(GDS) GDS Holdings - Overview
Sector: Technology | Industry: Information Technology Services | Exchange: NASDAQ (USA) | Market Cap: 7.017m USD | Total Return: 29% in 12m
Avg Turnover: 70.3M
Qual. Beats: 1
Rev. Trend: 96.8%
Qual. Beats: 0
Warnings
Earnings expected to drop: P/E 20.6 → Forward 294.1
High Debt/EBITDA (7.5) with thin interest coverage (1.6)
High Debt while negative Cash Flow
Altman Z'' 0.87 < 1.0 - financial distress zone
Volatile Below Avwap Earnings
Tailwinds
No distinct edge detected
GDS Holdings Limited develops and operates high-performance data centers across major economic hubs in China. The company provides colocation and managed services, including power, cooling, and network management, to a client base of cloud service providers, financial institutions, and large internet enterprises.
The business model relies on long-term contracts that provide recurring revenue, as data centers require significant capital expenditure and high switching costs for tenants. As a carrier-neutral provider, GDS allows clients to connect to multiple telecommunications networks, enhancing redundancy and connectivity options within the facility.
For a deeper dive into the companys valuation metrics and historical performance, consider reviewing the detailed reports available on ValueRay.
Founded in 2001 and headquartered in Shanghai, GDS operates within the Data Processing & Outsourced Services industry. The company supports the infrastructure requirements of the digital economy by managing critical server environments and disaster recovery systems for both domestic and multinational corporations.
- Hyperscale cloud demand from major Chinese internet firms drives revenue growth
- Expansion into Southeast Asian markets diversifies geographic revenue and risk profile
- High capital expenditures for data center construction impact free cash flow
- Chinese regulatory shifts and data security laws affect long-term valuation
- Interest rate fluctuations influence high debt servicing costs for infrastructure development
| Net Income: 2.83b TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.02 > 0.02 and ΔFCF/TA 3.09 > 1.0 |
| NWC/Revenue: 90.77% < 20% (prev 34.98%; Δ 55.78% < -1%) |
| CFO/TA 0.04 > 3% & CFO 3.01b > Net Income 2.83b |
| Net Debt (41.0b) to EBITDA (5.47b): 7.51 < 3 |
| Current Ratio: 1.87 > 1.5 & < 3 |
| Outstanding Shares: last quarter (254.0m) vs 12m ago 13.02% < -2% |
| Gross Margin: 24.55% > 18% (prev 0.22%; Δ 2.43k% > 0.5%) |
| Asset Turnover: 15.28% > 50% (prev 15.25%; Δ 0.02% > 0%) |
| Interest Coverage Ratio: 1.65 > 6 (EBITDA TTM 5.47b / Interest Expense TTM 1.24b) |
| A: 0.13 (Total Current Assets 23.5b - Total Current Liabilities 12.6b) / Total Assets 83.8b |
| B: -0.03 (Retained Earnings -2.44b / Total Assets 83.8b) |
| C: 0.03 (EBIT TTM 2.05b / Avg Total Assets 78.6b) |
| D: -0.06 (Book Value of Equity -3.30b / Total Liabilities 51.5b) |
| Altman-Z'' = 0.87 = B |
| DSRI: 0.92 (Receivables 3.24b/3.28b, Revenue 12.0b/11.2b) |
| GMI: 0.92 (GM 24.55% / 22.47%) |
| AQI: 0.91 (AQ_t 0.21 / AQ_t-1 0.23) |
| SGI: 1.07 (Revenue 12.0b / 11.2b) |
| TATA: -0.00 (NI 2.83b - CFO 3.01b) / TA 83.8b) |
| Beneish M = -3.17 (Cap -4..+1) = AA |
As of May 25, 2026, the stock is trading at USD 35.02 with a total of 3,219,116 shares traded.
Over the past week, the price has changed by -17.48%,
over one month by -22.32%,
over three months by -23.92% and
over the past year by +29.03%.
GDS Holdings has received a consensus analysts rating of 4.42. Therefore, it is recommended to buy GDS.
- StrongBuy: 11
- Buy: 5
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 55.1 | 57.4% |
Market Cap CNY = 47.7b (7.02b USD * 6.7948 USD.CNY)
P/E Trailing = 20.6
P/E Forward = 294.1176
P/S = 0.5811
P/B = 1.6798
P/EG = 11.0126
Revenue TTM = 12.0b CNY
EBIT TTM = 2.05b CNY
EBITDA TTM = 5.47b CNY
Long Term Debt = 30.9b CNY (from longTermDebt, last quarter)
Short Term Debt = 9.44b CNY (from shortTermDebt, last quarter)
Debt = 55.8b CNY (from shortLongTermDebtTotal, last quarter) + Leases 8.80b
Net Debt = 41.0b CNY (calculated: Debt 55.8b - CCE 14.8b)
Enterprise Value = 88.7b CNY (47.7b + Debt 55.8b - CCE 14.8b)
Interest Coverage Ratio = 1.65 (Ebit TTM 2.05b / Interest Expense TTM 1.24b)
EV/FCF = -66.14x (Enterprise Value 88.7b / FCF TTM -1.34b)
FCF Yield = -1.51% (FCF TTM -1.34b / Enterprise Value 88.7b)
FCF Margin = -11.16% (FCF TTM -1.34b / Revenue TTM 12.0b)
Net Margin = 23.52% (Net Income TTM 2.83b / Revenue TTM 12.0b)
Gross Margin = 24.55% ((Revenue TTM 12.0b - Cost of Revenue TTM 9.07b) / Revenue TTM)
Gross Margin QoQ = 32.12% (prev 18.97%)
Tobins Q-Ratio = 1.06 (Enterprise Value 88.7b / Total Assets 83.8b)
Interest Expense / Debt = 2.23% (Interest Expense 1.24b / Debt 55.8b)
Taxrate = 3.94% (108.0m / 2.74b)
NOPAT = 1.97b (EBIT 2.05b * (1 - 3.94%))
Current Ratio = 1.87 (Total Current Assets 23.5b / Total Current Liabilities 12.6b)
Debt / Equity = 1.78 (Debt 55.8b / totalStockholderEquity, last quarter 31.4b)
Debt / EBITDA = 7.51 (Net Debt 41.0b / EBITDA 5.47b)
Debt / FCF = -30.60 (negative FCF - burning cash) (Net Debt 41.0b / FCF TTM -1.34b)
Total Stockholder Equity = 27.6b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.59% (Net Income 2.83b / Total Assets 83.8b)
RoE = 9.41% (Net Income TTM 2.83b / Total Stockholder Equity 30.0b)
RoCE = 3.36% (EBIT 2.05b / Capital Employed (Equity 30.0b + L.T.Debt 30.9b))
RoIC = 2.44% (NOPAT 1.97b / Invested Capital 80.6b)
WACC = 6.84% (E(47.7b)/V(103b) * Re(12.35%) + D(55.8b)/V(103b) * Rd(2.23%) * (1-Tc(0.04)))
Discount Rate = 12.35% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 64.41 | Cagr: 15.47%
[DCF] Fair Price = unknown (Cash Flow -1.34b)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 1.11 | # QB: 1
Revenue Correlation: 96.77 | Revenue CAGR: 7.69% | SUE: 0.29 | # QB: 0
EPS current Quarter (2026-06-30): EPS=-0.34 | Chg30d=+1.46% | Revisions=+20% | Analysts=1
EPS next Quarter (2026-09-30): EPS=-0.39 | Chg30d=+1.50% | Revisions=+20% | Analysts=1
EPS current Year (2026-12-31): EPS=5.72 | Chg30d=+34.87% | Revisions=N/A | GrowthEPS=+89.1% | GrowthRev=+11.0%
EPS next Year (2027-12-31): EPS=1.09 | Chg30d=-35.83% | Revisions=N/A | GrowthEPS=-80.9% | GrowthRev=+13.2%
[Analyst] Revisions Ratio: +20%