TTDTTD
US • —
$17.29
P/E
19.48
PEG
2.29
FCF Yield
10.2%
Rev Growth YoY
+15.6% YoY
Gross Margin
77.8%
Health Score
8/10
D/E Ratio
—
Confidence
MEDIUM
Business Snapshot
The Trade Desk (TTD) operates a leading demand-side platform (DSP) for programmatic digital advertising, allowing advertisers to purchase ad inventory across various channels including display, video, connected TV, and audio. The company competes in the rapidly growing programmatic advertising market, holding a dominant position in the independent DSP segment against competitors with owned media inventories. With a market capitalization of $8.11 billion, TTD sits in the mid-cap category and has established a distinct competitive advantage through its independent, agency-friendly business model that avoids conflicts of interest found with walled-garden platforms. This independence has allowed it to build deep integrations with major publishers and data providers, creating a strong network effect that drives advertiser retention and spending growth.
Financial Health
TTD reports a healthy gross margin of 77.8% and a net margin of 14.6%, both indicating strong pricing power and operational efficiency. The balance sheet is conservative with a debt/equity ratio of 0.0x, meaning the company carries no debt, and a current ratio of 1.61x, demonstrating ample short-term liquidity to cover obligations...
Risk Assessment
- VALUATION — Price/Book of 7.39x is significantly elevated relative to the sector, indicating the market is assigning a high premium to the company's net asset base.
- EARNINGS QUALITY — While 3 of 4 recent quarters beat estimates, 1 miss in the last 4 quarters represents a relatively consistent but not perfect track record.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- INSIDER SELLING — Over the last 90 days, there was 1 insider sell and 0 insider buys, signaling a cautious view from company executives....
TTD reports a healthy gross margin of 77.8% and a net margin of 14.6%, both indicating strong pricing power and operational efficiency. The balance sheet is conservative with a debt/equity ratio of 0.0x, meaning the company carries no debt, and a current ratio of 1.61x, demonstrating ample short-term liquidity to cover obligations. Free cash flow stands at $829.33 million, representing a robust FCF yield of 10.2%, which signals the company is a strong cash generator rather than a cash burner. Overall, TTD has a fortress-like financial profile that supports significant reinvestment in growth initiatives and technology development, with no risk of dilution from debt obligations.
- VALUATION — Price/Book of 7.39x is significantly elevated relative to the sector, indicating the market is assigning a high premium to the company's net asset base. - EARNINGS QUALITY — While 3 of 4 recent quarters beat estimates, 1 miss in the last 4 quarters represents a relatively consistent but not perfect track record. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - INSIDER SELLING — Over the last 90 days, there was 1 insider sell and 0 insider buys, signaling a cautious view from company executives.
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