Team Internet Group (TIG) AI Stock Analysis

• Market Cap: £121.38M
• Dividend Yield: 2.06%
• Average Volume (3M): 216.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: -6.63%
• EPS Growth: -177.14%
• Country: UK
• Employees: 849
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.05
• Shares Outstanding: 246,181,290
• 10 Day Avg. Volume: 287,133
• 30 Day Avg. Volume: 216,750
• PEG Ratio: 0.09
• Price to Book (P/B): 3.21
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 3.96
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £90.00
• Price Target Upside: 81.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: 43.00p ▼(-13.31% Downside)

The overall stock score is primarily impacted by financial performance challenges, including declining revenues and high leverage. Technical analysis indicates a bearish trend, further weighing on the score. Valuation concerns due to a negative P/E ratio are offset slightly by a positive dividend yield. The strategic review is a positive corporate event, offering potential future growth and value creation.

Positive Factors

Diverse Revenue Streams

The company's diverse revenue streams, including SEO, PPC, and domain services, provide resilience against market fluctuations and support long-term financial stability.

Partnerships with Major Platforms

Strategic partnerships with major digital platforms enhance TIG's service capabilities and market reach, offering potential for sustained growth and competitive advantage.

Cash Generation Capability

Despite profitability challenges, TIG's ability to generate cash from operations suggests underlying business strength and potential for future financial improvements.

Negative Factors

Declining Revenue

A declining revenue trend indicates challenges in maintaining market share or product demand, which could impact long-term growth prospects and operational viability.

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and affecting its long-term financial health.

Negative Profit Margins

Negative profit margins reflect operational inefficiencies and profitability challenges, which could hinder the company's ability to sustain operations and invest in future growth.

Team Internet Group Business Overview & Revenue Model

Company Description

Team Internet Group plc provides domain name services worldwide. It operates through two segments, Online Presence and Online Marketing. The Online Presence segment provides domain names through a network of channel partners, as well as selling domain names and ancillary, monitoring, technical, and consultancy services to end users and corporate clients. The Online Marketing segment offers privacy-safe AI-based customer journeys that help online consumers make informed choices. It also sells domain names to registrants and license registry management platform. The company was formerly known as CentralNic Group Plc and changed its name to Team Internet Group plc in October 2023. Team Internet Group plc was founded in 1996 and is headquartered in London, the United Kingdom.

How the Company Makes Money

TIG generates revenue through multiple streams, including domain registration fees, web hosting subscriptions, and online advertising services. The company charges customers for registering and maintaining domain names, which is a recurring revenue model. Additionally, TIG offers premium hosting services and digital marketing solutions, such as search engine optimization (SEO) and pay-per-click (PPC) advertising, which further contribute to its earnings. Significant partnerships with various tech platforms and advertising networks also enhance its service offerings and create additional revenue opportunities. By leveraging its expertise in digital marketing and infrastructure, TIG capitalizes on the growing demand for online presence among businesses, ensuring a steady influx of revenue.

Team Internet Group Financial Statement Overview

Summary

Team Internet Group faces challenges with declining revenues and profitability, as shown by negative margins and revenue growth. The balance sheet is heavily leveraged, increasing financial risk. Cash flow generation is relatively stable, but overall financial health is strained, requiring strategic improvements to enhance profitability and reduce leverage.

Income Statement

The income statement shows a declining revenue trend with a negative revenue growth rate of -11.08% in the TTM. Gross profit margin is moderate at 24.75%, but the net profit margin is negative at -6.33%, indicating profitability issues. EBIT and EBITDA margins are also low, reflecting operational challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.89, suggesting significant leverage. Return on equity is negative at -39.17%, indicating poor returns for shareholders. The equity ratio is not provided, but the high leverage poses a risk to financial stability.

Cash Flow

Cash flow analysis shows a decrease in free cash flow growth by -14.05% in the TTM, but the operating cash flow to net income ratio is 0.38, indicating some cash generation capability. The free cash flow to net income ratio is nearly 1, suggesting efficient cash conversion despite negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	657.00M	802.80M	836.90M	728.20M	410.54M	240.01M
Gross Profit	162.60M	187.50M	191.10M	177.70M	118.50M	75.12M
EBITDA	10.15M	27.60M	85.80M	60.50M	32.73M	11.94M
Net Income	-41.60M	-17.70M	24.30M	-2.10M	-3.54M	-10.86M
Balance Sheet
Total Assets	455.20M	479.60M	546.70M	558.60M	400.22M	348.18M
Cash, Cash Equivalents and Short-Term Investments	76.60M	88.30M	92.70M	94.80M	56.13M	28.65M
Total Debt	173.20M	188.90M	171.40M	156.90M	138.05M	120.19M
Total Liabilities	363.80M	386.50M	393.20M	391.60M	286.24M	234.29M
Stockholders Equity	91.40M	93.10M	153.50M	167.00M	113.98M	113.90M
Cash Flow
Free Cash Flow	61.30M	75.30M	65.20M	71.10M	36.22M	16.44M
Operating Cash Flow	61.90M	76.60M	75.40M	77.60M	41.02M	20.70M
Investing Cash Flow	-9.70M	-44.70M	-37.30M	-90.60M	-24.87M	-44.98M
Financing Cash Flow	-66.90M	-32.10M	-43.40M	57.00M	14.04M	25.64M

Team Internet Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 49.60
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TIG, the sentiment is Neutral. The current price of 49.6 is above the 20-day moving average (MA) of 46.74, above the 50-day MA of 47.97, and below the 200-day MA of 58.40, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 57.11 is Neutral, neither overbought nor oversold. The STOCH value of 90.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:TIG.

Team Internet Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOOM	65 Neutral	£118.62M	39.66	89.29%	―	7.54%	―
DBOX	65 Neutral	£5.60M	-22.62	-3.35%	―	20.71%	96.18%
BBSN	64 Neutral	£70.06M	37.23	5.43%	0.58%	1.92%	-75.53%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TIG	47 Neutral	£121.38M	-8.75	―	2.06%	-6.63%	-177.14%
MOS	43 Neutral	£58.34M	-30.75	―	―	-26.19%	71.43%

Team Internet Group Corporate Events

Team Internet Group Initiates Strategic Review to Enhance Shareholder Value

Team Internet Group plc has initiated a strategic review to unlock shareholder value, focusing on divesting or forming strategic partnerships for its market-leading platforms. The company is responding to changes in the digital advertising landscape, particularly due to Google’s policy updates, by accelerating its direct-to-advertiser and commerce media activities. The strategic review aims to highlight the distinct value of its segments, with the DIS segment showing strong financial performance and potential for a valuation exceeding the current market capitalization. The company expects to return to double-digit earnings growth from 2026, driven by the momentum in DIS, recovery in the Comparison segment, and scaling of RSOC and commerce media in Search.