GDS Holdings Limited (9698.HK) stock analysis

In our weekly check, GDS Holdings Limited is graded C (A to F). Of 23 checks on debt, profit, cash flow and trend: 13 pass, warnings: 2, red flags: 8.

About GDS Holdings Limited

GDS Holdings Limited is a Technology company (Information Technology Services) based in China, listed on HKSE as 9698.HK.

What our checks show for 9698.HK

Red flags

• Net debt is 5.9x a year of EBITDA (debt/equity 1.46). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 1.4 times: a weak year could make the payments hard.
• Analysts expect the net margin to shrink by 29.7 points from today's 30.5%.
• Free cash flow is negative (-6.4% of revenue): the business spends more cash than it brings in.
• The price swings a lot: 58.2% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 96% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 2.9%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Analysts expect earnings per share to shrink about 73.1% a year.
• The stock is still below its previous peak.

Strengths

• The net margin rose by 45.8 points over 5 years, to 30.5%.
• The gross margin is 24.3% and has risen by 1.6 points: pricing power is holding.
• Earnings per share grew 39.6% a year over the last 3 years.
• The company keeps 30.5% of its revenue as net profit.
• The price is 8 times earnings (P/E), reasonable for its growth.
• Beta 0.43: the stock usually moves less than the market.

Next earnings report: 2026-11-24

Similar companies

NSIT · APLD · PSN · CIFR · KD · EXLS

Questions

What grade does GDS Holdings Limited (9698.HK) have?

In our weekly check, GDS Holdings Limited is graded C (A to F). Of 23 checks on debt, profit, cash flow and trend: 13 pass, warnings: 2, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 9698.HK stock?

This week's biggest flags for GDS Holdings Limited: High debt, Weak interest cover, Margins expected to shrink. In total 10 of 23 checks show a warning or a red flag.

What does GDS Holdings Limited do?

GDS Holdings Limited is a Technology company (Information Technology Services) based in China, listed on HKSE as 9698.HK.

When does GDS Holdings Limited report earnings next?

The next earnings report is expected on 2026-11-24. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

Open the full analysis