Grid Dynamics Holdings (GDYN) AI Stock Analysis

• Market Cap: $1.04B
• Dividend Yield: N/A
• Average Volume (3M): 648.45K
• Price to Earnings (P/E): 92.3
• Beta (1Y): 1.22
• Revenue Growth: 18.72%
• EPS Growth: 347.70%
• Country: US
• Employees: 4,926
• Sector: Technology
• Sector Strength: 79
• Industry: Information Technology Services
• EPS (TTM): 0.11
• Shares Outstanding: 84,547,650
• 10 Day Avg. Volume: 674,890
• 30 Day Avg. Volume: 648,446
• PEG Ratio: 0.12
• Price to Book (P/B): 4.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.57
• Enterprise Value/Market Cap: 0.18
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 1.37
• Enterprise Value/Ebitda: 2.61
• 1Y Price Target: $18.25
• Price Target Upside: 51.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 67 Neutral
• Price Target: $14.50 ▲(20.13%Upside)

Grid Dynamics Holdings shows solid financial performance with strong revenue growth and a stable balance sheet. However, technical indicators suggest bearish momentum, and the high P/E ratio points to overvaluation. Positive earnings call sentiment and improved financial flexibility from corporate events are significant strengths.

Positive Factors

Acquisitions

Integration of the recent acquisitions of Mobile Computing and JUXT are tracking in line with plan and management anticipates more synergies.

Earnings

Grid Dynamics reported first-quarter results ahead of consensus expectations on the top and bottom lines.

Growth Prospects

Based on GDYN's AI investments and strong vertical and domain capabilities, the business is positioned to gain share and re-accelerate organic growth throughout FY25 and into FY26.

Negative Factors

Economic Conditions

Worsening economic conditions would taper the company’s near-term growth prospects.

Guidance

Mixed 2Q guides and a surprising CY25 revenue outlook affirmation amid elevated macro uncertainty may cause some consternation as investors fret about potential guidance cuts later.

Grid Dynamics Holdings Business Overview & Revenue Model

Company Description

Grid Dynamics Holdings, Inc. (GDYN) is a leading provider of digital transformation services. The company specializes in delivering scalable, next-generation technology solutions to global enterprises across various sectors including retail, technology, and financial services. Grid Dynamics offers a range of services such as cloud enablement, big data analytics, machine learning, and artificial intelligence to help businesses modernize their IT infrastructure and improve overall operational efficiency.

How the Company Makes Money

Grid Dynamics generates revenue primarily through its digital transformation services, which include consulting, engineering, and delivery services tailored to client-specific needs. The company earns money by engaging in long-term contracts with large enterprises seeking to overhaul their digital infrastructure. Revenue is driven by the demand for innovative technology solutions in areas such as cloud computing, data analytics, and artificial intelligence. Strategic partnerships with leading technology vendors and platforms, as well as a strong focus on customer relationships, contribute significantly to the company's earnings by enhancing its service offerings and expanding its market reach.

Grid Dynamics Holdings Financial Statement Overview

Summary

Grid Dynamics Holdings exhibits strong financial health with robust revenue growth and a stable balance sheet. The company has a low debt-to-equity ratio and strong cash generation, although profitability metrics like net profit margin and ROE suggest room for improvement.

Income Statement

Grid Dynamics Holdings shows strong revenue growth with a 18.1% increase in TTM revenue compared to the previous annual figure. The gross profit margin stands at 36.7% for TTM, indicating efficient cost management. However, the net profit margin is relatively low at 2.9%, suggesting room for improvement in overall profitability. The company has improved its EBIT and EBITDA margins over time, but these could be further enhanced.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.02, indicating minimal reliance on debt financing. The equity ratio is high at 87.6%, showcasing strong financial stability. Return on Equity (ROE) is modest at 2.1%, suggesting potential for better returns on shareholder investments.

Cash Flow

Cash flow analysis reveals a healthy free cash flow growth rate of 32.4% in TTM. The operating cash flow to net income ratio is favorable at 3.33, indicating strong cash generation relative to net income. Free cash flow to net income ratio is also positive, reflecting efficient cash management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
143.27M	350.57M	312.91M	310.48M	211.28M	111.28M
	Gross Profit
58.55M	127.00M	113.15M	120.59M	87.73M	41.62M
	EBIT
-5.62M	-2.10M	-5.58M	-21.01M	50.00K	-15.45M
	EBITDA
-2.00M	16.63M	7.69M	-10.81M	5.10M	-12.54M
	Net Income Common Stockholders
-9.38M	4.04M	-1.76M	-29.21M	-7.70M	-12.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
257.23M	334.65M	257.23M	256.73M	144.36M	112.75M
	Total Assets
435.17M	592.19M	435.17M	411.15M	256.72M	167.13M
	Total Debt
11.00M	12.63M	11.00M	8.14M	0.00	0.00
	Net Debt
-246.23M	-322.03M	-246.23M	-248.59M	-144.36M	-112.75M
	Total Liabilities
52.26M	74.36M	52.26M	48.10M	29.67M	15.41M
	Stockholders Equity
382.91M	517.83M	382.91M	363.04M	227.05M	151.73M
Cash Flow		Free Cash Flow
10.42M	18.43M	33.22M	25.58M	13.26M	3.68M
	Operating Cash Flow
13.50M	30.20M	41.09M	31.65M	17.97M	5.93M
	Investing Cash Flow
-49.75M	-51.30M	-25.95M	-16.32M	-35.37M	-18.34M
	Financing Cash Flow
-18.87M	101.16M	-16.32M	97.76M	49.13M	82.97M

Grid Dynamics Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GDYN, the sentiment is Negative. The current price of 12.07 is below the 20-day moving average (MA) of 12.64, below the 50-day MA of 13.35, and below the 200-day MA of 16.75, indicating a bearish trend. The MACD of -0.56 indicates Positive momentum. The RSI at 30.60 is Neutral, neither overbought nor oversold. The STOCH value of 20.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GDYN.

Grid Dynamics Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TASK	81 Outperform	$1.49B	28.07	11.35%	―	14.05%	17.90%
FORTY	71 Outperform	$1.56B	19.08	12.47%	1.85%	3.51%	18.34%
FLYW	71 Outperform	$1.32B	382.62	0.63%	―	20.97%	―
NABL	70 Outperform	$1.54B	92.77	2.20%	―	7.98%	-40.59%
GDYN	67 Neutral	$1.04B	92.28	2.42%	―	18.72%	347.70%
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
VYX	52 Neutral	$1.64B	―	-19.49%	―	-50.48%	-15.75%

Grid Dynamics Holdings Corporate Events

Grid Dynamics Holdings Amends Credit Agreement for Flexibility

Grid Dynamics Holdings, Inc. announced on May 20, 2025, that it has entered into a Fourth Amendment to its Credit Agreement originally dated March 15, 2022. This amendment extends the maturity date to March 15, 2028, and increases certain financial covenants, allowing for a secured multicurrency revolving loan facility of up to $30 million, which can be expanded to $50 million under specific conditions. The amendment is expected to provide the company with greater financial flexibility for working capital and general corporate purposes, potentially impacting its operational capabilities and market positioning.

The most recent analyst rating on (GDYN) stock is a Buy with a $17.00 price target. To see the full list of analyst forecasts on Grid Dynamics Holdings stock, see the GDYN Stock Forecast page.