(GDYN) Grid Dynamics Holdings - Overview
Sector: Technology | Industry: Information Technology Services | Exchange: NASDAQ (USA) | Market Cap: 542m USD | Total Return: -45.3% in 12m
Avg Turnover: 12.4M
EPS Trend: 24.3%
Qual. Beats: -1
Rev. Trend: 94.5%
Qual. Beats: 0
Warnings
P/E ratio 108.0
Tailwinds
No distinct edge detected
Grid Dynamics Holdings, Inc. (GDYN) is a digital transformation service provider specializing in enterprise artificial intelligence, cloud platforms, and product engineering. Founded in 2006 and based in California, the company focuses on scaling AI infrastructure, data modernization, and composable commerce solutions for global enterprises. Their client base spans diverse sectors, including retail, finance, healthcare, and manufacturing.
Operating within the IT services sector, Grid Dynamics utilizes a high-end engineering model that often leverages offshore and nearshore delivery centers to manage operational costs while providing specialized technical expertise. This business model is common among firms providing Physical AI and IoT integration, as these services require deep domain knowledge in both software development and hardware connectivity.
Investors looking for deeper technical analysis and valuation metrics should consult ValueRay to further their due diligence. The company’s growth is currently driven by the increasing corporate demand for generative AI deployment and the migration of legacy systems to modular, cloud-based architectures.
- Enterprise AI adoption rates drive high-margin digital transformation service revenue
- Geographic delivery center diversification mitigates geopolitical risk and labor cost inflation
- Client concentration in retail and technology sectors increases exposure to cyclical spending
- Expansion of offshore engineering talent pool impacts gross margin and scalability
- Strategic acquisitions of specialized digital firms accelerate platform engineering market share
| Net Income: 5.28m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA -0.21 > 1.0 |
| NWC/Revenue: 90.82% < 20% (prev 97.93%; Δ -7.11% < -1%) |
| CFO/TA 0.07 > 3% & CFO 39.6m > Net Income 5.28m |
| Net Debt (-310.1m) to EBITDA (22.1m): -14.02 < 3 |
| Current Ratio: 7.88 > 1.5 & < 3 |
| Outstanding Shares: last quarter (84.7m) vs 12m ago -3.54% < -2% |
| Gross Margin: 34.07% > 18% (prev 0.37%; Δ 3.37k% > 0.5%) |
| Asset Turnover: 69.49% > 50% (prev 62.81%; Δ 6.67% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBITDA TTM and Interest Expense TTM) |
| A: 0.62 (Total Current Assets 432.2m - Total Current Liabilities 54.9m) / Total Assets 605.0m |
| B: -0.01 (Retained Earnings -3.65m / Total Assets 605.0m) |
| C: -0.01 (EBIT TTM -3.24m / Avg Total Assets 598.0m) |
| D: -0.08 (Book Value of Equity -6.07m / Total Liabilities 74.9m) |
| Altman-Z'' = 3.95 = AA |
| DSRI: 0.96 (Receivables 87.4m/81.7m, Revenue 415.5m/371.2m) |
| GMI: 1.08 (GM 34.07% / 36.73%) |
| AQI: 0.94 (AQ_t 0.23 / AQ_t-1 0.24) |
| SGI: 1.12 (Revenue 415.5m / 371.2m) |
| TATA: -0.06 (NI 5.28m - CFO 39.6m) / TA 605.0m) |
| Beneish M = -3.00 (Cap -4..+1) = A |
As of May 25, 2026, the stock is trading at USD 7.13 with a total of 1,707,623 shares traded.
Over the past week, the price has changed by +6.26%,
over one month by +24.65%,
over three months by +10.54% and
over the past year by -45.32%.
Grid Dynamics Holdings has received a consensus analysts rating of 4.60. Therefore, it is recommended to buy GDYN.
- StrongBuy: 3
- Buy: 2
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 9 | 26.2% |
P/E Trailing = 108.0
P/E Forward = 131.5789
P/S = 1.3042
P/B = 1.1003
Revenue TTM = 415.5m USD
EBIT TTM = -3.24m USD
EBITDA TTM = 22.1m USD
Long Term Debt = 12.0m USD (estimated: total debt 17.4m - short term 5.37m)
Short Term Debt = 5.37m USD (from shortTermDebt, last quarter)
Debt = 17.4m USD (from shortLongTermDebtTotal, last quarter) (leases 17.4m already included)
Net Debt = -310.1m USD (calculated: Debt 17.4m - CCE 327.5m)
Enterprise Value = 231.8m USD (541.9m + Debt 17.4m - CCE 327.5m)
Interest Coverage Ratio = unknown (Ebit TTM -3.24m / Interest Expense TTM 0.0)
EV/FCF = 9.79x (Enterprise Value 231.8m / FCF TTM 23.7m)
FCF Yield = 10.22% (FCF TTM 23.7m / Enterprise Value 231.8m)
FCF Margin = 5.70% (FCF TTM 23.7m / Revenue TTM 415.5m)
Net Margin = 1.27% (Net Income TTM 5.28m / Revenue TTM 415.5m)
Gross Margin = 34.07% ((Revenue TTM 415.5m - Cost of Revenue TTM 273.9m) / Revenue TTM)
Gross Margin QoQ = 34.80% (prev 34.04%)
Tobins Q-Ratio = 0.38 (Enterprise Value 231.8m / Total Assets 605.0m)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 17.4m)
Taxrate = 38.42% (6.03m / 15.7m)
NOPAT = -1.99m (EBIT -3.24m * (1 - 38.42%)) [loss with tax shield]
Current Ratio = 7.88 (Total Current Assets 432.2m / Total Current Liabilities 54.9m)
Debt / Equity = 0.03 (Debt 17.4m / totalStockholderEquity, last quarter 530.1m)
Debt / EBITDA = -14.02 (Net Debt -310.1m / EBITDA 22.1m)
Debt / FCF = -13.09 (Net Debt -310.1m / FCF TTM 23.7m)
Total Stockholder Equity = 535.5m (last 4 quarters mean from totalStockholderEquity)
RoA = 0.88% (Net Income 5.28m / Total Assets 605.0m)
RoE = 0.98% (Net Income TTM 5.28m / Total Stockholder Equity 539.2m)
RoCE = -0.59% (EBIT -3.24m / Capital Employed (Equity 539.2m + L.T.Debt 12.0m))
RoIC = -0.36% (negative operating profit) (NOPAT -1.99m / Invested Capital 555.5m)
WACC = 9.19% (E(541.9m)/V(559.3m) * Re(9.49%) + D(17.4m)/V(559.3m) * Rd(0.0%) * (1-Tc(0.38)))
Discount Rate = 9.49% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 51.11 | Cagr: 3.70%
[DCF] Terminal Value 72.09% ; FCFF base≈24.0m ; Y1≈23.5m ; Y5≈23.7m
[DCF] Fair Price = 7.58 (EV 323.8m - Net Debt -310.1m = Equity 633.9m / Shares 83.6m; r=9.19% [WACC]; 5y FCF grow -2.93% → 2.50% )
EPS Correlation: 24.33 | EPS CAGR: 3.92% | SUE: -1.96 | # QB: -1
Revenue Correlation: 94.45 | Revenue CAGR: 13.01% | SUE: 0.55 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.11 | Chg30d=-3.65% | Revisions=-20% | Analysts=6
EPS next Quarter (2026-09-30): EPS=0.12 | Chg30d=+3.26% | Revisions=+43% | Analysts=6
EPS current Year (2026-12-31): EPS=0.45 | Chg30d=-2.73% | Revisions=-14% | GrowthEPS=+12.1% | GrowthRev=+6.9%
EPS next Year (2027-12-31): EPS=0.54 | Chg30d=+1.44% | Revisions=+14% | GrowthEPS=+19.6% | GrowthRev=+10.5%
[Analyst] Revisions Ratio: +43%