) is considered satisfactory.
Reducing Debt: TTD's debt to equity ratio has reduced from 95.4% to 8.6% over the past 5 years.
Debt Coverage: TTD's debt is well covered by operating cash flow (290.8%).
Interest Coverage: TTD earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Trade Desk 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 recent payouts.
High Dividend: Unable to evaluate TTD'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 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?
1.0yrs
Average management tenure
CEO
Jeff Green (43 yo)
11.17yrs
Tenure
US$12,135,473
Compensation
Mr. Jeffrey Terry Green, also known as Jeff, is the Founder of The Trade Desk, Inc. and has been its Chief Executive Officer and president since November 2011. He serves as the Chairman of the Board at The...
CEO Compensation Analysis
Compensation vs Market: Jeff's total compensation ($USD12.14M) is about average for companies of similar size in the US market ($USD10.56M).
Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 11.17yrs | US$12.14m | 10.15% $ 3.7b | |
| Founder & CTO | no data | US$4.26m | 0.29% $ 106.2m | |
| Chief Financial Officer | 1.08yrs | US$10.31m | 0.041% $ 15.0m | |
| Chief Marketing Officer | 3.17yrs | US$4.26m | 0.048% $ 17.7m | |
| Chief Strategy Officer & Director | 0.25yr | US$4.25m | 0.058% $ 21.2m | |
| Chief Operating Officer | no data | no data | no data | |
| Senior VP & Chief Accounting Officer | no data | no data | no data | |
| Vice President of Investor Relations | no data | no data | no data | |
| Chief Legal Officer | 0.25yr | no data | 0.0056% $ 2.1m | |
| Senior Director of Communications | no data | no data | no data | |
| Vice President of Communications & Public Relations | no data | no data | no data | |
| Chief People Officer | 1yr | no data | no data |
1.0yrs
Average Tenure
46yo
Average Age
Experienced Management: TTD's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 11.17yrs | US$12.14m | 10.15% $ 3.7b | |
| Chief Strategy Officer & Director | 0.25yr | US$4.25m | 0.058% $ 21.2m | |
| Independent Director | 1.83yrs | US$535.56k | 0.025% $ 9.2m | |
| Independent Non-Employee Director | 4.42yrs | US$326.90k | 0.091% $ 33.5m | |
| Independent Non-Employee Director | 8.67yrs | US$301.90k | 0.0027% $ 1.0m | |
| Independent Non-Employee Director | 10.83yrs | US$293.90k | 0.068% $ 25.1m | |
| Independent Director | 2.67yrs | US$299.26k | 0.015% $ 5.4m | |
| Independent Non-Employee Director | 5.08yrs | US$322.48k | 0.023% $ 8.3m |
4.4yrs
Average Tenure
45yo
Average Age
Experienced Board: TTD's board of directors are considered experienced (4.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: TTD insiders have only sold shares 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 4.1%.
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$36.895b
- Shares outstanding: 46.96m
- Website: https://www.thetradedesk.com
Number of Employees
Location
- The Trade Desk, Inc.
- 42 North Chestnut Street
- Ventura
- California
- 93001
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TTD | NasdaqGM (Nasdaq Global Market) | Yes | Class A Common Stock | US | USD | Sep 2016 |
| TT8 | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Sep 2016 |
| 0LF5 | LSE (London Stock Exchange) | Yes | Class A Common Stock | GB | USD | Sep 2016 |
| TTD | WBAG (Wiener Boerse AG) | Yes | Class A Common Stock | AT | EUR | Sep 2016 |
| TTD * | BMV (Bolsa Mexicana de Valores) | Yes | Class A Common Stock | MX | MXN | Sep 2016 |
Biography
The Trade Desk, Inc. operates as a technology company in the United States and internationally. The company operates a self-service cloud-based platform that allows buyers to create, manage, and optimize d...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/25 23:48 |
| End of Day Share Price | 2021/01/25 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.