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On June 26, 2025 the company announced approval to launch an initial public offering for a China REIT to sell stabilized data‑center assets, with GDS subscribing for 20% of units; the same day GDS reported results of its annual general meeting where shareholders approved board re‑elections and a 30% issuance authorization. On July 2 and July 16, 2025 the company disclosed the final offering price and completion of the C‑REIT IPO, noting heavy institutional and retail demand; the C‑REIT expects a Shanghai listing in early August. On July 29, 2025 GDS released its 2024 ESG report highlighting a 40% renewable energy usage rate and average PUE improvement to 1.24.
Technical Analysis
Directional indicators show a developing but fragile trend: ADX at 20.9 signals an emerging trend in strength terms; DI+ at 29.19 has peak‑and‑reversed (DI+ decreasing), a bearish directional cue, while DI‑ at 20.81 also shows peak‑and‑reversal (DI‑ decreasing), which reads as a reduction in downside directional pressure. Together this generates a mixed immediate bias with limited trend conviction that places emphasis on near‑term catalysts.
Momentum (MACD) reads negative at -0.09 with a peak‑and‑reversal trend and a signal line at 0.01; negative and declining MACD equals bearish momentum and argues for continued short‑term weakness until MACD moves back toward the signal line.
MRO sits at 5.63 and currently positive, which indicates price sits above the oscillator target and therefore carries a potential corrective bias; the MRO trend shows a dip & reversal, indicating the oscillator recently turned higher and adding short‑term counter‑momentum to the corrective signal.
RSI at 53.71 with a dip & reversal places the oscillator in neutral territory but with recent upward reactivity; RSI neither confirms strong continuation nor extreme exhaustion, leaving room for range trading around moving averages.
Price behavior versus averages: last close $32.76 sits below the 20‑day ($33.20) and 50‑day ($34.11) averages but above the 200‑day average ($28.15), implying short‑term pressure inside a longer‑term uptrend. Price recently crossed above the -1x Bollinger band (lower 1x = $31.97), which signals a short‑term stabilization off the lower band rather than breakout strength. Ichimoku components show the Chikou span above the cloud and tenkan/ kijun near the price; that configuration provides conditional support for trend resumption if price clears the 20/50‑day averages.
Volume and volatility: 10‑day average volume trails current levels and the 50/200‑day averages, while 42‑day beta of ~1.22 implies above‑market short‑term sensitivity; expect swings if the C‑REIT narrative accelerates institutional interest.
Fundamental Analysis
Revenue totaled $2,900,288,000 with revenue growth shown as 6.51% on one measure but revenue growth year‑over‑year recorded at -14.11% and revenueQoQ at -84.92%; the conflicting measures indicate quarter‑level volatility — the YoY figure equates to a -14.11% change and the QoQ decline equals -84.92%.
Profitability: EBIT of $425,208,000 implies an EBIT margin of 14.66%, which sits slightly below the industry peer mean of 15.26% and below the industry peer median of 16.71% but well above the industry peer low of -4.29%. EBIT margin QoQ contracted by -72.14% while EBIT margin YoY expanded by 24.31%, signaling large quarter‑to‑quarter swings despite longer‑term margin improvement.
Cash and conversion: cash and short‑term investments total $13.12B while operating cash flow reached $865.12M and cash flow margin stands at 52.26%. Free cash flow registered -$399.68M with a free cash flow yield of -0.80%, below the industry peer mean free cash flow yield of 1.44% and reflecting ongoing capex or cash uses despite robust cash balances.
Leverage and coverage: total debt $47.80B produces debt‑to‑assets of 60.35%, near the upper bound of the industry peer range high of 61.29%; debt‑to‑equity equals 1.96x and debt‑to‑EBITDA near 37.3x. Interest coverage stands at 1.05x, indicating minimal buffer versus interest obligations and highlighting refinancing or liquidity considerations despite the sizeable cash balance.
Efficiency and returns: asset turnover 3.8% lags the industry peer mean of 26.44%, signaling capital intensity in the data‑center model; return on equity registers -0.30% and return on assets -0.09%, both below industry peer means and reflecting current negative net income.
Valuation context: price‑to‑book at 2.04x sits below the industry peer mean of 5.46x and peer median of 6.43x, while price‑to‑sales at about 17.20x sits substantially above the industry peer mean of 8.20x and median of 11.09x. Enterprise multiple at 65.96x exceeds the industry peer mean of 50.09x. The current valuation as determined by WMDST classifies the stock as under‑valued, an assessment that factors the $13.12B liquidity position and the company’s announced C‑REIT that should crystallize asset value and improve balance‑sheet optionality.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-19 |
| NEXT REPORT DATE: | 2025-11-18 |
| CASH FLOW | Begin Period Cash Flow | $ 7.8 B |
| Operating Cash Flow | $ 865.1 M | |
| Capital Expenditures | $ -1.26 B | |
| Change In Working Capital | $ -20.24 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 5.5 B | |
| End Period Cash Flow | $ 13.3 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 2.9 B | |
| Forward Revenue | $ 2.3 B | |
| COSTS | ||
| Cost Of Revenue | $ 2.2 B | |
| Depreciation | $ 856.6 M | |
| Depreciation and Amortization | $ 856.6 M | |
| Research and Development | $ 8.8 M | |
| Total Operating Expenses | $ 2.5 B | |
| PROFITABILITY | ||
| Gross Profit | $ 688.9 M | |
| EBITDA | $ 1.3 B | |
| EBIT | $ 425.2 M | |
| Operating Income | $ 414.6 M | |
| Interest Income | — | |
| Interest Expense | $ 405.0 M | |
| Net Interest Income | $ -404.99 M | |
| Income Before Tax | $ 20.2 M | |
| Tax Provision | $ 64.9 M | |
| Tax Rate | 25.0 % | |
| Net Income | $ -72.30 M | |
| Net Income From Continuing Operations | $ -70.58 M | |
| EARNINGS | ||
| EPS Estimate | — | |
| EPS Actual | — | |
| EPS Difference | — | |
| EPS Surprise | — | |
| Forward EPS | $ -0.15 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 79.2 B | |
| Intangible Assets | $ 5.7 B | |
| Net Tangible Assets | $ 19.8 B | |
| Total Current Assets | $ 17.9 B | |
| Cash and Short-Term Investments | $ 13.1 B | |
| Cash | $ 13.1 B | |
| Net Receivables | $ 2.9 B | |
| Inventory | — | |
| Long-Term Investments | $ 3.1 B | |
| LIABILITIES | ||
| Accounts Payable | $ 2.7 B | |
| Short-Term Debt | $ 3.8 B | |
| Total Current Liabilities | $ 9.0 B | |
| Net Debt | $ 25.4 B | |
| Total Debt | $ 47.8 B | |
| Total Liabilities | $ 53.6 B | |
| EQUITY | ||
| Total Equity | $ 24.4 B | |
| Retained Earnings | $ -5.35 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 15.93 | |
| Shares Outstanding | 1.532 B | |
| Revenue Per-Share | $ 1.89 | |
| VALUATION | Market Capitalization | $ 49.9 B |
| Enterprise Value | $ 84.6 B | |
| Enterprise Multiple | 65.963 | |
| Enterprise Multiple QoQ | 94.993 % | |
| Enterprise Multiple YoY | 603.231 % | |
| Enterprise Multiple IPRWA | high: 140.798 GDS: 65.963 median: 58.931 mean: 50.089 low: -43.256 |
|
| EV/R | 29.153 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.246 | |
| Asset To Liability | 1.477 | |
| Debt To Capital | 0.662 | |
| Debt To Assets | 0.604 | |
| Debt To Assets QoQ | 1.033 % | |
| Debt To Assets YoY | 852.256 % | |
| Debt To Assets IPRWA | high: 0.613 GDS: 0.604 mean: 0.207 median: 0.129 low: 0.006 |
|
| Debt To Equity | 1.959 | |
| Debt To Equity QoQ | 3.715 % | |
| Debt To Equity YoY | 617.452 % | |
| Debt To Equity IPRWA | high: 4.622 GDS: 1.959 mean: 0.724 median: 0.253 low: -2.941 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.044 | |
| Price To Book QoQ | 15.418 % | |
| Price To Book YoY | 131.617 % | |
| Price To Book IPRWA | high: 16.127 median: 6.434 mean: 5.455 GDS: 2.044 low: -1.349 |
|
| Price To Earnings (P/E) | — | |
| Price To Earnings QoQ | — | |
| Price To Earnings YoY | — | |
| Price To Earnings IPRWA | — | |
| PE/G Ratio | — | |
| Price To Sales (P/S) | 17.197 | |
| Price To Sales QoQ | 13.819 % | |
| Price To Sales YoY | 199.721 % | |
| Price To Sales IPRWA | GDS: 17.197 high: 14.656 median: 11.089 mean: 8.203 low: 0.008 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | -178.573 | |
| Forward PE/G | — | |
| Forward P/S | 21.641 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -10.861 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.038 | |
| Asset Turnover Ratio QoQ | 2.647 % | |
| Asset Turnover Ratio YoY | 4.11 % | |
| Asset Turnover Ratio IPRWA | high: 0.453 median: 0.287 mean: 0.264 low: 0.062 GDS: 0.038 |
|
| Receivables Turnover | 0.972 | |
| Receivables Turnover Ratio QoQ | 7.97 % | |
| Receivables Turnover Ratio YoY | 13.609 % | |
| Receivables Turnover Ratio IPRWA | high: 3.883 mean: 1.604 median: 1.268 GDS: 0.972 low: 0.415 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 93.906 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.324 | |
| CapEx To Revenue | -0.436 | |
| CapEx To Depreciation | -1.477 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 60.1 B | |
| Net Invested Capital | $ 62.9 B | |
| Invested Capital | $ 62.9 B | |
| Net Tangible Assets | $ 19.8 B | |
| Net Working Capital | $ 9.0 B | |
| LIQUIDITY | ||
| Cash Ratio | 1.461 | |
| Current Ratio | 1.997 | |
| Current Ratio QoQ | 36.18 % | |
| Current Ratio YoY | 43.467 % | |
| Current Ratio IPRWA | high: 3.358 GDS: 1.997 mean: 1.638 median: 1.461 low: 0.767 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 37.291 | |
| Cost Of Debt | 0.663 % | |
| Interest Coverage Ratio | 1.05 | |
| Interest Coverage Ratio QoQ | -67.654 % | |
| Interest Coverage Ratio YoY | 59.134 % | |
| Interest Coverage Ratio IPRWA | high: 46.876 mean: 28.985 median: 27.929 GDS: 1.05 low: -47.909 |
|
| Operating Cash Flow Ratio | 0.169 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 104.079 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 7.816 % | |
| Revenue Growth | 6.505 % | |
| Revenue Growth QoQ | -84.917 % | |
| Revenue Growth YoY | -14.114 % | |
| Revenue Growth IPRWA | high: 15.386 % GDS: 6.505 % median: 6.33 % mean: 4.132 % low: -11.52 % |
|
| Earnings Growth | — | |
| Earnings Growth QoQ | — | |
| Earnings Growth YoY | — | |
| Earnings Growth IPRWA | — | |
| MARGINS | ||
| Gross Margin | 23.754 % | |
| Gross Margin QoQ | 0.317 % | |
| Gross Margin YoY | 5.26 % | |
| Gross Margin IPRWA | high: 68.47 % median: 32.867 % mean: 32.175 % GDS: 23.754 % low: 3.216 % |
|
| EBIT Margin | 14.661 % | |
| EBIT Margin QoQ | -72.139 % | |
| EBIT Margin YoY | 24.309 % | |
| EBIT Margin IPRWA | high: 40.753 % median: 16.705 % mean: 15.264 % GDS: 14.661 % low: -4.292 % |
|
| Return On Sales (ROS) | 14.295 % | |
| Return On Sales QoQ | -72.835 % | |
| Return On Sales YoY | 21.206 % | |
| Return On Sales IPRWA | high: 19.395 % median: 16.705 % mean: 14.707 % GDS: 14.295 % low: -5.114 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -399.68 M | |
| Free Cash Flow Yield | -0.801 % | |
| Free Cash Flow Yield QoQ | 43.806 % | |
| Free Cash Flow Yield YoY | -91.379 % | |
| Free Cash Flow Yield IPRWA | high: 5.432 % median: 1.788 % mean: 1.442 % GDS: -0.801 % low: -8.336 % |
|
| Free Cash Growth | 74.336 % | |
| Free Cash Growth QoQ | -170.461 % | |
| Free Cash Growth YoY | -699.242 % | |
| Free Cash Growth IPRWA | high: 428.407 % GDS: 74.336 % median: 20.62 % mean: 4.754 % low: -467.291 % |
|
| Free Cash To Net Income | 5.528 | |
| Cash Flow Margin | 52.263 % | |
| Cash Flow To Earnings | -20.965 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.02 | |
| Return On Assets (ROA) | -0.095 % | |
| Return On Assets QoQ | -109.161 % | |
| Return On Assets YoY | -67.466 % | |
| Return On Assets IPRWA | high: 8.172 % median: 3.214 % mean: 2.876 % GDS: -0.095 % low: -6.078 % |
|
| Return On Capital Employed (ROCE) | 0.606 % | |
| Return On Equity (ROE) | -0.003 | |
| Return On Equity QoQ | -109.013 % | |
| Return On Equity YoY | -75.896 % | |
| Return On Equity IPRWA | high: 0.157 mean: 0.063 median: 0.062 GDS: -0.003 low: -0.139 |
|
| DuPont ROE | -0.304 % | |
| Return On Invested Capital (ROIC) | 0.507 % | |
| Return On Invested Capital QoQ | -74.458 % | |
| Return On Invested Capital YoY | -109.918 % | |
| Return On Invested Capital IPRWA | high: 7.923 % median: 5.814 % mean: 4.87 % GDS: 0.507 % low: -7.46 % |
|