Trade Desk, Inc. (TTD) Stock Analysis

Analysis from 10-Q filed 2026-08-06. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 13.6%. FCF margin 28.9%. Source: 10-Q filed 2026-08-06.

Metric	Value	Context
ROIC	13.6%	Solid returns
FCF Margin	28.9%	Strong cash generation

ROIC 13.6% — Top 25% of sector peers. FCF margin 28.9% — Top 25%.

Explore Trade Desk, Inc.: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for TTD: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: Trade Desk, Inc. earns 13.6% ROIC, Top 25% in Technology

ROIC TTM 13.6%, sector median 3.7%, Top 25%. DuPont: NOPAT margin 12.4% × asset turnover 0.5x. Gross margin 76.9%. Operating margin 19.6%. Source: 10-Q filed 2026-08-06.

Metric	TTD	Rating	Context
Return on Invested Capital (ROIC)	13.6%	Good	Above sector median of 3.7%
Return on Equity (ROE)	16.0%	Good	Efficient use of shareholder equity
Gross Margin	76.9%	Excellent	Strong pricing power
Operating Margin	19.6%	Good	Efficient operations

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Cash Flow: Trade Desk, Inc. generates $863.0M FCF at 28.9% margin, positive NaN/8 quarters

FCF TTM $863.0M. FCF margin 28.9%, Top 25%. OCF/Net income 2.7x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-08-06.

Metric	TTD	Rating	Context
Free Cash Flow Margin	28.9%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$863.0M	Good	Positive cash generation
OCF/Net Income	2.7x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet Analysis for Trade Desk, Inc.

Interest coverage 277.9x. Source: 10-Q filed 2026-08-06.

Metric	TTD	Rating	Context
Interest Coverage	277.9x	Excellent	Comfortable debt service

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Valuation: Trade Desk, Inc. trades at 14.3x earnings

P/E 14.3x. EV/Sales 1.4x. FCF yield 15.1%. Source: 10-Q filed 2026-08-06.

Metric	TTD	Rating	Context
P/E Ratio	14.3x	Adequate	Reasonable valuation
EV/Sales	1.4x	Excellent	Attractive revenue multiple
FCF Yield	15.1%	Excellent	Attractive cash return

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Capital Allocation: Trade Desk, Inc. returns 17.1% shareholder yield, reducing shares 4.1% YoY

Total shareholder yield 17.1% (buyback 17.1%). Share count -4.1% YoY. Capital returned $974.7M TTM. Source: 10-Q filed 2026-08-06.

Metric	TTD	Rating	Context
Total Shareholder Yield	17.1%	Excellent	Dividend + buyback yield combined
Buyback Yield	17.1%	Good	Active share repurchases
Share Count Change (YoY)	-4.1%	Good	Net share reduction (accretive)
Total Capital Returned (TTM)	$974.7M	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	13.6%	Top 25%	3.7x above
Free Cash Flow Margin	28.9%	Top 25%	2.8x above
Gross Margin	76.9%	Top 25%	1.5x above
Operating Margin	19.6%	Top 25%	4.5x above
Return on Equity (ROE)	16.0%	Top 50%	3.0x above
P/E Ratio	14.3x	N/A	-

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Financial Scorecard

Metric	TTD	Rating	Sector Context
Return on Invested Capital (ROIC)	13.6%	Good	Top 25% of sector (median: 3.7%)
Free Cash Flow Margin	28.9%	Excellent	Top 25% of sector (median: 10.3%)
Gross Margin	76.9%	Excellent	Top 25% of sector (median: 50.5%)
P/E Ratio (Price-to-Earnings)	14.3x	Adequate	Attractively valued
Free Cash Flow Yield	15.1%	Excellent	High cash return

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Frequently Asked Questions

Q: What is Trade Desk, Inc.'s Return on Invested Capital (ROIC)?

Trade Desk, Inc. (TTD) has a trailing twelve-month Return on Invested Capital (ROIC) of 13.6%. The 8-quarter median ROIC is 12.2% with a declining trend. Sector median 3.7%. Source: 10-Q filed 2026-08-06.

Q: What is Trade Desk, Inc.'s Free Cash Flow Margin?

Trade Desk, Inc. (TTD) has a free cash flow margin of 28.9%, generating $863.0 million in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-08-06.

Q: What is Trade Desk, Inc.'s P/E ratio and how does it compare to peers?

Trade Desk, Inc. (TTD) trades at a P/E ratio of 14.3x, which is above the sector median of N/A. EV/Sales 1.4x. FCF yield 15.1%. Source: 10-Q filed 2026-08-06.

Q: What is Trade Desk, Inc.'s revenue and earnings growth?

Trade Desk, Inc. (TTD) grew revenue by 11.6% year-over-year. EPS +1.9% YoY. Source: 10-Q filed 2026-08-06.

Q: Is Trade Desk, Inc. buying back stock?

Trade Desk, Inc. (TTD) repurchased $974.7 million of stock over the trailing twelve months. This represents a buyback yield of 17.1%. Share count -4.1% YoY. Source: 10-Q filed 2026-08-06.

Q: How does Trade Desk, Inc. compare to competitors in Technology?

Compared to other companies in Technology, Trade Desk, Inc. (TTD) shows: ROIC 13.6%, sector median 3.7% (Top 25%). FCF margin 28.9%, sector median 10.3% (Top 25%). Gross margin 76.9%, 26.4pp above sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.

Q: What warning signs should I watch for with Trade Desk, Inc.?

Quantitative warning flags for Trade Desk, Inc. (TTD): 1) ROIC declining -4.2% over 8 quarters. Source: 10-Q filed 2026-08-06.

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Data Source: Data sourced from 10-Q filed 2026-08-06. TTM metrics as of Q2 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.