GURUFOCUS.COM » STOCK LIST » Technology » Software » GDS Holdings Ltd (STU:G401) » Definitions » Piotroski F-Score

GDS Holdings (STU:G401) Piotroski F-Score : 4 (As of Dec. 12, 2024)


View and export this data going back to 2021. Start your Free Trial

What is GDS Holdings Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

GDS Holdings has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for GDS Holdings's Piotroski F-Score or its related term are showing as below:

STU:G401' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 4   Max: 6
Current: 4

During the past 10 years, the highest Piotroski F-Score of GDS Holdings was 6. The lowest was 3. And the median was 4.


GDS Holdings Piotroski F-Score Historical Data

The historical data trend for GDS Holdings's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

GDS Holdings Piotroski F-Score Chart

GDS Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.00 5.00 3.00 5.00 4.00

GDS Holdings Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.00 4.00 3.00 4.00 4.00

Competitive Comparison of GDS Holdings's Piotroski F-Score

For the Information Technology Services subindustry, GDS Holdings's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


GDS Holdings's Piotroski F-Score Distribution in the Software Industry

For the Software industry and Technology sector, GDS Holdings's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where GDS Holdings's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep24) TTM:Last Year (Sep23) TTM:
Net Income was -406.596 + -44.18 + -28.907 + -24.491 = €-504 Mil.
Cash Flow from Operations was 121.928 + -15.965 + 58.167 + 81.685 = €246 Mil.
Revenue was 328.324 + 335.649 + 361.93 + 377.63 = €1,404 Mil.
Gross Profit was 55.522 + 73.288 + 81.677 + 83.647 = €294 Mil.
Average Total Assets from the begining of this year (Sep23)
to the end of this year (Sep24) was
(9866.018 + 9561.023 + 9672.556 + 10137.52 + 10484.792) / 5 = €9944.3818 Mil.
Total Assets at the begining of this year (Sep23) was €9,866 Mil.
Long-Term Debt & Capital Lease Obligation was €5,599 Mil.
Total Current Assets was €1,820 Mil.
Total Current Liabilities was €1,525 Mil.
Net Income was -24.474 + -64.564 + -29.202 + -54.077 = €-172 Mil.

Revenue was 325.517 + 326.513 + 318.607 + 323.426 = €1,294 Mil.
Gross Profit was 66.082 + 66.644 + 71.015 + 57.449 = €261 Mil.
Average Total Assets from the begining of last year (Sep22)
to the end of last year (Sep23) was
(10773.513 + 10130.151 + 10590.349 + 9931.209 + 9866.018) / 5 = €10258.248 Mil.
Total Assets at the begining of last year (Sep22) was €10,774 Mil.
Long-Term Debt & Capital Lease Obligation was €5,730 Mil.
Total Current Assets was €1,445 Mil.
Total Current Liabilities was €950 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

GDS Holdings's current Net Income (TTM) was -504. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

GDS Holdings's current Cash Flow from Operations (TTM) was 246. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep23)
=-504.174/9866.018
=-0.05110208

ROA (Last Year)=Net Income/Total Assets (Sep22)
=-172.317/10773.513
=-0.0159945

GDS Holdings's return on assets of this year was -0.05110208. GDS Holdings's return on assets of last year was -0.0159945. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

GDS Holdings's current Net Income (TTM) was -504. GDS Holdings's current Cash Flow from Operations (TTM) was 246. ==> 246 > -504 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep23 to Sep24
=5599.269/9944.3818
=0.56305853

Gearing (Last Year: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep22 to Sep23
=5730.096/10258.248
=0.55858427

GDS Holdings's gearing of this year was 0.56305853. GDS Holdings's gearing of last year was 0.55858427. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Sep24)=Total Current Assets/Total Current Liabilities
=1820.286/1525.138
=1.19352216

Current Ratio (Last Year: Sep23)=Total Current Assets/Total Current Liabilities
=1445.116/949.819
=1.52146462

GDS Holdings's current ratio of this year was 1.19352216. GDS Holdings's current ratio of last year was 1.52146462. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

GDS Holdings's number of shares in issue this year was 1476.13. GDS Holdings's number of shares in issue last year was 1468.337. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=294.134/1403.533
=0.20956686

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=261.19/1294.063
=0.20183716

GDS Holdings's gross margin of this year was 0.20956686. GDS Holdings's gross margin of last year was 0.20183716. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep23)
=1403.533/9866.018
=0.14225932

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep22)
=1294.063/10773.513
=0.12011523

GDS Holdings's asset turnover of this year was 0.14225932. GDS Holdings's asset turnover of last year was 0.12011523. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+1+0+1+0+0+0+1+1
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

GDS Holdings has an F-score of 4 indicating the company's financial situation is typical for a stable company.

GDS Holdings  (STU:G401) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


GDS Holdings Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of GDS Holdings's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


GDS Holdings Business Description

Address
No. 999 Zhouhai Road, F4/F5, Building C, Sunland International, Pudong, Shanghai, CHN, 200137
GDS Holdings started as an IT service provider in 2001 then moved to the data center business with its first self-developed data center opening in 2010. The company now develops and operates data centers in China and also builds, operates and transfers data centers for other clients. It offers colocation and managed services and mainly targets hyperscale cloud service customers who take large areas of its data centers or even whole data centers under long-term contracts. It has aggressively raised capital over the past four years for expansion. Its data centers are located predominantly in and around the Tier 1 cities in China and it has also started an expanding into Southeast Asia. GDS listed on the Nasdaq in 2016 and completed a secondary listing in Hong Kong in 2020.

GDS Holdings Headlines

No Headlines